the role of incentives in advancing energy efficiency initiatives

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Shawn Carr, P. Eng. The Role of Incentives in Advancing Energy Efficiency Initiatives saveONenergy Programs

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Page 1: The Role of Incentives in Advancing Energy Efficiency Initiatives

Shawn Carr, P. Eng.

The Role of Incentives in Advancing Energy Efficiency Initiatives

saveONenergy Programs

Page 2: The Role of Incentives in Advancing Energy Efficiency Initiatives

WHY WE ARE HERE Conservation Goals and Results Introduction to new Conservation First Framework (CFF) Show you what programs and incentives are available Case Studies – The role of incentives in improving building

energy efficiency

Page 3: The Role of Incentives in Advancing Energy Efficiency Initiatives

WHY HYDRO OTTAWA?Conserving Power is Part of License since 2011

1,330 MW410,000 homes off grid

$100s of billionsOntario’s aging infrastructure

Replace coal fired generation Green economy

Page 4: The Role of Incentives in Advancing Energy Efficiency Initiatives

6,552,993,397 kWh saved (109% of Provincial target)

Cost: $0.04/kWh 10,000,000 energy efficiency

products purchased

2011 – 2014 PROVINCIALSAVEONENERGY RESULTS

Page 5: The Role of Incentives in Advancing Energy Efficiency Initiatives

414,864,124 kWh saved (110% of target)

64% of savings from our Business Programs

≈1000 Retrofits incented Annually

≈ 50 Audits incented Annually

≈ $12,000,000/yr incentives issued

2011 – 2014 HYDRO OTTAWA SAVEONENERGY RESULTS

Page 6: The Role of Incentives in Advancing Energy Efficiency Initiatives

WHY ENERGY EFFICIENCY PROJECTS ARE NOT COSTS BUT ASSETS TO BE MANAGED

Lowering Operating Costs Reducing GHG’s Satisfying sustainability

initiatives Green Building Certification

and Labelling Systems Improving tenant comfort

Demonstrating Leadership through benchmarking

Emulating Best Practices in other buildings

Responding to a mandate Preparing for mandatory

disclosure Productivity Impact

Page 7: The Role of Incentives in Advancing Energy Efficiency Initiatives

Open for business We need your continued

support Streamlined Framework August 2015 until 2020 400GWh target within our

territory (7 billion KWh in ON)

2015 – 2020 CONSERVATION FIRST FRAMEWORK

Page 8: The Role of Incentives in Advancing Energy Efficiency Initiatives

Funding kWh Program Simplified Previous programs end

December 31, 2015 Update on Business

Programs First, meet our growing

team

CONSERVATION FIRST

Page 9: The Role of Incentives in Advancing Energy Efficiency Initiatives

Manon Galipeau Kevin Quinlan Shane LaBrash

Program Officers

Page 10: The Role of Incentives in Advancing Energy Efficiency Initiatives

Adrienne Lesage Mark Schell Grace McConnachie

Program Officers

Page 11: The Role of Incentives in Advancing Energy Efficiency Initiatives

Shawn Carr Imran Ebrahim Charles Zaloum

Energy Managers

Page 12: The Role of Incentives in Advancing Energy Efficiency Initiatives

\

Ben Abellanosa

Jory Willard

Mike Guertin

Admin. Assistant

Program Validation

Agent

Sales Support Agent

Program Agents

EstherTrujillo

Sales Support Agent

Page 13: The Role of Incentives in Advancing Energy Efficiency Initiatives

Retrofit Program– Incentives to lower project costs for

upgrading old or inefficient equipment Audit Funding and EB commissioning

– Incentives for energy audits to assess the potential for energy savings.

Process and Systems– Incentives for studies and energy efficiency

upgrades in complex systems

BUSINESS PROGRAMS

Page 14: The Role of Incentives in Advancing Energy Efficiency Initiatives

INCENTIVES

Covers up to 50% of project costs

Page 15: The Role of Incentives in Advancing Energy Efficiency Initiatives

Three ways to apply for maximum flexibility− Prescriptive– Engineered/Custom– Custom pays:

• $0.10/kwh or $800/kw for non-lighting

• $0.05/kwh or $400/kw for lighting

RETROFIT PROGRAM

Page 16: The Role of Incentives in Advancing Energy Efficiency Initiatives

Replacing existing equipment with more efficient equipment Adding new efficient equipment where none previously existed Implementing new operating procedures Includes installing tools and technologies to

obtain or increase the effectiveness of EMS/BAS.

TYPES OF PROJECTS

Page 17: The Role of Incentives in Advancing Energy Efficiency Initiatives

Improve thermal performance of building envelope

with insulation, high performance windows/glazing Eligible MeasuresLighting, controls, chillers, unitary AC, free cooling, motors, VFD’s, building envelope, EMS, BAS, pumps, sensors, metering equipment

TYPES OF PROJECTS

Page 18: The Role of Incentives in Advancing Energy Efficiency Initiatives

HOW TO PARTICIPATE?

