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5 Tips to get your Solar Facility financed

You have received your Power Purchase Agreement, Feed-in Tariff contract offer or RFP Win; now you are thinking “I need to get my project debt financed!”  

Enclosed is a list of Best Practices to make this process as easy as possible.  The example below is based on either a ground mount or rooftop solar Facility that is not constructed.   However, this process can be used for constructed projects or Wind Power, Waterpower, Renewable Natural Gas or Energy Storage projects with some modifications.

Also note, there will be regional requirements that are not listed in this guide, so check with your debt provider for any additional material that is required.

Getting Started:

Tip #1: Agreeing to use the debt providers IE can simplify the process

Debt providers will have their preferred technical due diligence service providers often referred to as Independent Engineer (I.E.). Some developers may indicate that they have their own favourite .  However, the IE needs to be truly independent.  

Tip #2: Get all your documents in order

The first phase of technical risk management services conducted by the I.E. typically includes the provision of essential documents for review (see below for list). The requested documentation will be dictated by the status of the Facility under consideration (e.g. early development, pre-construction, post-commissioning, etc.). To complete the review efficiently and to minimize scope creep, the I.E. will typically start the review once all documentation is provided.

Tip #3:  Missing documentation is a major red flag and will cost time and money to complete the review.  Do it right the first time.

It is common that the initial batch of documentation provided is not complete.  This means the I.E. will need to review the preliminary batch for completeness only (i.e. not a technical review at this stage) and notify the developer of key documents that are missing if any. It is important to note that initiating the formal technical review while documentation is missing or deemed insufficient will ultimately be reflected in the draft I.E. report.  

Tip #4: Save costs by providing all the documentation up front, at one time.

Following the document review, the I.E. will issue a draft examination of documents report providing analysis and commentary on the reasonableness, accuracy and completeness of the documentation and identify the main risk factors and possible impact, if any, on the ability of the Facility to generate the expected level of energy/revenue.  That last part is key to any debt provider. The review must indicate an ability to service the debt.  

Tip #5:  Use up-to-date documentation because the site visit will end badly if you don’t!

Following document review, a site visit should be performed. The site visit will involve physical inspection of critical components for consistency with the provided documentation and confirmation of overall Facility design and compliance with the major Contract parameters including:

  • facility type (i.e. rooftop or non-rooftop solar) and physical location,
  • nameplate capacity including approval of DC overbuild and record of inverter production, if visibly accessible,
  • main equipment components (panel, inverter and racking suppliers),
  • connection point location, and
  • review of power production or data log information, if available, for the purpose of performing a high-level check of the Facility’s ability to achieve maximum capacity.

What documentation is required to get financing for your Solar Facility?

Debt financing is usually the last thing developers think about, but you need to be prepared. That preparation should be in the form of well-organized, complete Documentation. 

Here is a list of Documents you should have handy to make this process as easy as possible.  The example below is based on either a ground mount or rooftop solar Facility that is not constructed.   However, this process can be used for constructed projects or Wind Power, Waterpower, Renewable Natural Gas or Energy Storage projects with some modifications.
Also note, there will be regional requirements that are not listed in this guide, so check with your debt provider for any additional material that is required.

What Documentation do you need to prepare?   
Essential documentation that will be reviewed for accuracy, completeness and technical suitability as applicable and available before the site visit, may include the following:

Previous due diligence report, if applicable.
This can save time and provide the debt provider with a sense of comfort if another I.E.  previously reviewed the Facility.  If you have a previous report available, provide it.

Power Purchase Agreement / Feed-in Tariff (“FIT”) documentation: Includes: contract, contract assignment and term buyback documentation, if applicable.
This provides important confirmation that the Facility is “real” and viable.

Key project design documentation:  Includes: as-built, signed/stamped electrical single line diagrams (“SLD”), main equipment specifications (panels, inverters, racking) including capacity, efficiency, warranty, the status of warranty assignment (if applicable) and facility layout drawings.  The design documentation is important and should meet industry standards. This documentation will be compared with observations made during the site visit, if there are differences, explanations will be required and documented.

EPC warranty and commissioning report: Includes: Warranty contracts and reports from the EPC signing off of the project including performance testing reports.
Understanding warranty is important from a debt provider hold back point of view, and the commissioning report will provide valuable information to the I.E. as to the ability of the Facility to perform over time.

Grid Connection documentation:  Includes: A metering plan (if applicable), LDC connection cost agreement and status of assignment, if applicable. Jurisdictions will not allow a Facility to connect to the grid without following a process. This documentation will help to mitigate risk in the eyes of the debt provider f that the distribution company has signed off on the Facility.

Environmental permitting and documentation: Includes: Permitting approval documents from the local government agency. Environmental permitting is important. Facilities cannot begin construction until the required permits or approvals are in place. The debt provider is also interested in the conditions of the permits and whether the ongoing costs to meet these conditions are adequately considered when assessing the ability of the Facility to service the debt.

Land status documentation: Includes: confirmation that a lease agreement is in place for suitable duration, building permit or Certificate of Completion. The debt provider wants to understand any risks associated with the lease agreements like length of term or that zoning will not allow for buildings that can cause shading to be built.

