Powering our Community with Solar Energy
社區太陽能自行發電
Chinatown BIA, October 11, 2012
What is greenTbiz? greenTbiz是什麼?



Program of the Toronto Association of Business
Improvement Areas 多倫多商業促進區協會計劃
Working for the Benefit of the City’s 72 BIAs
representing 30,000 Small- and Medium-Sized
Enterprises 為多市的72個商業促進區掙取利益
Participate in $3.3 trillion marketplace
參與33,000億元市場
www.greenTbiz.org
Agenda 議程

Why Should We Bother With Renewables?

Community Power – What others have done and
what is possible 社區發電 – 前例和可行的方案

A Local Business Goes Solar

Starting a Community Power Project – The Basics
啟動一個社區發電項目 - 基本知識
Powering our Community with Solar Energy- WHAT???
什麼是社區太陽能自行發電???
We are not talking about literally
taking your community off the
grid right now and hook it up
to solar panels.
現在談的不是要把社區脫離電
網後再安裝太陽能板。
Rather: How can your community come together, jointly
pursue a solar PV project and get ‘powered up’ in the
process.
是要探索如何使社區團結起來，一起開始一個太陽能項
目。
What is community power?
社區發電是什麼？
Community power is the
result of financial, conceptual
and organizational
participation of residents
(local community) in a
renewable energy project.
社區發電是當地居民經參與財
務，概念和組織而創建的可再
生能源項目。
Business model comparison
商業模式比較
Advantages優點
•Quick decision making
•Full control
•Project size limited
•Skills/competencies
•Resources
•No risk sharing
•Liability
•acceptance
•Economy of scale
•More resources available
•Local benefits
•Risk sharing
•Acceptance
•Slower decision making
•Management and leadership
•More legal issues
•Low involvement
•Standardized contract
•Limited control
•Limited benefits
self-financed
自籌資金
community project
社區項目
lease roof
出租屋頂
Limitations/Challenges
限制/挑戰
The bottom-up DIY co-op 自底向上的自助合作社
Whitchurch-Stouffville Community Energy Co-operative
Project
“250 kW solar project on the Clippers Sports Complex that will generate
funds to be shared with the community, a good financial return for you and
environmental benefits for our children”
Progress
• Spring 2010: Established upon idea by one individual, article published in
Stouffville Tribune led to 10 founding members developing mission statement
• Oct. 2011: received $66k CEPP grant
• retained engineers for system design and structural assessment
• Dec 2011: incorporation approved by FSCO in Dec 2011
• May 2012: town council affirms partnership in May 2012
• Sept 2012: 60 property owner members sign community participation
Financials
© Whitchurch- Stouffville Community
Energy Co-operative
 Revenue generation: 20 year FIT contract, $0.539/kWh (FIT 2.0)
 Cost estimate: $1.2 million
 Annual revenue: $200k
 20 year revenue: $4 million
 Financing: $100k grant; $40k Founder’s Club, preferred shares
 First community financing round: loan of $1,000 at 9% annual interest rate over two years
