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Life in the Trenches: How Wind and Solar
Projects Really Work (or Don’t)
Construct Canada, Toronto, 2013-12-04

Derek Satnik, P.Eng., LEED® AP
Managing Director & Chief Innovation Officer
and Bryan Taylor
Executive Partner & Chief Development Officer
Mindscape Innovations Group Inc.
www.mi-group.ca
© Mindscape Innovations Group Inc.
I skate to where the 
puck is going to be,  
not where it has 
been.
- Wayne Gretzky
Agenda

A “101” style walk-through of
real-life project experiences:
•Context & Planning
•Challenges to Expect
•Pitfalls to Avoid
•Where to Find Help
•Lessons Learned

Picture from http://www.bcenergyblog.com/tags/ontario-windfarms/
Derek Satnik, P.Eng., LEED

AP
Managing Partner & Chief Innovation Officer
•
•
•
•
•
•
•
•
•
•
•
•
•

®

Electrical Engineer, renewable energy / LEED® specialist: Consulting
with Stantec / Enermodal since ’99 (various capacities on facility design
teams), Managing Partner at Mindscape since Oct. 2006
Canada Green Building Council (CaGBC): LEED for Homes, Real
Estate, Neighbourhood Development, and Mid-Rise (sub-)Committees
Canadian Residential Energy Services Network, Founder & Advisor
Net-Zero Energy Housing Coalition, Technical Advisor
Built Green Canada, Technical Standards Committee Chair
Natural Resources Canada’s “Solar Ready” program, Advisor
Ontario Sustainable Energy Association, Past Vice-Chair
Ontario Clean Air Alliance, Board of Advisors
Green Energy Act Alliance, Management Committee
Community Renewable Energy Waterloo, Past-President
Conestoga College Program Advisory Committee helping create a
renewable energy trades program
Local Initiative for Future Energy Co-operative Inc., Founder
Sustainable Waterloo (regional carbon market), Advisory Board

Photo by K. Stevens, 2008 – Ulsan 

© Mindscape Innovations Group Inc.
Bryan Taylor
Executive Partner & Chief Development Officer
•
•
•
•
•

Systems Design Engineer, business systems expert, professional
investor
Former Executive at RIM (now Blackberry): helped build RIM from 20
employees (when he was hired) to ~3500. Personal supervision of
RIM’s entrance into several overseas markets
35 Patents
Consulting with Mindscape since Oct. 2006
Presently supervising Mindscape’s partnership and project
development efforts for PV, including direct investment negotiations

Photo by K. Stevens, 2008 – Ulsan 

© Mindscape Innovations Group Inc.
Conservation Roadmap & ROI Chart

From book Smart Power: An Urban Guide to Renewable Energy and Efficiency, © William H. Kemp
© Mindscape Innovations
Energy Efficiency 101
Step 1: Learn what you’re using (metering, watch bills)
Step 2: Identify opportunities to use less
Step 3: Identify applicable incentive programs
Step 4: Consider hiring an energy audit professional
Step 5: Retrofit – Start with the low-hanging fruit
Step 6: Use min 50% of the savings to finance further
efforts (build an increasing project budget year after
year)
Repeat!
Walmart, McKinney, Texas, with white roof, wind & solar:
http://www.elperfecto.com/wp-content/uploads/Bing_Maps_Wind_Turbine_Wal-Mart_McKinneyTX.jpg
Slide © Mindscape Innovations Group Inc.
Implementation of Renewable Energy Systems
Step 1: Scoping – determine technology options
Step 2: Feasibility assessment(s)
Step 3: Research permitting requirements
Step 4: Research grants and incentives
Step 5: Hire RE consultant or turn-key OEM/distributor
• Mindscape provides renewable energy resource
assessments to determine which forms of renewable
energy will best fit your needs and location
• Mindscape also has partners involved with many
different renewable energy technologies (check
www.mi-group.ca and OSEA members list)
Photo by K. Stevens, 2008 – Lions Head

© Mindscape Innovations Group Inc.
Profitability Comparison for RE Technologies

Relative Cost
($/unit)

15

BIPVT
PVT
BIPV
Solar
PV
Solar DHW
walls

net
metered

Conservation
0

10

Payback (yrs)
© Mindscape Innovations Group Inc.

25
Examples of Solar
Energy Converters

© Mindscape Innovations Group Inc.
Building Integrated
Solar

© Mindscape Innovations Group Inc.
Profitability Comparison for RE Technologies

Relative Cost
($/unit)

15

Geo

solar
Bio

Conservation
0

Wind
<30kW

Wind
>1MW

Hydro
10

Payback (yrs)
© Mindscape Innovations Group Inc.

