to the webinar
TRANSCRIPT
WELCOME
to the WEBINAR
Clean Energy for a Green Economy1:30-3:00pm PDT, June 3, 2010
Brought to you by:
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Audio information: Dial-In Number: 1 866 602 5089Conference ID: 2440222Mute phone: mute button or *6
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Support at 250 886 7027 if issues cannot be resolved.
Presenters
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Diana Brooks, Regional Manager-KootenayRuralBC Secretariat
Dale Littlejohn, Manager Community Outreach/StrategyCommunity Energy Association
Kathy Lachman, Business Development OfficerEconomic Development Cowichan
Dr. David W Johnson, PresidentRevelstoke Community Energy Corporation
Audio information: Dial-In Number: 1 866 602 5089Conference ID: 2440222Mute phone: mute button or *6
Visual Information: Click on “Voice and Video” in the menu barTroubleshooting: Follow instructions in the meeting invitation. Call IT
Support at 250 886 7027 if issues cannot be resolved.
Webinar Agenda
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Introductions (5 min)
Presentations (40 min)
Questions & Discussion (30 min)
Closure (5 min)
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Introduction
“Clean Energy for a Green Economy”
• On-the-ground activity in rural B.C.
- Opportunities & gaps for communities
• Partnership: RuralBC Secretariat, MCD, and Community Energy Association (CEA)
- Introductory e-guidebook
Renewable and clean energy strategies
Assessment and readiness
Transition and leverage to a green economy
Opportunities & Challenges
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BC Energy Plan
BC Climate Action Plan
BC Energy Efficient Building Strategy
• Smart Planning for Communities
• Regional Growth Strategies
• OCPs• Smart metering• Climate Action
compliance• Low carbon
economy Revenue-neutral Carbon Tax Act
UBCM Green Communities
Cap & Trade Act
BC Bioenergy Strategy
Bill 27
BC Climate Action Charter
Integrated resource recovery (IRR)
BC Brownfield Renewal Strategy Greenhouse
Gas (GHG) Reduction Targets Act
Pacific Carbon Trust
CEEPs LiteCommunity Energy & Emissions Planning
Zero Waste Strategy
Living Water Smart
Innovative Clean Energy Fund (ICE)
• Carbon sequestration
• Carbon neutral• Zero net
emissions• Energy
conservancy & efficiency
• Environmentalpricing reform
Community Energy AssociationConnecting communities, energy and sustainability
Supporters
Copyright 2010 Community Energy Association
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Planning for the ‘new’ future 2000 2020 2040 2080 2100
Lifespan
Street layout
Buildings
Infrastructure
Unavoidable surprises
Global peak oil
Additional 0.8 degrees warming
Global -50% emissions (-80% to -96% here)
Why Climate Action
Clean Energy
• 7 Clean Energy Strategies in the guide
• 4-page (2-page double-sided) introductions
• 1st step, could add more strategies in future versions
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What is District Energy?• A district energy system is an integrated, flexible,
energy-efficient and cost effective way to distribute heating (and/or cooling) to more than one building.
• A well-designed system is readily adaptable to a variety of clean energy sources.
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• In Place
– Vancouver X 3
– Revelstoke
– North Vancouver
– Victoria
– Kelowna x 2
– Whistler
– Prince George
– Burnaby
• Under Study
– Kelowna
– Peachland
– Coquitlam
– Houston
– Gibsons
– Langley
– Nelson
– Port Alberni
– Port Hardy
– Prince George
– Quesnel
– Richmond
– Surrey
– Squamish
– Trail
Growing interest in DE around BC
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Energy Project Stages & Funding
DesignPlanBuild / Install
Operate & Maintain
• Utility grants (ie BC Hydro)• Development trusts• FCM GMF• Borrowing• Funding as part of local government
budget• Gas tax• Provincial grants (Infrastructure
Planning,…)
Studies Capital Operations
• FCM GMF• Utility Grants• Borrowing• SolarBC• Private sector risk
capital or investment
• ICE• Gas tax
• customer charges• Taxes• Offsets?• Community
economic development
Will DES Work Here?
