Office of Energy Initiatives

Transcription

1 Office of Energy Initiatives Corporate Energy Policy Council Mandate 2005 Office of Energy Initiatives formed in 2006 Clean Air Partnership Corporate Energy Policy 2007 (Targeted Reductions) Energy Commodity Municipal Policy Corporate 2007 (Revised Energy 2008) Efficiency Workshop Both policies were revised and amalgamated in May of 2014 September 16, 2016 Year 2020 Providing services that bring our City to life! Energy Policy Reduction Target Initial 20% (2005 as base year) Emission Reduction and Offset Target 20% % 50% % 80% Clean Air Partnership Webinar

2 Agenda Overview of City of Hamilton Energy Activities Results Methane Capture Overview Financing Retrofits Reserve Policy Language Clean Air Partnership Webinar 2

3 Office of Energy Initiatives Energy Engineering Activity District Energy Heating and Cooling Loop Energy Efficient Lighting and Controls Arena Ice Plant Refrigeration Optimization Hamilton Water (kwh per MLD) Renewable Energy Portfolio (Solar, Methane) CNG for Transit Clean Air Partnership Webinar 3

4 Office of Energy Initiatives Utilities Management Energy Commodity Procurement Utility Rate Optimization Contract Management Suppliers & Utilities Continuous Analysis Monthly Billing and Bill Verification Regulatory Issues and Updates Clean Air Partnership Webinar 4

5 Office of Energy Initiatives Results To Date $48 $44 $40 $36 $32 $28 $24 $20 $16 $12 $8 $4 Cumulative Energy Savings, Incentives & Avoided Costs ( ) Utility Rates & Cost Avoidance Cost Recovery Energy Conservation & Incentives $23.3 Million $3.9 Million $19.0 Million Total $46.2 Million $0 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Clean Air Partnership Webinar 5

6 Hamilton Renewable Power Inc. The City of Hamilton created Hamilton Renewable Power Inc. in Inception of this company came out of the City s desire to construct, operate and maintain a cogeneration facility; a source of renewable energy. Under legislation at that time, the City was not able to participate in this venture directly. Therefore, a city owned corporation, Hamilton Renewable Power Inc.(HRPI), was established to carry out the construction, operation and maintenance of this renewable energy facility. Governed by members of Council. Hamilton was the first municipality in Ontario to be accepted by the Ontario Energy Financial Corporation to build a generator for sustainable green energy. Annual Benefit to City ~$1.6M to $2M. Clean Air Partnership Webinar 6

7 Woodward Wastewater Treatment Plant Clean Air Partnership Webinar 7

8 Woodward Wastewater Treatment Plant Clean Air Partnership Webinar 8

9 Financing Retrofits Getting started: Identify measure; Preliminary assessment and analysis; High level proposal development: billing analysis; technology review; incentive potential; Client group awareness/application & confirmation. Capital Funding activity: Review internal resources; Reserves, Client budgets; Review external programs (GMF, Infrastructure Ontario etc); Partnerships (utilities, ESCO option, PPP, etc). Write & Deliver Council report (approval hopefully!!); Project begins Clean Air Partnership Webinar 9

10 Financing Retrofits Project Payback Options: Easy: Operating budget only impact is actual cost/consumption reduction. Incentives used to reduce initial capital. Slightly more complex: Direct Operating Savings to pay capital and interest first. Decide on where incentives go: If external funding used, reduce capital with incentives. If internally financed, direct incentives to Reserve to fund future projects. Once capital fully paid, what happens with the savings? Lower operating budget sure. Continue to direct savings to Reserve (client budget remains fixed at pre-project level). Combination of shared savings & budget reduction. Clean Air Partnership Webinar 10

11 Financing Retrofits Arena Project A (City Financial Impact): Capital Cost of $100. Annual Savings of $25. One time incentive of $25; Requires capital of $100, net cost of $75 (less incentive); 3 year simple payback: $100 less $25 incentive equals $75; $75 divided by $25 annual savings equals 3 yrs; I Need $100 I ll pay $100 Project paying $25 incentive & $25/yr savings Clean Air Partnership Webinar 11

12 Financing Retrofits Arena Project A (Recreation Financial Impact): Capital Cost of $100. Annual Savings of $25. One time incentive of $25; Requires capital of $100, net cost of $75 (less incentive); 3 year simple payback ($25 savings over 3 yrs); Internally fund and DIRECT INCENTIVE TO YOUR RESERVE Client budget moves to 4 year simple payback Same project, same capital, same incentives: Reserve I Need $100 I ll pay $100 Project paying $25 incentive & $25/yr savings Clean Air Partnership Webinar 12

13 Financing Retrofits Project cost of $25,000; Project pays back capital from savings at $9,000/yr; Year 4 Client Budget has paid off Capital; One time incentive directed to Energy Reserve ($8,000); City captures 1.89 year simple payback; Client Budget has 2.78 year simple payback since no incentive goes to the client budget; Energy Reserve may pay for future capital or efficiency upgrade. Facility Technology Capital Annual Energy Savings Community Centre LED Lighting $25,000 $9,000 $9,000 $9,000 $7,000 4 BRY Clean Air Partnership Webinar 13

14 Financing Retrofits Reserve Policy Language ideas: In order to maintain a healthy reserve and secure the best leverage for funds on energy related projects, the energy reserve will also be used to fund specific and targeted projects or activities to ensure compliance with the Corporate Energy Policy. Funds that are attributed to any energy conservation demand management program, renewable energy revenues, energy related project revenues (e.g. leases or other payments), utility bill recovery (current year recoveries will be returned to client budget, previous year recoveries will go to reserve), carbon off-sets, demand response revenue and all utility incentives will be deposited into the Energy Reserve. In addition, revenue from renewable energy projects (solar lease or other) or fuel procurement (compressed natural gas or other) will be established as a means of funding the ongoing activities required to manage these energy related services. Future operational budget savings will be transferred to the Energy Reserve to maintain an acceptable level of funding in the reserve. Funds moving into or out of the Energy Reserve will be approved per this policy. These funds can be used to finance (in whole or in part) energy projects, energy studies, pilot projects and other similar activities. For instance, incremental costs for more efficient options could be financed by the Energy Reserve with the understanding that it will be paid back through savings. Funding incremental costs for more high efficiency project options provides a win-win scenario as less capital would be requested and the lower operating costs will benefit operating budgets, plus move us closer to our energy intensity targets. Clean Air Partnership Webinar 14

15 Hamilton Waterfront Development Clean Air Partnership Webinar 15