2017 Corporate Energy Consumption and Activities Report City of London. August london.ca

Transcription

1 2017 Corporate Energy Consumption and Activities Report City of London August 2018 london.ca

2 Contents 1. Background Corporate Energy Consumption Overview Methods of Measurement Limitations of Measurement Conservation and Demand Management (CDM) Goal Update Corporate Energy Annual Summary Total Corporate Energy Consumption Energy Consumption by Commodity Energy Consumption by Municipal Service Categories Total Corporate Energy Consumption Per Capita by Municipal Service Categories Total Corporate Energy Consumption Summary Total Corporate Energy Costs Energy Costs by Commodity Energy Costs by Municipal Service Categories Energy Costs Per Capita Total Corporate Energy Costs Summary Corporate Energy Cost Avoidance Corporate Energy-related Greenhouse Gas Emissions Total Corporate Greenhouse Gas Emissions Total Corporate Greenhouse Gas Emissions by Municipal Service Categories Non Energy-related Greenhouse Gas Emissions Total Corporate Greenhouse Gas Emissions by Employee Travel Corporate Energy Management Activities Funding and incentive sources Current Activities Tracking & Monitoring Energy Consumption Renewable Energy Projects Landfill Gas as a Potential Resource FOG Cup Waste to Resource at Greenway WWTP Bioenergy Energy Conservation and Demand Management Projects Upgrading HVAC units Laser Ice Level System Lighting Upgrades Southeast Reservoir Pumping Station Wastewater Treatment Energy Projects Green Fleet... 28

3 9. Summary and Next Steps Appendix A Energy Conservation Projects Appendix B - Incentive Funding Chart... 34

4 1. Background London s Corporate Energy Conservation and Demand Management (CDM) Plan was approved by Council in July The scope of the CDM Plan covers all forms of energy used by the Corporation of the City of London (referred to as the Corporation or the City within this document). The CDM Plan established a goal to reduce total corporate energy use by ten percent from 2014 levels by In August 2011, the provincial government introduced Ontario Regulation 397/11 under the Green Energy Act, which requires municipalities, municipal service boards, schools boards, universities, colleges and hospitals to report on facility energy consumption and associated greenhouse gas (GHG) emissions annually beginning in 2013 and develop Conservation and Demand Management (CDM) plans starting The scope of the emissions mandatory reporting was limited to those facilities that: are heated or cooled and the public agency is responsible for paying the utility bills; or are related to the treatment or pumping of water or sewage and the public agency is responsible for paying the utility bills. The Ontario Regulation 397/11 reporting requirement does not include significant corporate energy users such as street lighting and corporate fleet fuel use, nor other needs such as sports field lighting. However, these energy needs are included within the scope of this Corporate Energy Consumption and Activities Report as it is imperative that all energy uses and impacts within the Corporation s control are continuously examined for reduction opportunities. The current report is a follow up to both the 2016 Corporate Energy Consumption Report and 2016 Corporate Energy Management Activities Report. The total energy consumption in 2017 is compared with two baseline periods, 2007 and The tracking and monitoring of the Corporation s utility data started in 2007 through the use of EnergyCap software, and 2014 is the baseline year for the CDM Plan submitted to the Province. Similar to the 2016 report, this information does not include energy use by London s agencies, boards and commissions. Energy use by these agencies is handled by these individual organizations and City staff provides assistance when requested. For this report, information on 2017 energy management activities have been merged within the 2017 energy consumption data, as most of the activities or projects described in 2016 Corporate Energy Management Activities report are in progress or are due to be completed this year. Any new projects undertaken in 2017, updates to the existing projects and highlights are provided in Section 7 of this report. 2. Corporate Energy Consumption Overview The 2017 Corporate Energy Consumption and Activities Report provides a summary of the Corporation s 2017 annual energy consumption, GHG emissions and highlights of 2017 energy projects for all operations. The document summarizes all significant energy costs associated with the Corporation s operations. In addition to the report requirements mandated by the Green Energy Act and Ontario Regulation 397/11, information on all energy-consuming infrastructure (e.g., street lighting, sports fields) as well as fleet fuel has been included to provide a complete picture of energy needs for municipal operations. Report highlights include: City of London 1

5 The Corporation consumed approximately 171 million equivalent kilowatt-hours (ekwh) of energy in 2017, a decrease of ten percent from This meets the CDM Plan goal of ten percent reduction by 2020 compared to 2014 baseline year. This is two years ahead of the CDM Plan s goal. o Over the longer term, total energy use is 14% lower than it was in Total energy cost in 2017 decreased by $1.6 million compared to 2016 to almost $19 million, with the decrease primarily due to dropping electricity prices in the province. The electricity cost for the Corporation has decreased for the first time in the last five years. These reductions flow from the provincial government s Fair Hydro Plan released in July 2017 and savings associated with the eight percent Ontario Rebate for Electricity Consumers Act effective January 1 st, o Total electricity costs for the Corporation decreased by 9% compared to o The total electricity usage has reduced by 4% since 2014 and energy costs would have been $2.6 million higher in 2017 if the energy efficiencies noted above were not in place. o In 2017, the Corporation spent approximately $4.8 million in capital investments related to energy efficiency projects. These investments create energy savings every year over the life of the investment. Energy cost per person was $49 in Dividing the Corporation s total energy cost by London s population provides an indication of the relative contribution of energy costs associated with service delivery. Energy cost per person has also been decreased for the first time in the last five years. From 2016 to 2017, it decreased to $49 from $54 (8 percent decrease). Therefore, sustainable energy reductions become more important each year as the costs fluctuate year over year. In terms of service delivery to Londoners, corporate energy use per person dropped by 21 percent from 2007 levels. This reduction can be attributed to recent energy conservation measures and facility upgrades: o Wastewater treatment energy use per person has decreased by 27% o Building energy use per person has decreased by 19% o Streetlights energy use per person decreased by 21% o Vehicle fleet energy use per person decreased by 9% Energy-related greenhouse gas emissions in 2017 were 64 percent lower than The Corporation s improvement in energy efficiency accounts for about 25 percent of this reduction. In particular, the new centrifugal sludge dewatering system at the Greenway Wastewater Treatment Plant s sludge incinerator, installed in , resulted in a significant reduction in natural gas at that facility. The remaining 75 percent of the reduction comes from Ontario s actions to replace coalfired power plants with cleaner forms of power generation. Over 90 percent of Ontario s electricity is now generated from emissions-free sources, such as nuclear, hydro-electric generating stations, wind and solar. In 2017, every 1,000 kilowatt-hours of electricity generated in Ontario produced about 20 kilograms of carbon dioxide emissions. This is significantly better than it was in 2007, when 1,000 kilowatt-hours of electricity produced around 240 kilograms of carbon dioxide emissions. City of London 2