The investment co-op 投資合作社
SolarShare
Projects
• Not-for-profit co-operative incubated by TREC to purchase, own and
operate solar PV installations across the province
• portfolio of 18 producing projects (1 FIT and 17 microFIT) and
expanding
Financials
FIT project (438 kW)
• Revenue generation: 20 year FIT contract at $0.635 (FIT 1.0)
• Cost: $2.13 million
• Yearly revenue: $ 323
• Financing: $165k grant, bridge loans, community bonds
© SolarShare
MicroFIT (17 x 10 kW)
• Revenue generation: 20 year microFIT contract at $0.802 (FIT 1.0)
• Cost: $1.7 million
• Yearly revenue: $257k
• Financing: bridge loans, community bonds
First community financing round: $1,000 community bond, 5%
annual return, 5 year term
The site-driven co-op 地點驅動型合作社
ZooShare Biogas Co-operative 沼氣合作社
Project:
• 500 kW biogas plant at the Toronto Zoo
•Anaerobic digestion of zoo poo and food waste to yield electricity, heat
and fertilizer.
•originally conceived by the Toronto Zoo and implemented by a joint
venture of companies founding ZooShare
Progress
• Winter 2011: Joint Venture formed, CEPP grant approved
• May 2011: Co-op incorporated
• June 2011: approval by Toronto Zoo Board of Management
• July 2011: start of Founder’s club seed fundraising
• September 2012: contract signed with Zoo
Financials:
 Revenue generation: $0.16/kWh, tipping fees for food waste
Cost estimate: ~$5.4 million
 Annual revenue: ~$ 1.3 million
 Financing: Sweat equity, CEPP grant, Founder’s club bonds, community
bonds, debt financing
 Community financing: $10,000 FC bonds, 11.5% annual interest, 3
year term; community bonds; 7% annual interest
What community power can do 社區發電可以做什麼
r o c e s s Village Juehnde 生物能村
P
Bioenergy
Crops
50 % CH4
42 º C
Digester
Biogas
Elect ricity
elect rical
power
grid
CHP
Heat
Manure
Digest at e
Wood Chips
Heating-System
Heat
dist rict
heat ing
system
Ash
• Savings > 3.0 0 0 to/a CO2,
• Twice t he amount of elect ricity needed produced
• All heat required produced by system
9
B io gas pl an t
Juehnde
Biogas plant 沼氣廠
3000m 3 digester
torch
Input material:
▶ Corn
▶ Gras
▶ Wheat
▶ Manure
storage for digestate
~4,8 00m 3
loader
liquid manure tank
~ 300m 3
CHP 712 kW
container for pumps
10
ys t e m 區域供熱系統
a t i n g s System
i c t h e Heating
D i s t rDistrict
Juehnde
•
app. 5.5 km long
•
diameter app. 18 mm
to 20 0 mm
•
flow temperat ure
8 0 -85 °C
12
Juehnde community integration cycle
社區整合週期
T h e p o w e r c yc l e t o i n t e g r a t e p e o p l e
▲ Village assembly
Act ion
Informat ion
▲ St reet discussion
70 %
▲ Individual discussion
participation!
▲ Workshops
Part icipat i
on
Mot ivat ion
15
How do you get there?
如何達到目標?
A CP project has different phases and
components社區發電有不同的階段和組件
Business
Project
Community
Initiate &
Develop
Design &
Build

