Cutting Electricity Costs with Electricity Financial Incentives. Gordon Lau Union Gas

Transcription

1 Cutting Electricity Costs with Electricity Financial Incentives Gordon Lau Union Gas

2 Agenda CDM Initiatives Financial Incentives Upcoming Changes in 2015 How to Get Started Q&A

3 CDM Initiatives

4 CDM What is it? CDM is electricity Conservation Demand Management Reducing your energy costs Support for Ontario s long term sustainable load planning. Incentive Driven Project completed = Expected Savings

5 Union Gas History Union Gas has been delivering CDM programs since 2008 Why? Goal is to deliver value to customers that assist in: How? Saving on energy costs Enhancing productivity and product quality Create long-term competitive value Approach is Account Manager driven exclusively for Hydro One distribution connected users Engage with heavy electric energy users and cultivate energy effiency within your company/facility so it s easy to understand and straight forward to participate. What? Union Gas delivers the HPNC, Retrofit and PSU saveonenergy programs designed by the IESO

6 Hydro One Distribution Map

7 Financial Incentives To help you cut electricity costs

8 Three financial incentive programs that will assist in reducing your electricity costs: High Performance New Construction (HPNC) Retrofit Program (aka ERII) Process & Systems (aka PSUI)

9 HPNC Program Targeting new construction and major renovation in the planning stages. Build energy efficiency into the design of your new buildings and major renovations. Provides design assistance and substantial financial incentives for building owners and design decision makers who exceed the electricity efficiency standards specified in the new 2012 Ontario Building Code Provides incentives with both custom and prescriptive stream options if building above code $400/kW or 5 /kwh -- <25% above Code $600/kW or 7.5 /kwh -- 25% 50% above Code $800/kW or 10 /kwh -- >50% above Code

10 HPNC - Data Centre Example Program designed to financially recognize commercial buildings that exceed the Ontario Building Code Major Energy Conservation Measures: Efficient lighting c/w occupancy sensors High performance windows Low-flow plumbing fixtures VSDs on pumps and fans Water-side economizer for free cooling Building Square Footage: 400,000 sq ft Incremental Costs: Peak Demand Savings: Energy Consumption Savings: $2.95 Million 1,601 kw 6,957,102 kwh/yr Annual Electricity Savings (Blended $0.10/kWh): $695,710 per year Owner Incentive: $400,375 Modeller Incentive: $10,000

11 Retrofit Program Key Program Value Proposition: Get 100% of your financial incentive upon project completion (Max Incentive = $500,000) Engineering Study not required Straight forward and suitable for various building types and process applications Project Type Prescriptive Engineered Custom Lighting Exterior LED Incentives $41 to $460 per LED Fixture i.e. parking lots, roadways, walkways, etc The greater of either, $400/kW or $0.05/kWh of first year electricity savings The greater of either, $400/kW or $0.05/kWh of first year electricity savings Non-Lighting VFD Example: 1hp = $50 50hp = $ hp = $4835 The greater of either, $800/kW or $0.10/kWh of first year electricity savings The greater of either, $800/kW or $0.10/kWh of first year electricity savings

12 Case Study: VFD at Fowler Metal Industries Base Case Removed old 40hp using modulation to vary compressed air output Energy Efficient Case Project Costs $38,500 Demand Savings Energy Savings Financial Incentive Payback New 30hp air compressor with VFD 19 kw 132,700 kwh/yr $15, Years

13 PSUI Program Key Program Value Proposition: Signifcant financial incentives for any non-lighting capital projects Capital Incentives 2 Streams. Based on lowest of: Non-CHP 70% of Eligible Costs, 1-year simple payback or $200 per MWh annual energy savings CHP 40% of Eligible Costs, 1-year simple payback or $200 per MWh annual energy savings Funding for Engineering Studies Upon submission of your Capital Incentive application, include the cost of your Engineering Study as part of your project costs Embedded Energy Manager funding Funding available up to 80% of the Embedded Energy Manager s actual annual salary up to $100k, plus up to 80% of actual reasonable expenses up to a maximum of $8k per year 5 year energy savings commitment if incentive <= $1 Million 10 year energy savings commitment if incentive > $1 Million

14 Case Study: Compressed Air Project Base Case 1) Replace 25 yr old, 875 bhp, 125 PSI air compressor Energy Efficient Case 1) New high efficiency 838 bhp, 125 PSI air compressor 2) Upgrade control system to reduce compressed air blow off (bypass) Project Costs $575,000 Demand Savings Energy Savings 428 kw 3,752,000 kwh/yr Financial Incentive $199,800 Estimated Electricity Bill Savings Payback $375,200 / yr 1 yr

15 Case Study: Cogeneration Project CHP System Description 1.2 MW cogen system for air handling system Project Costs $3,850,000 Demand Savings 1.2 MW Energy Savings 7,350,000 kwh/yr Financial Incentive $1,500,000 Estimated Electricity Bill Savings $650,000 / yr Payback 3.63 yrs

16 Upcoming Changes in 2015 To help you cut electricity costs

17 Upcoming Changes in 2015 Current saveonenergy programs from the IESO will remain the same for 2015 All HPNC, Retrofit and PSUI projects must be completed by Dec 31, 2015 New saveonenergy programs will be released by Fall 2015 New PSUI CHP Program will have streamlined Connection Capacity Screening will reduce former OPA bottlenecks by several months New PSUI Detailed Engineering Study - 100% up to $50,000 (75% upfront, 25% upon project completion) New PSUI CHP Program Island Mode will be accepted New saveonenergy programs still require LDC pre-approval regardless of project size.

18 How to Get Started To help you cut electricity costs

19 Getting Started 1) For Hydro One customers, please contact: Eastern Ontario Jairo Torres, (613) Central Ontario Lee Masucci, (289) Northern Ontario Blake Williams (705) Western Ontario Greg Gawne (519) ) For non-hydro One customers: Please visit saveonenergy.ca to find contact information on your local electric utility

20 What we ll do for you! Front End Help Assist in the identification of existing and potentially new projects that are eligible for saveonenergy incentives. Provide recommendations with application strategies to maximize financial incentives Prepare all required documentation for submission. Expedite your application with Hydro One and 3 rd Party Technical Evaluators, so your application reaches the Pre-Approved stage in a timely fashion. Back End Help Prepare and submit all documentation upon project completion to Hydro One Networks for your incentive payment.

21 questions to