Loading...
HomeMy WebLinkAboutOS 05-12 City A Report to Council .1 ,1�_saT PI �KERI1 V Report Number: OS 05-12 Date: December 10, 2012 From: Thomas Melymuk Director, Office of Sustainability Subject: Solar PV Installation under the Provincial FIT 2.0 Program - Proposal for a Roof Lease at the Claremont Community Centre - File: D-1000-003 Recommendation: 1. That Council receive Report OS 05-12 concerning the establishment of a roof-top solar PV system at the Claremont Community Centre; 2. That Council support the proposal set out in Attachment 1, submitted by Veridian Connections Inc. and Solera Sustainable Energies Company Limited, to lease roof space at the Claremont Community Centre, and authorize the appropriate City officials to enter into a roof-lease agreement as set out in the proposal, if the project is granted a contract under the provincial Feed-in-Tariff (FIT) 2.0 program; 3. That Council adopt a project specific resolution as set out in Attachment 2 to this Report, to be used in support of a submission to the Ontario Power Authority for a contract offer for this project under the FIT 2.0 program: and 4. That all City revenues generated from this project be used to fund future energy conservation, generation and efficiency initiatives on property owned or leased by the City. Executive Summary: The City has received a joint venture proposal from Veridian Connections Inc. (Veridian) and Solera Sustainable Energies Company Limited (Solera) for a solar PV system at the Claremont Community Centre (see Attachment 1). The proposal is for a 20-year roof lease to enable the installation and maintenance of a 99 kW solar PV system under the provincial FIT 2.0 program. In return for the roof lease, the City would receive guaranteed revenues of$120,000 over the duration of the contract ($6,000 annually). Should Council support the proposal, it is recommended that a project specific resolution be adopted for inclusion in the submission to the Ontario Power Authority (OPA) under the FIT 2.0 program, using the prescribed form provided by the OPA (see Attachment 2). Report OS 05-12 December 10, 2012 Subject: Roof-top Solar Proposal, Claremont Community Centre Page 2 It is also recommended that all revenues generated by this installation be allocated and used exclusively to assist future energy conservation, generation and efficiency initiatives on property owned or leased by the City. Financial Implications: There would be no cost to the City for the installation or maintenance of the system. Under the proposal, the City would enter into a 20-year roof lease agreement. In return, the City would receive $6,000 annually in guaranteed revenues regardless of the performance of the system. Over 20 years, total revenue would be $120,000. The City's return would represent approximately 11% of the total revenue estimated to be generated by the system (based on an assumed average production of 100,574 kWh of energy annually, and a FIT 2.0 contract price of$0.548 per kWh). This rate of return would be within the industry average for roof-leases of this nature. Discussion: 1. The new FIT 2.0 program is a point-based system, and priority points will be given to those projects that are supported by municipal council resolutions. In August 2012, following a review of the original FIT program that was launched in 2009, the Province adjusted the price schedule and made other changes to the FIT rules and requirements. Among the various changes, the new program (FIT 2.0) establishes a point-based system for renewable energy projects over 10 kW in size. Points will be awarded as outlined below. Project Type Priority Points Community Participation Project 3 Aboriginal Participation Project 3 Education or Health Participation 2 Non-Project Type • Priority Points Municipal Council Resolution , 2 Support Resolution 2 Project Readiness 1 Pre-Existing Application Time Stamp is on or prior to July 4, 2011 1 Pre-Existing Application Time Stamp is on or after July 5, 2011 0.5 Education or Health Host 2 System Benefit 1 CORP0227-07/01 revised Report OS 05-12 December 10, 2012 Subject: Roof-top Solar Proposal, Claremont Community Centre Page 3 Obtaining a contract from the OPA under FIT 2.0 is expected to be a highly competitive process. Accordingly, the more priority points a project obtains, the better the chance the project has of obtaining a contract. As noted in the table above, a municipal council resolution nets the applicant two priority points. 