25
Wind Energy

Picture from www.canhydro.com
Slide © Mindscape Innovations
Myths & Misunderstandings About Wind Energy
( www.mi-group.ca/faq )
Myths
• Infrasound
• Bird / bat kill

Misunderstandings
• Land use
- farm up to tower base

- more likely to die from
a cat, car, or building

• Ground vibrations
… A long list of
unfounded and
unprovable silliness

• Audible noise
- quieter than the wind

• Intermittent (“blows when
it wants to”)
- geographic diversity
- supply mix planning
- pair with PV / hydro / biogas

Picture from www.canhydro.com
Slide © Mindscape Innovations Group Inc.
The Truth about “Aesthetics” &
Wind Turbines…
• NIMBY (“not in my backyard”)
– General reaction from everybody that has to watch
you make money off their wind
• POOL (“please on our land”)
– General reaction from everybody that gets invited
to co-invest and own part of the wind project
• “Your own pigs don’t stink…”
• Share the equity (even just 1%!)

Picture from www.canhydro.com
Slide © Mindscape Innovations Group Inc.
Micro-Hydro

• Uses turbines to
extract power from
the flow of a current
Vigor Clean Tech
Grolov Helical
Turbine

© Mindscape Innovations Group Inc.
Geothermal Heat Pumps
• Take advantage of the
ground's heating and
cooling properties to heat
or cool entire buildings
• Heat 'exchange' between
the ground and the
building is accomplished
by using standard pump
and compressor
technology

© Mindscape Innovations Group Inc.
Biogas
• Burn “biogas” as a fuel,
heat produced is used to
rotate a turbine
• E.g., gases (mostly
methane) produced by the
Erb Street Landfill in
Waterloo are used to
produce electricity
• On-farm biogas plants
are much larger
• Burn smell, make
heat, power, compost
© Mindscape Innovations Group Inc.

Erb St. Landfill
3.7 MW Biogass Facility:
supplies ~2000 homes in Waterloo, ON
Profitability Comparison for RE Technologies

Relative Cost
($/unit)

15

Geo

solar
Bio

Conservation
0

Wind
<30kW

Wind
>1MW

Hydro
10

Payback (yrs)
© Mindscape Innovations Group Inc.

25
Flashback to 2008…
Things are steadily improving!
BIPV

15

Relative Cost
($/unit)

PV
Geo PV
PV w/ Wind
thermal trackers or <30kW
hybrid
Solar
conc.
walls
Solar DHW
Bio Wind
>1MW Hydro
Conservation
0

10

Payback (yrs)
© Mindscape Innovations Group Inc.

25
Profitability Comparison for RE Technologies
…To Fossil Fuels…

Relative Cost
($/unit)

15

Geo

solar
Bio

Conservation
0

Wind
<30kW

Wind
>1MW

Hydro
10

Payback (yrs)
© Mindscape Innovations Group Inc.

25
Challenges / Pitfalls
•
•
•
•

Transmission/Distribution Constraints
Utilities adapting differently – CIA / CAE
OPA: politics, unaccountability, targets
Finances
– Industries maturing: costs improving, incentives maturing
– Markets still unstable: risks changing, lenders skittish

•
•
•
•

Clear contract documents
CSA equipment certifications
ESA approval (plans review, arc fault, islanding)
Social friction & misinformation…

Photo by K. Stevens, 2008 – Prescott-Russel

© Mindscape Innovations Group Inc.
Managing Social Friction
Social friction is emotional: fear, uncertainty & doubt
• Be proactive: understand the likely issues
– Media, recent/current events, relevant science & myths

• Respect the people regardless of their concerns
• Have a process
– Share your plan
– Listen to concerns

• Choose your battles
– “Walk softly, and carry a big stick”
– Be well informed, and boldly challenge mistruths
– Don’t make mountains out of mole-hills
© Mindscape Innovations
Know who You’re Talking With
Respect for them, and for you
• 70+% are Honest John & Confused Kathy: have
concerns, maybe heard rumours, need information
and to be heard and respected
• NIMBY (Not In My Backyard) – often resolvable
• BANANA (Built Absolutely Nothing Anywhere Near
Anyone) – unrealistic and often selfish
• NOPE (Not On Planet Earth) – willfully ignorant
Know when to disagree and let go
© Mindscape Innovations Group Inc.
Selling the Benefits of (Distributed)
Renewable Energy
• Local revenue & jobs: keep the farm, own energy
• Helps stabilize cost of electricity (assets only: no fuel)
• Distributed electricity generation increases grid
stability, reduces transmission losses, and dismantles
electricity monopolies – energy independence
• FIT = reduced risk for ratepayers (no yield, no cost)
• Electricity without emissions
• Tourism
• Remember: he who complains the loudest is always
a statistical minority. Get others heard.
Picture from www.canhydro.com
Slide © Mindscape Innovations Group Inc.
Where to Get Help
• REFO (advice)
www.energy.gov.on.ca/en/renewable-energy-facilitation-office

• OSEA (advice, resources)
www.ontario-sea.org

• CEPP ($10k-$200k grants for eligible co-ops)
www.communityenergyprogram.ca

• Tax Incentives (class 43.2 depreciation)
• Consultants (Mindscape or other)
www.mi-group.ca