Energy output information: Includes:  calculations and /or Solar Resource Assessment
This is very important. If you provide a poor quality resource report that is not consistent with industry standard, the I.E. will likely raise this as a red-flag and/or may require the analysis be redone costing additional time and money.

Financial Model: Includes: breakdown of main capital cost items (panels, inverters, racking, roof upgrades, other) and operating cost items (O&M contract, monitoring, lease, roof repairs, insurance, administration, other) and debt service calculation, if available.
This will be reviewed in depth so ensure the assumptions and costs can be validated

Constructability assessment documentation:
The I.E. will look for any issues that might cause unusual challenges during the construction of the Facility (e.g. geotechnical study.)

Notice to Proceed (“NTP”) related documents:
For construction financing, this confirms the Facility has been approval to begin construction.  This is very important document when shopping for debt financing.

Commercial Operation Date (“COD”) related documents:
This confirms that the project has been signed off. This document can be called a number of things in different markets.

Operation and maintenance (“O&M”) documentation:
The I.E. will want to understand the plan, cost and approach. The debt provider will want to see how these costs, including key component replacement, are accounted through the entire lifecycle of the Facility.

In Summary, spend the time to get your documentation together.  Provide the I.E. with a complete package of documentation and provide access to your Facility.  You do not want to give the I.E. or the debt provider a reason to question your Facility, if there are issues, work collaboratively with the I.E. to resolve them.

 

Risk Mitigation: Successful Transition of the Power Plant

Many power generating facilities lack training of new personnel, up-to-date procedures, and true preventative and predictive maintenance protocols. Several companies may be unprepared to answer the question of what will happen when their seasoned veterans walk out the door and hand the reigns over to a new, less-experienced operator. Plant managers and owners understand their personnel will retire soon, but fail to realize knowledge will also leave with those employees. A majority of utility companies and generating facilities have neither prioritized the transferal of knowledge and skills to the new generation nor updated their plants to digital platforms.

The Problem of an Aging Workforce

One third of all baby boomers have hit retirement age. Consequently, the power market is due for a large generational shift. This will result in loss of invaluable industry knowledge. According to the Department of Labor, 50 percent of the utility workforce will be retired within 10 years with almost 45 percent of the non-nuclear generation technicians currently above 53 years of age. A survey conducted by the Center for Energy Workforce Development states: “The non-nuclear generation workforce, specifically Operators and Technicians, show the largest number of employees still eligible to retire...The results clearly reflect a need to put more emphasis on skilled technician and engineering positions.” Not only who is going to replace veteran baby boomer but also how do you gain their technological expertise? Will younger staff be able to retain their knowledge through word of mouth and continue to build on it? According to a report from PWC, “The growing number of retirement-eligible employees, rising turnover costs and the generational shift in utility personnel are driving a loss of productivity in the power sector. Traditional ‘word-of-mouth,’ on-the-job training of utility workers is not sustainable. More than ever before, work processes and procedures should be documented and continuously improved.” Power-Eng says “Establishing a program for transferring knowledge is an essential element for dealing with “brain drain.” Veteran utility workers tend to pass valuable institutional knowledge orally, rather than documenting and updating the information systematically. This intellectual capital is often lost when the worker retires because there is no formal program to capture their know-how.” This conversation must include a plan for replacement as well as transferal of technological expertise.

A Reliable Fix

One way to answer these tough questions is to utilize third party technical services companies, who provide operations and maintenance help. These companies develop site specific training videos, operating procedures, which helps reduce human error, improve operator knowledge and improve facility performance and could reduce insurance costs. For preventative and predictive maintenance, a computerized maintenance management system (CMMS) can reduce unscheduled breakdowns of equipment, increase plant reliability and reduce maintenance costs. Another area a third party technical service company can help with is the creation of Smart Piping and Instrumentation Drawings (P&ID’s), which may allow facilities to be a digitally based plant. The P&ID’s are a powerful way to represent the flow, layout, controls of a system as well as maintain a sortable and searchable database of all the systems contained therein. The drawings and database contain the pipe diameter, line number, valves, instruments, controls and respective tags. If other information is found on existing drawings such as type of material, insulation thickness, equipment capacity etc., then this is typically incorporated into the drawings and database. This database is helpful to plant personnel since they can record service dates, look up manufacturer’s parts and replacement parts and can input the location within the building.

Conclusion

Through simple, third party initiatives your plant can have fully trained personnel, up to date procedures, preventative and predictive maintenance management systems. By implementing just a few of these options, power plants can successfully be brought into the digital age and retain the skilled knowledge that is leaving while also improving reliability and safety.

 

How are you migrating your experienced knowledge to a digital format and the younger generation?

How to get your Renewable Energy Project Debt Financed? Simple answer: Documentation!

You have received your Power Purchase Agreement, Feed-in Tariff contract offer or RFP Win; now you are thinking “I need to get my project debt financed!”  

Enclosed is a list of Best Practices to make this process as easy as possible.  The example below is based on either a ground mount or rooftop solar Facility that is not constructed.   However, this process can be used for constructed projects or Wind Power, Waterpower, Renewable Natural Gas or Energy Storage projects with some modifications.