6 2.1 Methods of Measurement The Corporation procured EnergyCap software in 2007 to log monthly utility bills for municipally-owned and administered buildings and facilities. This software has the capability to track, monitor and capture data to assist the Corporation with reporting consumption and providing historical data. EnergyCap tracks data in the following municipal service categories: Buildings; Traffic Signals & Streetlights; Wastewater & Treatment and Water Pumping. Fleet data is provided from its software system PetroVend which is used for tracking vehicle fuelling at operation centers. 2.2 Limitations of Measurement The annual energy consumption and greenhouse gas emissions for the Corporation does not include energy consumed in leased office space where the utility costs are incorporated in the leasing agreements. 3. Conservation and Demand Management (CDM) Goal Update The introduction of the CDM Plan provided the Corporation with an opportunity to review its energy management program initiatives and proposed energy targets. The CDM Plan was developed according to Ministry of Energy s direction to provide the Corporation s annual energy consumption information to the public and set goals and actions for conserving energy and reducing GHG emissions from 2014 to A series of past energy activities, programs, utility consumption and documents were analyzed to understand the Corporation s standing in energy management and to set a CDM target. The approach was to set a target achievable by continuing to implement short term initiatives, adopt energy conservation resources into existing capital investments already assigned, explore incentive opportunities towards energy project initiatives, review long term initiatives that have significant impacts on energy consumption and GHG emissions, and deepen the culture of conservation within the Corporation s operations. The Corporation s CDM goal is to achieve a ten percent reduction in overall annual energy by The baseline year is Tied to this goal are: A total energy use reduction of 30 million ekwh below 2020 Business-As-Usual (BAU) projections. A 15% (76 ekwh/person) improvement in energy efficiency based on the projected population in A total GHG emission reduction of 3,900 tonnes per year below 2020 BAU projections. An energy cost avoidance of $4 million below 2020 BAU projections. In order to achieve this goal of a ten percent reduction by 2020, 35 technical and non-technical actions were prioritized to contribute to overall reductions. All actions were identified under four prescribed categories as follows: Tracking and Monitoring Measures Technical Measures Organizational Measures Behavioral Measures City of London 3

7 Identified in Table 1 is the Corporation s progress towards the CDM goals. Table 1 - CDM Plan Target Tracking Baseline Business-As- Usual (BAU) Projection Primary CDM Plan Goal Reduction in total energy use from 2014 baseline 2020 Reduction Target Progress as of end of Up by 4.5% Down by 10% Down by 10% Secondary Goals (as stated in the CDM Plan) Influenced by City s actions Total Energy use (million ekwh) Energy Performance (ekwh/person) (30 million ekwh reduced compared to 2020 BAU) (76 ekwh reduced compared to 2020 BAU) Notes The Corporation has achieved its percentage based target two years ahead A reduction of 28.3 million ekwh in 2017 compared to 2020 BAU (on track). 444 Reduction of 64 ekwh/person in 2017 to 2020 BAU (on track). Overall 13% improvement in energy efficiency compared to 2014 baseline year. Influenced by external factors Energyrelated GHG emissions (tonnes) 26,000 28,400 24,500 (3,900 tonnes reduced compared to 2020 BAU) Total Energy Costs (millions) $18.75 $26.70 $22.70 ($4 million in energy cost avoidance to 2020 BAU) 16,200 GHG reduction has exceeded the CDM Plan target. 75% of this reduction is due to Ontario electricity grid going green (see section 6 of this report) $ cost are $7.6 million below 2020 BAU projection. The 2020 BAU projections have not been adjusted to reflect the fluctuations in fuel and electricity prices Even though electricity price per kwh has been lowered by the Government of Ontario in 2017, it is still five percent higher than However, electricity consumption reduced steadily by four percent over that period. Energy costs would be significantly higher without the implementation of efficiency measures. City of London 4

8 Overall, the Corporation s performance in 2017 is on track with the CDM goal. A complete list of corporate energy activities are provided in Section 7 of this report. An update of all actions (completed in the last five years) contributing to the CDM target will be provided in detail as part of next year s Corporate Energy reporting. 4. Corporate Energy Annual Summary In 2017, the Corporation s energy use is categorized by consumption and the total cost of annual energy procured by commodity. Currently the Corporation is capable of tracking annual electricity, natural gas, steam, chilled water, diesel and gasoline consumptions and costs. This allows the Corporation to show the variances in costs associated with consumption. The Corporation has averaged the 2017 energy consumptions and cost data in comparison to London s population. This allows the Corporation to demonstrate and relay to Londoners the energy consumed in relationship to service delivery provided by the Corporation. As noted in section 1, total energy consumption in 2017 is compared with two reporting periods, 2007 and The tracking and monitoring of utility data was made possible in 2007 through EnergyCAP software and is used here for comparison, and 2014 is the baseline year for the CDM Plan. 4.1 Total Corporate Energy Consumption With the use of the EnergyCAP software, the Corporation has ability to breakdown and report annual energy consumption by the commodity and by municipal service category Energy Consumption by Commodity Table 2 Consumption by Commodity Comparison (CDM baseline tracking) Energy Consumption (ekwh) Variance % Change Electricity 107,580, ,584,000 (3,996,000) -4% Natural Gas 47,337,000 37,482,000 (9,855,000) -21% Steam 5,756,000 2,767,000 (2,989,000) -52% Chilled Water 1,091,000 1,356, ,000 24% Diesel Fuel 22,500,000 20,083,000 (2,417,000) -11% Gasoline 7,250,000 6,500,000 (750,000) -10% Total 191,514, ,772,000 (19,742,000) -10% In comparison to 2014, the Corporation s total energy consumption and percentage of usage by commodity has shown a ten percent reduction in 2017 as shown in Table 2. It is important to note that there was a significant decrease in steam usage in this period, as the Colborne Building was idled and in first six months of 2017 there was a drop in steam usage measurement associated with a meter issue at the J. Allen Taylor building. City of London 5

