Loading...
HomeMy WebLinkAboutCAO-008-11 Clarmgton REPORT Leading the Way CHIEF ADMINISTRATIVE OFFICE Meeting: GENERAL PURPOSE AND ADMINISTRATION COMMITTEE Date: Monday July 11, 2011 Resolution#: G IAA— `S,/-ii By-law#: N/A Report#: CAO-008-11 File#: Subject: ENERGY MANAGEMENT COMMITTEE — SOLAR PHOTOVOLTAIC (PV) PROGRAM RECOMMENDATIONS: It is respectfully recommended to the General Purpose and Administration Committee that Council approves the following: 1. THAT Report CAO-008-11 be received; 2. THAT the requirement for formal competitive bidding in accordance with By-law 2010- 112, Part 2 be waived for this initiative; and 3. THAT Staff, in conjunction with the Purchasing Division, be authorized to advertise for Expressions of Interest for the potential installation of solar panel systems on selected municipal buildings. Submitted by: I Franklin Wu Chief Administrative Officer CORPORATION OF THE MUNICIPALITY OF CLARINGTON 40 TEMPERANCE STREET, BOWMANVILLE, ONTARIO L1C 3A6 T(905)623-3379 F (905)623-0720 REPORT NO.: CAO-008-11 PAGE 2 1.0 BACKGROUND 1.1 Since the formation of the Energy Management Committee the members have been keeping informed on various energy conservation programs. Of particular interest in the last 12 months has been the Ontario Power Authority's (OPA) Feed-in-Tariff (FIT) Program. 1.2 In recent months staff has received many unsolicited calls from firms providing information on the program, specifically the roof mounted solar panel option and seeking interest from the municipality to proceed with an application for a project. Options for building owners include the outright purchase of equipment, financing the purchase of equipment and leasing rooftops to the contractors. To date staff have been in the information gathering mode and have advised all firms that if we are to proceed it will be through a public procurement process. 1.3 The municipality owns a number of larger buildings that would potentially be suitable locations for mid- sized roof mounted solar panels. Based on preliminary research it is feasible to consider solar panel projects in the area of 100kW. 1.4 At a recent Energy Management Committee meeting a representative from the Renewable Energy Facilitation Office of the Ontario Ministry of Energy and Infrastructure provided an overview of the FIT Program. The representative indicated a number of GTA municipalities have received approvals to proceed with solar PV projects and many others are in various stages of the process. 2.0 PROGRAM 2.1 On May 14, 2009 The Green Energy and Green Economy Act was passed into law. The goals of this legislation included making Ontario a renewable energy leader; encouraging investment and job creation and fostering a culture of conservation. In October of this same year the OPA began accepting applications under the FIT program. REPORT NO.: CAO-008-11 PAGE 3 2.2 The FIT Program was developed to encourage the development of small scale renewable energy projects across the province. The program is based on the generation, transmission and distribution of energy into the provinces' energy supply system. A number of renewable energy sources are covered under the program including biomass, landfill gas, biogas, onshore wind, water power and solar photovoltaic. 2.3 Within the FIT Program there are three categories based on size of renewable energy project; small 10kW or below (MicroFIT); mid-sized 10kW— 500kW; and large scale over 500kW. 2.4 Subject to all necessary approvals the OPA will enter into a 20 year contract for a fixed price for the electricity the project generates. The price is based on the type of energy produced and the size of the project. In general the contracts are structured to provide adequate guaranteed revenues to cover the capital and operating costs associated with the project as well providing the building owner a reasonable return on the initial investment. Based on information staff has received most installations are expected to recover the capital costs within the first ten years of the contract. 2.5 Based on a roof top solar panel project sized at 100kW the contract price ($/kWh) is $0.713 per kWh. Ministry staff has advised the FIT program will undergo a review during 2011 with the possibility of adjusted contract pricing. 3.0 COMMENT 3.1 To date there has been no detailed discussion on the financing of this program. Subject to the responses from the Expression of Interest (EOI) a detailed cost analysis will be required if it is recommended to proceed with this program. 3.2 Prior to proceeding with a roof mounted PV system a structural adequacy will be required on all buildings being considered and those costs will be factored into the financial calculations. REPORT NO.: CAO-008-11 PAGE 4 3.3 It is the intention of this EOI to generate adequate response from the renewable energy community that will assist the municipality to make a fully informed decision on the FIT program. 4.0 INPUT FROM OTHER SOURCES 4.1 The Manager of Purchasing has been consulted during the preparation of this report and upon approval will coordinate the Expression of Interest and any subsequent negotiations. 4.2 Staff will report on the results of the request for the EOI in the fall and will be advising Council whether or not the municipality should participate in the FIT program.