• Sources of low-cost heat and long-term availability• Is there a mixed-use development fairly close to available heat
source(s)?• Can public sector buildings (that share a carbon neutral
commitment) serve as an anchor for a broader district energy system?
• Are there new developments that can be encouraged to incorporate district energy?
• Can we time the laying of district energy pipes to coincide with regular infrastructure work?
• Should the local government own and/or operate the district energy utility, fully or in part or encourage private ownership?
• What are potential community concerns and how should the community be engaged?
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Process to Answer Questions
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Analyze Potential Renewable Heat Sources
Review Heat Demand and Projection
Technology and Policy Analysis
Assess Utility Structure Options
Develop Integrated Plan
Green Economy Opportunities• Plan / Design
– R&D in local colleges, universities and manufacturing firms– Creation of new local industry skills to serve surrounding communities
• Build / Install– Installation of district energy system– Building of local industry skills to serve surrounding communities
• Operations / Maintenance– Establishment of a local energy utility– Utilization of local energy resources to fuel the system, including supporting
local industry through use of waste heat or waste biomass – Ongoing operation and maintenance of the system
• Community Economic Development– Attraction of related clean energy companies to form a clean energy hub– Increased local tax base and/or non-tax revenue stream– Partnerships and collaborations with neighbouring communities, First
Nations and the private sector– Enhanced community profile and branding
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Moving to Recirculation
Local government Approx community natural gas consumption*
Approx community natural gas expenditure
Duncan 80,000 GJ $800,000
Ladysmith 80,000 GJ $800,000
North Cowichan 280,000 GJ $2,800,000
Lake Cowichan Electricity only
Cowichan Valley Regional District
685,000 GJ $6,850,000
• Source: CEEI
Opportunities at all Stages
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Getting to the Green Economy
The Cowichan Region
Economic Development Cowichan
Clean Technology and the Green Economy
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Overview
• Research
• Setting The Stage
• Creating Demand
• Creating Supply
• Partnerships
• Challenges
• Example
• Next Steps
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Report Process
Clean Technology Reports One and Two
- Clean Technology Advisory
Committee
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Setting the Stage
• BR&E Program- Cowichan First
• Regional Energy Plan- CVRD
• Creating political and regulatory environment
• Local participation
• Education
• Funding
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Creating Demand
- Existing businesses
- Public infrastructure
- New developments
- Other organizations
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Creating Supply
- Utilizing existing resources- play on your strengths
- Identifying new opportunities
- Market to new investors
- Market existing businesses
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Partnerships
- Important to understand who is doing what and how you can link in
- Community involvement
- Government
- Linx BC
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Challenges
- Reluctance at local level to use local technology and resources
- Local governments are risk adverse
- Electricity costs prohibitive to renewables
- Retrofits can be costly
- Many unproven technologies
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Example
- Demand Side
- Supply Side
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Next Steps
- Development of Green Economic Development Strategy
- Incorporating triple bottom line - economic, social and environment
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Existing Strategies New Strategies
Industry Attraction Local Quality of Life
Industry Expansion Industry Efficiency
Building Infrastructure Reducing Waste/Recycling
Workforce Attraction Workforce Development
Resource Extraction Eco-restoration/renewable energy
Land Inventory Urban Form and Green Building
BC Stories
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Biomass –The Revelstoke District Energy Experience
RCEC - Project Description
• Heat Only Project
• 1.5 Megawatt Biomass Boiler and 1.75 MW propane backup boiler
• Wood “waste” from Downie Sawmill
• Plant produces steam for sale to Downie’s dry kiln
• 2.3 km of District Heating Piping to major buildings in the City Core for Heating and Domestic Hot Water
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RCEC - Plant and Fuel Bin
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Plant Building Fuel Bin
RCEC - Boiler and Pipeline
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Plant Boiler CES Pipeline
Why Revelstoke Did This Project
• Improved air quality• Step toward silo burner elimination• GHG displacement @ 3400 tonnes/yr• Propane import displacement• Alternate energy source• Non-taxable, non tax source of City revenue• Incremental plant expansion opportunity• Value-added use of wood “waste”• Local processing of local resources
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Advantages to Downie andCES Customers
• Long term stable energy pricing
• No need for a boiler and maintenance of
same, with space saving in building
• A “Win-Win” solution to wood “waste”
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RCEC - Project Costs
• $7.0M Project
~$3.0M for Central Plant and Equipment*
~$2.0M for Phases 1, 2, & 3 of CES*
~$1.1M for Energy Transfer Stations*
~$0.9M for construction financing, developer’s costs, etc.