9 Figure 1 Total Energy Consumption by Commodity Figure 1 is a representation of energy consumption (ekwh) for the overall commodity usage since The commodity consumption trend indicates that consumption remained relatively unchanged for the Corporation until In 2012, the Corporation reduced consumptions across all commodities. Further from 2012 to 2017, there is an eight percent decrease in total consumption. Since 2007, London s population has increased by about nine percent, which means that corporate energy efficiency (in terms of energy used per person in London) improved by 22 percent over the ten year period. Compared to the CDM baseline year 2014, the results indicate an overall 13 percent improvement in energy efficiency. It is also important to note that differences in annual weather conditions will impact energy needs, as this will impact building air conditioning and space heating needs as well as pumping and treatment requirements for water supply and wastewater. In 2014, the natural gas and steam consumption were high due to extreme cold winter that year (i.e., the Polar Vortex ). In comparison, 2017 was close to average temperatures throughout the year, which resulted in relatively lower natural gas, steam use and chilled water usage. In Table 3, energy consumption by commodity are compared to 2007 values, along with the percentage of changes. City of London 6

10 Table 3 Energy Consumption by Commodity Energy Consumption (ekwh) Variance % Change Electricity 108,328, ,584,000 (4,744,000) -4% Natural Gas 58,682,000 37,482,000 (21,200,000) -36% Steam 3,499,000 2,767,000 (732,000) -21% Chilled Water 1,759,000 1,356,000 (403,000) -23% Diesel Fuel 20,129,000 20,083,000 (46,000) -0.2% Gasoline 6,718,000 6,500,000 (218,000) -3% Total 199,115, ,772,000 (27,343,000) -14% Table 3 illustrates that all the commodities have decreased steadily in 2017 resulting in 14 percent reduction overall compared to As noted previously, the energy efficiency projects that the Corporation is undertaking and a close to average weather conditions in 2017 have contributed to overall energy reduction in There is a reduction in gasoline and diesel for the first time in last ten years. This shows that fleet fuel conservation initiatives, along with 2017 weather conditions and better driving behaviour, are helping in fuel efficiency. In summary: Figure 2 Electricity represents the majority of the Corporation s energy consumption, accounting for 60% of overall needs. Natural gas consumption accounts for 22% overall energy needs. Diesel remains the most prominent fuel used within the Corporation s vehicle fleet, given the large number of heavy-duty vehicles in operation. The total fleet units also tend to increase year over year with London s expansion Energy Consumption by Municipal Service Categories Table 4 Consumption by Municipal Service Categories Comparison (CDM baseline tracking) Energy Consumption (ekwh) Variance % Change Buildings 75,238,000 64,264,000 (10,974,000) -15% Traffic Signals & Streetlights 26,101,000 21,182,000 (4,919,000) -19% Wastewater & Treatment 52,831,000 52,041,000 (790,000) -1% Water Pumping 7,600,000 7,702, ,000 1% Vehicle Fleet 29,750,000 26,583,000 (3,167,000) -11% Total 191,520, ,772,000 (19,748,000) -10% City of London 7

11 Table 4 shows the Corporation s total energy consumption by municipal service categories in 2017 compared to the CDM Plan s baseline year of By separating the municipal service categories, this gives the Corporation the ability to see areas where progress is being made and the opportunity to target areas for future improvements. From table four we can see that most of the energy reductions are contributed by changing the streetlights to energy efficient LEDs. Figure 3 Total Energy Consumption by Municipal Service Categories Figure 3 represents the overall energy consumption (ekwh) by the municipal service categories since In Table 5 below, further detailed energy consumption by municipal service categories in comparison to 2007 values is shown, along with the percentage of change. Table 5 Energy Consumption by Municipal Service Categories Energy Consumption (ekwh) Variance % Change Buildings 73,225,000 64,264,000 (8,961,000) -12% Traffic Signals & Streetlights 24,762,000 21,182,000 (3,580,000) -14% Wastewater & Treatment 65,594,000 52,041,000 (13,553,000) -21% Water Pumping 8,687,000 7,702,000 (985,000) -11% Vehicle Fleet 26,847,000 26,583,000 (264,000) -1% Total 199,115, ,772,000 (27,343,000) -14% In terms of municipal service categories, there has been significant reduction in energy use within wastewater and treatment prior to Process retrofit actions undertaken by Wastewater Treatment City of London 8

12 Operations, which include the sludge dewatering at the Greenway Wastewater Treatment Plant, helped Greenway to reduce its natural gas consumption by 37 percent. Water Supply has also made improvements to water pumping infrastructure. The impact of building retrofits undertaken by Facilities is also evident. In summary: Figure 4 Buildings (37%) and wastewater & treatment (30%) hold the highest percentage of demand for energy consumption for the Corporation. Combined, Vehicle fleet (16%) and traffic signals & streetlights (12%) result in about one third of energy consumptions. Water pumping (5%) remains the lowest end user contributor in energy consumption demand for the Corporation Total Corporate Energy Consumption Per Capita by Municipal Service Categories The Corporation s energy consumption is a direct function of serving the public, businesses and visitors to London. The trends in consumption reported is significant to the services provided to the community. London continues to grow in population and increased services are required to support that growth. It is important to capture energy usage per capita to demonstrate the Corporation s achievements in energy reductions while continued growth occurs in London. Table 6 Energy Consumption Per Capita (CDM baseline tracking) Energy Consumption (ekwh) Change from 2014 by Municipal Service Categories Variance % Change Buildings (35) -17% Traffic Signals & Streetlights (15) -21% Wastewater & Treatment (6) -5% Water Pumping (1) -2% Vehicle Fleet (11) -13% London's Population 375, ,000 12,000 3% Energy Use (ekwh) per person (67) -13% In 2017, the Corporation improved energy efficiency by over 13 percent illustrated in Table 6 above. Decreases in commodity use suggests that corporate initiatives and programs currently in place to reduce consumption act as a counterbalance to the additional increases of demand for energy due to London s growth. London s population increased by three percent in 2017 from 2014, while corporate energy use per person decreased by 13 ten percent from City of London 9

