Vancouver Energy Roundtable - Summary ReportDecember, 2010

Toward A Smarter Energy System

In association with:

ISIS: A Research Centre

Introduction 3

Toward A Smarter Energy System Toward A Smarter Electricity Grid 4 Developing New Platforms for Commercialization 5 Conclusions 6 Policy Recommendations 7

Annex I: VER Agenda 8

Annex II: Delegate List 9

The first Vancouver Energy Roundtable was held on December 7, 2010 in Vancouver.

The Energy Roundtable was created in 2004 to organize high-level conferences that gather leaders in the energy sector to develop the legislative, financial and technical solutions necessary to establish a low carbon economy and increase energy security.

The event marked The Energy Roundtable’s expansion into British Columbia, a symbol of the province’s growing influence in key aspects of the energy debate.

Over 100 delegates from government and industry gathered at the Vancouver Convention Centre to discuss the practical steps that can be taken to advance British Columbia’s clean energy objectives. The objective was to draw on the expertise of participants to inform BC’s clean energy policy.

Discussion focused on the need for BC’s energy stakeholders to develop a cohesive vision of green economic development. That agenda should involve a coordinated effort to build showcase projects in order to make British Columbia a leading incubator of new ideas. Of particular relevance is UBC’s concept of a “living laboratory”, which was repeatedly offered as a model to be extended across the province.

A special thank you is owed to each of our speakers for the quality of discussion they provoked.

Toward A Smarter Energy System

Toward a Smarter Electricity Grid

The morning’s discussion addressed the rapid progress that jurisdictions around the world are making in developing a smarter electricity grid. Mayor Robertson provided an overview of the city’s ambitious plans to become the greenest city in the world and informed the audience of the huge commitments that China is making in developing a low carbon economy. Following an update from Ralph Zucker on BC Hydro’s metering and demand-side management plans, Scott Fawcett spoke to Cisco’s intention to integrate a digital capacity onto traditional transmission lines.

In San Francisco, Cisco’s Urban EcoMap program is developing healthy competition between regions by providing citizens with the information and means necessary to reduce carbon emissions. Critical to the program’s success is empowering the citizen with information - a task made easier in an era of cellular communications. Vancouver’s strength in internet startups and clean technology make the city a potential leader in this burgeoning industry, assuming that the proper platforms for cooperation and development are developed. Scott highlighted South Korea’s plans to develop the Songdo International Business District from scratch, a 1,500-acre city that will use multimedia to help tenants visualize their levels of power consumption, carbon dioxide emissions, and water consumption.

Dean Rockwell outlined Pulse Energy’s recent agreement with Cisco and the City of Vancouver to use city-owned buildings to implement advanced technologies in building energy management, carbon footprint reduction and data center efficiency. This type of partnership between the public sector, a Vancouver-based startup, and a global information technology leader will provide an excellent test of the concept of the city as a ‘living laboratory’.

Allan Schurr of IBM drew on his firm’s international practice to demonstrate the pace of change in other jurisdictions. In Sydney, Australia, 15,000 homes are being provided with in-home displays that provide continuous data on the home’s energy and water usage as well as its carbon dioxide emissions. In Texas, CenterPoint Energy has installed more than 267,000 smart meters since March 2009 and aims to have 2 million installed by 2012. In Denmark, IBM is building the systems necessary to charge electric vehicles with wind power. To become the greenest city in the world, Vancouver will have to develop a smarter version of its electricity grid. The city has implemented several key policies, but more ambitious, focused initiatives are required.

With provincial support, municipalities should orient their procurement practices towards cutting edge green technologies. Governments should further empower residents by establishing partnerships with private sector expertise to develop better information through the use of information technology.

Developing New Platforms for Commercialization

The speakers on the second panel provided their perspectives on the economic conditions that are required to foster growth in the cleantech sector. Given that British Columbia is home to excellent research universities, a progressive tax environment, and a skilled workforce, panelists wondered why the province is still being out-competed in the race to develop cleaner forms of energy.