2. The City has received a proposal from Veridian and Solera to establish a solar PV system on the roof of the Claremont Community Centre. Veridian and Solera intend to enter into a joint venture partnership, and have submitted a proposal to the City for the installation of a 99 kW roof-top solar PV array on the Claremont Community Centre (see Attachment 1). The array would be owned, operated and maintained by the partnership, and a monthly flat-rate rental fee would be provided to the City for the lease of the roof space, for a 20-year period. The project would only proceed if a contract is awarded by the Ontario Power Authority under the FIT 2.0 program and all other necessary business related approvals, permits and agreements are obtained. The Claremont Community Centre is the only City owned facility readily available for the FIT 2.0 rooftop solar program. Figure 1 below shows a schematic layout of the proposed solar array on the roof of the facility. Figure 1 Solar PV Installation at Claremont Community Centre (schematic) .'"re , 1,41441vir • - as ax � e s ; +a4 � +Wdie4eneNxea+e.Moro w poa .00 Oo, Should the Veridian/Solera proposal be supported, it is also recommended that Council adopt the resolution set out in Attachment 2 for inclusion in the submission to the OPA, so that the available priority points can be obtained. We understand Veridian and Solera will also actively be seeking aboriginal and/or community partners in this project in order to obtain additional priority points. CORP0227-07/01 revised . Report OS 05-12 December 10, 2012 Subject: Roof-top Solar Proposal, Claremont Community Centre Page 4 3. Revenues from this project will be reinvested in energy related initiatives. The electricity generated by the Claremont solar project will be fed back into the grid. It will not reduce energy use at the facility. Nevertheless, there is an opportunity to directly link this renewable energy installation with the City's corporate energy consumption and greenhouse gas emissions reduction targets by reinvesting the funds generated by this project into other City energy related initiatives. It is therefore also recommended that all revenues generated from this project be used to fund future energy conservation, generation and efficiency initiatives on property owned or leased by the City. Attachments: 1. Veridian/Solera proposal to the City for a solar PV installation 2. Municipal Council support resolution under the FIT 2.0 program Prepared By: Approved/Endorsed By: Shauna Muir Thomas Mely uk, rCIP RPP (Acting) Coordinator, Sustainability Director, Offic- of Sustainability Gilbe Boehm Supervisor, Energy Management & Projects SM:mld Recommended for the consideration of Pickering C. Council / '/J/ 1).€6. 4 r zo l 2, Tony Prevedel, P.Eng. Chief Administrative Officer CORP0227-07/01 revised ►RT#OS OS✓c E X P E I E E C O U N T STM A PROPOSAL FOR THE DEVELOPMENT OF A SOLAR POWER SYSTEM FOR THE CORPORATION OF THE CITY OF PICKERING MR. THOMAS MELYMUK .7 lf l ;Y } r R 1.AN . . . , , . . .. . - : I'...- ft. ...:::f:.., ,..... .:::::,.. r .. '• e, r€ .1L yew oCrtrirppN r' ' "f S *" •:X • {rye fi'l 1 "i . o Cra ,r'ate. ;V: ,. ,••••,.,,, .,c,rrar olt carrIpmr-ty' . \ ti . , v! +yk it ATTACHMENT#. REPORT REPORT#S 0 02or /► Table of Contents Introduction 2 Business Venture 3 Project Description 4 Technical Details 6 Value Proposition 0 7 Intelligent Monitoring 8 About Solera 9 About Veridian 10 r<r , 1 E R DIAN.: the so13r CONNCIONS K7caw�r ccampacr°sy„^ ATTACHMENT# / TO REPORT# QS OS-la 3 cell November 21, 2012 Introduction and Business Venture Descriptions to City of Pickering Solar PV Proposal Introduction: This proposal, dated November 21, 2012, is made to the City of Pickering for the installation and maintenance of a 99 Kilowatt roof-top solar PV array on the Claremont Community Centre and Fire Station 4, located at 4941 Old Brock