community engagement strategy
and implementation

Community engagement/ updates/
milestone reports

facilitation of CP building


sourcing
identification and use of skills and
services in and from the community

Community capacity building
Operate &
Maintain

identification and use of skills
and services in and from the
community

build community resources

regular operation and
maintenance

plan next project

prefeasibility, prelim. design

RFPs for EPC suppliers

FIT application and permits

Project management

third party site verification

project management

business plan



co-op development
back office management and
administration
back office management and
administration

financing (debt, equity)

sales and marketing

sales and marketing

shares and bonds structure

membership management

membership management
FIT 2.0 vs FIT 1.0 電網回購計劃
FIT 1.0: first-come, first-serve basis and ongoing
procurement
•
FIT 2.0: specific procurement target windows and a priority
system for approval, minimum requirement 2 points
•
Feed-in Tariff rates
What is “Community Power” in Ontario?
在安大略省的“社區發電”是什麼？

Statutory 法例 – FIT 1.0
(a) one or more individuals resident in Ontario;
 (b) registered charity;
 (c) not-for-profit organization;
 (d) co-operative corporation;
 (e) private corporation or partnership whose shareholders or
partners all fall into (a) – (d) above; (f) any legal entity that
would be considered to have a 100% Community
Participation Level under the FIT Program

What is “Community Power” in Ontario?
在安大略省的“社區發電”是什麼？

Statutory 法例 – FIT 2.0
•Community
Participation Project: Minimum 15% Economic
Interest held by a Community Investment Member.
CO-OP
Developer
15
%
85%
PROJECT
INC.
CO-OP
Develope
r
51%
49%
PROJECT
INC.
What is “Community Power” in Ontario?
在安大略省的“社區發電”是什麼？
Terminology
Application
Definition
Community
Investment
Member (CIM)
basic community power
building block in FIT rules
co-op with at least 35 (small FIT, not CCSAP)/ 50 (large
FIT/CCSAP) members that are property owners in
municipality and natural persons and have owned property in
municipality for minimum of 2 years
Community
Participation
Project
(CPP)
access to 3 priority points in
ranking scheme
minimum 15% Economic Interest in project is held by CIM or
CIM is the applicant
Community
Participation
Level
(CPL)
calculation of community
adder
and
CPL defines access to
capacity set-aside
determined by composition of applicant equity interest:
CIM 35/50 = 100% ; no commercial electricity developer
equity interest in co-op (as company or employee)
CIM 35/50 with commercial electricity developer membership:
100% minus % of equity held by commercial electricity
developer or affiliates
Community-Commercial JV: % held by CIM 35/50
Contract Capacity
Set-Aside Project
(CCSAP)
access to 10% capacity setaside
priority treatment over any
other project within application
window
CIM with at least 50 members that are property owners in
municipality and natural persons and have owned property in
municipality for minimum of 2 years
Co-operative Basics 合作社基礎知識



Profit v Non-Profit
Share Capital v Non-Share Capital
Incorporation
•
•
•
•
Name
5 Incorporators
Articles
Govt Fees
Next steps… 下一步...

Assess a roof that is suitable for a community
solar power project
and

find a champion or become a champion to
initiate a community power project
Solar PV on Toronto’s roof tops
在多倫多的屋頂上的太陽能光伏發電
Contact Us 聯繫方式

Robert Wakulat
•
•

Web:
•

www.greenTbiz.org
/
www.wakulat.ca
/
robert@wakulat.ca
/
@robertwakulat
Email:
•

Program Manager, greenTbiz
Principal, Wakulat|Law
info@greentbiz.org
Twitter
•
@greentbiz_TO
back-up
Finding a suitable site
尋找一個合適的地點
Church
System design is straight forward
簡單的系統設計
 160 panels can be installed
south facing
 Total System size is 37.6
kWp
 Total cost of system is
estimated at $188,000
Key Assumptions 關鍵假設
Financial








Cost per kWp turnkey Solution:
Total cost:
Yearly maintenance:
Interest Rate:
Discount Rate:
Inflation Rate:
Efficiency losses (annual):
25% equity, 75% debt financed:
$ 4,700
$188,000
$ 1.5 % of revenue
7%
5%
3%
0.5%
15 years term
Based on
FIT 2.0
Technical




Orientation:
Tilt Angle:
Sun Harvest first year (RetScreen):
Feed-In Tariff:
17° East of South
15 degrees
72,777 kWh
54.8 ¢/kwh
(-5° optimal)
(30° optimal)
(1,104 kWh/kWp/y)
Financial highlights 財務摘要

Estimated Total investment:
$ 188,000

Simple Payback Time:
8-9 years

payback period:
20 years

payback:
~ $ 400,000

ROI:
6%
(Currently ROIs are calculated between 9-11%)
Essential system components
基本的系統組件

Solar PV panels 太陽能板

Inverter 逆變器

Racking and mounting system
機架和安裝系統

Balance of system components 系統組件的平衡

Monitoring and metering 監測和測量
Solar PV project phases
太陽能光伏發電項目階段
Initiate
and Develop
 find suitable
land/roof
 pre-feasibility
 LDC consultation
 design and layout
 FIT application
 business planning
 Financing
Build
and construct
 apply for permits
 RFP (shop) for
EPC
 collect equity
 start construction
Operate
and Maintain
 connect/co
mmission
 operate
 maintain
 sell power
to the OPA
Success Factors 成功因素
Technical success factors:

Choose the right roof (structure, age, orientation, slope)

Good system design (orientation, tilt, string configuration)

Early consultation with local hydro for grid connection

High quality hardware
Other success factors:

sound financial planning

good project management and communication
How communities benefit from these projects
社區如何從這些項目中受益
Local multiplier effect benefits everyone

Every local dollar invested results in a minimum of 3 times
the benefit to the local community.