13 Table 7 Energy Consumption Per Capita Energy Consumption (ekwh) Change since 2007 by Municipal Service Categories Variance % Change Buildings (40) -19% Traffic Signals & Streetlights (15) -22% Wastewater & Treatment (50) -27% Water Pumping (4) -19% Vehicle Fleet (7) -9% London's Population 355, ,000 32,000 9% Energy Use (ekwh) per person (117) -21% Table 7 above indicates the corporate energy consumption per capita by municipal service categories in comparison to London s population has grown by almost nine percent (32,000 people) since Ten years of data shows continued improvement of corporate energy use per capita with an overall reduction of 21 percent in 2017 compared to Total Corporate Energy Consumption Summary Overall, the Corporation reduced its energy consumption by 14 percent from 2007 levels. This reduction suggests that corporate initiatives currently in place to decrease consumption on existing and new infrastructure act as a counterbalance to the additional increases of demand for energy due to London s growth. 4.2 Total Corporate Energy Costs With the use of the EnergyCAP software, the Corporation has the ability to breakdown and report annual energy costs by the commodity and by municipal service category. In 2017 the Corporation (not including Agencies, Boards & Commissions) spent approximately $19,110,000 on energy. This represents about three percent of the Corporation s operating budget for Energy Costs by Commodity Table 8 Energy Costs by Commodity Comparison Change Since 2014 Energy Cost by Commodity Variance % Change Electricity $ 13,801,000 $ 15,446,000 $1,645,000 12% Natural Gas $ 1,277,000 $ 1,023,000 $(254,000) -20% Steam $ 470,000 $ 180,000 $(290,000) -62% Chilled Water $ 190,000 $ 203,000 $ 13,000 7% Diesel Fuel $ 2,190,000 $ 1,615,000 $(575,000) -26% Gasoline $ 826,000 $ 642,000 $(184,000) -22% Total $ 18,754,000 $ 19,109,000 $ 355,000 2% In 2017, the Corporation s energy cost by commodity results indicate an approximate increase by two percent from 2014 as illustrated in Table 8. The provincial government reduced the price of electricity in City of London 10

14 2017, but the price per kwh is still five percent higher than Electricity costs in total have risen by 12 percent in 2017 compared to 2014, even though total electrical consumption dropped by four percent during the same period. Figure 5 Total Energy Costs by Commodity The total energy cost by commodity illustrated in Figure 5 is a representation of the energy overall cost by commodity per year since The cost by commodity trend indicates the costs for energy continue to rise for the Corporation year over year, but in 2017 the total commodity costs decreased by seven percent compared to Average electricity price per unit (kwh) has reduced by five percent in 2017, which resulted in a nine percent and eighteen percent decrease in total electricity and chilled water costs compared to This is in part due to lowering of electricity cost by the provincial government in 2017, combined with energy conservation activities. Details of cost variations are given in Section (Total Corporate Energy Costs Summary) of this report. In Table 9, further detailed energy consumption by commodity to 2007 values are shown, along with the percentage of changes. Table 9 Energy Costs by Commodity Change Since 2007 Energy Cost by Commodity Variance % Change Electricity $ 9,289,000 $ 15,446,000 $ 6,157,000 66% Natural Gas $ 2,350,000 $ 1,023,000 $ (1,327,000) -56% Steam $ 273,000 $ 180,000 $ (93,000) -34% Chilled Water $ 251,000 $ 203,000 $ (48,000) -19% Diesel Fuel $ 1,518,000 $ 1,615,000 $ 97,000 6% Gasoline $ 664,000 $ 642,000 $ (22,000) -3% Total $ 14,345,000 $ 19,109,000 $ 4,764,000 33% City of London 11

15 Over this longer period (Table 9), the dramatic changes in corporate energy costs are evident: Reduced natural gas costs due to the combination of lower use and lower natural gas prices Increased electricity costs driven solely by electricity prices, since corporate electricity use has actually dropped by 4% Figure 6 Given that electricity is the biggest source of energy the Corporation uses, the total combined costs are noticeably higher today (by 33 percent) compared to In summary: Electricity represents the majority of the Corporation s energy costs, accounting for 81% in Natural gas consumption accounts for 5% of overall energy costs in Diesel is the largest fuel type used within the City s vehicle fleet, given the large number of heavy-duty vehicles the Corporation operates Energy Costs by Municipal Service Categories Though there was an increase in electricity costs compared to 2014 as noted in Table 8, the decrease in natural gas and diesel fuel costs by 20 percent and 26 percent resulted in overall energy cost increase of only two percent in 2017 (Table 10). This would be even higher if there was no change in diesel costs and consumption. Diesel and gasoline market prices have been fluctuating dramatically since They had dropped to the lowest level in 2015 compared to last nine years and the prices have increased back in A continuous effort by the Corporation to move to increasing fleet efficiency is resulting in balancing the vehicle fleet costs. Table 10 Energy Costs by Municipal Service Categories Comparison Energy Cost by Municipal Service Change since 2014 Categories Variance % Change Buildings $ 5,364,000 $5,531,000 $ 167,000 3% Traffic Signals & Streetlights $ 3,961,000 $3,935,000 $ (26,000) -1% Wastewater & Treatment $ 5,521,000 $6,287,000 $ 766,000 14% Water Pumping $ 892,000 $1,100,000 $ 208,000 23% Vehicle Fleet $ 3,016,000 $2,257,000 $(759,000) -25% Total $ 18,754,000 $19,110,000 $ 356,000 2% Figure 7 is a representation of the energy overall cost by municipal service categories per year since City of London 12

16 Figure 7 Total Energy Cost by Municipal Service Categories The trend in cost by municipal service categories indicate that there is a steady increase in energy costs since Fleet fuel costs are largely a factor of global prices for transportation fuels, which has seen significant price volatility in the last couple of years. In Table 11, further detailed energy costs by municipal service categories in comparison to 2007 values is shown, along with the percentage of changes. Table 11 Energy Costs by Municipal Service Categories Energy Cost by Municipal Service Change since 2007 Categories Variance % Change Buildings $ 5,079,000 $ 5,531,000 $ 452,000 9% Traffic Signals & Streetlights $ 1,878,000 $ 3,935,000 $ 2,057, % Wastewater & Treatment $ 4,471,000 $ 6,287,000 $ 1,816,000 41% Water Pumping $ 734,000 $ 1,100,000 $ 366,000 50% Vehicle Fleet $ 2,182,000 $ 2,257,000 $ % Total $ 14,344,000 $ 19,110,000 $ 4,766,000 33% Those municipal service categories that rely on electricity have seen the highest increases in costs: Increased water pumping and wastewater treatment energy costs by 41% and 50% compared to Increased traffic signals & streetlight costs by 110% compared to City of London 13

