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BEYOND THE INCENTIVE 
November 25, 2014
$100s of billions 
Ontario’s aging 
infrastructure 
Replace coal fired 
generation 
Hydro Ottawa – Partnership Success! 
Conservation 
1,330 MW 
410,000 homes off grid 
Green economy 
key aspect of provincial electrical grid planning 
14 November 2014 Page 2
2011 – 2014 PROVINCIAL CONSERVATION INITIATIVE 
14 November 2014 Page 3
2015 – 2020 CONSERVATION FIRST FRAMEWORK 
We need your continued 
support 
Open for business 
Streamlined Framework 
25 November 2014 Page 4
CONSERVATION FIRST 
Anticipated start date (summer 2015 till 2020) 
Stable funding but change to incentive formula (kWh) 
~40% quota increase (400GWh) 
Program delivery will be optimized for new framework 
Virtually all current programs continue till end of 2015 
25 November 2014 Page 5
SMALL COMMERCIAL 2015 
Small Business Lighting 
peaksaver PLUS 
– ending 2015 
– ending 2014 
25 November 2014 Page 6
LARGE COMMERCIAL CONTINUES……. 
Audit Funding 
– 2015 only 
Retrofit Program 
– will transition 
Existing Building Commissioning 
Training & Support 
New Home Construction 
High Performance New Construction 
Social & Assisted Housing 
– 2015 only 
- scheduled for transition in some form 
- scheduled for transition 
- scheduled for transition 
– will transition (limited 2X) 
25 November 2014 Page 7
INDUSTRIAL 2015 
Demand Response 
Process & Systems Upgrades 
- has transitioned to IESO 
– 2015 only 
25 November 2014 Page 8
DOING MORE WITH SAME 
Channel partner focus 
• New vertical partners (Behind-the Meter & speciality projects) 
• Service standing offer (replace SOE Audit program) 
• Channel partner certification 
• Pay for performance? 
25 November 2014 Page 9
DOING MORE WITH SAME (CONT'D) 
Technology focus 
• Low hanging fruit almost harvested 
• T12 incentive? Incandescent bulbs disappearing 
• Digging deeper into incentives pocket (U of O example) 
• BAS, free cooling, data centre optimization 
• Behind-the-Meter generation (CHP & Renewables) 
25 November 2014 Page 10
CONSERVATION FIRST – CUSTOMER FIRST 
Conservation made more efficient 
• Great improvement opportunity 
• LDCs have more control 
If it ain’t broke, don’t fix it 
• High touch service model 
• Value of Incentives 
• Engineering support 
25 November 2014 Page 11
Deep Energy Retrofit 
University of Ottawa Success
Introduction 
Daniel Gosselin, P. Eng, PMP 
Senior Project Manager 
Certified Energy Manager (CEM)
Presentation Summary 
1. What is a Deep Energy Retrofit? 
2. Economic Evaluation 
3. Project Examples 
4. Secrets to Success
What is a Deep Energy Retrofit? 
1. Older Buildings (10 Years or older) 
1. Re-Engineering of entire Heating, Ventilation and Air Conditioning 
(HVAC) System 
2. Newer Buildings (Fewer than 10 years) 
1. Re-engineering of HVAC elements 
2. Updated sequence of operations 
3. Re-commissioning of HVAC systems
Economic Evaluation 
Set Simple Expectations: 
• Five Year Simple Payback 
• Return-on-Investment (ROI) 
• Net Present Value (NPV)
Project Examples 
Desmarais Building: 
• New Build 2007 
• Retrofit: 
• Condensing boilers reconfigured 
• Addition of heat recovery chiller 
• Static pressure reset 
• Reduced pressure losses in ductwork 
• Elimination of return fans
Project Examples 
Desmarais Building: 
• Capital Cost: $400,000 
• Hydro Incentive: 118,840 
• Energy Savings: 
• $ 95,000 (22% reduction) 
• Simple Payback: 2.84 years
Project Examples 
SITE Building 
• + 15 year old facility 
• Retrofit 
• Energy recovery chiller 
• Reduction of pressure losses in duct system 
• Revisions to building air circulation 
• Elimination of return fans 
• Significant update to sequence of operations
Project Examples 
SITE Building 
• Economics 
• Capital Cost: $670,000 
• Hydro Incentive: $95,644 
• Energy Savings: 
• $ 210,000 (44% reduction) 
• Simple Payback: 2.7 years
Project Examples 
Morisset Building: 
• Older Building: + 1970 (TBC) 
• Retrofit: 
• Reconfigured Air Handlers 
• Addition of Massive Heat Wheels 
• Addition of Heat Recovery Chillers 
• Static pressure reset and elimination of reheat coils 
• Elimination of return fans 
• Significant update to sequence of operations
Project Examples 
Morisset Library: 
• Capital Cost: $2,030,000 
• Hydro Incentive: $209,000 
• Energy Savings: 
• $ 413,000 / year (62% and improving) 
• Simple Payback: 4.4 years
Project Examples 
Projects in Progress 
• Roger Guindon 
• Capital: $5,000,000 (includes new chiller) 
• Savings: Approx. $800,000 / per year 
Central Plant 
• Capital: $3,300,000 (Includes new Deaerator) 
• Savings: Approx. $750,000 / year
Secrets to Success 
Strong Leadership 
• Owner as Champion 
• Owner as Energy Manager 
• Project Management
Secrets to Success 
Procurement of Engineering Services 
• Consider a design competition 
• Focus on life cycle project costs – not engineering fees! 