Municipal, provincial taxes stay locally.

Sense of belonging and togetherness is fostered through
community projects

building a sustainable community enriches the life style
Jobs

Potential construction jobs and training for local community.

Local positions created to administer and maintain the
project and coordinate owners and finances.

Service personnel is regionally based (accountant, lawyers,
maintenance, etc.).
Receiving the community adder! 接收社區額外金



small FIT (< 500 kW):
to obtain access to

35 property owners
the 10% grid

organized as coop
capacity reserve

sharing at least 15% of the projects equity
the community
large FIT (>500 kW):

50 property owners

organized as coop

sharing at least 15% of the projects equity
obtain approval by municipality
must hold 50% or
more of the
project’s equity
Success factors for community projects
社區項目的成功因素

Create a network of support and knowledge

Learn from comparable projects

Employ experts (only) as required

Ensure access to sufficient capital

Make allowances for bad (wind/sun) years

Choose your partners carefully

Make long term maintenance contracts with availability guarantees

Get as much community involvement as possible (partners and
owners)
Community Power at Work
在實踐中社區發電
Bio-Energy Village Juehnde, Germany
Neighbourhood Unitarian Universalist
Congregation, Toronto
kci new energy
Let’s empower your community!
 Profit from our passion for renewable energy, community
Community in a Box
and sustainability.
 Tap into years of experience in strategy, project
management, and finance.
 Benefit from our problem solving and communication
expertise.
 Experience a well planned engagement and market
strategy.
We can make it FIT for you.
start up
&
feasibility
Bio
Wind
design
&
develop
engineering
procurement
construction
Solar
KCI New Energy is a division of Koenig & Consultants Inc. that focuses on renewable energy project development. KCI New Energy supports clients through
all necessary steps from community building, through feasibility study, design and engineering, to procurement and construction.
Koenig & Consultants Inc. 60 Haliburton Avenue Toronto ON M9B 4Y4 ckoenig@koenigconsultants.ca www.kci-newenergy.ca
Why do a community power project?
為什麼要開始一個社區發電項目？

The high personal involvement of community members keeps “soft
costs” low.

Lower land/roof leases as everybody is a community member.

An improved understanding in the community leads to faster
permitting process; from push to pull (increased acceptance of
and even demand for the project)

Equity is relatively inexpensive, you do not deal with professional
investors and very expensive due diligence processes.

Larger projects can always make use of an economy of scale.
Economy of Scale at work
在實踐中的規模經濟
installed kW
Costs per kW
capacity installed:
$ 7,000
$ 5,000
$ 4,300
Soft Cost Financing for Community Power
(old rules are currently under revision) 社區發電的軟成本融資
CEPP provides soft cost financing to community power projects! Renewable energy projects are
eligible for funding (between 10K and 200K) if they:

have an installed capacity greater than 10 kW and less than or equal to 10 MW (except co-op projects over 10
MW are permitted);

use wind, solar photovoltaic, biomass, biogas, landfill gas or waterpower;

are located in Ontario;

are economically viable and the subject of a future Feed-In-Tariff contract;

are not funded by any other OPA funding program;

are developed by a “Community” (see below) and;

have not yet been issued a Notice to Proceed by the OPA.

For-profit projects are eligible for Community Energy Partnerships Program funding.
Source: http://www.communityenergyprogram.ca/Project_Grants/Eligibility.aspx
It doesn’t have to be a maze…
它不必是一個迷宮...
Detailed
engineering
Financing
secured
NTP
FIT contract
Site control
obtained
Further questions… 更多問題...

Regarding your BIA’s green opportunities?
•

Regarding legal issues around renewable energy
projects?
•

www.wakulat-law.ca
Regarding Community Power projects?
•

www.greenTBiz.ca
www.kci-newenergy.ca or www.ontariosustainability.ca
Regarding roof assessment?
•
www.kci-newenergy.ca
Thank you!
www.kci-newenergy.ca
kci new energy