Also note, there will be regional requirements that are not listed in this guide, so check with your debt provider for any additional material that is required.

Getting Started:

Tip #1: Agreeing to use the debt providers IE can simplify the process

Debt providers will have their preferred technical due diligence service providers often referred to as Independent Engineer (I.E.). Some developers may indicate that they have their own favourite .  However, the IE needs to be truly independent.  

Tip #2: Get all your documents in order

The first phase of technical risk management services conducted by the I.E. typically includes the provision of essential documents for review (see below for list). The requested documentation will be dictated by the status of the Facility under consideration (e.g. early development, pre-construction, post-commissioning, etc.). To complete the review efficiently and to minimize scope creep, the I.E. will typically start the review once all documentation is provided.

Tip #3:  Missing documentation is a major red flag and will cost time and money to complete the review.  Do it right the first time.

It is common that the initial batch of documentation provided is not complete.  This means the I.E. will need to review the preliminary batch for completeness only (i.e. not a technical review at this stage) and notify the developer of key documents that are missing if any. It is important to note that initiating the formal technical review while documentation is missing or deemed insufficient will ultimately be reflected in the draft I.E. report.  

Tip #4: Save costs by providing all the documentation up front, at one time.

Following the document review, the I.E. will issue a draft examination of documents report providing analysis and commentary on the reasonableness, accuracy and completeness of the documentation and identify the main risk factors and possible impact, if any, on the ability of the Facility to generate the expected level of energy/revenue.  That last part is key to any debt provider. The review must indicate an ability to service the debt.  

Tip #5:  Use up-to-date documentation because the site visit will end badly if you don’t!

Following document review, a site visit should be performed. The site visit will involve physical inspection of critical components for consistency with the provided documentation and confirmation of overall Facility design and compliance with the major Contract parameters including:

  • facility type (i.e. rooftop or non-rooftop solar) and physical location,
  • nameplate capacity including approval of DC overbuild and record of inverter production, if visibly accessible,
  • main equipment components (panel, inverter and racking suppliers),
  • connection point location, and
  • review of power production or data log information, if available, for the purpose of performing a high-level check of the Facility’s ability to achieve maximum capacity.

What Documentation do you need to prepare?   

Essential documentation that will be reviewed for accuracy, completeness and technical suitability as applicable and available before the site visit, may include the following:

Previous due diligence report, if applicable.

  • This can save time and provide the debt provider with a sense of comfort if another I.E. previously reviewed the Facility.  If you have a previous report available, provide it.

Power Purchase Agreement / Feed-in Tariff (“FIT”) documentation: Includes: contract, contract assignment and term buyback documentation, if applicable.

  • This provides important confirmation that the Facility is “real” and viable.

Key project design documentationIncludes: as-built, signed/stamped electrical single line diagrams (“SLD”), main equipment specifications (panels, inverters, racking) including capacity, efficiency, warranty, the status of warranty assignment (if applicable) and facility layout drawings.  

  • The design documentation is important and should meet industry standards. This documentation will be compared with observations made during the site visit, if there are differences, explanations will be required and documented.

EPC warranty and commissioning report: Includes: Warranty contracts and reports from the EPC signing off of the project including performance testing reports.

  • Understanding warranty is important from a debt provider hold back point of view, and the commissioning report will provide valuable information to the I.E. as to the ability of the Facility to perform over time.

Grid Connection documentationIncludes: A metering plan (if applicable), LDC connection cost agreement and status of assignment, if applicable.

  • Jurisdictions will not allow a Facility to connect to the grid without following a process. This documentation will help to mitigate risk in the eyes of the debt provider f that the distribution company has signed off on the Facility.

Environmental permitting and documentation: Includes: Permitting approval documents from the local government agency.

  • Environmental permitting is important. Facilities cannot begin construction until the required permits or approvals are in place. The debt provider is also interested in the conditions of the permits and whether the ongoing costs to meet these conditions are adequately considered when assessing the ability of the Facility to service the debt.

Land status documentation: Includes: confirmation that a lease agreement is in place for suitable duration, building permit or Certificate of Completion

  • The debt provider wants to understand any risks associated with the lease agreements like length of term or that zoning will not allow for buildings that can cause shading to be built.

Energy output information: Includes:  calculations and /or Solar Resource Assessment

  • This is very important. If you provide a poor quality resource report that is not consistent with industry standard, the I.E. will likely raise this as a red-flag and/or may require the analysis be redone costing additional time and money.

Financial Model: Includes: breakdown of main capital cost items (panels, inverters, racking, roof upgrades, other) and operating cost items (O&M contract, monitoring, lease, roof repairs, insurance, administration, other) and debt service calculation, if available.

  • This will be reviewed in depth so ensure the assumptions and costs can be validated

Constructability assessment documentation:

  • The I.E. will look for any issues that might cause unusual challenges during the construction of the Facility (e.g. geotechnical study.

Notice to Proceed (“NTP”) related documents:

  • For construction financing, this confirms the Facility has been approval to begin construction.  This is very important document when shopping for debt financing.

