Building the Energy Pipeline: Capturing District Energy Opportunities in our Cities and Towns

Transcription

1 Building the Energy Pipeline: Capturing District Energy Opportunities in our Cities and Towns March 27, 2007 Bruce Ander Chair, Canadian District Energy Association President, Markham District Energy Inc.

2 5 Discussion Points 1. What is District Energy? 2. Why District Energy? Denmark 1973 to Benefits to Building owners, the Municipality and the Environment: Markham District Energy 4. Status of District energy in Canadian communities 5. Ownership & Financing

3 What is District Energy? Definitions: A planned energy system for a community where thermal energy is produced in a central plant location and is distributed to buildings in the community. or Efficient & environmentally superior method of producing electricity and heating & cooling energy close to the loads that use the energy; an application of distributed energy.

4 What is District Energy?

5 Why District Energy : Denmark 1973 Imported oil provided 94% of Denmark s energy supply; self-sufficiency 2% Oil crisis caused a severe shock to the economy which brought forward many ideas for energy conservation, fuel switching, and Combined Heat & Power (CHP) Large quantities of natural gas were discovered in the North Sea At the time, district heating supplied 30% of the Danish heating market; with 33% of heat produced by CHP plants By 1980, energy planning at the Federal level lead to legislation & tax measures mandating a path to higher efficiency, cleaner fuels, the expansion of district energy systems, and the use of combined heat and power.

6 Why District Energy : Denmark 2000 Dependence on imported oil 2% Use of indigenous energy sources 65% of total energy consumption District heating 50% (up from 30%) District heating produced by CHP plants 64% (up from 33%) Renewable energy provides 25% of district energy fuel input 25% of Denmark s total energy consumption fueled by natural gas 60% of all Danish homes are heated by district energy

7 Why District Energy and why all Canadian communities should be planning district energy systems: Economic Development Environmental Performance & Sustainability Fuel flexibility & diversity Good long term municipal investment Security of local supply & can enhance emergency preparedness

8 Benefits to Building Owners Municipality Environment Markham Population 154, , , , ,000 Markham Employment 92, , , , ,000

9 988 acres 25,000 residents 17,000 jobs 192 acres open space 75 acres parkland 20 million sq. ft. of new development

10 Markham Centre s Sustainable Urban Planning Process 11 GUIDING PRINCIPLES Developer Performance Measures Document Advisory Committee Report Cards Green Infrastructure DISTRICT ENERGY

11 Markham District Energy Created in 1999 Wholly owned by the Town of Markham Mission Statement: To develop a world class community based district energy system that responsibly invests shareholder capital to encourage local economic development and demonstrate environmental leadership.

12 Markham District Energy Full build-out will be served by four production plants Four (4) pipe hot water & chilled water system: centralized high efficiency boiler & chiller plants Natural gas fuelled combined heat & power Absorption cooling Future technologies: Thermal storage Solar thermal Energy from waste Biomass

13 Diverse Customer Base Commercial, High Tech & Institutional Residential

14 Markham District Energy Economic Development Environmental Performance & Sustainability

15 Benefits to Building Owners Deferral of capital dollars (conventional heating & cooling plants, structure, space, electrical systems, stack, natural gas service) Space savings, enhanced roof usage (green roof technologies) Enhanced reliability of heating & cooling systems. Simplified building operations. Transfer of capital and operating cost risk. Ease of system expansion & flexibility (particularly for cooling systems) Reduction in noise and building emissions. LEEDS points (under development with Canadian Green Building Council)

16 Markham District Energy Fuel flexibility & diversity (and a bridge from non-renewable to renewable fuels) Good long term municipal investment Security of local supply & can enhance emergency preparedness

17 District Energy in Canadian Communities? Vancouver North Vancouver Revelstoke Calgary Strathcona Montreal Charlottetown Quebec City 83 Toronto London Ottawa Windsor Sudbury Cornwall Markham Oshawa Hamilton Regent Park

18 Leading Edge Sustainable Community Design Toronto Waterfront Southeast Falls Creek (future Olympic village) Calgary East Village

19 Ownership Considerations There are many successful investment models across the country: 100% municipal ownership Public-private partnerships 100% private ownership Regardless of the municipality s ownership position, a successful district energy project requires municipal support (a Champion, municipal access, early integration with the planning process, a sustainable energy focus)

20 Municipal Financing Opportunities FCM Green Municipal Funds (grants to assist the study phases to fund innovative projects; and long term low interest loans to fund capital projects) Federal Government Gas Tax Revenues included District energy systems as an eligible investment. A number of energy Financiers are targeting the district energy sector in Canada. Partnership with private energy investor. CCA Class 43.1 and Good application for Tax Increment Financing.

21 DE s Contribution to Sustainable Urban Planning 1. DE assists with the design of compact urban form (less equipment, less space, quieter environments, reduced or zero building emissions) 2. DE is flexible as it responds to changing building loads and future intensification; and to changes in fuel supply and technology. 3. DE systems can deploy technologies that individuals buildings cannot or would not utilize (CHP, thermal storage, alternate fuels etc.) 4. DE systems (including distribution losses) are more efficient 5. DE systems lower emissions 6. DE buildings have less roof equipment which helps to accommodate green roof strategies 7. Security of local supply; emergency preparedness

22 12 th Annual District Energy Conference