Bold Changes Big Opportunities: The Changing Face of Electricity Conservation in Ontario

Transcription

1 Bold Changes Big Opportunities: The Changing Face of Electricity Conservation in Ontario Joe Bilé Manager CDM Program Delivery & Business Development Association of Energy Engineers, Southern Ontario Chapter, Technical Session May 27, 2015

2 Agenda Conservation & Demand Management (CDM) Update Program Continuity Transition Projects New Program Design & Governance Business Working Group Annual Plan New Pilot Programs CDM Program Basics 2

3 How should the marketplace react?....and carry on 3

4 CONSERVATION & DEMAND MANAGEMENT (CDM)- UPDATE 4

5 CDM Business Programs Continuing Retrofit Audit (including Building Systems Audit) Existing Building Commissioning (EBCx) High Performance New Construction (HPNC)* Process & Systems Upgrade Initiative (PSUI), including Small Capital Projects Embedded Energy Managers Monitoring & Targeting Preliminary & Detailed Engineering Study * New Ontario Building Code coming in

6 CDM Business Programs Being Replaced Small Business Lighting (SBL),

7 CDM Beyond Programs APPLICATIONS Project Completion APPLICATIONS Programs 2014 Start 2015 Date Provincial Long Term Energy Plan commits CDM to 6 more years of stable funding Seamless transition for customers: work with your LDC Incentive levels to remain unchanged in 2015 Incentive rates may change starting in

8 2015 Transition Projects Two types: (a) Started under programs/finishing

9 2015 Program Transition: (a) Started under programs/finishing Programs Programs 1st Generation 2nd Generation APPLICATIONS Project Completion APPLICATIONS Project Completion APPLICATIONS & COMPLETIONS Current Incentives 2014 LDC Launch Date Projects not finishing in time to be ported over to Conservation First Framework funding In principle, customer incentive to be protected Options being discussed with IESO for resolution prior to end of year 9

10 2015 Transition Project Types: Two types: (a) Started under programs/finishing 2016 (b) Precedes LDC Start Date 10

11 2015 Program Transition: (b) Precedes LDC Start Date Programs Programs 1st Generation 2nd Generation APPLICATIONS APPLICATIONS Project Completion APPLICATIONS & COMPLETIONS Current Incentives 2014 LDC Start Date Old incentive rates still apply Applicable to all continuing CDM programs 11

12 CDM Program Evolution Interim Transition Programs Redesigned Programs Additional New Province-Wide & Regional Programs 12

13 NEW PROGRAM DESIGN & GOVERNANCE 13

14 Conservation First Implementation Committee (CFIC) Working Groups 1. Business Working Group (BWG) 2. Residential Working Group 3. Sales & Marketing Working Group 4. Data & Reporting Working Group Change Management: Marketplace intelligence Enhancements New programs and business cases Agreements, forms and worksheets Incentive levels 14

15 Business Working Group Joe Bilé (Co-Chair) Carrie Aloussis (Co-Chair) Geerthanan Thiviyara Giorgio Boccalon Bryanna Boyd Erin Connelly Katie Potts Tom Semler Jeff Scott Jerry Van Ooteghen Hugo Vargas Bill Wylie Scott Hicks Grant Cockburn IESO IESO Guelph Hydro CHEC group of LDCs Greater Sudbury Hydro Niagara Peninsula Energy Inc. Hydro One Enwin Kitchener-Wilmot Hydro Enersource Horizon Utilities Enbridge Gas Ministry of Energy 15

16 BUSINESS WORKING GROUP ANNUAL PLAN 16

17 Sector Potential The achievable potential forecasts that 66% of the 7 TWh target will come from the commercial & distribution industrial sectors The commercial sector alone has contributed 75% of program savings to date The measures with the most potential include: Fans, pumps, motors, compressed air, lighting and HVAC equipment 17