Commercial Operation Date (“COD”) related documents:

  • This confirms that the project has been signed off. This document can be called a number of things in different markets.

Operation and maintenance (“O&M”) documentation:

  • The I.E. will want to understand the plan, cost and approach. The debt provider will want to see how these costs, including key component replacement, are accounted through the entire lifecycle of the Facility.

In Summary, spend the time to get your documentation together.  Provide the I.E. with a complete package of documentation and provide access to your Facility.  You do not want to give the I.E. or the debt provider a reason to question your Facility, if there are issues, work collaboratively with the I.E. to resolve them.

 

What to look for in a Source/Stack/Emission Testing firm?

There are a lot of Source/Stack/Emission (“Source”) vendors out in the marketplace.  How do you decide which one.  The following checklist may help you decide.

  1. Testing Experience,
  2. Regulatory Experience,
  3. Trained and Qualified Staff,
  4. Large Team,
  5. Equipment, and
  6. Safety Training.

Testing Experience:

Ask your vendors for a list of clients, investigate whether they have received positive feedback from both  clients and regulators.  It is important to confirm the vendor has a track record including testing report  accepted by the regulator.  Make sure your vendor has experience in your industry as well.  Testing requirements do change from industry to industry.

Regulatory Experience:

Make sure your vendor  understands your local regulations, the process, the report formats and the intricacies of the permitting culture.  Ask for references or examples of compliance reports or pre-test plans.  This will illustrate their experience and more importantly, understanding of the regulations.  This will save you time and money.

Trained and Qualified Staff:

Training is essential. The Source Evaluation Society (“SES”) has an accredited program called Qualified Source Testing Individual (“QSTI”). The goal of the SES QSTI exam and abilities assessment is to determine whether a candidate demonstrates the knowledge and capacity to apply source testing methods and fundamental engineering and chemistry principles in a manner consistent with that of a field test team leader. The SES QSTI program is one way to satisfy the accreditation standard for organizations, and potentially new regulations, as the SES QSTI exams are designed to assess competence and a basic understanding of source testing methods.

Ask if your vendors have this training.

Large Team:

Your vendor should be able to conduct testing that does not impact your operations for weeks.  A large team will allow for simultaneous  testing at multiple locations if necessary thus reducing the overall impact on operations.  Also, schedules change, so your vendor should be able to accommodate last minute issues that cause testing windows to shift.  Ask your vendor whether they have the internal resources to complete the job or whether they will require sub-contractors. 

Equipment:   Your vendor should have the in-house equipment resources to handle large and demanding jobs.  Renting equipment can create scheduling challenges and can cause testing problems due to unknown  calibration and maintenance records. 

Health and Safety:

Your vendor should have a culture of safety. Training is important, but the breadth of training is essential.  Training that should be considered depending on the scope of the testing program include:

  • Health and Safety Due Diligence
  • Asbestos Awareness
  • Confined Space Awareness
  • Fall Protection / Working at Heights
  • SCBA
  • Lock Out Tag Out
  • First Aid/CPR
  • Transportation of Dangerous Goods
  • Respirator Fit Testing (Quantitative Testing)
  • Annual internal training includes WHMIS and respirator fit testing
  • Qualified for radiological work

Your vendor should conduct monthly safety toolbox meetings with field personnel to keep safety foremost in everyone’s mind. Your vendor should conduct and document a detailed Job Safety Analysis (JSA) before arriving on the site which provides a step by step safety analysis of the work to be performed.  Also, your vendor should complete a Field Level Job Safety Analysis (FLJSA) each day they are on-site. 

White Paper: Managing Odour Complaints Best Practices

By Steve Thorndyke ( sthorndyke@ortech.ca )  Reading time: 2 minutes 30 seconds

There are many ways to deal with Odour complaints, either proactively or reactively.  Odours are not predictable, but you can manage them, if you receive a complaint.  Here are some suggestions:

  • Encourage odour complainants to notify the plant as soon as possible after an odour episode and fill out a standard questionnaire with details about the odour event such as date, time, meteorological conditions (e.g. wind direction), odour frequency, odour intensity (perceived strength) and the character of the odour (what the odour smells like).
     
  • Verify that the complaint is genuine or appears to be real and that it originates from the plant by noting the wind direction at the time of the complaint and visit the site of the complaint if the odour persists.
     
  • If possible, correlate the odour complaints with specific activities at the plant which may have caused the complaint, including continuous activities at the facility and short-term activities such as loading a truck.
     
  • Conduct periodic odour surveys in the plant and at areas surrounding the plant, with emphasis on sensitive odour receptors such as residences, schools and other places frequently visited by the public, to obtain data which will complement the complaint data.
     
  • If there are several potential sources of odour emissions at the plant, conduct an odour emission survey with atmospheric dispersion modelling to assess the effect of these sources, both individually and in aggregate, at off-site odour receptors and use the dispersion modelling to rank the potential sources. Develop a plan to reduce odour emissions at the sources, perhaps starting with the most significant odour emission sources.
     
  • Repeat the odour emission survey and atmospheric dispersion modelling to assess the effects of any new odour reduction efforts at the plant, and consult with the complainants to determine if the reduction in odour concentration at the receptors is sufficient.
     