17 However, energy efficiency projects have helped to reduce the impact of electricity price increases: Water pumping have reduced the energy cost and usage by 10% in 2017 compared to Wastewater & treatment have reduced the energy cost and usage by 5% in 2017 compared to Figure 8 Traffic signals & streetlights have reduced the energy cost and usage by 15% in 2017 compared to In summary: Wastewater & treatment represents majority of the Corporation s energy cost by service area, accounting to 33% in Buildings continue to be the second highest in overall end user energy costs at 29%. Street lighting & traffic signals are the third highest contributor in energy consumed by end user at 20% Energy Costs Per Capita The operation, maintenance and services provided by the Corporation contribute to the overall corporate energy costs associated with serving the public, businesses and visitors of London. Table 12 Energy Costs Per Capita Energy Costs by Municipal Change from 2014 Service Categories Variance % Change Buildings $ $ $ (0) 0% Traffic Signals & Streetlights $ $ $ (0.40) -4% Wastewater & Treatment $ $ $ % Water Pumping $ 2.40 $ 2.80 $ % Fleet $ 8.00 $ 5.80 $ (2.20) -27% Energy costs per person $ 50 $ 49 $ (1) -1% Total energy costs for the City $ 18,754,000 $ 19,110,000 $ 6,000 2% London's Population 375, ,000 12, % Table 12 reflects the corporate energy costs per capita by municipal service categories for the Corporation. The total energy costs for the Corporation has increased by two percent, but given that energy use was actually ten percent lower in 2017 versus 2014, this shows that corporate energy initiatives are helping to reduce the impact of rising electricity prices. The City of London s population has increased by three percent from 2014 but energy costs are down by two percent per capita. City of London 14

18 Table 13 Energy Costs per Capita by Municipal Service Categories Change since 2007 Energy Costs by End User Variance % Change Buildings $ $ $ (0) 0% Traffic Signals & Streetlights $ 5.30 $ $ % Wastewater & Treatment $ $ $ % Water Pumping $ 2.10 $ 2.80 $ % Fleet $ 6.10 $ 5.80 $ (0.30) -5% Energy costs per person $ 40 $ 49 $ % London's Population 355, ,000 32, % London s population has grown by nine percent (32,000 people) since Table 13 above indicates the corporate energy costs per capita by municipal service categories in comparison to Ten years of commodity data shows continued energy cost increases for corporate energy with an overall increase of 22 percent in corporate energy cost per capita from There has been a 22 percent (Table 13) increase in energy costs in the last ten years, but total energy consumption decreased by 21 percent (Table 7) during the same period. This illustrates that the corporate energy efficiency projects undertaken are compensating the increase in costs which are not completely in the Corporation s control Total Corporate Energy Costs Summary Non-rate protected price plan (RPP) electricity prices continue to vary significantly month-to-month. A key driver of this volatility is the Global Adjustment (GA) portion of utility bill, which makes up more than 60 percent of the typical electricity bill. The GA portion of the electricity bill pays for the province s electricity supplier contracts (e.g., natural gas plants, Bruce Power, regulated nuclear, hydroelectric, wind and solar power projects) and conservation activities. In 2017, the Government of Ontario announced a refinancing plan (Fair Hydro Plan) where some of the GA cost components associated with the supplier contract term length will be paid over longer term (i.e., similar to refinancing a loan with a longer amortization period to reduce monthly loan repayment costs). This change contributed to a nine percent decrease in total electricity costs in 2017 compared to Approximately 20 percent of 2017 electricity cost reductions come from the various efficiency projects implemented by the Corporation and the remaining 80 percent of the cost reductions in electricity was the result of the three regulatory changes along with summer time weather effects listed below. In the coming years, barring additional regulatory changes for the electricity market, the current state may extend the short-term relief from the recent jump in electricity prices, but will result in higher overall electricity costs over the longer term due to this longer repayment term. Furthermore, the Debt Retirement Charges on commercial account electricity bills concluded at the end of the first quarter of Total corporate energy costs in 2017 leveled off relative to the year over year increases that have occurred over the recent term. As noted above, the leveling off in 2017 can be attributed to a number of factors: New Class A eligibility rules which allowed for the Greenway Wastewater Treatment Plant s participation in the Industrial Conservation Initiative, combined with Greenway PCP s favourable electrical load profile, resulted in a significant reduction in the facility s exposure to GA costs in the second half of City of London 15

19 The introduction of both the Ontario Rebate for Electricity Consumers Act, effective January 1, 2017, and the Fair Hydro Plan, effective July The moderate summertime temperatures reduced demand for air conditioning. A corresponding weather-related usage pattern was also evident in reduced water usage at spray pads in London s park system. The ongoing corporate energy management practices by the Corporation, including cost avoidance measures through procurement, building retrofits, and other conservation measures, assisted in continued efforts to reduce amounts of energy used to help reduce the effect of the market cost increase. It is prudent for the Corporation to continue to implement a multipronged approach to help contain and/or reduce energy costs. The energy efficiency improvements and cost avoidance measures being implemented serve to insulate the Corporation from the market changes and inflationary costs associated with energy procurement. 5. Corporate Energy Cost Avoidance In terms of service delivery to Londoners, energy use per person has dropped by 21 percent since 2007 levels. This energy reduction can be attributed to recent energy conservation measures and facility upgrades. Table 14 Energy Costs Per Capita by Commodity Energy Consumption (ekwh) by Commodity per Change since compared to 2016 Avoided Costs person Variance % Change Electricity (37) -12% $ (1,898,000) Natural Gas (68) -41% $ (424,000) Steam 10 7 (3) -27% $ (49,000) Chilled Water 5 4 (1) -29% $ (59,000) Diesel Fuel (5) -9% $ (145,000) Gasoline (2) -12% $ (74,000) Total (117) -21% ($2,649,000) Approximately $2.6 million in energy costs were avoided in 2017 compared to 2007 levels and more than $9.5 million in avoided energy costs have been accumulated since 2007 (Figure 9). It is to be noted that Business-As-Usual (BAU) projections were developed based on historical consumption and cost numbers and do not reflect fluctuations in fuel and electricity prices that were seen in the 2016 and The fluctuations in utility or fuel costs per unit are not under Corporations control. Total electricity costs for the Corporation decreased by nine percent in 2017 compared to This decrease was mainly due to provincial government s Fair Hydro Plan and eight percent Ontario Rebate for Electricity Consumers Act released in City of London 16