Picture from http://www.julietschor.org/2010/05/welcome-to-plenitude/
Slide © Mindscape Innovations Group Inc.
Incentives That Make $ense
Energy Efficiency Measures (Conservation)
• Union Gas / Enbridge design assistance grants
• Federal ecoENERGY Incentives
• REDO (Renewable Energy Development in Ontario)
• saveONenergy (audits & retrofits)
Renewable Energy (Generation)
• Net-metering
• Feed-In Tariff (FIT)
• Taxes: Capital Cost Allowances
• CEPP / AREF
Photo from http://www.socalofficerealestateblog.com/wp-content/newuploads/2009/06/saddleback-church-solar-electric-panels-1-large.jpg
© Mindscape Innovations Group Inc.
Are you fit for the FIT?
• Pricing designed to achieve 10% ROI
– Price declines every round: rooftop PV dropped >50%

• Why a Tariff?
–
–
–
–

No payment made until energy delivered
All risk on the generator: protect the consumer
No secret deals or special favours
Create industry momentum: build volume, drop price

• Preferred groups and ranking points
• Four more years of FIT until not needed (ie: drop
procurement costs to market rate)
© Mindscape Innovations Group Inc.
(Slide courtesy of Ontario Power Authority)

Mindscape Note:

18-36 mo’s!

© Mindscape Innovations
Lessons Learned
•
•
•
•
•
•
•
•
•

Plan Early
Spend 1% on feasibility
Use available support
Ask lots of questions (early and often, especially of
approval agencies), and push for real answers
Talk to the neighbours and be willing to share
Expect delays
Have clear roles & bid documents
Don’t neglect CSA / ESA / Conservation Authorities
Sometimes net metering is better than FIT

Photo from http://www.americanprogress.org/issues/2009/04/img/solar_church_onpage.jpg
© Mindscape Innovations Group Inc.
Key Points
•
•
•
•
•
•

•
•
•
•

Energy is politics: be wary of what you hear
Conservation before generation
Green power is popular & feasible
Social friction is everybody’s responsibility
Social friction is emotional: fear, uncertainty & doubt
Technical problems can always be solved: be
skeptical, but not cynical (ask real questions, and
expect and accept real answers)
Be active in policy: join OSEA / CanSIA / CanWEA
Turn enemies into allies
Have competent help
Plan ahead

Photo by K. Stevens, 2009 - Toronto

© Mindscape Innovations Group Inc.
Mindscape Innovations Group
• In this new library of ideas, we’re the librarians.
• Turn-key full lifecycle solutions for
environmentally and technologically enhanced
homes, businesses, and communities.
• 15 awards since ‘07, municipal through international
• Core enabling services to both the green building sector
and the renewable energy sector: policy and incentive
program development, Community Energy Plans /
Sustainability Plans, feasibility studies, renewable energy
system solutions, processing grants and incentives,
permits and approvals, managing public stakeholdering
and social friction, and much more...
© Mindscape Innovations Group Inc.
NATURE…
…does not know GOOD…
…does not know EVIL…
knows only Consequences
It is not the strongest of the
species that survives, nor the
most intelligent, but the one
most responsive to change.

- Charles Darwin
Thank you!
info@mi-group.ca
877-394-6589
www.mi-group.ca/faq
www.mi-group.ca/blog

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Life in the Trenches: How Wind and Solar Projects Really Work (or Don't)

