Green Infrastructure Phase II Emerging Renewable Power Program€¦ · Green Infrastructure Phase...
Transcript of Green Infrastructure Phase II Emerging Renewable Power Program€¦ · Green Infrastructure Phase...
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Green Infrastructure Phase II
Emerging Renewable Power
Program
Project Application WebinarMarch 9, 2018
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Contents
• Background• Applicant Guide Overview:
– Eligibility and funding– Application process
• Project Application Form • General Feedback regarding Expression of Interest
responses• Q&A
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
PAN-CANADIAN FRAMEWORK
GREEN INFRASTRUCTURE PHASE II
Background
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
4Pan-Canadian Framework on Clean Growth and Climate Change: Role of the Electricity Sector
Reduce emissions from electricity
generation
Currently 11 % of total emissions
Secure emissions reductions
through efficiency and
electrification of other sectors
Action
Create an incentive for use of non-
emitting electricity
Regulation: Pricing carbon
pollution (ECCC)
1. Low-Carbon Energy Supply
2. Power Systems Infrastructure
3. Grid Modernization
4. Remote Electricity Supply + Demand
5. Transportation Demand
6. Buildings & Communities Demand
The electricity sector is key to meeting Canada’s target of reducing GHGs by 30% from 2005 levels by 2030
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Budget 2017 Announcement:
Emerging Renewable Power Program• $200 million to support the deployment of emerging renewable energy technologies
nearing commercialization
– 5 year program starting FY 2018/2019 (i.e. April 2018)
– Emerging renewable projects face higher risks, costs and more regulatory issues than projects using established renewable energy sources
Program Objectives– Expand the portfolio of commercially-viable, investment-ready, renewable energy technologies
available in Canada
– Support development of new supply chains
– Reduce electricity sector GHG emissions
– Expect to support 2-4 different technology types, with total number of projects supported depending on their size
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https://buyandsell.gc.ca/sites/buyandsell.gc.ca/files/trl_diagram_0.pdf
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
EMERGING RENEWABLE POWER
PROGRAM APPLICANT GUIDE
Applicant Guide Overview
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Program Expected Results (§8)
• Increased deployment of emerging RE power projects • Reduced barriers to deployment of emerging RE power
projects• Increase in renewable energy capacity from emerging
sources• Environmental benefits, including GHG reductions • Increase in renewable technology supply chains• Increase in awareness and understanding of regional energy
resources and impacts from renewable energy projects
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Eligible technologies (§3,4,&11)
“Emerging” renewable power projects are defined as using technologies that:
– Have been successfully deployed at the utility scale in other countries but not yet in Canada; or
– Have been successfully demonstrated in Canada but not yet commercially deployed.
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Eligible technologies (§3,4,&11) 9
Eligible Not Eligible
Offshore Wind Renewables that are already commercial (onshore wind, conventional PV, small hydro, )
Geothermal Renewable heating
Instream Tidal Energy Storage
Concentrated Photovoltaic Renewable fuel production
Other (must meet “emerging” definition)
Residential and building integrated renewable energy projects
Non-organic waste to power
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Eligible Recipients (§ 9)10
• Legal entities validly registered in Canada
• Provincial, territorial, regional, or municipal governments and their departments or agencies
• Indigenous communities or governments, tribal councils or entities that fulfil a similar function
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Duration and funding limits (§15)
• Applicants may request up to 50% of their total project expenditures, to a maximum of $50 million.
• Funding for the program is available for projects between April 1, 2018 and March 31, 2023.
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Repayable Contributions (§14)
• Project funding will be repayable IF the project generates a profit for the Recipient within 5 years of project commissioning.
• Repayment will be proportional to the amount of profit and NRCan’s funding of the original project.
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Holdback (§24)
• A percentage of the contribution agreement will be withheld until all the conditions of the contribution agreement have been met
• Proponent must achieve a minimum average of 50% their expected capacity factor over the two-year period starting from the date of Project commissioning
• The percentage withheld will be determined based on the risk level of the Project.
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Eligible Expenditures (§ 12)
• See Applicant Guide for more details
• Examples: salaries, professional services, equipment and reasonable travel costs that must all be directly related to the project
• Overhead must be limited to 15% of total project costs
• “In-kind” from the applicant is considered as “cash” for the purposes of the project budget
– In-kind would only come from project partners
– In-kind must be verifiable
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Ineligible expenditures(§ 13)Applicants could choose to identify ineligible expenditures in the proposal, but they would not be included in the total project cost amount used to calculate the amount eligible for NRCan funding. Ineligible costs include:
• Land acquisition costs;
• Legal costs;
• Project Application preparation costs;
• Costs related to energy storage or heating components of a Project;
• All costs associated with the protection of intellectual property; and
• Costs incurred before the proposal approval notification date, or after the Project Completion Date.