Establish Eligibility

DetermineIncentive

Submit Information

Pre-approval Receive Cheque

Engage us early in your project planning process

Provide scope of work, projects costs, equipment specs, client & building information, worksheets

Hydro Ottawa helps you with business case, prepare applications

Complete your project

Provide invoice, confirmation of disposal, and if needed, validate energy savings

Submit Final Information

LDC approves project and remits payment

Page 19: The Role of Incentives in Advancing Energy Efficiency Initiatives

AUDIT FUNDING AND EB COMMISSIONING

Electricity Survey and Analysis– Up to $25,000 in incentives

Detailed Analysis of Capital Intensive Modifications– Additional $10,000 in incentives

Building Systems Audit– Up to $5,000 per system

Electricity Survey and Analysis for Tenants– Up to $7,500 in incentives

EB Commissioning– Incentives to evaluate and increase

chilled water system efficiency.

Page 20: The Role of Incentives in Advancing Energy Efficiency Initiatives

Preliminary Engineering Studies– Up to $10,000

Detailed Engineering Studies– Up to $50,000

Implementation– $200/MWh incentive– Up to 70% of project cost– Min 100 MWh savings potential

Eligible Projects– CHP Systems

PROCESS AND SYSTEMS

Page 21: The Role of Incentives in Advancing Energy Efficiency Initiatives

Engineered approach for Lighting and Unitary AC

Custom approach provides incentives to Consultants for– Energy Modelling – Design Assistance when designing

better than OBC Custom approach provides

incentives to Owners for– New buildings or major

renovations that exceed the electrical efficiency specified in the OBC.

– Up to $800 per verified KW or $0.10/Kwh

HIGH PERFORMANCE NEW CONSTRUCTION

Page 22: The Role of Incentives in Advancing Energy Efficiency Initiatives

May 3, 2023 Page 22

CASE STUDIESAssumptions:

Discount Rate: 10%Re-investment Rate: 10%Inflation: 3%Utility Rate: $0.12/KwhAnalysis Period: Variable by Case StudyElectricity cost savings only – no maintenance

Page 23: The Role of Incentives in Advancing Energy Efficiency Initiatives

Carleton University – Minto Case BuildingVoltage Harmonizer

Annual kWh/kw saved

109558/13

Incentive Approved$14,211

Annual savings$13,146

% of PC Incented20%

Net Present Value$33,215

Simple Payback4.4 years

ROI23%

Modified IRR15.1%

Page 24: The Role of Incentives in Advancing Energy Efficiency Initiatives

GWL Realty Advisors- 255 Albert St.VFD’s on Cooling Tower Fans

Annual kWh saved47,879 KWh

Incentive Approved

$9,198.56

Annual savings$5,745

% of PC Incented50%

Net Present Value$30,349

Simple Payback1.6 years

ROI62.5%

Modified IRR27.3%

Page 25: The Role of Incentives in Advancing Energy Efficiency Initiatives

Giant Tiger– 2480 Walkley Road New AHUs, reduced OA volume in the store, lighting controls and BAS integration

Annual kWh/kW saved153,823/30.36

Incentive Approved$36,741

Annual savings$18,459

% of PC Incented45%

Net Present Value$121,317

Simple Payback2.4 years

ROI42%

Modified IRR20.1%

Page 26: The Role of Incentives in Advancing Energy Efficiency Initiatives

Morguard Investments– 280 Slater and 333 LaurierNew BAS and controls strategy on all central HVAC systems and lighting

Annual kWh saved324,724

Incentive Approved$24,354

Annual savings$38,967

% of PC Incented13%

Net Present Value$187,906

Simple Payback4.1 years

ROI24.2%

Modified IRR15.8%

Page 27: The Role of Incentives in Advancing Energy Efficiency Initiatives

KRP Properties - 411 Legget (Pre-Approved Only)BAS Upgrade – DDC controls, equipment scheduling, DCV, CO2 sensors

Projected Annual kWh saved

1,100,000 kWh

Incentive Pre-Approved

$110,000

Annual savings$132,000

% of PC Incented50%

Net Present Value$1,072,409

Simple Payback0.8 years

ROI120%

Modified IRR28.9%

Page 28: The Role of Incentives in Advancing Energy Efficiency Initiatives

411 Legget

Jan Feb

Mar AprMay Jun Jul Au

gSe

p Oct Nov Dec0

50000100000150000200000250000300000350000400000450000

kWh/month

2012201320142015

Page 29: The Role of Incentives in Advancing Energy Efficiency Initiatives

Canadian Tire Centre LED System and controls

Annual kWh saved898043 kWh

Incentive Paid$148,080

Annual savings$107,765

% of PC Incented22%

Net Present Value$204,838

Simple Payback5 years

ROI20.1%

Modified IRR13.6%

Page 30: The Role of Incentives in Advancing Energy Efficiency Initiatives

Bentall Kennedy - Sun Life Financial CentreCooling Plant Replacement

Projected Annual kWh saved

1,340,000 kWh

Incentive Paid$536,839.9

Projected Annual savings

$185,386

% of PC Incented27%

Net Present Value$209,169

Simple Payback7.8 years

ROI12.8%

Modified IRR11%

Page 31: The Role of Incentives in Advancing Energy Efficiency Initiatives

SUMMARY Reducing Energy Use is a key Strategy across all Building

Sectors. Makes properties more competitive, profitable, and valuable. We can work together to engineer better buildings. Our programs can help accelerate your efforts.

We can help manage the application process

Get in touch with us BEFORE the work begins!

Page 32: The Role of Incentives in Advancing Energy Efficiency Initiatives

Shawn Carr, Energy [email protected]

613.738.5499 ext. 7474

THANK YOU