  • Develop an odour management plan for the plant and protocols for dealing with odour complaints.  Hold public meetings to discuss the details of the plan and any progress in implementing the plan.

For more information on how ORTECH can assist your Air Quality needs, visit our Odour Assessment Page or ouremail us at mtingle@ortech.ca

Keeping Track of Environmental Compliance & Permitting

Like it or not, environmental compliance and permitting (C&P) requirements can often be affected by day-to-day operations. Often, facilities are not aware of these impacts or do not consider environmental compliance in day-to-day decision making. This can lead to unanticipated issues, extra work, or poor quality estimates when addressing end-of-year reporting requirements such as those related to the National Pollutant Release Inventory (NPRI), Toxics Reduction Act (TRA), Greenhouse Gas (GHG) reporting, and preparing Annual Written Summaries (AWS) required by an Environmental Compliance Approval (ECA). Failure to consider C&P requirements can also lead to surprise findings if you are inspected by the Ministry of the Environment and Climate Change (MOECC).

Consider the following examples:

  •       A facility switches from a mix of xylene and toluene solvents for cleaning equipment to purely xylene solvent. This change pushes xylene usage above the threshold for TRA requirements. At year end, the facility is shocked to find out that they must prepare a reduction plan and complete in-depth toxics accounting for xylene, a significant and costly effort.
     
  •     A facility makes the minor change of re-ducting an existing paint spray booth exhaust under the Limited Operational Flexibility conditions on their ECA. The plant manager does not remember the continuous assessment requirements imposed by the ECA, and no updated assessment is prepared until the AWS is due. When the assessment is completed, it is determined that the exhaust relocation does not comply with emissions standards due to the close proximity to a neighboring unit’s air intake. There is now a requirement for retroactive abatement.

Other common occurrences include failing to amend an ECA for changes to processes or equipment, or not considering that the expansion of operations may result in exceeding a GHG reporting threshold. Sometimes, only knowing at year end that you are required to report can lead to difficult problems, since not everything can be remedied retroactively (such as the requirement to calibrate certain meters or measure certain parameters for Ontario GHG reporting).

The establishment of an environmental C&P due diligence process, which could be a simple as a checklist of considerations, can save you lots of headaches and costs when a requirement to report or reconcile comes around.

Need assistance? ORTECH can help you:

  •       Establish an environmental C&P due diligence process
  •       Report to the NPRI
  •       Prepare a Toxics Substance Reduction Plan and complete Toxics Substance Accounting
  •       Apply for an Environmental Compliance Approval with Limited Operational Flexibility
  •       Prepare and submit an Annual Written Summary

Managing your Service Ontario ONe-Source Account

Service Ontario’s ONe-Source for business is an online service made available by the government of Ontario to provide access to government services, forms and information.  The Ministry of the Environment and Climate Change (MOECC) uses ONe-Source for business to facilitate registrations on the Environmental Activity and Sector Registry (EASR) and section 20.18 order requests for the inclusion of EASR activities in an Environmental Compliance Approval (ECA) application. A section 20.18 order request is a commonly required as part of an ECA application – so the use of the ONe-Source is often required as part of a compliance & permitting project. The MOECC has also indicated that they plan to expand services delivered using ONe-Source in the future, for example, the ECA application process itself.

ONe-Source is accessed using an ONe-Key login ID.  To access the MOECC services, the ONe-Key account must be registered with MOECC. This registration process requires the provision of a business number, postal code, and legal name for verification against information on file. Only one ONe-Key account can be registered with the MOECC per business number. For business operation several facilities on Ontario, it is especially important to keep track of the ONe-Key account information associated with the MOECC, since multiple facilities will need to use it and each facility’s ECA project could be led by completely different staff. Also, since ONe-Source is used for services not related to the MOECC, such as accessibility reporting requirements, a business may wish to keep all activities consolidated to a single account for convenience. If you are overseeing an ECA application project and are part of a multi-facility business, it is recommended that you coordinate with corporate or administrative staff to ensure that a record of the account is kept on file, or that access to an existing account can be arranged.

If the information for the ONe-Key account registered to your business number with the MOECC is lost, the administrative process of recovering the account can take up to several months resulting in significant days to project timelines.

Need assistance? ORTECH can help you:

  •       Create your ONe-Key account and register it with the MOECC
  •       Register an Activity on the EASR
  •       Complete a section 20.18 order request
  •       Prepare an ECA application and supporting documentation

Incoming Dispersion Modelling Updates – What it Means for You

The Ministry of the Environment and Climate Change (MOECC) will be updating the approved versions of the AERMOD and ASHRAE method dispersion models later this month through the publication of a notice on the Environmental Registry. A pre-notification of the incoming update was sent to stakeholders earlier this year. The approved versions will now be AERMOD version 14134 and the method described in the AHSRAE 2011 Handbook, chapter 44.  A change in model version has the potential to result in increased point-of-impingement concentration (POI) predictions. This means that on the extreme end of the impacts, a facility could move from compliance to non-compliance as a result of the change, potentially triggering notification and abatement requirements. Other considerations include:

Facilities required to update an Emissions Summary and Dispersion Modelling (ESDM) report annually (e.g. Schedule 4 or 5 facilities) will need to use the newly approved versions for their updated report due March 31. This might result in additional costs for facilities that do not undergo year-to-year changes and previously updated simply with an administrative note.