20 Figure 9 Avoided Energy Costs (Accumulated) 6. Corporate Energy-related Greenhouse Gas Emissions In 2017, the Corporation s energy-related GHG emissions can be summarized by commodity and by municipal service categories. Based on the Corporation s current use of electricity, natural gas, steam, chilled water, diesel and gasoline consumptions and costs, GHG emissions can be calculated. The total GHG reflects the municipal operations and can be measured annually back to This allows the Corporation to show trends in energy-related GHG emissions over the last ten years. 6.1 Total Corporate Greenhouse Gas Emissions Overall, since 2007 the Corporation has reduced its annual energy-related carbon footprint by 64 percent. Table 15 Greenhouse Gas Emissions by Commodity GHG Emissions Change since 2007 By Commodity (tonnes/year) Variance (tonnes) % Change Electricity 26, (22,930) -92% Natural Gas 10,650 6,840 (3,1800) -36% Diesel Fuel 5,290 5,190 (100) -2% Gasoline 1,590 1,540 (50) 3% Steam (310) -44% Chilled Water (100) -42% Total 44,500 18,000 (26,500) -64% City of London 17

21 Most of the recent progress in reducing energy-related corporate greenhouse gas emissions is due to provincial action to replace coal-power plants with cleaner electricity generation. The total GHG emissions by commodity, illustrated in Figure 10, is a representation of the GHG emission reductions by commodity since Figure 10 Greenhouse Gas Emissions By Energy Commodity 6.2 Total Corporate Greenhouse Gas Emissions by Municipal Service Categories Table 16 represents trends for all municipal service categories for the Corporation since the baseline year of (It should be noted that the total does not include non-energy related greenhouse gases such as methane in landfill gas and nitrous oxides from sewage sludge incineration. These are discussed in Section 6.3 in more detail.) Table 16 Greenhouse Gas Emissions by Municipal Service Categories Change since 2007 GHG Emissions By Municipal Service Categories (tonnes/year) Variance (tonnes) % Change Buildings 15,200 6,700 (8,500) -56% Traffic Signals & Streetlights 5, (5,500) -93% Wastewater & Treatment 14,400 2,200 (12,200) -85% Water Pumping 2, (1,900) -90% Fleet 6,880 6,730 (150) -2% Total Corporation 44,500 17,100 (28,300) -64% City of London 18

22 The total GHG emissions by municipal service categories illustrated in Figure 11 below is a representation of the GHG emission reductions by service category since Figure 11 Energy Related Greenhouse Gas Emissions by Municipal Service Categories Overall, since 2007, the Corporation has reduced its annual energy-related carbon footprint by 64 percent (not including landfills). Compared to 2014 CDM baseline year, this has been reduced by 25 percent. This is more than the CDM target. Those municipal service categories powered by electricity have seen the benefits associated with the phase-out of coal-fired power generation. The sludge dewaterer at Greenway WWTP has also contributed significantly to GHG emissions reductions through the reduced use of natural gas. Fleet has seen a reduction of two percent in its GHG emissions for the first time since This shows that despite of increase in demand on City vehicles for London s growing population and urban land area, fleet greening efforts in place are helping in making the Fleet operations more energy efficient. Also, as mentioned previously, better driving behaviour and 2017 weather conditions helped in lowering the fuel consumption. The Corporation continues to search for innovative and collective ways to reduce GHG emissions from energy use. City of London 19

23 6.3 Non Energy-related Greenhouse Gas Emissions The Corporation also has direct control over two major sources of greenhouse gas emissions not associated with energy use: Methane emissions from the W12A Landfill as well as closed landfills; and Nitrous oxide (N2O) emissions from the incineration of sewage sludge at the Greenway Wastewater Treatment Plant. In fact, methane emissions from landfill sites are significantly larger in magnitude than energy-related greenhouse gas emissions. With the installation and ongoing expansion of the landfill gas collection and flaring system at the W12A landfill, the Corporation has made significant reductions in greenhouse gas emissions as seen in Table 17. Table 17 Summary of Landfill Gas Flaring at W12A Landfill Year Methane Flared (tonnes) Equivalent CO2 Reduced (tonnes) Cumulative Methane Flared (tonnes) Cumulative CO2e Reduced (tonnes) , , ,975 49,000 2,827 70, ,800 45,000 4, , ,441 36,000 6, , ,845 46,000 7, , ,282 57,000 10, , ,324 58,000 12, , ,658 66,000 15, , ,237 81,000 18, , , ,000 22, , , ,000 27, , , ,000 31, , , ,700 37, , , ,500 43,764 1,092,200 As a result of London having joined the Compact of Mayors in 2015, nitrous oxide (N2O) emissions from sewage treatment is now included within London s energy and GHG emissions inventory as per the Global Protocol for Community-Scale GHG Emission Inventories. Nitrous oxide, a potent greenhouse gas with 310 times the global warming potential of carbon dioxide, is a combustion by-product from the incineration of sewage sludge and its formation is influenced by incinerator operating conditions (i.e., combustion temperature). Since 2008, annual stack testing at the Greenway Wastewater Treatment Plant sludge incinerator has included the measurement to nitrous oxide alongside other air pollutants. Table 18 summarizes the nitrous oxide stack test results. City of London 20

24 Table 18: Summary of Stack Test Results for N2O Emissions from the Greenway WWTP Sewage Sludge Incinerator Year N 2O emissions Sewage sludge burn rate Measured Measured Estimated Estimated during stack average average annual annual testing emissions emissions emissions CO2e (tonnes/h) g/s kg/h tonnes/y tonnes/y Estimated CO 2e emissions per tonne sludge , , , , , ,700 no data , , , , As can be seen from the table above, measured emissions of nitrous oxide can vary from year to year. As Environment and Climate Change Canada has reduced the reporting threshold for facility emissions to 10,000 tonnes per year of carbon dioxide equivalent emissions for the 2017 reporting year, the Greenway WWTP is now required to report its emissions. Figure 12 Non-Energy Related Greenhouse Gas Emissions by Municipal Source City of London 21

