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A; Strategy Background - PDF document

C REATIVE E NERGY NES NEFC CPCN E XHIBIT C1-10 CI .; 10 9/16/2015 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA A; compass zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA VANCOUVER zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA


  1. C REATIVE E NERGY NES NEFC CPCN E XHIBIT C1-10 CI .; 10 9/16/2015 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA A; compass zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA VANCOUVER zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA ~TYOF " zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA ,Iit'f" (".""~ zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA :.' VANCOUVER BChydro m FOR GENERATIONS Compass Resource Management Ltd. 200 - 1260 Hamilton St. Vancouver, B.C. V6B 258 Cansda Phone: 604-641-2875 Fax: 604-641-2878 www.compassrm.com :A;.. Workshop Agenda and Purpose • Present strategy scope and draft outputs for stakeholder input. • Strategy expected to be finalized Fall 2012. • Stakeholders will be provided Strategy document once completed. • Presentation will be the basis of questions for breakout groups, Workshop Agenda Start Duration Welcome coffee .U~T"".T'·\":lml1l:1.lIl.""1I.11~11t-r. Breakout groups - all (break included) 10:00am Plenary - Report Back 11:45am Closing Remarks 12:15pm City of "JanCOI! .er DE S\l atelJ~ - Sta~ erclcer V'.'m~ shop ::2 1

  2. 9/16/2015 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA District Energy - Overview zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Distribution System Energy Transfer Stations zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Building Hydronic HVAC 510·2012 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Cit) of 'JanCQU'Jer DE Strategy - Sta~ eholder Vlcr~.shop .1:2 Regional District Energy Activity 51('1 "C1 2

  3. 9/16/2015 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA DE Systems in Vancouver zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA ,:.A;. Existing zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA 0_<11 __ City of vancouver DE Strategy - Staker-,older Vlorkshop ::.2 A; Strategy Background zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA ';' " Low Carbon District Energy (HLCDE"1 Strategy Objective: To accelerate the establishment and expansion of cost competitive LCDE systems in Vancouver. Greenest City Action Plan: Avoid 120,000 tonnes CO 2 by 2020, 5.10·2012 City of VanrClJ'ler DE Str a!egy Star eholde 1':'O:r 5"OP ~2 3

  4. 9/16/2015 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA .A;, Source of Vancouver GHGs Heavy Trucks 5% 51Q 2012 City of vancouver DE Strategy - StakeMlder Vlcr~shop::2 A, District Solution vs Building Scale Solution '.' J -. • SE False Creek NEU: demonstrates that renewable energy can be cost effective at scale in dense urban settings - and delivers significant GHG reduction • High upfront capital costs, but low operating costs + long amortization create opportunities for cost competitiveness • Economies of scale and other options for low carbon technologies • Systems can serve existing buildings • Avoid 'island of green in sea of brown' t = • Use of local energy sources zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA resilience CHi cf /ar:;OU~;8( DE S;' zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA d!~J'i - .::": i~ .;rol)';f v: 'orl ;rq' :::" 4

  5. 9/16/2015 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA CoV Low Carbon District Energy Strategy Components zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA 1, Mapping opportunities 2, Clarifying ownership and operations roles 3, Implementation guidelines to address public concerns 4, Priority supporting policy/actions • Tools to reduce risks (including load development) • Tools to support lower rates Tools to reduce connectivity costs zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA • City ot vancoover DE Strategy - Stakeholder 5102012 liJorkshop::2 A; Workshop #1: Feedback from Developers / Landowners ::' " • Confused about implementation roles and impacts on timelines • Concerned about cost premiums: hydronic heat and client rates • Unclear of the benefits of district solutions - more familiar with building scale solutions • If there are benefits to DE - question consumer willingness to pay any premium • Concerns over LEED standard and credit for district energy 10 510·21"2 5

  6. 9/16/2015 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Workshop #1 : Feedback from Utilities • Prefer multiple franchise/ service areas vs. single city-wide service provider. Competition / diversity is healthy, • Utilities perceived the current BCUC regulatory requirements as a barrier to entry, • Unanimously recognise important role of City in DE development. 510'2012 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA City ,'Jf '.'an';ou'.'er DE Str3'egy - Stake~olcer ~":or~ st'lcp::.2 II Workshop #1: Feedback from Government / Institutions • DE a key strategy for lowering GHG, where it can lower capital/lifecycle costs • Access to capital/lack of experience are key barriers for communities • Not In My Backyard (NIMBY) - public concern over supply impacts • Some institutions / agencies_do not see DE as a core function • Transition from existing campus energy systems will need to mitigate impacts on existing labour force • City should consider supportive policies e.q. rezoning and bylaws that improve DE business case; increased density; tax instruments; allow siting on municipal land; P3s. • Greater coordination between local governments required (within region) 5.1 2'J1 .. 6

  7. 9/16/2015 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA .. A;, zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Geospatial Vision Can Assist Implementation • Guide area-based planning zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA I feasibility (replace city-wide 2 acre DE policy?) • Target growth to leverage benefits of DE (part of long- term growth planning initiative) • Target DE policies I strategies • Consider large-scale supply and transmission issues • Identify logical system I franchise boundaries City of Vancouver DE Strategy - Staf eholder I;;orf.shop =2 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA 13 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA A Geospatial Data Sets . . .' • Existing and projected fioor area • Current and projected energy consumption (heating and cooling) • Large anchor loads zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA • Existing DE systems • Major infrastructure (sewer infrastructure, transit stations, parks, etc.) • Existing planning units (comprehensive development districts, industrial zones, etc.) • Areas of interest for distributed electricity generation 2(12 I' 7

  8. 9/16/2015 zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA Geospatial Approach zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA DE Priority Zones: High growth/energy density, anchor loeds, candidate infrastructure Proactive, area-based DE franchise, ownership, plans and policies DE Opportunity Zones: Moderate growth/energy density, anchor loads, candidate infrastructure Ooportunistic extension via 2-acre study requirement and site rezoning conditions zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA DE Low Priority Zones: Low growth/energy density, no anchor loads, poor infrastructure candidate Emphasis on green building / site-oriented strategies DE Low Priority Zone City of Vanccu,,~r DE Strategy - Sla~ eGolder I icrk::;;rcp :::2 15 Geospatial Vision - Priority/Opportunity Areas (draft) ~~-~~- ~. L zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA r '. I 5 'n, :0 '>1 8

  9. 9/16/2015 Projected Growth Existing Floorspace New Floorspace -- zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA thousands m 2 .. __ ..3 ... _ DE Priority Areas 17,000 9,000 - - .. 'r-" - ''';_~ - '. ; t' ,. I, DE Opportunity Areas 7,600 ": ~ 1,700 ~.! 11 -. e Subtotal 24,400 10,900 n , Existing / Committed DE -1,800 -4,400 Connecfions Vancouver- Total Floor Area 45,800 13,000 ~~ ,.ll t • DE Areas as % Vancouver Total 53% 84% (anticipated) 51012012 17 City of Vancouver DE Stralegy - Stakeholder Ii/orkshop =2 .A;, Ownership / Franchising Current Status • Ownership: • City developed, owns and operates SEFC, Considering expansion of system, • SEFC ownership will be reviewed in 2013, • Rest of systems are privately owned, • No commitment or formal policy to develop, own or operate any other systems, • No option toacquire systems • Franchising: • No overarching policy/strategy with regards to franchising, Sta~ eholde. zyxwvutsrqponmlkjihgfedcbaZYXWVUTSRQPONMLKJIHGFEDCBA CIty of janCOUVE! DE SIr ate'J~ \;'Jo~~ ~no~, =) 18 9

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