18 BWG 2015 Priorities Priority First Generation Forms Small Business Lighting Business Case Process & Systems Rule Change Retrofit Business Case Energy Manager Business Case Upstream Business Case Savings Forecast Administrative Requirement Business Case n/a In-Market May 370 GWh May January GWh n/a July 3,600 GWh October Q GWh September January GWh November Q ü 18

19 Other Priorities On Deck The following priorities are on deck for 2016; however, they can be elevated should 2015 priorities change or complete early: Submit business case for AUDIT (2nd Generation) Submit business case for Process & Systems Upgrade Initiative (Operational) (2nd Generation) Submit business case for High Performance New Construction (2nd Generation) 19

20 Other Items for Consideration In addition to the priorities identified, the business working group recommends the continuation of the following activities as work group responsibilities: Treatment of 2015 transition projects Quarterly review of prescriptive measures review (Lighting & Non-Lighting) Evolve Multi-Distributor Customer (MDC) model 20

21 NEW PILOT PROGRAMS 21

22 Demand Control Ventilation uses CO2 sensors to monitor fresh air requirements for the space and adjusts the dampers to control the intake of outside air Typically reducing energy by 20 to 40% VFDs help save energy by ensuring the fans run at speeds appropriate to requirements When the system isn t conditioning indoor air, the VFD reduces fan speed to use 60 to 80% less energy 22

23 Optimizing hydronic systems by retrofitting pumps with Variable Frequency Drives (VFDs) could reduce electricity use by up to 30% VFDs together with balancing by a qualified professional can impact electricity consumption 23

24 A Continuous Energy Improvement (CEI) approach Potential energy savings of 5% to 15% Based on results, the program may be implemented across commercial and other sectors in the near future 24

25 Continuing Program Innovation New province-wide business programs under consideration Pilots Upstream/midstream incentives Operational savings (complementing Monitoring &Targeting, and Existing Building Commissioning) Collaboration with gas utilities New CDM program governance to oversee program innovation and development 25

26 Summary CDM incentive programs are continuing Include conservation in your capital investment plans Stay tuned for new program announcements and enhancements beginning in

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28 CDM Program Basics Government Industrial Small Business Agricultural Commercial Institutional 28

29 CDM Business Incentive Programs Commercial Institutional Industrial Multi- Residential Audit Funding Retrofit Program Small Business Lighting High Performance New Construction Supports different types of onetime audit Funding to cover up to 50% of audit cost $0.05/sq ft to $0.10/sq ft up to $25,000 or $35,000 depending on type Covers 50% of most travel expenses Requires approved 3 rd party auditor New Building Systems Audit can be focused on specific systems (multiple occurrences): HVAC fans & pumps Booster pumps Air compressors Refrigeration systems FEATURES! Existing Building Commissioning 29

30 CDM Business Incentive Programs Commercial Institutional Industrial $800/kW or $0.10/kWh (nonlighting) Multi- Residential Audit Funding Retrofit Program Small Business Lighting High Performance New Construction Existing Building Commissioning Funding to install high-efficiency equipment & control systems Cover up to 50% or project costs $400/kW or $0.05/kWh (lighting) Monitoring & Targeting is eligible Sub-metering is eligible and provides upfront incentives Rooftop Unit Air Conditioning program allows for emergency replacement; enrollment up to 45 days after installation Use in combination with new Building Systems Audit to accelerate pump, fan and compressor projects Earn fees for helping your customers with the Applicant Representative Initiative FEATURES! 30

31 CDM Business Incentive Programs Commercial Institutional Industrial Multi- Residential Audit Funding Retrofit Program Small Business Lighting A free, no-obligation assessment Up to $1,500 in energy-efficient lighting upgrades Free installation and clean up, at your convenience, using a Toronto Hydro approved vendor Includes LED lamps Also applies to tenants in a multi-tenant building such as Strip commercial Office buildings Hotels FEATURES! High Performance New Construction Existing Building Commissioning 31

