Community Power Finance: Equity Strategy


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Community Power Finance: Equity Strategy
Speaker: Deb Doncaster

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  • Community Power Finance: Equity Strategy

    1. 1. CPFF May, 2010 Community Equity Funds <ul><li>Deborah Doncaster </li></ul><ul><li>Community Power Finance Co-operative </li></ul>
    2. 2. The Community Power Finance Co-operative (CPFC) <ul><li>Our vision is of a renewable and sustainable energy economy that is developed, owned and governed by Ontario’s citizens and communities. </li></ul><ul><li>Our mission is to ensure sufficient financial resources are available to realize the vision of Community Power in Ontario. </li></ul>
    3. 3. <ul><li>CP Finance Co-operative Corp. </li></ul><ul><li>Fund Management Organization </li></ul><ul><ul><li>CP Fund, 1 st Fund under management </li></ul></ul><ul><ul><li>(2007-2010) </li></ul></ul><ul><ul><li>$3 million fund to provide grants for soft costs </li></ul></ul><ul><ul><li>Processed over 40 applications to date </li></ul></ul><ul><ul><li>Representing: $1.5 million and 200 MW </li></ul></ul><ul><ul><li>In depth technical and financial evaluation of </li></ul></ul><ul><ul><li>projects </li></ul></ul><ul><ul><li>Program Manager CEPP in partnership with Deloitte enables us to continue soft cost grant program </li></ul></ul><ul><ul><li>Community Power equity funds under </li></ul></ul><ul><ul><li>management in 2010/2011 </li></ul></ul>
    4. 4. Defining Community Power <ul><li>A Community Power project is any size of renewable energy project where the residents of Ontario, through either an individual or group effort, are a substantial part of the development and ownership. </li></ul><ul><li>Ideally Ontario residents own a minimum of 50% of the project ensuring community control and the maximum economic return afforded by the FIT  community and aboriginal adders. </li></ul>
    5. 5. <ul><li>Goals of CP Sector in Ontario </li></ul><ul><li>Installed Capacity </li></ul><ul><ul><li>500 MW by 2015 </li></ul></ul><ul><ul><li>5000 MW by 2020 </li></ul></ul><ul><li>Economic Development Benefits </li></ul><ul><ul><li>2500 jobs by 2015 (NREL 2009) </li></ul></ul><ul><ul><li>25000 jobs by 2020 </li></ul></ul><ul><ul><li>5000 MW as CP = + 10,000 (+ 2 jobs/MW) </li></ul></ul><ul><ul><li>$103,000,000/yr with 500 MW wind </li></ul></ul><ul><ul><li>> $ 1 billion with 5000 MW wind </li></ul></ul>
    6. 6. CPFC History <ul><li>Staff, Directors, TEC members </li></ul><ul><ul><li>Founded TREC, Ontario’s first CP organization in 1998 </li></ul></ul><ul><ul><li>Founded OSEA in 2000 </li></ul></ul><ul><ul><li>Launched Campaign for FIT and CP Fund in 2004 (RESOP 2006, Fund 2007) </li></ul></ul><ul><ul><li>Launched Campaign for a GEA, new FIT, and new Fund in 2008 </li></ul></ul>
    7. 7. Community Power and the GEA <ul><li>GEA amends the Ontario Co-operative Act </li></ul><ul><li>GEA enables the use of a Feed-in Tariff </li></ul><ul><li>FIT program includes a price adder for Community and Aboriginal projects </li></ul><ul><li>GEA enables: </li></ul><ul><ul><li>The Community Energy Partnership Program </li></ul></ul><ul><ul><li>The Aboriginal Energy Partnership Program </li></ul></ul><ul><ul><li>The Municipal Fund </li></ul></ul><ul><ul><li>Loan guarantees for Aboriginal projects </li></ul></ul><ul><ul><li>Potentially 0% interest loans for homeowners </li></ul></ul><ul><ul><li>* Potentially IOLP for Debt Financing </li></ul></ul>
    8. 8. Price Adders <ul><ul><li>Adder proportional to level of community participation (minimum 10%) </li></ul></ul><ul><ul><li>≥ 50% Community Participation = 100% of adder </li></ul></ul><ul><ul><li>Adder is for entire project (all investors) </li></ul></ul><ul><ul><li>Do not apply for MicroFIT projects (≤ 10 kW) </li></ul></ul><ul><ul><li>≥ 50% Community Participation = reduced security deposit </li></ul></ul>Renewable Fuel Wind PV (Ground Mounted) Water Biogas Biomass Landfill Gas Max Aboriginal Price Adder (¢/kWh) 1.5 1.5 0.9 0.6 0.6 0.6 Max Community Power Price Adder (¢/kWh) 1.0 1.0 0.6 0.4 0.4 0.4
    9. 9. FIT definition of Community Power <ul><li>Community Investor must be: </li></ul><ul><ul><li>One or more individuals resident in Ontario </li></ul></ul><ul><ul><li>Registered Charity with its head office in Ontario </li></ul></ul><ul><ul><li>Not-For-Profit Organization with its head office in Ontario </li></ul></ul><ul><ul><li>Co-operative corporation as defined in the Co-operative Corporations Act </li></ul></ul><ul><ul><ul><li>All members are Residents of Ontario </li></ul></ul></ul><ul><li>Minimum community investment participation level of 10% overall equity </li></ul><ul><li>No size limit on project size </li></ul><ul><li>No local or geographical boundary </li></ul>
    10. 11. Thank You <ul><ul><li>Community Power Fund </li></ul></ul><ul><ul><li>Deborah Doncaster </li></ul></ul><ul><ul><li> </li></ul></ul><ul><ul><li>[email_address] </li></ul></ul><ul><ul><li>416-977-3154 x 241 </li></ul></ul>