Amol Deshpande of Kleiner Perkins said that British Columbia’s low profile in Silicon Valley is a significant problem when its companies are seeking venture capital. Jon Rhone of Nexterra and Michael Goldstein Ballard Power Systems argued that BC’s dearth of internationally successful cleantech companies is due to poor coordination amongst stakeholders in developing early trials that are required to lead to the eventual commercialization of technologies as well as poor access to finance.

Cleantech represents a tremendous export opportunity for the province, but BC is lacking a coordinated approach to incubate and commercialize new ideas. Both speakers agreed that UBC’s living laboratory concept should be extended across the province, and in particular that it should be adopted by BC Hydro. Debate focused on what is the appropriate economic approach for developing clean technology. Is it government’s role to simply create an environment that allows the private sector to invest and innovate, or should governments actually provide financial and market tools? Panelists did agree that government should avoid choosing ‘winners’.

Government can use its extensive assets to field test early stage technologies. Financing tools, such as the Innovative Clean Energy Fund, can be effective in creating the conditions that allow the private sector to raise capital. The provincial government should continue to establish production targets through vehicles such as Renewable Portfolio Standards, and do more to promote the clean technology sector in BC and abroad.

Conclusions:

Discussions at The Vancouver Energy Roundtable illustrated that while British Columbia has created a healthy clean energy sector, a more robust economic agenda should be developed that tests new ideas and commercializes new technologies. This can be achieved through better cooperation between the public and private sectors. The province is home to strong research institutions, a significant clean energy cluster, and a talented workforce. But not enough is being done to create an environment that excels in commercializing promising ideas, including improving access for our companies to financing and opportunities to test their goods and services. The University of British Columbia’s recent initiative to establish its campus as a living laboratory for the testing of new practices and techniques is a leading idea that can potentially be applied across the province. UBC’s initiative, the city’s partnership with Cisco and Pulse Energy, and Ballard’s Olympic partnership to power the Whistler bus fleet are each excellent examples of advanced collaboration between the public and private sectors. The provincial government should encourage BC Hydro to apply the living lab concept throughout the province, increasing the adoption of new technologies. In time, all municipalities and private utilities should better align their energy planning strategies, including implementing procurement policies that encourage the adoption of the most appropriate new technologies.

A strategy should also be developed to promote field trials throughout the province that are able to evaluate new practices and technologies in practical settings. A coordinating office should be established to develop and monitor these efforts and report findings to relevant government officials and private sector representatives.

In working to establish the province is an incubator of clean technologies, BC should actively promote opportunities to companies and municipalities. BC’s cleantech profile should be raised in areas with pools of capital, including Toronto and northern California.

Policy Recommendations:

• The concept of a living laboratory should be extended across British Columbia. A coordinating office should be established to accelerate the application of field trials, coordinate efforts and report on results to relevant partners.

• BC Hydro should actively promote the application of clean technologies in field trials in its operations.

• A concerted marketing effort should be initiated in key jurisdictions to promote BC as a leading incubator of new technologies in order to attract better financing.

The Vancouver Energy Roundtable:Toward a Smarter Energy System

West Building, Vancouver Convention CentreDecember 7, 2010

8:00 am Welcome from: Gabriel George, Tsleil-Waututh Nation 8:05 am Introduction: Brent Sauder, Director of Strategic Initiatives, UBC8:15am Morning Keynote: Mayor Gregor Robertson, Mayor of Vancouver8:45am Session I: Toward a Smarter Electricity GridThe smart meter is just the beginning of the international shift to a much more intelligent version of the electricity grid. The combination of increased capacity from a variety of sources and a more communicative electricity system will create opportunities for forward-thinking companies both locally and globally. Panellists will discuss international best practices in smart grid development and how their firms are developing this opportunity.

· Ralph Zucker, Director of Smart Grid Development, BC Hydro · Scott Fawcett, Director, Energy Industry & Smart Grid (Canada), Cisco· Dean Rockwell Chief Operating Officer, Pulse Energy· Allan Schurr, VP of Strategy and Development, IBM Energy and Utilities

Moderator: Miro Cernetig, Ottawa Principal, Earnscliffe Strategy Group 10:00am Coffee Break10:15am Session II: Developing New Platforms for CommercialisationA major component in establishing Vancouver as the greenest city in the world by 2020 will be making the city a living laboratory for the establishment of new companies involved in energy production and delivery. Panellists will discuss the benefit to establishing companies in Vancouver and the optimal policy, financial, and structural environment required to commercialise new technologies.