Road, Pickering. The solar PV array would be owned, operated and maintained by the business venture described below and would provide a monthly flat-rate rental fee to the City of Pickering for the lease of the roof space for a twenty (20) year period. This proposal is made to the City of Pickering with the understanding that a contract offer will be provided from the Ontario Power Authority (OPA), under the Feed-in-Tariff (FIT) 2.0 program rules, to the business venture described below. The project described in the proposal would only proceed should the contract offer be provided by the OPA and all other necessary business related approvals, permits, licenses, agreements, etc. being completed satisfactorily to all parties involved, otherwise this proposal, will be considered null and void. For clarity, as a minimum, the following conditions are required prior to proceeding with the project: a) FIT Contract Offer received from OPA under FIT 2.0 program rules and prices as last published by the OPA up to October 30, 2012 b) Acquisition of successful Capacity Impact Assessment from Hydro One and Veridian c) Claremont Community Centre roof has sufficient structural strength to support solar PV system d) Acquisition of Notice to Proceed from the OPA e) Satisfactory business arrangement established with Aboriginal or Community Partner f) Veridian Board of Directors Approval to proceed 01 2 VER1DIAN CONNECTIONS ATTACHMENT#.1.' . .TO REPORT# O 0-5-I Eer ihk thEe solar power company Business Venture: This proposal contemplates the establishment of a joint business venture between Solera Sustainable Energies Company Limited (Solera), Veridian Connections Inc. (Veridian), and an Aboriginal or Community group partner to be determined. Under the recently released FIT 2.0 program rules, renewable energy projects compete for FIT contracts through a points based system. The principal reason for introducing a points based system for scoring renewable energy projects is to ensure viable and beneficial projects receive contract offers from the OPA. The competition for these contracts is expected to be very high in the next release of contract capacity. The highest score for a renewable energy project under the OPA's points based scoring system is known as a "Set Aside Project." It is our belief that it will be necessary to achieve the status of a Set Aside Project in order to ensure a contract offer for the Claremont Community Centre Project. In order to achieve • the status of a Set Aside Project it is necessary to form a business relationship whereby a 51% investment in the project is made by an Aboriginal or Community group. The remaining 49% investment can be made by other parties, such as Solera and Veridian, in the case of the Claremont Community Centre Project. It is our intent to form a business relationship that ensures Set Aside Project status for the project. It is our intent to ensure, that although 51% investment is made in the project through an Aboriginal or Community group, super-majority rights for the operation of the business will remain with Veridian. R I .A N - th 9.4 .1 ..r 0 1.4 N E C P" I O N 5 power .. _r ..... 3 0c0m1Daray,. ATTACHMENT#1_,„TO REPORT# 0 5--"f..2 Project Description: S o� 11 Claremont Community Centre Our phase-one review of satellite photos of your properties indicates the available area for solar PV installations of optimal productivity as shown below rielfir ' ' � r q t . d * fit+^ $ r."'' 4"r''1, `, ,,,,.-4',%, . \. 424- t fL 1.*** . 10 ",,ik„ 511,..-'-:,,,,,e..' :: 4 ,,,, " , , ,..4A„,„.,,....!..„,.. .„„:,,, ,...0 ...iii1004‘,%* , , ,‘ .. .,,,,,.... .tt 0,..„...44. 0....,, . $ ..t. 0....,. , t.., ‘,.., .,,,,„ ., ,, , e -s, .„....... : ,...r., _ *.m.,,,,,,4,..,„.51.,„c:i ,K'p"t� "'�, '� .� ... � -a x�\_ n��^ ,: / - Mf1CUw��3t2lFCd IM�WNN 9N�psit< tEA;B,,1j.no9, .U€ ,N.< s =. ?.,:s..$ ..�� B 'd> k Cxrf>xg C3 43strsY 38?