  • 1. Life in the Trenches: How Wind and Solar Projects Really Work (or Don’t) Construct Canada, Toronto, 2013-12-04 Derek Satnik, P.Eng., LEED® AP Managing Director & Chief Innovation Officer and Bryan Taylor Executive Partner & Chief Development Officer Mindscape Innovations Group Inc. www.mi-group.ca © Mindscape Innovations Group Inc.
  • 3. Agenda A “101” style walk-through of real-life project experiences: •Context & Planning •Challenges to Expect •Pitfalls to Avoid •Where to Find Help •Lessons Learned Picture from http://www.bcenergyblog.com/tags/ontario-windfarms/
  • 4. Derek Satnik, P.Eng., LEED AP Managing Partner & Chief Innovation Officer • • • • • • • • • • • • • ® Electrical Engineer, renewable energy / LEED® specialist: Consulting with Stantec / Enermodal since ’99 (various capacities on facility design teams), Managing Partner at Mindscape since Oct. 2006 Canada Green Building Council (CaGBC): LEED for Homes, Real Estate, Neighbourhood Development, and Mid-Rise (sub-)Committees Canadian Residential Energy Services Network, Founder & Advisor Net-Zero Energy Housing Coalition, Technical Advisor Built Green Canada, Technical Standards Committee Chair Natural Resources Canada’s “Solar Ready” program, Advisor Ontario Sustainable Energy Association, Past Vice-Chair Ontario Clean Air Alliance, Board of Advisors Green Energy Act Alliance, Management Committee Community Renewable Energy Waterloo, Past-President Conestoga College Program Advisory Committee helping create a renewable energy trades program Local Initiative for Future Energy Co-operative Inc., Founder Sustainable Waterloo (regional carbon market), Advisory Board Photo by K. Stevens, 2008 – Ulsan  © Mindscape Innovations Group Inc.
  • 5. Bryan Taylor Executive Partner & Chief Development Officer • • • • • Systems Design Engineer, business systems expert, professional investor Former Executive at RIM (now Blackberry): helped build RIM from 20 employees (when he was hired) to ~3500. Personal supervision of RIM’s entrance into several overseas markets 35 Patents Consulting with Mindscape since Oct. 2006 Presently supervising Mindscape’s partnership and project development efforts for PV, including direct investment negotiations Photo by K. Stevens, 2008 – Ulsan  © Mindscape Innovations Group Inc.
  • 6. Conservation Roadmap & ROI Chart From book Smart Power: An Urban Guide to Renewable Energy and Efficiency, © William H. Kemp © Mindscape Innovations
  • 7. Energy Efficiency 101 Step 1: Learn what you’re using (metering, watch bills) Step 2: Identify opportunities to use less Step 3: Identify applicable incentive programs Step 4: Consider hiring an energy audit professional Step 5: Retrofit – Start with the low-hanging fruit Step 6: Use min 50% of the savings to finance further efforts (build an increasing project budget year after year) Repeat! Walmart, McKinney, Texas, with white roof, wind & solar: http://www.elperfecto.com/wp-content/uploads/Bing_Maps_Wind_Turbine_Wal-Mart_McKinneyTX.jpg Slide © Mindscape Innovations Group Inc.
  • 8. Implementation of Renewable Energy Systems Step 1: Scoping – determine technology options Step 2: Feasibility assessment(s) Step 3: Research permitting requirements Step 4: Research grants and incentives Step 5: Hire RE consultant or turn-key OEM/distributor • Mindscape provides renewable energy resource assessments to determine which forms of renewable energy will best fit your needs and location • Mindscape also has partners involved with many different renewable energy technologies (check www.mi-group.ca and OSEA members list) Photo by K. Stevens, 2008 – Lions Head © Mindscape Innovations Group Inc.
  • 9. Profitability Comparison for RE Technologies Relative Cost ($/unit) 15 BIPVT PVT BIPV Solar PV Solar DHW walls net metered Conservation 0 10 Payback (yrs) © Mindscape Innovations Group Inc. 25
  • 10. Examples of Solar Energy Converters © Mindscape Innovations Group Inc.
  • 11. Building Integrated Solar © Mindscape Innovations Group Inc.
  • 12. Profitability Comparison for RE Technologies Relative Cost ($/unit) 15 Geo solar Bio Conservation 0 Wind <30kW Wind >1MW Hydro 10 Payback (yrs) © Mindscape Innovations Group Inc. 25
  • 13. Wind Energy Picture from www.canhydro.com Slide © Mindscape Innovations
  • 14. Myths & Misunderstandings About Wind Energy ( www.mi-group.ca/faq ) Myths • Infrasound • Bird / bat kill Misunderstandings • Land use - farm up to tower base - more likely to die from a cat, car, or building • Ground vibrations … A long list of unfounded and unprovable silliness • Audible noise - quieter than the wind • Intermittent (“blows when it wants to”) - geographic diversity - supply mix planning - pair with PV / hydro / biogas Picture from www.canhydro.com Slide © Mindscape Innovations Group Inc.
  • 15. The Truth about “Aesthetics” & Wind Turbines… • NIMBY (“not in my backyard”) – General reaction from everybody that has to watch you make money off their wind • POOL (“please on our land”) – General reaction from everybody that gets invited to co-invest and own part of the wind project • “Your own pigs don’t stink…” • Share the equity (even just 1%!) Picture from www.canhydro.com Slide © Mindscape Innovations Group Inc.
  • 16. Micro-Hydro • Uses turbines to extract power from the flow of a current Vigor Clean Tech Grolov Helical Turbine © Mindscape Innovations Group Inc.
  • 17. Geothermal Heat Pumps • Take advantage of the ground's heating and cooling properties to heat or cool entire buildings • Heat 'exchange' between the ground and the building is accomplished by using standard pump and compressor technology © Mindscape Innovations Group Inc.
  • 18. Biogas • Burn “biogas” as a fuel, heat produced is used to rotate a turbine • E.g., gases (mostly methane) produced by the Erb Street Landfill in Waterloo are used to produce electricity • On-farm biogas plants are much larger • Burn smell, make heat, power, compost © Mindscape Innovations Group Inc. Erb St. Landfill 3.7 MW Biogass Facility: supplies ~2000 homes in Waterloo, ON