Amol Deshpande, Partner, Kleiner Perkins Caufield & Byers Jonathan Rhone, President and CEO, Nexterra Bruce Flexman, President, BC International Financial Centre Michael Goldstein, Chief Commercial Officer, Ballard Power Systems

Moderator: Pascal Spothelfer, CEO, BC Technology Industry Association

11:30am Networking Reception hosted by: Introduction: Clare Spencer-Guidera, Deputy CG, British Consulate-General Keynote: Hon. Colin Hansen, Minister of Finance and Deputy Premier12:00pm Close: James Tansey, Associate Professor and Academic Director of Industrial Partnerships Sauder School of Business

Delegate List: Michael Dary Research Lead - Innovation Centre for Utilities AccentureBlake Hanna Managing Director, British Columbia AccenturePaul Tournier Client Account Lead - BC Hydro AccentureGreg Guthridge Managing Director - Innovation Centre for Utilities AccentureMalcolm Mckechie Advisory Director Acciona CanadaDan Woznow Vice President Renewable Energy Operations AltaGas LtdStephen Kukucha President Atla EnergyMichael Goldstein Chief Commercial Officer Ballard Power SystemsGuy McAree Director - Corporate Communications and Marketing Ballard Power SystemsTerry Howe Manager - Solutions Engineering Ballard Power SystemsMatthew Klippenstein Fuel Cell Engineer Ballard Power SystemsGreg D’Avignon CEO BC Business CouncilRalph Zucker Director - Smart Grid Development BC HydroDoug Little Vice President, Economic & Business Development BC HydroMark Dubois-Phillips Senior Manager, Technology Development BC HydroRenee Smith-Valade SVP, Communications BC HydroSteve Vanagas Director, Communications and Public Affairs BC HydroEric Mewhinney Manager, T&D Research and Development BC HydroBruce Flexman President BC IFCPascal Spothelfer CEO BCTIAMark Thomas Director BCUCKylee Metcalfe Associate Blake, Cassels & Graydon Andrew Burke Strategic Advisor, Biomass & Carbon Brinkman Earth SystemsClare Spencer-Guidera Deputy Consul-General British Consulate-GeneralTony van Bommel Managing Director, Venture Capital BDCJudy Bishop Columnist Business in VancouverDoug Hooper CEO Canadian Bioenergy CorpCarla Lazar Build Green BC Administrator Canadian Home BuildersBrent Holliday Partner Capital West PartnersPaul Langley Partner Capital West PartnersPaul Liddy Managing Director Cedar Road BioenergyWal van Lierop President and CEO Chrysalix Energy VCScott Fawcett Director, Energy Industry Cisco SystemsVidya Vankayala Smart Grid Principal Architect Cisco SystemsRob Constanzo Deputy Manager, Operations City of SurreyGregor Robertson Mayor City of VancouverSadhu Johnston Deputy City Manager City of VancouverAmanda Pitre-Hayes Director of Sustainability City of VancouverSean Pander Manager - Sustainability City of VancouverGlen Darou CEO Clean Current PowerPaul Kariya Executive Director Clean Energy BCHarvie Campbell Chairman Clean Energy BCElizabeth Sheehan President Climate SmartGraham Horn Executive VP and COO Cloudworks Energy