25 6.4 Total Corporate Greenhouse Gas Emissions by Employee Travel New for this report, City staff have started to estimate the GHG emissions impact associated with employees commuting to work as well as work-related travel. These types of GHG emissions indirectlyinduced by an organization are referred to as Scope 3 GHG emissions, with Scope 1 being GHG emissions directly from corporate activities and Scope 2 being GHG emissions from the generation of electricity used in corporate activities: Scope 3: Other indirect emissions, such as the extraction and production of purchased materials and fuels, transport-related activities in vehicles not owned or controlled by the reporting entity, electricityrelated activities (e.g. transmission & distribution losses) not covered in Scope 2, outsourced activities, waste disposal, etc. GHG emissions have been estimated for the following: Car allowance reimbursements based on 2017 reimbursement expenditures from Finance, a $0.50/km mileage reimbursement rate, and an assumed 10L/100km average passenger vehicle fuel economy; Corporate travel based on 2017 total travel and convention expenditures from Finance, an assumption of one-third of these costs being air travel costs, published data an average airfare cost per kilometre travelled, and published air travel GHG emissions per passenger-kilometre travelled; and Employee commuting based on the 2014 City of London Mobility Survey results, average commuting distance based on employee home postal codes, and an assumed 10L/100km average passenger vehicle fuel economy. Table 18 summarizes the estimated employee travel GHG emissions. Table 18: Summary of 2017 Employee Travel GHG Emissions Activity Cost Estimated fuel use (L/year) Estimated GHG Emissions (tonnes CO2e ) Car allowance $255,000 51, Air travel (estimated) $240,000 not applicable 460 Employee commuting not applicable 1,400,000 2,900 Total $495,000 3,500 These provide an order-of-magnitude estimate of the significance of these activities and will be used to help set priorities, particularly for promoting transportation demand management activities (e.g., carpooling, cycling, telecommuting, and transit) for City of London employee commuting. City of London 22

26 Corporate Energy Management Activities Energy management is a key component in managing facilities and infrastructure in today s economy. The Corporation leads by example when it comes to sustainable energy investments and initiatives. London s future sustainability depends on the implementation of best practices in energy management today. The current section of the report highlights a selection of the significant energy management projects and supporting initiatives which are in progress, planned and completed in 2017 which has resulted in efficient municipal building and infrastructure stock. More information and details on previously completed energy projects can be found in 2016 Energy Management Activities Report. 7.1 Funding and incentive sources Incentives offered for energy conservation projects from Union Gas, London Hydro and Federation of Canadian Municipalities have encouraged various municipal operations to undertake energy conservation projects. The incentive programs offer funding for controlling and reducing energy demand by replacing energy-wasting equipment, or to pursue new construction(s) that exceed provincial building codes and standards which in turn assist the Corporation to reduce annual energy costs and associated greenhouse gas emissions. Additionally, these incentives support in developing stronger business cases to help save money and energy. The table below shows the total amount of incentives received for projects undertaken in Organization Total Incentives Received in 2017 Union Gas $ 29,500 London Hydro $ 190,950 Annually the Corporation has been receiving anywhere from $160,000 to $270,000 in incentives for completed energy efficiency projects since Appendix B has a detailed list of incentives for Current Activities Updates on current activities in this report are identified under the four key focus areas: Tracking & monitoring energy consumption Renewable energy and feasibility projects Energy conservation and demand management projects Green Fleet 8. Tracking & Monitoring Energy Consumption Tracking energy usage is an important first step to understanding how an organization uses energy which is necessary before any efforts to reduce energy costs and usage can be made. As described in the 2016 Energy Management Activities report, the Corporation continues to use EnergyCAP software and London Hydro s Green Button data to track and monitor its utility consumption. City of London 23

27 All functions performed by EnergyCAP are listed in the Past and Current Activities report published in September Since its procurement EnergyCAP has been continuously updated to accommodate various reporting requirements. In 2017, the Corporation has migrated to the EnergyCAP web version from its enterprise or the desktop version. The updated software is comprehensive and much easy to use. London Hydro s Green Button program defines a particular data format and secure mechanism whereby the data can be accessed by third party applications for analysis, dashboard population, and other purposes with the data owner s approval. Green Button data enables us to access and analyze electricity consumption for every five minute interval. Fleet Analysts electronically track and report fuel use in vehicles and equipment through an automated system called Petrovend. 8.1 Renewable Energy Projects In terms of overall approach for supporting renewable energy, City staff continue to recommend making direct investment in renewable energy projects at municipal facilities rather than the procurement of green energy from energy retailers (e.g., purchase offset credits) Landfill Gas as a Potential Resource The Corporation was awarded a FIT5 contract from the Independent Electricity System Operator (IESO) in mid-october The Corporation s FIT5 application was the only one submitted using landfill gas as the renewable energy source, out of 1,120 applications submitted. The City was in the process of securing a renewable energy approval from the province for the development of a 500 kw landfill gas power plant at the W12A Landfill. However, in July 2018, the new Provincial Government cancelled the FIT5 contract. It is estimated that there is about 2,500 cubic meters per hour (1,500 cfm) of landfill gas and upgrading this landfill gas to pipeline quality renewable natural gas (RNG) is the most likely option. The Corporation submitted a proposal to Union Gas in April 2018 for their RNG Request for Proposals. However, the new Provincial Government also cancelled the Cap & Trade program which was the basis of the Union Gas RFP. This project is currently on hold by Union Gas. Other opportunities are currently being examined by City staff. For example, FortisBC Inc., an electricity and gas distribution company in British Columbia (BC), announced its RNG program in late June 2018, which will include RNG from anywhere in Canada as long as it is connected to the BC gas grid. FortisBC announced their RNG Request for Expression of Interest (RFEOI) and the Corporation submitted its expression of interest on July 31, City of London 24

