QUEST COMMUNITY ENERGY BUILDER AWARD UTILITIES CATEGORY CASE STUDY

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QUEST COMMUNITY ENERGY BUILDER AWARD UTILITIES CATEGORY CASE STUDY Envida Community Energy Inc. is working collaboratively with the City of Guelph to identify and implement sustainable energy projects that will assist Guelph not only in achieving the energy and greenhouse reduction targets set out in the internationally renowned Guelph Community Energy Initiative, but also by attracting jobs and investment for the broader good of the community. Achieving these goals will put Guelph among the top energy performers in the world and make it one of the most competitive and attractive communities in which to invest and live. The following highlights of Envida Community Energy s achievements in 2013 2014 will provide clear evidence of: Strong collaboration with other stakeholders Details of a variety of energy efficient projects in development or in operation An integrated approach to energy in the community that can serve as a model for others 1. DISTRICT ENERGY STRATEGIC PLAN Currently, the energy required to heat and cool homes and buildings accounts for about half of Guelph s total energy use and is a major contributor to greenhouse gas emissions. In order to achieve the energy and emissions reduction targets set out in the Guelph Community Energy Initiative, the efficiency of the heating and cooling of homes and buildings must be greatly improved. Recognizing this, Envida Community Energy collaborated with the City of Guelph to develop a District Energy Strategic Plan for the community that was completed in 2013. This landmark document sets out a vision for Guelph as a prosperous, cleaner and healthier community powered by a secure, reliable, affordable and sustainable city-wide district energy system. By publishing this document, Guelph became the first community in North America to establish and announce a plan for an interconnected thermal grid to serve buildings across the city. As outlined in the District Energy Strategic Plan, the Guelph district energy system will supply at least 50 per cent of the heating needs of commercial, institutional and industrial facilities as well as residential dwellings in the community. The district energy network, which will be constructed by Envida Community Energy, will be practically invisible, forming an integral part of the infrastructure of the City and installed with other basic networks such as electricity, water and sewage. 1 Envida Community Energy Inc. Case Study

The report describes how a community-wide district energy network in Guelph could grow from a modest beginning with energy centres in two high-priority areas the Galt District Energy System in downtown Guelph and the Hanlon Creek Business Park and evolve over the years with the addition of other medium priority areas to form an interconnected grid capable of providing large portions of the city with economical heating and cooling and domestic hot water. The result would be a significant drop in energy use and greenhouse gas reductions, positioning Guelph as one of the top energy performers in Canada, helping to combat climate change and establishing the community as Canada s District Energy Centre of Excellence. 2. GALT DISTRICT ENERGY SYSTEM COMMERCIAL OPERATION In 2013, Envida Community Energy constructed and commenced commercial operation of the central heating and cooling plant for the Galt District Energy System located in the Sleeman Centre in downtown Guelph. (See photos on next page) This was an important first step towards building North America s first city-wide district energy network. 2 Envida Community Energy Inc. Case Study

Insulated, underground pipes for the thermal distribution system were installed in the fall of 2013. 3 Envida Community Energy Inc. Case Study

3. EXPANSION OF THE GALT DISTRICT ENERGY SYSTEM In August 2014, Envida Community Energy announced that the 18-storey River Mill condominium building being built by the environmentally responsible builder, The Tricar Group, would be the first residential building in Guelph to be heated and cooled by district energy. (See media release.) Planning, development and design of this project started in the fall of 2014. 4 Envida Community Energy Inc. Case Study

4. COMBINED HEAT & POWER FACILITY - HANLON CREEK BUSINESS PARK In 2014, Envida Community Energy received approval for the construction of a natural gas-fired 10.2 MW combined heat and power facility in a greenfield site that will provide electricity to the provincial grid under a 20-year contact with the Ontario Power Authority. (See media release.) A key success factor of the Guelph Community Energy Initiative is the use of cogeneration systems to provide at least 30 per cent of the City s anticipated total electricity requirements about 100 MW by the year 2031. By using a single fuel source (natural gas) to produce both electricity and heat, more useful energy is extracted from each unit of fuel input, resulting in efficiencies of up to or greater than 80 per cent. This makes combined heat and power one of the most efficient methods of generating electricity. Since less fuel is used to produce electricity and heat, greenhouse gases and other air emissions are reduced by as much as 50 per cent. Cogeneration systems address a number of the community s priorities increasing energy efficiency, reducing greenhouse gas emissions, strengthening the resiliency of the City s energy infrastructure, improving energy securing, growing the local economy and improving the competitiveness of local industries. As such, the approval to proceed with the Hanlon Creek Business Park combined heat and power project is a significant milestone in realizing the vision of the Guelph Community Energy Initiative. 5 Envida Community Energy Inc. Case Study

In an innovative move, Würth Canada and Fusion Homes are currently being supplied by a temporary district energy system (see photos) operated by Envida Community Energy. Once Envida s combined heat and power facility is operational, these customers will be supplied from the new facility. It is worth noting that Würth Canada, which opened its new head office and distribution centre in the Hanlon Creek Business Park in September 2014, selected the site, in part, due to the opportunity to connect to the district energy system. Then in October 2014, the Danish firm, Ramboll, announced that they will be opening an office in Guelph to provide district energy expertise to Envida. These are two good examples of how the work of Envida Community Energy is benefitting the community by attracting jobs. 6 Envida Community Energy Inc. Case Study

