community power projects an introduction to the process of developing community power projects ubcm...
TRANSCRIPT
Community Power Projects
An introduction to the process of developing community power projects
UBCM 2006
Tuesday, October 24
Renaissance Power Corp is…
… a consulting & engineering company specializing in the development of community
power projects (“CPPs”)
A Community Power Project is defined by …
… the role of the community in the initiation, governance, and ultimate ownership.
Village of Anmore
The visionary of Anmore
Dr. Hal WeinbergMayor of Anmore
Community builder
“Its about world peace”
The Anmore Renewable Energy Foundation
Collaboration with BC Hydro Create awareness and educate Demonstration and research
Purpose of the Foundation
Micro-Hydro Solar Wind
Hydrogen
The Anmore Project
103 year old Buntzen tunnel
Could support a 3.8 MW plant
27,000 MWhs/yr ‘green’ energy
~ $2 million annual cash flow
Operational benefits to BC Hydro
Power Limitations in BC
The last mega-power project was completed in the early 1980’s.
0
500
1000
1500
2000
2500
3000
3500
1920 1930 1940 1950 1960 1970 1980 1990 2000 2010
Inst
alled C
apaci
ty(m
egaw
att
s)
BC Hydro hydroelectric
BC Hydro thermalIPPs
Years during which capacity was built
Village of Anmore
AnmoreFoundation
RenaissancePower Corp.Anmore
CommunityPower Partnership
Limited Partnership InvestorsLimited Partnership Investors & Debt
Structure of the Anmore CPP
Community Benefits
Many and tangible:
1. Economic spin-offs during construction
2. Option to buy at the time of commissioning
3. A new long term industrial taxpayer
4. Long term energy security from local generation
5. Takes full ownership at the end of financial term
6. Provincial and federal taxes and charges on top
Community Power Projects
A trust based approach to development:
Not ‘independent’ but very ‘interdependent’ Transparency of structure and accounting Clarity regarding risk and return Respect for distinct public and private roles Based on a ‘foundation’ of public trust
Community Power Projects
Why private risk capital for public infrastructure:
Early stage investments have material risk Not the ideal use of tax dollars Flow-through share eligible (56 cent dollars) Private capital raised with risk expectation Requires opportunity not guarantee of return
Concurrent Activities
Concept &Mandate
Feasibility&Planning
Permitting& Design
Financing&Tendering
Construction& Start-Up
Operating& Mainten-
ance
Political/Administrative
Technical
Financial
Cost and Value20 18
16 14
12 10 8 6
4 2
Concept & Mandate
Feasibility & Planning
Permitting & Design
Tendering & Financing
Construction & Start-Up
Operation & Maintenance
(C$ millions)
COST
VALUE
TIME SPAN - 2 YEARS+
Risk and Reward
Equity(~20% - 30%)
Mezzanine & Sub-Debt(~12% - 20%)
Corporate Debt(~8% - 12%)
Government Bonds(~5% - 7%)
Concept & Mandate
Feasibility & Planning
Permitting & Design
Tendering & Financing
Construction & Start-Up
Operation & Maintenance
START
FINISH
PROJECT REWARD
RISK
Community benefits revisited
Tangible:1. Economic activity during construction
2. Option to buy at commissioning
3. Long term stable industrial taxpayer
4. Full ownership at the end of financial term
Intangible:1. Community engagement & capacity
2. Increased energy & economic security
3. A local contribution to a global problem
Conclusion:
1) Assess the opportunities in your community
2) Establish governance structure (trust, foundation or infrastructure corporation).
3) Recruit expertise out of the community to combine the ‘elected with the selected’.
4) Engage a consultant/financing advisor
Some first steps:
Thank you!
For further information contact:
Dr. Hal Weinberg, Village of Anmore (www.anmore.com)
Renaissance Power Corp. (www.renaissancepower.ca)
The Community Energy Association (www.communityenergy.bc.ca)
On Thursday, please support the Anmore resolution regarding community
sponsored power projects.