* Includes design and engineering
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RCEC - Sources of Financing
RCFC Holding Co. $1.25M
City Pref Share Purchase $1.2M
FCM GMF Loan @ ~3.5% $1.35M
Revelstoke Credit Union $1.0M
FCM GMF Grant $1.81M
Towns for tomorrow grant $0.38M
Total $6.99M
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RCEC - Financial Summary
• Simple Payback – 13 years (10)
• Return on Investment* – 5.3% (6.5)
• Return on Equity* – 8.8% (13.8)
* Over 25 years - figures in brackets represent projections in feasibility study
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RCEC Experience to Date
• Approximately 2% over budget at commissioning
• Water contamination of thermal oil
• Heat exchanger failures
• Learning curve on boiler operation - fuel feed modifications, adjustments for variations in fuel
• Failure to meet first 2 year’s revenue projections
• Significant extra costs to rectify problems
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RCEC – Experience
• Steam generator and combustion pipe corrosion despite prescribed water RX
• Replacement of inferior quality refractory in year 4
• Fire Dec 2009
• Awareness of DE lacking in key federal and provincial government departments
• Outdated legislation and plant modification to avoid 24/7 manning of plant - hot oil loop - has been the source of the majority of our problems
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RCEC - Experience
• Energy supply contracts with customers must provide means to recover unexpected costs
• Qualified backup staffing is a problem in small communities
• Small plants lack economies of scale• Customers have difficulty understanding
seasonal boiler efficiency which causes difficulty in establishing Energy Supply Agreements
• Initial attempt was to do a full combined heat & power plant at cost of $18.5M to generate 4.5 MW of electricity with only a “viable” market for 20% of residual heat - UNECONOMIC!
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RCEC - Future Considerations
• Costs of fuel after current fuel supply agreement expires and/or the mill goes down
• Financing for expansion of plant and distribution system
• Mill closure would be loss of major revenue source
• Climate change will create a demand for cooling
• What is minimum size of project to get good economies of scale?
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RCEC - Future Considerations
• Cost effective hookups for individual residences• Difficulty getting long term financing for capital
intensive DE• Emerging technologies may identify more
profitable energy creation from the same fuel base resulting in escalating biomass cost
• Economics of DE and other alternate energy sources negatively impacted by current relatively low pricing of fossil fuels and electricity
• Ground sourced heat pumps currently in favour with some key sectors
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RCEC - Keys To Success
“Necessity is the Mother of Invention”
• A committed Council with a will to complete and a Community Energy and Emissions Plan underway to give future direction
• Availability of grants and financing • Broad support from an informed, self-
confidant community • A project champion• Hiring of proven, effective staff & consultants• Luck and timing
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Keys To Success
• A committed corporate citizen - Downie Timber
- gave ¼ acre of land for the plant site
- provided 20 year agreement to supply fuel
delivered free
- signed 20 year contract to purchase steam energy
- signed a staffing agreement at cost - a 50/50 share
of an employee
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Would We Do It Again ?
“Yes”
I believe we would do it again
Thank you
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Discussion
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•What do you need to move your district energy systems/community energy projects to the implementation stage?
• Does your economic development plan include district energy systems or building efficiencies as part of your community’s economic future?
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THANK YOU
for your participation in this webinar
Resources www.communityenergy.bc.ca
Detail on Strategies
Community Energy Planning
ImplementationEducation
Contacts
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Diana Brooks & Khris Singh, Regional ManagersRuralBC [email protected] or [email protected] 250-426-1301 or Khris 250-897-3276
Dale Littlejohn, Senior Manager, Advisory ServicesCommunity Energy [email protected]
Kathy Lachman, Business Development OfficerEconomic Development [email protected]
David Johnson, President Revelstoke Community Energy [email protected]