5. WEST END COMMUNITY CENTRE COMBINED HEAT AND POWER FACILITY A combined heat and power system located in Guelph's West End Community Centre that went into commercial operation in April 2014 was the result of a collaboration between Envida and the City. The 133,000 square-foot facility is a fully accessible, multi-purpose community centre that includes an aquatic facility, a twin-pad arena, a gymnasium, library, community meeting rooms and cafe. The combined heat and power unit can be used to shave peak electrical demand during periods of high electrical pricing and provide emergency backup power to the West End Community Centre in times of power outages. The West End Community Centre is designated as an emergency shelter in times of municipal emergencies. In emergency mode, the system provides electricity to key identified loads, providing full power to most of the facility as well as the neighbouring Firehall #4. The combined heat and power system, equipped with a MAN V-12 engine, is rated at 400 kilowatts of electrical power at 600 volts and 1800 rotations per minute (RPM), as well as 556 kilowatts of thermal power at 120 degrees Celsius using natural gas as a fuel. 7 Envida Community Energy Inc. Case Study

6. SOLAR PHOTOVOLTAIC INSTALLATIONS Guelph's Community Energy Initiative calls for the implementation of 1,000 solar roofs. Envida Community Energy is supporting this effort by leasing the rooftops of municipal, industrial, commercial and institutional buildings for solar panel installations. The company has also installed ground mount solar facilities. All of these facilities are contributing the reduction of greenhouse gas emissions and are contributing to the community s success in achieving the goal of the equivalent of 1,000 solar rooftops years ahead of schedule. Envida Community Energy completed the following seven solar installations in 2013-2014: Guelph Fire Department Headquarters Building - 10 kilowatt rooftop solar Firehall Number 3-10 kilowatt rooftop solar Firehall Number 5-10 kilowatt rooftop solar River Run Centre 10 kilowatt rooftop solar Guelph Lawn Bowling Centre 10 kilowatt rooftop solar City of Guelph Public Works Building - 10 kilowatt rooftop solar Speedvale Water Tower - 10 kilowatt ground mount solar 8 Envida Community Energy Inc. Case Study

7. EASTVIEW LANDFILL GAS FACILITY In 2013-2014, Envida Community Energy continued to operate the Eastview Landfill Gas Facility, an alternative energy plant that converts methane gas into 2.5 megawatts of electricity annually. This is about one per cent of the City s requirements. 8. QUALIFIED FOR BIOMASS PROJECTS In November 2014, GIME Energy, a team made up of Envida Community Energy Inc. and a number of equity partners including EllisDon Corporation and Index Energy Canada Corporation, received notification that it has been qualified by the Ontario Power Authority to submit proposals for renewable energy biomass projects that would feed electricity into the provincial grid under any future Large Renewable Procurement (LRP) Requests for Proposals that may be issued by the Ontario Power Authority. (See media release.) Dedicated biomass plants for combined heat and power typically achieve efficiencies of around 30 per cent. However, when used to feed a district energy system, total efficiencies rise substantially. The Ontario Power Authority Large Renewable Procurement (LRP) is a competitive process for procuring large renewable energy projects. Qualified applicants were evaluated based on their ability to meet a set of mandatory requirements focused on past development experience and financial capability. Although the Ontario Power Authority is not currently evaluating or qualifying specific large renewable projects, this will occur at the Request for Proposals (RFP) stage which is expected to take place in the near future. Since only qualified applicants may submit project-specific proposals containing full details about the projects, Envida Community Energy is now in a position to submit proposals for biomass projects when the RFP stage is announced. Since the intention of Envida Community Energy is to couple biomass projects with district energy systems, high efficiencies will be possible; thus, providing significant energy and environmental benefits to the community. 9 Envida Community Energy Inc. Case Study

9. TRANSATLANTIC URBAN CLIMATE DIALOGUE In 2013, Envida Community Energy and the City of Guelph cohosted a workshop for the Transatlantic Urban Climate Dialogue, an initiative organized by the Environmental Public Policy Research Centre at the Freie Universitat Berlin, Germany. A three-year project involving workshops in the United States, Germany and Guelph, the Transatlantic Urban Climate Dialogue brought together North American and German policy makers, technical experts, business leaders, and academics to share perspectives about challenges associated with developing and implementing community energy policies and projects. The purpose of the workshops was to provide a forum in which participants could exchange ideas and learn from leading communities that have successfully adopted renewable energy and green transportation technologies, implemented energy efficiency building standards and initiatives and used community energy projects to transform urban settings. The City of Guelph and Envida Community Energy were the only Canadian entities that were invited to participate in this important and innovative international initiative. 10. COMMUNICATIONS AND PUBLIC ENGAGEMENT In 2013-2014, Envida Community Energy focused considerable energies on educating and engaging key stakeholders and the community on general topics such as district energy and combined heat and power as well as specifics about Envida s projects. This has resulted in very positive media attention, lack of community resistance to Envida Community Energy projects and an enhanced reputation for both Envida Community Energy and the City of Guelph. Communications efforts in 2013-2014included: Expanding the company s website (www.envida.ca) to include background information, illustrations, and photo galleries of projects Issuing media releases Engaging the community through social media (Twitter - @EnvidaEnergy) Outlined plans and projects in the parent company s 4 th annual Sustainability Report Discussing district energy on a local cable television station Holding a public information session for a community adjacent to a project Providing tours of solar and district energy facilities to selected audiences 10 Envida Community Energy Inc. Case Study