�xt„vgt4Gxt Afa ........., T a 5 "Eat - 4 4 \ ' a yr R I i A_V tl i so13r \ power N I i cori-lpsaryv ATTACHMENT#_l,_TO REPORT#._ D- �2 (� or /1 The Veridian / Solera /Aboriginal or Community partner partnership (Generator) will own, operate and maintain the 99 kW solar PV array on the roof of the Claremont Community Centre. The City of Pickering will receive a roof lease rate of$6,000 per annum for the duration of the 20 year FIT contract, with no business risk associated with the solar PV system. The City of Pickering will not be required to make any payments with respect to capital, operating or maintenance costs associated with the system. The City of Pickering will be required to execute a roof-lease agreement with the Generator for a 20 year period. At the end of the 20 year FIT Contract and roof-lease period, and if both parties agree at the time, the parties shall, in good faith, enter negotiations to reach an agreement for the sale of electricity generated from the solar PV system. The basis of the agreement shall be the sale of any electricity produced by the solar PV system and injected behind the utility meter (displacing electricity otherwise purchased from the electrical grid) at the Claremont Community Centre. The electricity would be sold on a "per kWh" basis as measured by the electricity meter installed on the solar PV system. Should both parties not agree at the end of the 20 year FIT Contract and roof-lease period to enter negotiations for the sale of electricity generated by the solar PV system or if both parties are unable, in good faith, to reach an agreement for the sale of electricity from the solar PV system or if regulations prohibit the generation and sale of electricity behind the utility meter, the Tenant shall have ninety (90) days to dismantle and remove the solar PV system from the Landlord's roof. ..,, \ _ /04 ., VERIDIAN M.._�__ thi® solar .., CONNECTION! S 5 Powcw company' ATTACHMENT#I TO REPORT# 1S 6 s~rc Technical Details -7 o� il Specifically for this project, we carried out a pre-design simulation per the table below: • Technical Details Claremont Community Project Centre 4941 Old Brock Road, Location Pickering, ON Installed capacity 99 kWp Number of PV modules 396 Ontario-made 250W Module type module Inverter 7 x Kaco string inverters Non-Penetrating engineered PV mounting Mounting system type system, Inclination angle 27° 164 x 19° (South East) 116 x -710 (South West) Orientation 116 x 109 (North East) FIT contract period 20 years 164 x 1,165 116 x 1,055 116 x 920 Specific energy yield 1065 kWh / kWp Average energy produced per year 100,574 kWh CO2 emission avoided per year 61,350 kg CO2 ''S • k. ^yx lA CONNECTiON5 Fowiar ... ... cc)mparly rte. 6 ATTACHMENT#_____I TO REPORT# �S- l OF [1 • • Value Proposition to the City of Pickering: 20 year roof lease contract Annual rental income $6,000 Total (20 years) rental income $120,000 sot!.g, cr E RID AN ry tYca solar powc r comps-at-y,: CONNECTIONS 7 ATTACHMENT# I TO REPORT#OS ©S—I D J Intelligent Monitoring 9 or- (I Solera's intelligent monitoring system will provide for internet-based viewing of the PV system's performance and historical data. Remote data acquisition and evaluation allows Solera to remotely track system performance and identify any performance trends that may require attention. Additionally, Solera offers an optional local display—a 32" LCD monitor with live system information feed that will be installed in an agreed-to location within the facility. au 1r aafo ' ' f !)(i r scateraerterls.cOn '. {. " �. "" _ _ ANALY2ER �., SUPPORTiiY « STATUS OUTPUT - Ch FN YNIlA Y{ YYD ycj i' e r K Q4 F '''4,P,"<" ''''''''';:e. : $ ..$, l't AEV[NEERER HYJbA - l .:..._- 5— E Y v x• 8p POWER t16 tnV ,3 Ja z '' > za Qa � IC ',.,a, .�En..o .''. al INSO ATION x_....234 -W/,r SYSTEM OK :usmn REVENUE 'FAt;; =c3'. 911 j zxr a iR z:: Ir.k3 tr tzt7N, 0 MAINTENANCE ALERT"ustan ENERGY to I 1 ... . ...... SAV{ED 9A lttors 0"GaSathe 3++ � . a k wt } Example of SolarVu Monitoring System • e ..,8 I �N power O NA ,1 N E C A N py, Gc�m an ATTACHMENT# TO REPORT# .x_06--14/00� 11 About Solera Over more than 15 years we have developed commercial grid-tied PV projects that have led Ontario's movement toward solar power on schools, offices, factories, warehouses, and high rise towers.We are - - '°� .,......, well versed in the requirements o operating in institutional and commercial settings, and we understand how to work with clients to ``"�����f �� r ensure that their day to day business, and that of their tenants, is not ° " ' ° impacted by our project developments. .