Applicants could identify the following costs attributable to the total project costs (proponent contribution) but will not be refunded for:
• Collaborations with federal laboratories;
• The reimbursable portion of Federal and Provincial Taxes; or,
• In-kind costs
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Basis and timing of payments (§16)
• Contribution agreements (CA) will set out the required terms, including timing for payment
• Final payment will not be made until all Project activities have been completed by the Proponent and are deemed acceptable to NRCan.
• Per the CA, a percentage of funding (holdback) may be in place depending on the project risk of meeting targets.
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Stacking of Assistance (§17)
• The proponent must disclose all funding sources at the application phase and at completion of the Project.
• The maximum level of total Canadian government funding authorized under this program will be 75% of Eligible Project Costs.
• 100% of eligible costs could be stacked if the proponent is a provincial, territorial, municipal government or their departments and agencies, or an Indigenous Recipient.
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
EMERGING RENEWABLE POWER PROGRAM –
APPLICANT GUIDE : APPLICATION PROCESS
STAGES
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Application Process Stages (§18)
1. Submission of the Project Application
2. Initial screening based on eligibility
3. Evaluation by a panel of experts
4. Due diligence phase
5. Negotiation of contribution agreements
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Proposal Evaluation criteria (§20)
• Mandatory pass or fail criteria include:– recipient being validly incorporated in Canada– project location in Canada and meets minimum size requirement– electricity production for sale or use in Canada– Technology is eligible– Application completeness
• Rated criteria will include the following themes in order of importance:– Program objectives– Project plan– Financial stability
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Proposal Evaluation criteria (§20)
1. Program Objectives– Cost of Project to the Program
– Life Cycle Energy Costs of Project– Project size
– GHG Reductions
– Socio-economic benefits including jobs
– Indigenous Involvement
2. Project Plan– Expected Commissioning Date– Project Design and Proposed Work Plan
– Permits
– Impact Statement or Federal Environmental Assessment
– Community Involvement
– Project Risks
– Expected Energy Resource
– Project Team Experience
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3. Financial Stability– Financial Plan of Applicant
– Power Purchase Agreement (or Power Pool) Plan– Proponent Financial Contribution
4. Other Considerations– Although the costs of energy storage or heating
components related to a project are ineligible for program funding, points may be given to proposed projects that include these components
Bolded criteria will be more heavily weighted during the evaluation process
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Due Diligence & CA Negotiations (§21&22)
• The due diligence phase will include an evaluation of the Project’s financial and technical risk where the applicant may be asked for detailed clarification or more information.
• Any funding provided by NRCan is subject to there being a signed contribution agreement (CA) by both parties. NRCan would have no obligation to make a financial contribution prior to signing the CA.
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
PROJECT APPLICATION FORM
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Project Application Form
• Proposals must be submitted by 23:59 EST, April 20, 2018
• The completed project application form and all annexes must be submitted by e-mail (or mail) both as an Excel file and as a signed PDF
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Project Application FormSection 1: Information about the Proponent
To be filled out by the program
ERPP Registration Number (internal):
Date proposal was received (internal)
yyyy/mm/dd
1.1 Legal name of the Proponent:
Address of the legal entity: Street
City
Province Postal code
Legal status (e.g. limited partnership, corporation, Crown corporation) of the Proponent:Jurisdiction of the business (province or territory):
Business registration number:
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Project Application Form: Section 2
• 2.2: select your technology type from drop down menu
• 2.4: Net Capacity - total megawatt contribution the project will make to the grid, after taking into account power consumed on site
• 2.4: Nameplate Capacity - maximum rated output
• 2.5: Capacity factor: expected average annual power production in GWh divided by rated (net) peak power
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Project Application Form: Section 3
• The requested information depends on technology type selected in section 2.2
• Please contact us if you have any questions regarding the requested information
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Section 3: Information about the expected energy resource
3.1 (offshore
wind*)
Expected average annual wind speed at the site:(show how this is estimated in A4)
m/s : m (hub height):
*”offshore wind” is used as an illustrative example, and its use does not imply it will be considered more favourably than other technologies for this program.
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Project Application Form: Sections 4-7• Suggest completing Annexes first and
summarizing your information in sections 4,5,6
• Total costs – from Apr 1, 2018 to Mar 31, 2023
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Section 7: Supporting documents
The following information must be attached seperately to your PAF
Annex Check Remarks by Proponent
A1 Provide information about the Proponent and the development team’s experience in the electric power plant sector. Provide relevant experience with the technology or similar applications. Please limit to 2 pages.
