Renewable Energy & Economic Development

1. Renewable Energy & Economic Development Deborah Doncaster Ontario Sustainable Energy Association

2. Overview • Who is OSEA? • What is Community Power? • Renewable Energy - an emerging economic development sector • The added value of community power or local ownership • Policy regime - beyond the private sector • Role of EDCOs

3. Ontario Sustainable Energy Association • Member-based NGO representing over 30 community organizations developing green power projects • Wind, solar, biogas, small hydro • Generally small wind projects (< 10 MW) with large or utility grade turbines • Represented interests: • Community co-ops and non profits • Municipalities (MUSH sector) • Farmers and rural land owners • Locally owned SMEs (developers, suppliers, installers)

5. Citizens For Renewable Energy (CFRE) Eco Energy Choices Ottawa Eco-energy Durham Hearthmakers Energy Countryside Energy co-op EcoPerth M’Chigeeng First Nation Economic Advancement Project Positive Power Co-op Hamilton Green Energy Co-operative Windy Hills Caledon WindShare WindFall Ecology Centre Toronto Renewable Energy Co-op Superior Renewable Energy Co-op The Renewable Energy Co-operative North Sustainable Energy Resource Group Power Up Renewable Energy Barrie Wind Catchers Cool Caledon OSEA Community Power Orgs.

6. What is Community Power? • Locally owned (wholly or significantly) RE generation projects • Commercial-scale (or aggregated micro) • Optimizes local benefits (social, economic and environmental) • Accessible, open participation* • Democratically controlled* • Financially viable

7. What is Community Power? WindShare Toronto-based wind power co-operative Members are local residents, businesses, Charities, financial institutions etc. Members managed development process of project ( 1 MW wind turbine on Toronto waterfront) via staff, Board, contracts and volunteer committees Members fundraised to cover development costs, do Offering, and sales and marketing (~$1 million) (1/2) Members purchased shares ($500 min - $5,000 max) Members sell power to Toronto Hydro (grid) Co-operative is paid for green power supply (~$250K / MW / yr) Co-op pays out expenses - lease, insurance, O&M, taxes, interest on debt, staff and org. expenses Members receive dividends proportionate to number of shares owned( number of kWhs they produce) Members determine how to spend surpluses beyond dividends

8. FarmShare Landowner and/or farmer co-operative Aggregation of micro-generators (100 Kw biogas digester, 3 kW solar PV, 150 kW wind) Aggregate sells power to the grid Members receive dividends Washington - PPA price set to encourage local manufacturing and use of local installers Region of Niagara and Rankin Construction Representing local municipalities and a local business 10 MW wind farm Sells power to the grid Region provides feasibility financing through FCM funding Rankin provides construction and extends their business know-how and practice JV sells power to grid What is Community Power?

9. Community Power and Economic Development • In the energy economy, there are 2 principle organizational models by which to develop/own/sell green power into the grid: • As a private enterprise • As a community-based enterprise • Experience abroad (Denmark, Germany, U.K., Iowa, Minnesota) proves that green power development results in local and regional economic development • However, community-based green power enterprises can compete with the private sector AND result in a greater degree of economic development for the local community and region

10. Community Power Potential Germany • Largest installed capacity in the world (18,400 MW of Wind) • Supplies 6% of country’s electricity • 35% wind projects are owned by local residents and communities Denmark • 4th largest installed capacity worldwide (3,100 MW of Wind) • Supplies 20% of country’s electricity • 85% wind projects owned by local residents and communities

11. An Emerging Economic Development Opportunity Operation of wind turbines employs more people than traditional energy sector: • 27% more jobs than coal plants • 66% more jobs than natural gas plants (New York State Energy Research and Development Authority)

12. Human Resource Needs in Canadian Wind Energy(Industry Canada report)

13. Wind Jobs & ED Potential • According to Industry Canada, by 2012, Canada will have 5600 MW of new wind and 13,000 jobs • We could see this growth in Ontario alone given • Wind energy projects create new jobs in manufacturing (electronic components, turbine parts such as blades and towers), transportation and construction (foundations and installation of turbines) • Toronto turbine tower was made in Ajax Ontario • New tower manufacturing facility built on Lake Erie in response to sudden growth in wind development along Lake Erie and Lake Huron (RMI - US company) • Wind energy offers rural landowners a new cash crop (~$2,000/ yr/turbine or 2-3% of project’s gross revenues) • Although a landowner may receive a lease payment of $2,000 to $5,000 per turbine annually, owning a turbine can double or triple the income