Facilities with Environmental Compliance Approvals (ECAs) with Limited Operational Flexibility are required to keep an up-to-date ESDM report that demonstrates compliance. This means that the ESDM report would need to be updated to use the new versions once they are in effect. Additionally, if increases to POI predictions for contaminants without standards could trigger the requirement to submit a toxicological assessment request to the MOECC depending on interpretation.

The MOECC has indicated that existing ECA applications which have not yet been approved may be retroactively required to reassess using the new versions. This means that there is a potential for additional unanticipated costs if your facility currently has an ECA application using an older version in queue.  The MOECC has also indicated that they will phase in new versions on an on-going basis. This creates additional uncertainty in the ECA application process as the time in queue is often longer that the lifespan of a model version. There is now a real risk that the assessment you submit in support of your ECA application will be obsolete and require update by the time it gets reviewed.

Need assistance? ORTECH can help you:

  •       Prepare or update an ESDM report
  •       Use an approved dispersion model to assess your facility
  •       Assess the impact of an incoming model update
  •       Support an existing ECA application that requires updated modelling

What does Energy Storage in Ontario mean for Developers?

By Ka-Ming Lin (klin@ortech.ca)

The current Energy Storage environment in Ontario is a very dynamic situation.  There are numerous drivers, both internal to the Ontario market and global factors which are creating the need for solutions like energy storage.  It’s also very broad and has the potential to impact every level and all aspects of the energy industry from generators to transmission and distribution owners and operators to end-users.

Our whole approach to energy is changing.  Fuel mix changes and renewable integration, conservation, grid modernization, distributed energy resources, load profile changes as the economy moves from traditional industrial to more knowledge based sectors, EVs and the upcoming electrification of everything, the emerging importance of resilience and climate change adaptation.  Ontario’s current response to the changes was the green economy transformation but the cost implication of this shift has resulted in significant backlash.  That’s going to affect what we do and when we get to do it.

There are applications that are starting to become economic, as well as potential new applications related to the changing grid.  The hardest part of figuring this out is the timing.  A lot of these changes are interrelated, and the rate of uptake on things such as EVs or conservation is going to change the needs and demands on the grid.  So I see a lot of change coming, with some parts counter-balancing others, and a lot of uncertainty as well.

 For more information on ORTECH's Energy Storage Services, click here.

 

October 20, 2016 Energy Matters: Renewables

- Clean energy investments are on the retreat. Worldwide investments in clean energy totaled $42.4 billion in the third quarter of 2016, down 31% from the second quarter and down a striking 43% from the equivalent three-month period of 2015. The summer quarter is typically sluggish, but the main reason is because investments in China and Japan have slowed considerably.

 - Featured resource:  After three years, Comcast has finalized its plan to reduce energy use and CO2 and achieve sustainability. AES Members have access to Comcast's strategic plan.

- New questions have been raised about the climate impact of biofuels. Some scientists, including the US DoE, have argued that using biofuels to replace gasoline significantly reduced CO2 emissions. On the other hand, new research suggests that once all the emissions associated with growing feedstock crops and manufacturing biofuel are factored in, biofuels actually increase CO2 emissions.

- The departments of both Energy and Interior just released the National Offshore Wind Strategy report, the federal government's playbook to build 22 GW of offshore wind capacity by 2030 and 86 GW by 2050. 

- In an effort to cut costs and reduce carbon emissions, a popular Paris public swimming pool is heating its water by recovering the warmth generated by local sewers.

- In the five boroughs of New York City there are 5,300 solar installations, up from 186 in 2011; an additional 1,900 are in the pipeline. 

- Percent of electricity generated from wind in 2015 for European countries: Denmark (50%); Ireland (23%); Portugal (22%); Spain (18%); Germany (13%)

- Bill Gates has invested again in biomass, this time with Renmatix, a company that converts plant waste and biomass into sugars that can be converted into biofuels.

 

For more information on ORTECH's Renewable Energy Services, see below:

October 20, 2016: Energy Matters: Conventional

Petroleum

 - Now that oil prices have stabilized, perhaps it's time to look back and assess the carnage ... according to OPEC Secretary General Mohammad Barkindo, cartel member nations lost the equivalent of $1 trillion (USD) over the course of the three-year slump.

 - Much like the world’s major oil exporters — Nigeria, Venezuela, Saudi Arabia, Iraq, etc. — the US has its own petro-states whose specialized economies suffer when oil prices drop; they include: Alaska, Wyoming, Louisiana, North Dakota and Oklahoma. 

 Natural gas

 - Featured story: The US Department of State considers the spread and use of natural gas around the world a key geopolitical strategy, calling the fuel "critical to economic growth" and democracy. The department is working with national governments to put "the right investment climate in place," according to Robin Dunnigan, deputy assistant secretary of state for energy diplomacy.