• Invest in engineering and reward performance
Secrets to Success 
Detailed Feasibility Study 
• Engage operators in the process 
• Understand the energy conservation measures and the impact on 
operations 
• Accurate baseline measurements are essential at this stage
Secrets to Success 
Design Process 
• Give the engineers time to develop the design 
• Have frequent design review sessions with operators 
• Go to tender only when 100% satisfied!
Secrets to Success 
Contractor Procurement 
• Establish a pre-qualified list of sheet-metal, plumbing, electrical 
and controls contractors. 
• Sheet-metal or plumbing contractor acts as General Contractor. 
• Ability of contractor to plan work in an operating building is key to 
success
Secrets to Success 
Construction 
• Planning, planning and more planning 
• Communication with users 
• Engineer/PM Leadership 
• Culture of collaboration
Secrets to Success 
Commissioning 
• Engineers must lead the commissioning process 
• Collaboration with controls is key to success 
• Operators must be involved with the commissioning to ensure 
continuity of system operations
Secrets to Success 
Measurement and Verification 
• Calibration of equipment is essential 
• Daily, weekly and monthly monitoring 
• On-going commissioning 
• Dedicated energy management improves results
Conclusion 
1. Owner must lead the way 
2. Compensate engineers for results 
3. Engage building operators 
4. Invest in project management 
5. Contractors must be partners 
6. Continuous Commissioning: Energy Manager!
Questions?
NEW RETROFIT WEB PAGE 
Available at hydroottawa.com/retrofit 
Available tools 
25 November 2014 Page 34
PRE-PROJECT CHECKLIST 
25 November 2014 Page 35
ONLINE VIDEO TUTORIALS 
25 November 2014 Page 36
TRACK COMPARISON TOOL 
Compares Engineered vs. Prescriptive 
Available for interior and exterior lighting 
to 
LED 
par38 
Halogen 
par38 
Engineered: $28 
VS. 
Prescriptive: $20 
= 
25 November 2014 Page 37
SHARE YOUR STORY 
Show us your 
projects on Twitter 
– Step by Step 
guide in folders 
We will retweet to 
7700+ followers 
25 November 2014 Page 38
PROGRAM OFFICERS, EXTERIOR 
Kevin Quinlan, Non-Lighting 
kevinquinlan@hydroottawa.com | 613-898-4976 | 613-738-5499 x7643 
Mark Schell, MUSH Sector 
markschell@hydroottawa.com | 613-809-0946 | 613-738-5499 x148 
Shane LaBrash, Lighting 
shanelabrash@hydroottawa.com | 613-809-1576 | 613-738-5499 x144 
Richard Thorne, Supervisor 
richardthorne@hydroottawa.com | 613-889-9832 | 613-738-5499 x213 
25 November 2014 Page 39
PROGRAM OFFICERS, INTERNAL 
Adrienne Lesage, Pre-Project Approvals and Initial Inquiries 
adriennelesage@hydroottawa.com | 613-738-5499 x7642 
Paddye Magill, Post-Project Approvals 
paddyemagill@hydroottawa.com | 613-738-5499 x7671 
Manon Galipeau, Head Office Applications and Internal Sales 
manongalipeau@hydroottawa.com | 613-738-5499 x172 
Jordan Grendal, Administrative Assistant 
jordangrendal@hydroottawa.com 
25 November 2014 Page 40
ADDITIONAL SUPPORT 
Charles Zaloum, Engineer 
charleszaloum@hydroottawa.com | 613-809-7436 | 613-738-5499 x273 
Imran Ebrahim, Engineer 
ImranEbrahim@hydroottawa.com | 613-400-4674 | 613-738-5499 x575 
Mike Guertin, Project Validation Agent 
michaelguertin@hydroottawa.com | 613-738-5499 x7621 
Anne Patenaude, Marketing Officer 
annepatenaude@hydroottawa.com | 613-738-5499 x7640 
25 November 2014 Page 41
THANK YOU

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Nov 25, 2014 Hydro Ottawa Breakfast: Beyond the Incentive

  • 1. BEYOND THE INCENTIVE November 25, 2014
  • 2. $100s of billions Ontario’s aging infrastructure Replace coal fired generation Hydro Ottawa – Partnership Success! Conservation 1,330 MW 410,000 homes off grid Green economy key aspect of provincial electrical grid planning 14 November 2014 Page 2
  • 3. 2011 – 2014 PROVINCIAL CONSERVATION INITIATIVE 14 November 2014 Page 3
  • 4. 2015 – 2020 CONSERVATION FIRST FRAMEWORK We need your continued support Open for business Streamlined Framework 25 November 2014 Page 4
  • 5. CONSERVATION FIRST Anticipated start date (summer 2015 till 2020) Stable funding but change to incentive formula (kWh) ~40% quota increase (400GWh) Program delivery will be optimized for new framework Virtually all current programs continue till end of 2015 25 November 2014 Page 5
  • 6. SMALL COMMERCIAL 2015 Small Business Lighting peaksaver PLUS – ending 2015 – ending 2014 25 November 2014 Page 6