Maarten den Outen Trade Officer CG of the NetherlandsPhilippe Schick Director of Engineering Cooledge LightingChuck Filewich Co-CEO Corinex CommunicationsEugene Hodgson VP, Western Region Corpfinance InternationalDavid Field Business Development Manager Corvus EnergyWalter Wu Founder and Chairman Delaware Power SystemsMeer Bawa Trade Commissioner DFAITJerry Ericsson President Diacarbon EnergyMiro Cernetig Ottawa Principal Earnscliffe Strategy GroupReza Alaghehband Executive Account Manager Energex IncMichael Dolphin Manager, Tax Services Ernst & YoungNicole Poirier Partner Ernst & YoungPaul Wilson Partner Fasken Martineau DuMoulin Donna Morton Principal First PowerAlan Potter Vice President FP InnovationsSteve Aujla Executive Vice President Fraser Richmond SoilJohn Wiebe President and CEO Globe GroupRoxanne Scott Senior Socioeconomist and Sustainability Specialist Golder AssociatesMalcom Lefcort Engineering Manager Heuristic Engineering IncTamara Little Account Director Hill and KnowltonAllan Schurr VP, Strategy and Development IBMJohn Longbottom Client Executive, Energy IBMDave Koshka Associate Partner IBMGreg Brophy BC Head, Public Service IBMPaul Chisholm CEO IFD CorporationClaes Fredrickson Partner IsCleanerJames Tansey Executive Director ISISChis Kantowicz Director of Strategy ISISKristina Welch Project Manager ISISAdam Bumpus Postdoctoral Fellow ISISJoanna Buczkowska Managing Director ISISNeil Thomson Research Fellow ISISAmol Deshpande Partner KPCBWill Walls Senior Vice President LedcorGerry Gill Chairman and CEO Legend Power SystemsRoss MacLachlan President and CEO LignolCarol Lee President and CEO Linacare Cosmetherapy Inc.Jason Emmert Air Quality Planner Metro VancouverJeff Carmichael Senior Economist Metro VancouverAsako Suzuki Business Development Manager Mitsubishi Canada LtdMichael Goehring Vice President NATIONAL Public RelationsMaja Veljkovic Director General National Research CouncilJanusz Lusztyk Director General, ICPET National Research CouncilErin Harlos VP, North Amerca Natural Power ConsultantsJonathan Rhone CEO Nexterra

Ira Wolff Director Business Development NORAM David Minns Advisor, Strategic Initiatives NRCSylvia Leroy Communications Advisor NRCJames Noble Business Development OffsettersJessica McIlroy Project Director OREGDonald Steele Chairman and CEO Pacific BioEnergy CorporationScott MacDonald CEO Pacific Carbon TrustGordon Skene President and CEO Paradigm EnvironmentalMark Liedemann Assistant Vice President Partnerships BCJackie Peterson CEO Peterson Public RelationsDonald McInnes Vice Chairman and CEO Plutonic Power CorpDave Cyr Director, First Nations Partnerships and Corporate

RelationsPlutonic Power Corp

Mari Nurminen Senior Advisor, Strategic Planning PowertechJohn Webster Partner PriceWaterhouseCoopersColin Hansen Minister of Finance Province of British ColumbiaDean Rockwell COO Pulse EnergyBlair Grabinsky Strategic Partner Development Pulse EnergyColin Doylend Director RainCity StrategiesLina Duong Portfolio Manager Renaissance Capital FundDave Thomas Partner Rocket BuildersRick Hopp President and CEO Run of River Power Inc.Chris Sacre President Sacré Davey EngineeringMoura Quayle Professor Sauder Business SchoolSusan Hildebrand Project Manager Scott ConstructionPaul Manson President and CEO Sea Breeze Power CorpChris Lefaivre Vice President Business Development Smartcool SystemsCameron Hunter Vice President Sales and Marketing Smartcool SystemsPaul Austin Regional Director SDTCTracey Orr Vice President TD SecuritiesNeil Huff CEO Tekion, IncDavid Bennett Director, Resource Planning and Market

DevelopmentTerasen Gas Inc

Marc Andrew Executive Director The Energy RoundtableJason Langrish President The Energy RoundtableBrent Sauder Director of Strategic Initiatives UBC Erik Mazzi Power Smart Instructor UBC - Clean Energy ResearchDavid Wilkinson Director UBC - Clean Energy ResearchRichard Sones Senior Manager, Industry Partnerships UBC Applied ScienceBryan Buggey Director VEDCLee Malleau CEO VEDCAugust Ustare Senior Engineering Technologist Via-Sat Data SystemsCraig Noordmans CEO WhiteFox TechnologiesSalil Munjal Partner Yaletown Venture Partners