Coal

 - In the first half of 2016, six former Soviet countries produced 232 million tons of coal, the highest output in a six-month period since 1996. Meanwhile, China's National Developm has asked 74 coal mines to boost thermal coal output by 500,000 tons per day in order to ease supply shortages ahead of the winter; this directive will bring another 15 million tons of new supply each month to the market.

 - Don Blankenship, who led Massey Energy Co. during the 2010 Upper Big Branch disaster that killed 29 miners in 2010, wrote a 68-page booklet from prison declaring that he is a victim of long-running animosity from labor unions, the Obama administration, the judiciary system and Hillary Clinton. AES Members have access to his self-published book.

 Nuclear

 - In 2010, Japan got 25% of its electricity from nuclear power; today, it gets .4%.

 

 

Ontario CAP and TRADE Program

As of today, there are only 39 days left to register in Ontario’s Cap and Trade Program. This deadline (November 30th, 2016) cannot be extended.

 You must be registered in Ontario’s Cap and Trade Program before you can participate in Ontario’s first cap and trade auction in March 2017. Registration is also required if you wish to participate in a practice auction that will be held in January 2017.

Cap and Trade Program Registration

Registration takes time to complete.

  • Registration is a two-part process. Part 2 cannot be completed until Part 1 is completed, submitted to and approved by the Ministry.
  • The time required to meet some of the requirements of registration, such as the notarization of documents, may be outside of your direct control. This should be taken into account when you are planning for your registration.
  • Completing the Business Relationship Disclosure Form can be an extensive process.

Auction and Practice Auction

Ontario will host training webinars in December before the practice auction in January 2017.  

To be eligible to participate in an auction, your CITSS registration must be submitted early enough so that it can be reviewed and approved in time to participate in a scheduled auction. Register in CITSS as soon as possible to be eligible to participate in the January 2017 practice auction.

Additional auction information will be posted to Ontario’s cap and trade website (https://www.ontario.ca/page/cap-and-trade) next week.

Ontario’s Cap and Trade Help Desk team is available to answer your registration and auction questions. Contact the help desk by email at CThelp@ontario.ca or toll free at 1-888-217-3326.

As of today, there are only 39 days left to register in Ontario’s Cap and Trade Program. This deadline (November 30th, 2016) cannot be extended.

 You must be registered in Ontario’s Cap and Trade Program before you can participate in Ontario’s first cap and trade auction in March 2017. Registration is also required if you wish to participate in a practice auction that will be held in January 2017.

From Greenhouse Gas Emissions Reduction Office
 at Ministry of the Environment and Climate Change


 

 

 

Government of Alberta Aims to become 50% Solar-Powered

The Canadian Solar Industries Association (CanSIA) states that the Government of Alberta is leading by example as the first provincial or territorial government in Canada to explore the feasibility of meeting 50% of their annual electricity needs from solar energy.  Minister Shannon Phillips, Alberta's Minister of Environment & Parks (and Minister responsible for the Alberta Climate Change Office) announced their intent today at the Solar West 2016 conference in Edmonton, hosted by CanSIA for the solar energy industry (listen to audio on CanSIA's Public Appearance webpage). The process, if successful in identifying a supplier or suppliers that can construct and operate a solar farms that meet the province's economic criteria, could give rise to 100 MW of new installed generation capacity in the province - enough to power 18,750 Alberta homes for a year.  The announcement received significant media attention including in the Global News, Calgary Herald and Edmonton Sun.  Further details on the Request For Information (RFI) can be viewed on the Alberta Purchasing Connection (interested parties should register as a Vendor).

From CanSIA

Canada Ratifies Paris Agreement, Announces National Carbon Pricing Details

The Government of Canada formally ratified the Paris climate accord on Wednesday October 5th, after easily beating back an effort from the opposition to give provinces the sole authority to deal with carbon pricing.  Members of Parliament approved a motion supporting both the United Nations agreement and the federal-provincial declaration issued last March in Vancouver that committed Canada to undertake the joint action needed to "meet or exceed" its Paris commitment to reduce greenhouse-gas emissions by 30 per cent from 2005 levels by 2030.

Earlier that week, Prime Minister Justin Trudeau introduced the motion on the Paris accord with the announcement that Ottawa would require provinces to have a carbon-pricing plan - either a tax or cap and trade - in effect by 2018. Where premiers refuse to do so, Ottawa will impose a tax of $10 per tonne, rising to $50 per tonne in 2022, the equivalent of 11 cents per litre at the pump.  The approach led to much politicking in the media, here is one with some well-crafted arguments that we enjoyed.

 

From CanSIA

Capture Every MWh – Wind O&M Dallas Program Launched for 2017

October 12, 2016

The program for Wind O&M Dallas 2017, the world’s foremost conference for global wind energy stakeholders, is today October 12, being launched by Wind Energy Update.

Taking place April 10-12, 2017, and with its most ambitious agenda and impressive speaker line-up yet, it marks a major turning point in the wind energy industry by helping executives achieve genuine wind park ROI and learn to maximize value from every single turbine collectively.

“In order to truly succeed in this industry, issues such as major power purchase investments from industrial giants, the explosion of independent service companies, advanced energy storage technology, the utility of data driven software, and more, demand a complete re-think.