28 8.1.2 FOG Cup Waste to Resource at Greenway WWTP Household fats, oils and grease (FOG), when poured down the drain costs Water Operations significant amounts of money every year to remove. Currently, Water Operations is encouraging citizens to dispose FOG in FOG cups available at various Environmental Depots across the City. Most of the collected FOG is currently being sent out to StormFisher s organic waste digester and biogas power plant, but some FOG cups also end up in landfill. Water Operations is conducting a feasibility and engineering study of utilizing the collected FOG as a supplementary biofuel to Fluidized Bed Incineration (FBI) to power the planned Organic Rankine Cycle (ORC) engine at Greenway Treatment Plant to generate electricity. This study will include the environmental benefits of a household-level FOG collection program, their subsequent use as supplementary fuel source to the FBI to power ORC engine, and the emissions reductions from offsetting electricity and natural gas use with the ORC, among other sources. Additional environmental benefits of this process would include reducing landfill waste, reducing methane emissions from the landfill, and reducing emissions and material waste from replacing broken sewer infrastructure. This study is being supported by a $57,000 Federation of Canadian Municipalities Green Municipal Funds grant. A Request for Proposals for this study closed in July 2018 and the study is expected to be completed by November 1 st, Bioenergy London Waste to Resource Innovation Centre In February 2015, London Municipal Council approved a concept referred to as the London Waste to Resources Innovation Centre. The primary goal of this Centre is to create a location(s) in or near London for the ongoing examination of innovative solutions for waste reduction, resource recovery, energy recovery, and/or waste conversion. In 2016, City staff undertook a number of new projects, including signing a Memorandum of Understanding (MOU) with the University of Western Ontario (Institute of Chemicals and Fuels from Alternative Resources) undertake testing and research on the viability of a range of technologies and processes to create resources from waste that would normally be sent to disposal facilities. In early 2017, additional MOUs were signed for the following waste conversion technology research: Bio-Techfar Inc., to undertake testing and research on the viability of a proprietary pyrolysis technology and processes to create resources from a range of biomass materials that would normally be sent to recycling and/or disposal facilities. Tucker Engineering, representing a pyrolysis group, to undertake testing and research on the viability of a proprietary pyrolysis technology and processes to create resources from various fractions of municipal solid waste that would normally be sent to recycling and/or disposal facilities. City of London 25

29 In 2017, key research work that has been undertaken includes: Food waste avoidance research with Western University, PhD Candidate Paul van der Werf and 2cg Consulting; Anaerobic digestion of source separated organics (SSO) and facility separated organics (FSO) to create renewable natural gas (RNG); and Literature review, analysis, and site visits for new, emerging and next generation technologies (e.g., gasification, pyrolysis, mixed waste processing) 8.2 Energy Conservation and Demand Management Projects The Corporation continues to examine energy management within every project. Energy conservation demand management consists of corporate initiatives and projects that result in the reduction of energy consumption by proposing more efficient methods and technologies and/or technologies that shift power demand to off-peak periods. The strengthening of our corporate energy management team has bought forward a number of conservation projects, and energy management staff also having the opportunity to weigh in and encourage energy-saving measures on upcoming designs and proposals throughout the Corporation has proven to be beneficial. Facilities, Wastewater Treatment Operations and Water Operations have continued to invest in projects that resulted in reduced energy and costs in Facilities have managed capital development projects for municipal organizations such as London Fire Services, London Police Services, London Public Library and Museum London. In Appendix A, a list of all the 2017 projects that have energy conservation components associated with them are recorded. The projects identified in 2017 were not necessarily large stand-alone energy conservation projects, but rather contribute incrementally to the corporate energy conservation and demand management results. The following are highlights of some of the projects planned, completed and on-going by the Corporation since 2017 that contribute to energy conservation initiatives Upgrading HVAC units As a continuous best practice, several City owned buildings including the North London Optimist Community Centre, Eldon House and A. J. Tyler Operations Centre are upgrading the current heating, ventilation and air conditioning (HVAC) and roof-top air conditioning units to efficient ones. These upgrades not only contribute to better energy efficiency, but result in better comfort and less repair work contributing to employee satisfaction and reduced maintenance costs. HVAC replacement projects qualified for retrofit incentives from London Hydro and the details of incentive for each project are listed in Appendix A. City of London 26

30 8.2.2 Laser Ice Level System Argyle Arena and Stronach Arena are currently investigating the use of laser technologies for resurfacing the ice sheets. Keeping the ice at same level is a difficult task. In the traditional method, it requires the operator to take manual measurements at various points and set the blades manually, and then flood water back onto the ice to build it back again. Laser technology makes the whole process automatic. It takes the thickest measurement and builds it up to that level. It also has flood-water control system so that the ice is not over-flooded. This technology saves time for the operator and saves energy and water. This project has been approved for $11,000 in incentives from London Hydro under the saveonenergy Retrofit Program and has an estimated electrical savings of 108 megawatt-hours (MWh) Lighting Upgrades In 2017, the Corporation continued to invest in LED lighting technology for parking lots and for municipallyowned facilities. As identified in the 2016 Corporate Energy Management Activities Report, the previous generation of energy efficient lighting T5 fluorescent, which replaced metal halide at a number of arenas is reaching the point in its service life where a large scale re-lamping is coming due. This point in the fixtures lifecycle presents an opportunity to replace the existing fixtures with high efficiency LED fixtures. Facilities is progressing on a multi-year replacement program to do this related to the 2016 Budget Amendment (Case #19). The continued quick payback and return on investment associated with lighting retrofit projects proves their effectiveness as energy conservation projects. The Corporation continues to review capital assets to identify opportunities where lighting upgrades can be completed, which will make the building inventory more efficient operationally. All the lighting upgrades completed and in progress in the past year are shown in Appendix A. City of London 27

31 8.2.4 Southeast Reservoir Pumping Station The new Southeast Reservoir Pumping Station construction was completed last year and has been in operation since Fall This building is one of the most energy efficient within the Corporation and consumes 25 percent less energy than a similar building designed to the building code. The energy efficient highlights of this building include: A green roof to reduce storm water runoff, Lighting that does not contribute to light pollution, Water use reduction measures in plumbing fixtures for water, Use of environmentally-friendly building materials certified woods, paints and carpets free of volatile organic compounds (VOCs), renewable materials made from agricultural products, and regionally manufactured materials, Public access to the site, with walking trails on top of the reservoir, and The use of renewable materials made from agricultural products, and the use of regionally manufactured materials Wastewater Treatment Energy Projects In 2017, Wastewater Treatment Operations continued to work on a number of projects that fit within best practices of energy conservation and demand management initiatives. After upgrading aeration blowers with new turbo blowers and replacing existing lights with LEDs, Wastewater Treatment Operations continued to invest in innovative technologies, such as Zeelung Technology in its aeration system to increase aeration efficiency and the Organic Rankin Cycle (ORC) engine to generate electricity from the waste heat produced by the Greenway treatment plant s sludge incinerator. All of these projects are noted in Appendix A. 8.3 Green Fleet The Corporation s Fleet Services Division is responsible for over $53 million in municipal fleet and equipment assets. Services include vehicle and equipment purchases and disposals, maintenance and City of London 28