  • 19. Profitability Comparison for RE Technologies Relative Cost ($/unit) 15 Geo solar Bio Conservation 0 Wind <30kW Wind >1MW Hydro 10 Payback (yrs) © Mindscape Innovations Group Inc. 25
  • 20. Flashback to 2008… Things are steadily improving! BIPV 15 Relative Cost ($/unit) PV Geo PV PV w/ Wind thermal trackers or <30kW hybrid Solar conc. walls Solar DHW Bio Wind >1MW Hydro Conservation 0 10 Payback (yrs) © Mindscape Innovations Group Inc. 25
  • 21. Profitability Comparison for RE Technologies …To Fossil Fuels… Relative Cost ($/unit) 15 Geo solar Bio Conservation 0 Wind <30kW Wind >1MW Hydro 10 Payback (yrs) © Mindscape Innovations Group Inc. 25
  • 22. Challenges / Pitfalls • • • • Transmission/Distribution Constraints Utilities adapting differently – CIA / CAE OPA: politics, unaccountability, targets Finances – Industries maturing: costs improving, incentives maturing – Markets still unstable: risks changing, lenders skittish • • • • Clear contract documents CSA equipment certifications ESA approval (plans review, arc fault, islanding) Social friction & misinformation… Photo by K. Stevens, 2008 – Prescott-Russel © Mindscape Innovations Group Inc.
  • 23. Managing Social Friction Social friction is emotional: fear, uncertainty & doubt • Be proactive: understand the likely issues – Media, recent/current events, relevant science & myths • Respect the people regardless of their concerns • Have a process – Share your plan – Listen to concerns • Choose your battles – “Walk softly, and carry a big stick” – Be well informed, and boldly challenge mistruths – Don’t make mountains out of mole-hills © Mindscape Innovations
  • 24. Know who You’re Talking With Respect for them, and for you • 70+% are Honest John & Confused Kathy: have concerns, maybe heard rumours, need information and to be heard and respected • NIMBY (Not In My Backyard) – often resolvable • BANANA (Built Absolutely Nothing Anywhere Near Anyone) – unrealistic and often selfish • NOPE (Not On Planet Earth) – willfully ignorant Know when to disagree and let go © Mindscape Innovations Group Inc.
  • 25. Selling the Benefits of (Distributed) Renewable Energy • Local revenue & jobs: keep the farm, own energy • Helps stabilize cost of electricity (assets only: no fuel) • Distributed electricity generation increases grid stability, reduces transmission losses, and dismantles electricity monopolies – energy independence • FIT = reduced risk for ratepayers (no yield, no cost) • Electricity without emissions • Tourism • Remember: he who complains the loudest is always a statistical minority. Get others heard. Picture from www.canhydro.com Slide © Mindscape Innovations Group Inc.
  • 26. Where to Get Help • REFO (advice) www.energy.gov.on.ca/en/renewable-energy-facilitation-office • OSEA (advice, resources) www.ontario-sea.org • CEPP ($10k-$200k grants for eligible co-ops) www.communityenergyprogram.ca • Tax Incentives (class 43.2 depreciation) • Consultants (Mindscape or other) www.mi-group.ca Picture from http://www.julietschor.org/2010/05/welcome-to-plenitude/ Slide © Mindscape Innovations Group Inc.
  • 27. Incentives That Make $ense Energy Efficiency Measures (Conservation) • Union Gas / Enbridge design assistance grants • Federal ecoENERGY Incentives • REDO (Renewable Energy Development in Ontario) • saveONenergy (audits & retrofits) Renewable Energy (Generation) • Net-metering • Feed-In Tariff (FIT) • Taxes: Capital Cost Allowances • CEPP / AREF Photo from http://www.socalofficerealestateblog.com/wp-content/newuploads/2009/06/saddleback-church-solar-electric-panels-1-large.jpg © Mindscape Innovations Group Inc.
  • 28. Are you fit for the FIT? • Pricing designed to achieve 10% ROI – Price declines every round: rooftop PV dropped >50% • Why a Tariff? – – – – No payment made until energy delivered All risk on the generator: protect the consumer No secret deals or special favours Create industry momentum: build volume, drop price • Preferred groups and ranking points • Four more years of FIT until not needed (ie: drop procurement costs to market rate) © Mindscape Innovations Group Inc.
  • 29. (Slide courtesy of Ontario Power Authority) Mindscape Note: 18-36 mo’s! © Mindscape Innovations
  • 30. Lessons Learned • • • • • • • • • Plan Early Spend 1% on feasibility Use available support Ask lots of questions (early and often, especially of approval agencies), and push for real answers Talk to the neighbours and be willing to share Expect delays Have clear roles & bid documents Don’t neglect CSA / ESA / Conservation Authorities Sometimes net metering is better than FIT Photo from http://www.americanprogress.org/issues/2009/04/img/solar_church_onpage.jpg © Mindscape Innovations Group Inc.
  • 31. Key Points • • • • • • • • • • Energy is politics: be wary of what you hear Conservation before generation Green power is popular & feasible Social friction is everybody’s responsibility Social friction is emotional: fear, uncertainty & doubt Technical problems can always be solved: be skeptical, but not cynical (ask real questions, and expect and accept real answers) Be active in policy: join OSEA / CanSIA / CanWEA Turn enemies into allies Have competent help Plan ahead Photo by K. Stevens, 2009 - Toronto © Mindscape Innovations Group Inc.
  • 32. Mindscape Innovations Group • In this new library of ideas, we’re the librarians. • Turn-key full lifecycle solutions for environmentally and technologically enhanced homes, businesses, and communities. • 15 awards since ‘07, municipal through international • Core enabling services to both the green building sector and the renewable energy sector: policy and incentive program development, Community Energy Plans / Sustainability Plans, feasibility studies, renewable energy system solutions, processing grants and incentives, permits and approvals, managing public stakeholdering and social friction, and much more... © Mindscape Innovations Group Inc.
  • 33. NATURE… …does not know GOOD… …does not know EVIL… knows only Consequences
  • 34. It is not the strongest of the species that survives, nor the most intelligent, but the one most responsive to change. - Charles Darwin

