Community Power Projects

An introduction to the process of developing community power projects

UBCM 2006

Tuesday, October 24

Renaissance Power Corp is…

… a consulting & engineering company specializing in the development of community

power projects (“CPPs”)

A Community Power Project is defined by …

… the role of the community in the initiation, governance, and ultimate ownership.

Village of Anmore

The visionary of Anmore

Dr. Hal WeinbergMayor of Anmore

Community builder

“Its about world peace”

The Anmore Renewable Energy Foundation

Collaboration with BC Hydro Create awareness and educate Demonstration and research

Purpose of the Foundation

Micro-Hydro Solar Wind

Hydrogen

The Anmore Project

103 year old Buntzen tunnel

Could support a 3.8 MW plant

27,000 MWhs/yr ‘green’ energy

~ $2 million annual cash flow

Operational benefits to BC Hydro

Power Limitations in BC

The last mega-power project was completed in the early 1980’s.

0

500

1000

1500

2000

2500

3000

3500

1920 1930 1940 1950 1960 1970 1980 1990 2000 2010

Inst

alled C

apaci

ty(m

egaw

att

s)

BC Hydro hydroelectric

BC Hydro thermalIPPs

Years during which capacity was built

Village of Anmore

AnmoreFoundation

RenaissancePower Corp.Anmore

CommunityPower Partnership

Limited Partnership InvestorsLimited Partnership Investors & Debt

Structure of the Anmore CPP

Community Benefits

Many and tangible:

1. Economic spin-offs during construction

2. Option to buy at the time of commissioning

3. A new long term industrial taxpayer

4. Long term energy security from local generation

5. Takes full ownership at the end of financial term

6. Provincial and federal taxes and charges on top

Community Power Projects

A trust based approach to development:

Not ‘independent’ but very ‘interdependent’ Transparency of structure and accounting Clarity regarding risk and return Respect for distinct public and private roles Based on a ‘foundation’ of public trust

Community Power Projects

Why private risk capital for public infrastructure:

Early stage investments have material risk Not the ideal use of tax dollars Flow-through share eligible (56 cent dollars) Private capital raised with risk expectation Requires opportunity not guarantee of return

Concurrent Activities

Concept &Mandate

Feasibility&Planning

Permitting& Design

Financing&Tendering

Construction& Start-Up

Operating& Mainten-

ance

Political/Administrative

Technical

Financial

Cost and Value20 18

16 14

12 10 8 6

4 2

Concept & Mandate

Feasibility & Planning

Permitting & Design

Tendering & Financing

Construction & Start-Up

Operation & Maintenance

(C$ millions)

COST

VALUE

TIME SPAN - 2 YEARS+

Risk and Reward

Equity(~20% - 30%)

Mezzanine & Sub-Debt(~12% - 20%)

Corporate Debt(~8% - 12%)

Government Bonds(~5% - 7%)

Concept & Mandate

Feasibility & Planning

Permitting & Design

Tendering & Financing

Construction & Start-Up

Operation & Maintenance

START

FINISH

PROJECT REWARD

RISK

Community benefits revisited

Tangible:1. Economic activity during construction

2. Option to buy at commissioning

3. Long term stable industrial taxpayer

4. Full ownership at the end of financial term

Intangible:1. Community engagement & capacity

2. Increased energy & economic security

3. A local contribution to a global problem

Conclusion:

1) Assess the opportunities in your community

2) Establish governance structure (trust, foundation or infrastructure corporation).

3) Recruit expertise out of the community to combine the ‘elected with the selected’.

4) Engage a consultant/financing advisor

Some first steps:

Thank you!

For further information contact:

Dr. Hal Weinberg, Village of Anmore (www.anmore.com)

Renaissance Power Corp. (www.renaissancepower.ca)

The Community Energy Association (www.communityenergy.bc.ca)

On Thursday, please support the Anmore resolution regarding community

sponsored power projects.