  • 7. LARGE COMMERCIAL CONTINUES……. Audit Funding – 2015 only Retrofit Program – will transition Existing Building Commissioning Training & Support New Home Construction High Performance New Construction Social & Assisted Housing – 2015 only - scheduled for transition in some form - scheduled for transition - scheduled for transition – will transition (limited 2X) 25 November 2014 Page 7
  • 8. INDUSTRIAL 2015 Demand Response Process & Systems Upgrades - has transitioned to IESO – 2015 only 25 November 2014 Page 8
  • 9. DOING MORE WITH SAME Channel partner focus • New vertical partners (Behind-the Meter & speciality projects) • Service standing offer (replace SOE Audit program) • Channel partner certification • Pay for performance? 25 November 2014 Page 9
  • 10. DOING MORE WITH SAME (CONT'D) Technology focus • Low hanging fruit almost harvested • T12 incentive? Incandescent bulbs disappearing • Digging deeper into incentives pocket (U of O example) • BAS, free cooling, data centre optimization • Behind-the-Meter generation (CHP & Renewables) 25 November 2014 Page 10
  • 11. CONSERVATION FIRST – CUSTOMER FIRST Conservation made more efficient • Great improvement opportunity • LDCs have more control If it ain’t broke, don’t fix it • High touch service model • Value of Incentives • Engineering support 25 November 2014 Page 11
  • 12. Deep Energy Retrofit University of Ottawa Success
  • 13. Introduction Daniel Gosselin, P. Eng, PMP Senior Project Manager Certified Energy Manager (CEM)
  • 14. Presentation Summary 1. What is a Deep Energy Retrofit? 2. Economic Evaluation 3. Project Examples 4. Secrets to Success
  • 15. What is a Deep Energy Retrofit? 1. Older Buildings (10 Years or older) 1. Re-Engineering of entire Heating, Ventilation and Air Conditioning (HVAC) System 2. Newer Buildings (Fewer than 10 years) 1. Re-engineering of HVAC elements 2. Updated sequence of operations 3. Re-commissioning of HVAC systems
  • 16. Economic Evaluation Set Simple Expectations: • Five Year Simple Payback • Return-on-Investment (ROI) • Net Present Value (NPV)
  • 17. Project Examples Desmarais Building: • New Build 2007 • Retrofit: • Condensing boilers reconfigured • Addition of heat recovery chiller • Static pressure reset • Reduced pressure losses in ductwork • Elimination of return fans
  • 18. Project Examples Desmarais Building: • Capital Cost: $400,000 • Hydro Incentive: 118,840 • Energy Savings: • $ 95,000 (22% reduction) • Simple Payback: 2.84 years
  • 19. Project Examples SITE Building • + 15 year old facility • Retrofit • Energy recovery chiller • Reduction of pressure losses in duct system • Revisions to building air circulation • Elimination of return fans • Significant update to sequence of operations
  • 20. Project Examples SITE Building • Economics • Capital Cost: $670,000 • Hydro Incentive: $95,644 • Energy Savings: • $ 210,000 (44% reduction) • Simple Payback: 2.7 years
  • 21. Project Examples Morisset Building: • Older Building: + 1970 (TBC) • Retrofit: • Reconfigured Air Handlers • Addition of Massive Heat Wheels • Addition of Heat Recovery Chillers • Static pressure reset and elimination of reheat coils • Elimination of return fans • Significant update to sequence of operations
  • 22. Project Examples Morisset Library: • Capital Cost: $2,030,000 • Hydro Incentive: $209,000 • Energy Savings: • $ 413,000 / year (62% and improving) • Simple Payback: 4.4 years
  • 23. Project Examples Projects in Progress • Roger Guindon • Capital: $5,000,000 (includes new chiller) • Savings: Approx. $800,000 / per year Central Plant • Capital: $3,300,000 (Includes new Deaerator) • Savings: Approx. $750,000 / year
  • 24. Secrets to Success Strong Leadership • Owner as Champion • Owner as Energy Manager • Project Management
  • 25. Secrets to Success Procurement of Engineering Services • Consider a design competition • Focus on life cycle project costs – not engineering fees! • Invest in engineering and reward performance
  • 26. Secrets to Success Detailed Feasibility Study • Engage operators in the process • Understand the energy conservation measures and the impact on operations • Accurate baseline measurements are essential at this stage
  • 27. Secrets to Success Design Process • Give the engineers time to develop the design • Have frequent design review sessions with operators • Go to tender only when 100% satisfied!