Editor's Notes

  1. Slide time: &lt;1 min. Talking points: Welcome! Renewable energy is not new, but Ontario’s Green Energy Act is. Wind/solar have been in Canada for &gt;50 yrs Industry is mature - lots of experiences, both good and bad. The media never tells the whole story, and often embelishes. Today we’re here to talk about how real projects work… or don’t. Ontario is a problematic province, with a diversity of strengths and weaknesses, a huge provincial budget, a multimodal economy, and a voracious appetite for energy. The provincial energy system is one of the largest items on the Provincial budget, and is a growing concern. Ontario&apos;s Green Energy Act has begun the process of decentralizing Ontario&apos;s energy system, opening up opportunities for local communities and local individuals to generate energy for themselves.   What Ontario&apos;s government and ENGO sector did not expect was the degree of opposition and localized social friction that locally owned renewable energy projects would face. That opposition has had mixed competence, but has become increasingly well organized, and has been very damaging to Ontario&apos;s nacent green energy economy.
  2. Energy is changing around the world. Nuclear is phasing out. Coal is killing us. Natural gas is fracked. Renewables used to provide 100% of our power, and can again.
  3. Slide time: &lt;1 min. Picture from http://www.bcenergyblog.com/tags/ontario-wind-farms/ Talking points: First, we’ll walk through some context about how to plan a project well Then we’ll talk about the rest of the items listed here: [read the agenda, comment on each item]
  4. Slide time: &lt;1 min. Talking points: Why should you listen to me? I’m proud to say that I’ve had some privileged opportunities I’m an energy consultant My firm helps write the rules and teach others to use them We helped write the Green Energy Act, LEED, ENERGY STAR, and many other similar programs We’ve done hundreds of projects, and we’ve seen the best and the worst Hopefully our experience will help you avoid some of the problems we’ve had, and build on the things we’ve done well.
  5. Slide time: &lt;1 min. Talking points: Why should you listen to Bryan? He’s smart, and smart with money, and has learned a lot (good and bad) about how to tell if a project is worth investing in.
  6. Slide time: 2-3 mins. First things first: conservation before generation. Wind and solar are fancy, exciting, visible… but expensive Start cheap: conservation is less flashy, but 7-10 times more beneficial Conservation done well will increase your budget At Mindscape we have what we call our 50/50 plan: do conservation; free up money; enjoy 50% of the savings as just that: savings. Put it back into your business; put the other 50% of that money in a special account, and use it to finance more conservation projects. As your savings grows, you will be able to afford more expensive projects. Moral of the story: grab the low hanging fruit first.
  7. Slide time: 2-3 mins. Image: Wind turbines and solar panels outside Wal-Mart in McKinney, Texas Whether retrofitting buildings or street lighting, the same principles apply: Use Less: Know your turn-down ratio “Turn-down ratio” compares the amount of energy the bldg. is using when it is “off” to the amount it uses when “on”. Most buildings never really turn fully off: they have emergency lighting, ventilation, heating, and other loads that are always on. The turn-down ratio is the percentage of “on” power that is used when “off.” Eg: a turn-down ratio of 50% means that when all staff go home and the building is turned “off”, it is still using 50% of the energy it would be if it was turned “on”. (50-70% is not uncommon from what we’ve seen and been told by our colleagues) Consider controls to improve turn-down: lighting controls, PLC/BAS controls, etc. BAS = Building Automation System: most commercial buildings have one. PLC = Programmable Logic Controller: most industrial processes have one. Turn-off stuff not in use (eg: motion sensors in bathrooms) Turn-off stuff that’s not required (eg: “sensors, moisture sensors on irrigation) Eg: don’t spend electricity on lighting when the sun is doing fine Eg: don’t spend water and electricity irrigating when it’s raining Eg: economizers for fresh air Recover the energy you’ve already used: ERV’s, DWHR, steam flue heat exchangers, etc. ERV = Energy (or Enthalpy) Recovery Ventilator (recover’s energy in exhaust air) DWHR = Drain Water Heat Recovery (recover’s energy in drain water) Steam flue heat exchangers – recover energy from steam that is being exhausted from industrial processes. Incentives: (see later slides)
  8. Slide time: 2-3 mins. Step 1: Scoping – determine technology options Not every technology fits everywhere. There is no perfect solution. Understand what works in your situation. Step 2: Feasibility assessment(s) Rule of 1%: do some quick math (napkin math) to guesstimate your budget, and then before you start, spend 1% of that amount getting help to confirm that the budget and payback are what you expect. Step 3: Research permitting requirements Ask early and often! Do not let yourself be surprised! Unexpected permits can bankrupt or sabotage a project. Talk to a minimum of: Local building department (they will know if you need to talk to other city departments, eg: Heritage department) Local utilities (electrical, gas, water, sewer) Local conservation authority Step 4: Research grants and incentives Consider all levels of government and utilities: fed, prov, municipal, conservation authorities, utilities Consider asking a consultant for help Step 5: Hire RE consultant or turn-key OEM/distributor Experience can be worth much more than it’s weight in gold Mindscape provides renewable energy resource assessments to determine which forms of renewable energy will best fit your needs and location. Mindscape also has partners involved with many different renewable energy technologies. And Mindscape is not the only company that offers services and has good experience: we have many competitors. Make sure you check references, and check the internet: it’s amazing what you can learn about a company on the internet now… (If you do a search on Mindscape or on Derek Satnik then you’ll get a huge number of hits: try that for anyone before you consider hiring them, and see what you find out…)