�- Ample project experience counts more than ever, as Ontario solar projects have become ahigh-profile acquisition for many property Owners. Leveraging Solera's extensive experience and project track record, our clients are assured of impeccable project management throughout the execution phase, and premium project performance 100kW project at the new once operational. Ajax Operations Centre, Ajax ON * Solar PV energy systems specialist since 1991w * Canada's first wide-scale project with grid-tied PV in 1999 * Canada's largest grid-tied PV project, Toronto Hydro 2004y* First national solar PV Project of the Year Award 2004 . . �. 4 ° * First Ontario RESOP (FIT) PV project to bre connected 2006 ` * Key Clients Include: Toronto Hydro Underwriters Laboratories of Canada . - a w Canadian Standards Association « - York Region Veridian Corporation Town of Ajax 1401W project at Veridian Whitby Hydro head offices, Ajax ON Centennial Plastic Mfg. Canadian Opera Company .; Toyota �u Central Lake Ont. Conservation Authority � � � Planters Canada w Hatch Ltd. MW Canada Ltd :4171,,,,'', Purdue Pharma �, x .s Lowe's Canada Township of Perth East Township of New Tecumseth 280 kW project, Planters Township of Georgian Bay Peanuts, Toronto ON Ryerson University Western Fair District, London \1„ — –"Ir''''' 40,./ '4 19111,,, -',. V E .I � 9 th'e' scalar ccsrn p.eny , ATTACHMENT#_1___TO REPORT# 6S"I I I of (I About Veridian Veridian is a progressive, community-owned energy company that provides electricity distribution services to more than 115,000 customers in nine municipalities across east central Ontario. The company focuses on providing reliable, efficient and sustainable energy solutions and services. A top priority is the health and safety of employees and members of the public. Veridian is an important fixture in the communities it serves. In addition to providing reliable service at reasonable rates, Veridian promotes economic growth, community building and sustainable living. To learn more about Veridian and the benefits it brings to its community partners, visit www.veridian.on.ca. This information is of a confidential nature and is not to be copied or distributed beyond the intended recipient. C)i Sao y�ry' EZny" C O N N E C T I O N S \\ 10 ATTACHMENT#�1 O REPORT#D 6 c9-5- I� 120 Adelaide Street West,Suite if ONTARIO Toronto,Ontario MSH 1T1 T416-967-7474 POWER AUTHORITY F 416-967-1947 www,powerauthority.on.ca PRESCRIBED FORM/TEMPLATE:MUNICIPAL COUNCIL SUPPORT RESOLUTION Section 6.1(d)(i)-FIT Rules,Version 2.0 oPARP/f-FIT-01sr Capitalized terms not defined herein have the meanings ascribed thereto in the FIT Rules,Version 2.0. Resolution NO: Date: December 10,2012 WHEREAS Solera Sustainable Energies Company Limited,Veridian Connections Inc. (the"Applicant")proposes to construct and operate a 99kW rooftop solar PV project (the"Project")on Claremont Community Centre,4941 Old Brock Road (the"Lands")in The City of Pickering under the Province's FIT Program; AND WHEREAS the Applicant has requested that Council of The Corporation of the City of Pickering indicate by resolution Council's support for the construction and operation of the Project on the Property; AND WHEREAS,pursuant to the rules governing the FIT Program(the"FIT Rules"),Applications whose Projects receive the formal support of Local Municipalities will be awarded Priority Points,which may result in the Applicant being offered a FIT Contract prior to other persons applying for FIT Contracts; NOW THEREFORE BE IT RESOLVED THAT: Council of the Corporation of the City of Pickering supports the construction and operation of the Project on the Lands. This resolution's sole purpose is to enable the Applicant to receive Priority Points under the FIT Program and may not be used for the purpose of any other form of municipal approval in relation to the Application or Project or any other purpose. (Note: signature lines for councilors or other representatives,as appropriate) FIT reference number: (Note:Must be inserted by Applicant to complete Application) ov 8,2012 Page'