“And, it’s for this reason that we’re proud to invite 600+ of the world’s top wind stakeholders, from right across the value chain, back to Dallas next spring for our most value added, business driven program ever,” says Kerr Jeferies, Project Director at Wind Energy Update.

All-new case studies, workshops, seminars, keynote panels and networking will ensure that attendees will leave with all the critical tools, insights and connections they need to protect the integrity and transform the productivity of their portfolio well into the future.

Powerful C-Level keynote addresses, from the likes of Patrick Woodson, Chairman, E.ON Climate & Renewables; Chris Brown, President, Vestas; Mark Albenze, CEO Siemens Wind Power & Renewables; Andy Holt, CEO Renewables, GE Renewable Energy; Tom Kiernan, CEO, AWEA and many more, will break new ground by raising the bar for the O&M industry’s imminent +$3Billion growth spurt.

While a good O&M strategy for wind energy will make or break the business case for a single turbine park, an innovative yet considered and well executed Asset Management approach will unlock expansive long-term economic opportunities for entire wind portfolios.

“We’re excited to be presenting a brand new ‘Asset & Risk Management Track’ to go alongside our premier ‘Rethink Reliability – The Core O&M Topics Track’ to ensure that asset value can be protected, nurtured and grown by asset managers chasing risk, revenue and reward as well as field technicians and engineering specialists can,” he explains.

Importantly, this annual gathering – which has enjoyed a 30% growth in attendee quality year-on-year since 2012 - provides the platform true leaders need to establish thought leadership, dominate market thinking and harness the collective strength of this truly exciting global market.

Major stakeholders from E.ON, Duke Energy, Pattern Energy, EDF Renewable Energy, SunEdison, Siemens, Goldwind, GE Renewable Energy and Vestas have already confirmed their attendance at this - the most important wind stakeholder meeting to hit Texas in years. NGC Transmission & Equipment, EDF Renewable Services and Tech Safety Lines have joined as Diamond, Silver and Bronze sponsors respectively.

“This annual gathering, above all others, continues to tap into the progressive business models that’ll secure the industry’s future, making it the can’t-miss event for all top energy decision makers,” concludes Victoria Auckland, Project Director at Wind Energy Update.

So make sure to save the date: 10 April 2017 in Dallas, Texas and for more information visit http://www.windenergyupdate.com/operations-maintenance-usa/

Government of Ontario suspends LRP II from CanSIA

On September 27th, the Government of Ontario announced the immediate suspension of the second round of the Large Renewable Procurement (LRP II).  For the solar industry in Ontario this means that 250 MW of utility scale solar projects will not be procured in 2018 as was previously planned.  The Government has also communicated, however, that this decision will not affect ongoing FIT and microFIT procurements.  

John Gorman, President and CEO of the Canadian Solar Industries Association (CanSIA) released this statement following the announcement:

"CanSIA is disappointed with the Government of Ontario's decision to suspend the LRP II procurement as it represents a significant back-step from previously committed renewables procurement in the Province that we believe will be required to deal with supply and GHG emission risks, such as delayed nuclear refurbishment schedules, un-met conservation targets, or increased demand as a result of electrification to meet the province's climate change targets. Cancelling or delaying the procurement of renewable electricity could leave Ontario unprepared to effectively deal with these risks cost-effectively and without increasing electricity sector GHG emissions.  CanSIA remains hopeful that the upcoming Long Term Energy Plan (LTEP) process will provide further opportunities for the industry. Both the Ministers of Energy and Environment and Climate Change have received mandate letters which include a strong focus for reducing electricity sector GHG emissions even under high electrification scenarios, encouraging the growth of renewables, and making Ontario one of the most cost effective North American jurisdictions for installing solar panels. Through the LTEP CanSIA will be advocating for the Ministry of Energy to adopt policies that encourage greater consumer choice in the adoption of energy solutions to meet communities' power needs and GHG reduction targets."

CanSIA will continue to inform members of new information and new developments as they arise. CanSIA remains hopeful that the upcoming Long Term Energy Plan (LTEP) consultation process will provide opportunities for all renewables, including large-scale solar. Participate in CanSIA's LRP II Forum to be a part of the on-going discussion and if you have questions or comments please contact, Ben Weir, CanSIA's Director of Policy and Regulatory Affairs

Alberta announces firm target of 30% by 2030, Support for 5,000 MW

On November 30 2015, Alberta's Minister of Environment and Parks and Minister Responsible for the Climate Change Office Shannon Phillips, announced that the province will commit to a firm target of 30% by 2030 and support 5,000 MW of additional renewable energy capacity. During a session later in the day at the conference where the announcement was delivered,  CanSIA and CanWEA representatives Patrick Bateman & Evan Wilson delivered the key message that "30% renewables by 2030  is achievable in Alberta both cost-effectively and without compromising reliability of supply".  The announcement was covered by several news outlets including the CBC, Globe and Mail and Calgary Herald and the practical implications of this target will be discussed during CanSIA's Solar West 2016 in Edmonton from October 5th to 7th.

Questions about Solar, please contact

Information courtesy of CanSIA