  • 28. Secrets to Success Contractor Procurement • Establish a pre-qualified list of sheet-metal, plumbing, electrical and controls contractors. • Sheet-metal or plumbing contractor acts as General Contractor. • Ability of contractor to plan work in an operating building is key to success
  • 29. Secrets to Success Construction • Planning, planning and more planning • Communication with users • Engineer/PM Leadership • Culture of collaboration
  • 30. Secrets to Success Commissioning • Engineers must lead the commissioning process • Collaboration with controls is key to success • Operators must be involved with the commissioning to ensure continuity of system operations
  • 31. Secrets to Success Measurement and Verification • Calibration of equipment is essential • Daily, weekly and monthly monitoring • On-going commissioning • Dedicated energy management improves results
  • 32. Conclusion 1. Owner must lead the way 2. Compensate engineers for results 3. Engage building operators 4. Invest in project management 5. Contractors must be partners 6. Continuous Commissioning: Energy Manager!
  • 34. NEW RETROFIT WEB PAGE Available at hydroottawa.com/retrofit Available tools 25 November 2014 Page 34
  • 35. PRE-PROJECT CHECKLIST 25 November 2014 Page 35
  • 36. ONLINE VIDEO TUTORIALS 25 November 2014 Page 36
  • 37. TRACK COMPARISON TOOL Compares Engineered vs. Prescriptive Available for interior and exterior lighting to LED par38 Halogen par38 Engineered: $28 VS. Prescriptive: $20 = 25 November 2014 Page 37
  • 38. SHARE YOUR STORY Show us your projects on Twitter – Step by Step guide in folders We will retweet to 7700+ followers 25 November 2014 Page 38
  • 39. PROGRAM OFFICERS, EXTERIOR Kevin Quinlan, Non-Lighting kevinquinlan@hydroottawa.com | 613-898-4976 | 613-738-5499 x7643 Mark Schell, MUSH Sector markschell@hydroottawa.com | 613-809-0946 | 613-738-5499 x148 Shane LaBrash, Lighting shanelabrash@hydroottawa.com | 613-809-1576 | 613-738-5499 x144 Richard Thorne, Supervisor richardthorne@hydroottawa.com | 613-889-9832 | 613-738-5499 x213 25 November 2014 Page 39
  • 40. PROGRAM OFFICERS, INTERNAL Adrienne Lesage, Pre-Project Approvals and Initial Inquiries adriennelesage@hydroottawa.com | 613-738-5499 x7642 Paddye Magill, Post-Project Approvals paddyemagill@hydroottawa.com | 613-738-5499 x7671 Manon Galipeau, Head Office Applications and Internal Sales manongalipeau@hydroottawa.com | 613-738-5499 x172 Jordan Grendal, Administrative Assistant jordangrendal@hydroottawa.com 25 November 2014 Page 40
  • 41. ADDITIONAL SUPPORT Charles Zaloum, Engineer charleszaloum@hydroottawa.com | 613-809-7436 | 613-738-5499 x273 Imran Ebrahim, Engineer ImranEbrahim@hydroottawa.com | 613-400-4674 | 613-738-5499 x575 Mike Guertin, Project Validation Agent michaelguertin@hydroottawa.com | 613-738-5499 x7621 Anne Patenaude, Marketing Officer annepatenaude@hydroottawa.com | 613-738-5499 x7640 25 November 2014 Page 41