A2 Short description of the project and technology, including size, site location, ownership of project and socio-economic benefits such as jobs, heating, food security, energy security, etc. Please limit to 2 pages.
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Project Application Form: Annexes 6 and 7
• A6: Applicant guide provides a link to a table of GHG emissions per province
(click on Canada NIR: 2017NIR – PT2 pg. 233)
• A7: include any technical standards applicable to your industry
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Project Application Form: Annex 9
• Provide a detailed a breakdown of the expected Project costs by fiscal year (April 1 to March 31) between the period of April 1, 2018 and March 31, 2023
• Note: only costs incurred over program life can be eligible
• Identify eligible Project costs and ineligible Project costs
• Identify sources of funds for the Project.
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Applicant Guide: Proposal Evaluation (Annex 10 - §Schedule B)31
Life Cycle Electricity Costs (LCEC) for projects submitted under the Emerging Renewable Power Program
Estimated Cost of Project
Project Name Capacity (MW) Exp. Annual Prod. (GWh)
Exp. Cap. Factor
Technology 50 400 91.3%
Cost CAD Project Lifetime
Capital Total Project Costs Provide total of all expected costs incured by the developer to build the project from it's design to commissioning, including component costs, permits, substation, labour and construction costs exclusive of funding
$400,000,000 30
Average Operation and Maintenance Costs per year
Provide undiscounted average annual costs over the lifetime of the project including all labour and material costs as well as annual costs such as land lease and insurance and allowances for periodic repair and replacements of components.
$10,000,000 O&M Costs per Unit MWh
$25.00
* Information in red is provided only as an example and does not constitute costs of a real project.
Calculations Total Costs over lifetime of Project $700,000,000 LCEC: $/MWh $58.33
Once this form is filled, the information provided will be protected and may be used only in aggregated format
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
EXPRESSION OF INTEREST
RESPONSES
General Feedback regarding Expression of
Interest responses
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Expression of Interest Purpose
• NOT A SCREENING TOOL
• Used to inform program planning
• Used to help improve instruction in the Applicant Guide
• Used to provide general feedback to potential applicants in advance of the RFP
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
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Tidal
Offshore wind
Geothermal
Concentrated PV
Biomass
Other solar
Other hydro
Other (fuel cell)
Conventional Storage
Completed EOIs by Technology
EOI packages requested: 347
Total EOIs submitted: 57
Project Application Packagesrequested as of March 2: 38
© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Feedback: Technology Type
• Ensure the project technology type is eligible for the Program.
• If applying under “other” category, Annex 2 must include a strong description/justification of why the technology and project is both emerging and renewable.
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Feedback: Proponent and Project Location
• All projects must be in Canada
• All proponents must be Canadian legal entities.
– Proponents in the process of incorporating in Canada must complete the process to be considered eligible.
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Feedback: Stage of Project
• Program will support commercial projects
• Feasibility studies which are not part of a full deployment project are not eligible
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Other NRCan Programs supporting renewables: High-level comparison and considerations
Program Project types Recipient Types Other requirements
Emerging Renewable Power Program
Deploy Utility-scale renewable generation Any in Canada Commercial tech not yet in Canada; Demonstrated but not deployed
Smart Grid Program Demo, Deploy,Hybrid
Grid benefits, grid integrated or microgrid Utilities, system operators
Clean Energy for Rural & Remote Communities
Demo, Deploy,Hybrid
Reduction of diesel use for heat & power in remote communities and/or industrial sites, as well as bioheat for rural locations.
Any in Canada Preference for Indigenous-led and/or supported projects; minimum RE generation requirements for deployment
Clean Growth R&D, FEED, Demo, up to first commercial installations
Call is tech agnostic; Must reduce impact on air, land, water.
Any in Canada Requires funding from Province / Territory; Must benefit mining, energy or forestry sectors; TRL levels 3-9
Electric Vehicle Infrastructure
Demo Grid management of EV charging infrastructure
Any in Canada
Electric Vehicle and Alternative Fuel Infrastructure
Deploy EV fast chargers Any in Canada Applicant must be engaged with the relevant energy supplier
Energy Efficient Buildings
R&D, Demo Behind the meter technology Any in Canada
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© Her Majesty the Queen in Right of Canada, as represented by the Minister of Natural Resources, 2017
Q&A
• Proposals must be submitted by 23:59 EST, April 20, 2018
• Program Inquiries: [email protected]
• Program website: https://www.nrcan.gc.ca/energy/funding/20502
• Program FAQ: continually updated on website
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