  9. Slide time: 2-3 mins. When considering different renewable energy technologies, keep in mind that they all suit different applications, and none of them is a “one size fits all”: they all have different strengths and weaknesses. There are only a couple general rules: Conservation is always cheapest and best! Don’t size a generation system until you have conserved as much as possible first: then you can spend less to get a smaller generation system and it will serve you better (and stretch your money further) Do a proper feasibility study first before you invest. With that in mind, here’s a rough comparison of the major technologies you can use to generate your own energy: SOLAR More types of solar than many people realize: Solar walls: literally a wall, as simple as a sheet of metal, with many little holes in it. As the sun shines on the metal wall, it heats up. Air inside the wall also heats up, and naturally rises. If you suck air from inside that wall into the building, the sun will give you free (and very cheap) heat. Solar Domestic Hot Water (DHW): panels on a wall or roof with fluid in them (glycol or water, sometimes even air): as the sun shines on the fluid, it heats up, and you can bring that heat into the building. PV = photo (light) voltaic (electricity) BIPV = Building Integrated PV: literally replace part of the building with PV, like shingles trackers/concentrators: mechanical hardware that helps keep the PV pointing at the sun so that you get more energy from it PV thermal hybrid: all solar panels not only generate electricity, but they also generate heat. If you can capture the heat, then it helps the panel run more efficiently, and it gives you free heat: up to two units of heat per unit of electricity with some products. The next couple slides will show some examples of what this looks like…
  10. Slide time: 1-3 mins. Bottom to top: Bottom left: solar DHW (vaccuum tube collectors) Bottom right: typical PV (ROW Fleet Management Centre) Top row: fancy hardware to help boost production Top left: typical tracker on a farm Top right: concentrator tracker (happens to also be a hybrid concept that produces PV &amp; thermal): Power Spar, by Menova Energy Inc. (now bankrupt) USEFUL ASIDES: Q: We often get asked whether it’s better to use trackers/concentrators or to use more panels. A: The answer depends on who you are. The payback for a system with trackers is almost the same as that for a system without, if you’re measuring % ROI or IRR. If you’re a company with permanent maintenance staff, then trackers may be better for you. If not, then just add more panels: same return, but with no maintenance.
  11. Slide time: 1-3 mins. Top: PV shingles of different types Bottom left: solar wall Bottom right: PV parking canopy Others not shown: PV art: flower shapes, shading structures for parkette sitting areas, signage (eg: PV cross on a church); Thermal integration (tough to show without technical diagrams)
  12. Slide time: 4-5 mins. Recall our general rules: Conservation is always cheapest and best! Don’t size a generation system until you have conserved as much as possible first: then you can spend less to get a smaller generation system and it will serve you better (and stretch your money further) Do a proper feasibility study first before you invest. With that in mind, here’s a rough comparison of the major technologies you can use to generate your own energy: SOLAR (which we just saw, so it’s shown faded in the background on this slide) WIND (Small) This is the noisy technology Every motor is a generator, every generator is a motor: think of a lawnmower on a tower WIND (Large) Made with big industrial motors: typically quieter than the wind HYDRO (water) Aside: we are one of the only places in the world that people call electricity “hydro” Q: Why? A: because 100% of Canada’s electrical power once came from hydro (water) We can be 100% powered by renewables again! Fossil fuels are the true “alternative energy”: we need renewables, not alternatives! GEOTHERMAL “Geo” means ground, “thermal” means heat BIO-ENERGY (biomass and biogas, or even landfill gas) Next slides have sample photos again… Some reminders: Best financial returns are on the commercial scale: if you’re looking to invest, put your money in a wind coop. Biomass has some attractive opportunities, but … CREW focuses on mature technology that’s ready for mass market
  13. Debatable: Wind as only method of electricity generation that fully recovers embodied energy Diversity in corporate revenue: eg John Deer Other benefits: -Land lease revenue for rural land owners (eg: wind) Rural economic development (new jobs for design, construction, maintenance, …)
  14. Slide time: 2-3 mins. Bottom line: There are some legitimate drawbacks to wind energy, but they’re extremely minor compared to the alternatives, or even compared to the risks we take when we get into the car and drive to work every morning. Note: wind is not unreliable – it’s intermittent. Important difference. Turbines are the most reliable generators around – far more so than nuclear. “unfounded and unprovable silliness”: Ask for recent reports based on recent data – note that the industry has advanced significantly over the last few decades, and every year counts. All of reports against wind that actually have valid concerns are very obsolete. 20 yrs. of reports in Europe, Canada (yes local), and around the globe that deal with all the concerns raised thus far. “There is nothing new under the sun”, especially with wind energy antagonists. Bird kill stats from CanWEA (per 10,000 avian fatalities): &lt;1 from wind turbines 50 from communication towers 710 from pesticides 850 from vehicles 1060 from cats 1370 from high tension lines 5820 from collisions with buildings / windows