14. Local Tax Revenues • 75-90 cents of every energy dollar leaves the local economy (FCM, RMI, US Dept Energy) • Property taxes for wind are often 2-3 time higher than traditional power plants • Property taxes for munis ~ $10,000 /MW/yr or 1% of assessed value of a wind project • Examples: • Lincoln County, Minnesota: $470K in 2003 (155 MW) • Kewaunee County, Wisconsin: $200K/yr - or 50% of county’s budget (20 MW) • Iowa: $2..5 million/yr (320 MW)

15. Wind Utility Consulting – 2005 * For 1 MW of generating capacity annually Locally owned wind generation creates 10 times more economic activity in the local community and state than does wind generation owned by out-of-state companies.

16. Current Opportunity In Ontario • Ontario requires over 20,000 MW in new generating capacity to replace old units • Represents a $40 billion investment • Ontario requires massive investment in transmission system

17. Wind Power Potential in Ontario • Ontario has over 3 times the landmass of Germany and a comparable wind regime, some say even better. • Germany has 18,400 MW of installed capacity of wind. • Several jurisdictions are supplied 100% by wind. • Ontario presently has ~175 MW of installed wind capacity. • Ontario requires over 20,000 MW of new generation capacity. • Ontario could easily provide 5000 MW of wind by 2010. • Industry Canada Study equates 5000 MW with 13,000 jobs

18. Solar Power Potential in Ontario • Solar Photo-Voltaic • Germany 768 MW of installed capacity • Canada 11 MW despite a superior resource to Germany • CanSIA solar PV estimates: • 13,000 MW by 2025 in Ontario • 39,000 MW by 2025 in Canada

19. Biogas & Small Hydro Power Potential • Biogas • ~8,000+ farms in Ontario with sufficient herd to support biogas digesters between 100-200 kW • Overall generation capacity of 400 MW • Include landfill gas, food oil wastes and energy crops and the capacity grows to 1200 MW. Small-hydro (< 20 MW) • 1000 MW (new and refurbished)

20. Ontario RFP for Renewables • Ontario Renewable Portfolio Standard • 5% (1,350 megawatts) by 2007 • 10% (2,700 megawatts) by 2010 • Ontario Government Request for Proposals • Awarded nearly 400 MW of renewables • Awarded close to 1000 MW • Poised to announce third RFP for projects <20 MW

21. OSEA’s SOCs campaign • 2004 OSEA spearheaded a campaign for Advanced Renewable Tariffs (SOC) • Fall 2005 - Ministry of Energy issues directive to OPA to develop recommendations on a SOC program for Ontario • February 2006 - Ministry of Energy will announce details of SOC program for Ontario • Summer 2006 - Implementation of SOC program

22. OSEA’s ARTs Proposal Key components: • Size (0 up to 10 MW) suggested cap • Open to all players • 20 year contract between generator and OPA • Price specific to production and technology • 10.4 cents/kWh wind • 42 cents/kWh solar PV • 13 cents/kWh biogas and small hydro • Guaranteed (within reason and established safety guidelines) access to the distribution grid (< 44 kV)

23. Why ARTs • Profound Need to increase public acceptance of RETs • ARTs allow municipalities, farmers, co-operatives, community groups, small businesses and members of the public to participate in green power generation • Simplified administrative process for government and suppliers • Markets with ARTs have more players, stronger local economies, more manufacturing, more jobs, more renewable energy generation

24. Co-operative Fund for CP • Average Community Power wind project costs $650,000 to develop • Difficult for communities to raise this $ • Fund would provide relatively easy capital through grants and loans at fair rates

25. Capacity Building for CP • Certification Program - targets staff and Directors • Technical Assistance Providers • Org Dev • Site Dev and Technical • Financial • Community Engagement • Sales and Marketing • Integration Manager • Financial institutions • EDCOs • Universities and Colleges • Specialized RE programs • Co-operative curriculum • Relevant government agencies

26. Role of EDCOs • Promote RE and ED opportunities • Initiate local projects • Facilitate information resources • Organize the community (e.g.) Asset mapping • Resource availability (prefeasibility) • Organizational Development • Financing • Technical and site development • Permitting and Approvals • Legal • Manufacturing, construction and O&M

27. Contact OSEA Please visit www.communitygreenpower.ca for more info or contact Deborah Doncaster at 416.977.4441 or deb@ontario-sea.org