Business of Energy. Energy and Forestry Expo. Nishnawbe Aski Development Fund. March Thunder Bay

Transcription

1 Business of Energy Nishnawbe Aski Development Fund Energy and Forestry Expo March Thunder Bay

2 Introduction Energy investments The X factors Investment Objectives Comparing Investment Non-Financial Benefits Community Impacts Business Models Conclusions

3 Personal Declaration Conservation First proponent

4 Energy Investments Infrastructure Renewable generation Wind, solar, biomass, geothermal, wood stoves Transmission Distribution District heating Combination Conservation & Efficiency Existing buildings Insulation Weathersealing Appliances New construction System design Urban planning

5 X Factors Infrastructure WOW Conservation & Efficiency Huh Dual Axis self-tracking solar panels Bundle of Insulation

6 Investment Objectives Financial Independent revenue source Business venture Revenue Jobs Economic horsepower Energy independence Social More than economic

7 The Bottom Line Triple Quadruple

8 Investment Outcomes Financial How is the money going to be used? Business venture Short/long term Capacity building Energy independence Impacts Social Complex interactions

9 Conservation: More than Economic Mental Health Education Personal Pride Housing Individual Health Intergeneration Conflict Economic

10 Comparing Investments Pre-investment risk assessment Current value of assets Housing 3 rd most valuable asset Technology performance Operation and maintenance

11 Financial Return

12 Financial Returns Renewable Capital and operating costs kwhs generated Power purchase agreement Rate structure (net metering) Tiered Time-of-use Future cost Conservation Capital costs Maintenance costs kwhs saved Energy audit Appliance usage Rate structure Tiered Time-of-use Future cost

13 Financial Benefits Renewable Conservation How is the revenue going to be used When does the project start to cash flow Immediate cash flow to the building owner and/or occupants Reduced economic leakage Avoided costs

14 Non-Financial Benefits How do you assess the nonfinancial benefits of an investment? Food security Build a greenhouse Solar/geothermal energy Increases productivity of the greenhouse

15 Non-Financial Benefits LED street lights $ savings: energy & maintenance Improved lighting Dark sky compliant: see the stars

16 Non-Financial Benefits Educational benefits of solar panels on schools Participate in the installation Real life teaching aid Consumption awareness

17 Community Impact Energy savings via reduced hot water consumption Installation of low flow shower heads, faucet aerators and even low flush toilets. Individual savings($) Community savings ($$): less water use, less pumping of water (use less electricity) less chemicals required to treat the water less water being pumped from the home

18 Energy Business Models Many energy industry models First Nations ownership Five Nations Energy Inc. (FNEI) First Nation/private sector Wataynakenup Power Utility/First Nation Partnerships Do the necessary homework Talk to people who have been there

19 Housing as a Business Consider the Asset Value Build Operate Non-financial Housing business models Band operated Local Housing Authority Regional Housing Authority

20 Housing as a Business

21 An Energy Business Plan Community Energy ACTION Plan Don t have one time to do one Not a technical exercise It s a business exercise that captures the energy needs and desires of your community Have one good start Take another look at it Foundational information something to build on. An ongoing process a business plan is not static Identify a need get started and build on the results IESO has funding

22 Conclusions Need a business plan Watch out for the Wow/Huh factor Establish clear business objectives Appropriate for the your community Jim Collins: From Good to Great for the Social Sector Building process long term direction, short term steps to get there

23 Conclusions (cont d) Right team members for the right job Internal External Build in knowledge transfer Running a business - a lot of work Requires ongoing support Look to leveraging all of the resources available to the First Nation Allocation of dedicated resources

24 Thank--You IESO Community Energy Plans Five Nations Energy Inc. Conservation on the Coast Wataynikaneyap Power Hydro One Northern Housing Conference