  15. Slide time: 2-3 mins. POOL eg: coastal farm community in Germany whose gross revenue increased &gt;40x after turbines arrived. They call the off-shore turbines beautiful. NIMBY eg: certain rural farmers in Ontario that got bad land deals from large out-of-province developers.
  16. Grand River
  17. Lower image from http://www.host.nl/en/biogas/farm-scale-biogas/
  18. Slide time: ~1 mins. Some reminders: Conservation first! Choose technology that suits your application. Best financial returns are on the commercial scale: if you’re looking to invest, put your money in a wind coop. Biomass is best, but only works in special circumstances
  19. Slide time: ~1 mins. Some reminders: Renewables are steadily getting more cost effective, especially PV
  20. Slide time: ~1 mins. For interest’s sake: Gas/Coal/Oil are no longer cheaper than renewables. Costs vary by jurisdiction, but here’s where they lie. Gas @ ~$500 million for ~$500 MW =&gt; $1/W, not sure about paybacks but likely &lt;10 yrs Nuclear is &gt;$7/W installed ($23 billion quote for ~3GW), and after 40 yrs, still hasn’t paid off (we still owe $15 billion!)
  21. Slide time: 2-3 mins. Transmission/Distribution Constraints The grid was not designed for distributed generation, and is largely budgeted Utilities adapting differently and with varying levels of supportiveness Hydro One is terrible Always need a CIA: Connection Impact Assessment Sometimes can be “Capacity Allocation Exempt” (CAE), but still get varying support OPA is “special”: highly political 75% rejection rate on FIT 2 (for “completeness” and “eligibility” errors) Never does a word more or less than directed by politicians Finances The market has changed frequently and swiftly over the last year. Check early and often to ensure your finances are in order. We know of several projects that died or were sold because the owners’ financing changed or ran out. Clear contract documents Especially with a turn-key supplier. We know of a 250kW PV project where the owner pulled a significant portion of their retirement savings to fund the project. The contractor split up all the work and did a marvellous job of the installation, but nobody ever secured a contract with the utility to sell the electricity. Make sure nothing falls through the cracks! CSA equipment certifications Don’t underestimate this! Check in advance. We’ve had to tear a project out because it claimed to have certifications that it did not have ESA approval ESA inspectors are a mixed breed: some excel, some lag. Talk to yours early to avoid surprises. Social friction &amp; misinformation Even when you do everything right, sometimes you still get into trouble BIG DEAL! Two more slides on this next…
  22. Slide time: 2-3 mins. Key points: [Pretty much read this slide] “Walk softly, and carry a big stick” The “big stick” is the facts: know the law, and know the truth (FAQ) Don’t back down on mistruths (eg: turbines do not make people sick), but don’t make a mission of bringing up all the myths that need correcting (ie: don’t look for trouble by bringing up things that people aren’t asking about) Look for the hidden concern. Most people speak about things that are really only symptoms that cover their real concerns, which are typically things like wanting to be involved, or simply greed (want to make money, not listen to / look at others making money)
  23. Slide time: 2-3 mins. [read slide] For NOPEs: Q: do you have a microwave at home? A: If yes, then there are volumes of reports about how harmful microwave radiation is to humans. You have it because you like the convenience it offers you. It is far more dangerous to you than a wind turbine. Context please…
  24. Slide time: 1-2 mins. Diversity in corporate revenue: eg John Deer Other benefits: -Land lease revenue for rural land owners (eg: wind) -farmer claims: energy is most reliable crop (over any agricultural crop) Rural economic development (new jobs for design, construction, maintenance, …)
  25. Slide time: 2-3 mins.
  26. Slide time: 2-3 mins.
  27. Image from http://www.sunedisonitalia.it/info/stampa/sunedison-financing-bulgaria-2012.html FIT price drops: Rooftop PV: $0.713 drop to $0.329 Ground PV: $0.443 drop to $0.288 Wind: $0.13 drop to $0.115
  28. Slide time: 2-3 mins. This process is a royal pain! Get qualified help and check references. Experience is important. Approvals to COD: 18 mo’s for rooftop PV 36 mo’s for ground/other
  29. Slide time: 2-3 mins. Boundaries, Scope limitation, &amp; Public Engagement Know what you’re actually asking vs. sharing Know that ppl can tell if your asking is genuine vs. selling
  30. Encourage skepticism, not cynicism
  31. Slide time: &lt;1 min. Image from http://www.caribbeanelections.com/education/images/library_books_5516.jpg
  32. If there’s any one closing thought I’d like to leave you with it’s this. Renewable energy is not just about economics or doing good projects, although it is certainly about that. Renewables are a basic acceptance of the fact that we cannot continue burning fossil fuels the way we have been. Nature won’t tolerate it.
  33. God bless the cockroach.
  34. Slide time: &gt;1 min. It’s up to me. It’s up to you. It’s up to all of us. Call us if you have any questions. We’d love to help. Please fill out a feedback form. If you want the slides, leave us your email address. I’m writing a book! If you want a pre-release copy, leave your email address. Thanks for your time!