32 CDM Business Incentive Programs Commercial Institutional Industrial Multi- Residential Audit Funding Retrofit Program Small Business Lighting High Performance New Construction Existing Building Commissioning 100% of 3rd party modeling costs up to $10,000 Tiered incentives for design decision-makers up to $150/kW, or $ /kWh Custom track will depend on level of savings to lesser of: $400/kW, or $0.05/kWh of energy saved up to 25% above code; $600/kW, or $0.75/kWh of energy saved between 25% to 50% above code; and $800/kW, or $0.10/kWh of energy saved for greater than 50% above code. Up to 50% of incremental project costs Prescriptive, engineered and custom track streams available Available until new 2017 Ontario Building Code 32

33 CDM Business Incentive Programs Commercial Institutional Industrial Multi- Residential Audit Funding Retrofit Program Small Business Lighting High Performance New Construction Evaluate and implement retrocommissioning strategies of buildings with chilled water plants Four-phased approach: ü Scoping Study Phase ü Investigation Phase ü Implementation Phase ü Hand-off/Completion Phase Cover up to 50% or project costs $800/kW or $0.10/kWh FEATURES! Scoping phase incentives pay 100% of cost up to $2,500 Hand-off/Completion phase incentives pay 100% of cost up to $2,500 Investigation phase pays up to $6 per ton for a data acquisition system, plus $18 per ton for a detailed report Existing Building Commissioning 33

34 CDM Business Incentive Programs Process & Systems Upgrade Initiative Small Capital Project Energy Manager Engineering Studies Capital Incentive based on lowest of : Production of $0.200/kWh 70% of estimated project cost (40% for Combined Heat & Power projects) An amount providing a project payback of one year FEATURES! Our PROCESS & SYSTEMS program can help you track your usage and develop a better plan to manage it. We'll fund up to $50,000 of the cost for engineering studies, up to $75,000 of costs to monitor your usage, and up to 80 per cent of the salary for a fulltime energy manager. Monitoring & Targeting 34

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36 Disclaimer The information in these materials is based on information currently available to Corporation and its affiliates (together hereinafter referred to as ), and is provided for information purposes only. does not warrant the accuracy, reliability, completeness or timeliness of the information and undertakes no obligation to revise or update these materials. (including its directors, officers, employees, agents and subcontractors) hereby waives any and all liability for damages of whatever kind and nature which may occur or be suffered as a result of the use of these materials or reliance on the information therein. These materials may also contain forward-looking information within the meaning of applicable securities laws in Canada ("Forward-Looking Information"). The purpose of the Forward-Looking Information is to provide s expectations about future results of operations, performance, business prospects and opportunities and may not be appropriate for other purposes. All Forward-Looking Information is given pursuant to the "safe harbour" provisions of applicable Canadian securities legislation. The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify Forward-Looking Information, although not all Forward-Looking Information contains these identifying words. The Forward-Looking Information reflects the current beliefs of, and is based on information currently available to, Toronto Hydro s management. The Forward-Looking Information in these materials includes, but is not limited to, statements regarding s future results of operations, performance, business prospects and opportunities. The statements that make up the Forward-Looking Information are based on assumptions that include, but are not limited to, the future course of the economy and financial markets, the receipt of applicable regulatory approvals and requested rate orders, the receipt of favourable judgments, the level of interest rates, s ability to borrow, and the fair market value of s investments. The Forward-Looking Information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the Forward-Looking Information. The factors which could cause results or events to differ from current expectations include, but are not limited to, the timing and amount of future cash flows generated by 's investments, market liquidity and the quality of the underlying assets and financial instruments, the timing and extent of changes in prevailing interest rates, inflation levels, legislative, judicial and regulatory developments that could affect revenues, and the results of borrowing efforts. cautions that this list of factors is not exclusive. All Forward- Looking Information in these materials is qualified in its entirety by the above cautionary statements and, except as required by law, undertakes no obligation to revise or update any Forward-Looking Information as a result of new information, future events or otherwise after the date hereof. 36