Community Power Projects An introduction to the process

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 Weinberg Mayor of Anmore Ø Community builder Ø “Its about world peace”

The Anmore Renewable Energy Foundation Ø Collaboration with BC Hydro Ø Create awareness and educate Ø Demonstration and research

Purpose of the Foundation Micro-Hydro Solar Hydrogen Wind

The Anmore Project Ø 103 year old Buntzen tunnel Ø Could support a 3. 8 MW plant Ø 27, 000 MWhs/yr ‘green’ energy Ø ~ $2 million annual cash flow Ø Operational benefits to BC Hydro

Power Limitations in BC The last mega-power project was completed in the early 1980’s. Years during which capacity was built

Structure of the Anmore CPP Village of Anmore Foundation Renaissance Power Corp. Anmore Community Power Partnership Limited Partnership Investors & Debt

Community Benefits Many and tangible: 1. 2. 3. 4. Economic spin-offs during construction Option to buy at the time of commissioning A new long term industrial taxpayer 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: Ø Not ‘independent’ but very ‘interdependent’ Ø Ø 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: Ø Ø Ø 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 Construction &Tendering & Start-Up Political/Administrative Technical Financial Operating & Maintenance

Cost and Value

Risk and Reward

Community benefits revisited Tangible: 1. 2. 3. 4. Economic activity during construction Option to buy at commissioning Long term stable industrial taxpayer Full ownership at the end of financial term Intangible: 1. 2. 3. Community engagement & capacity Increased energy & economic security A local contribution to a global problem

Conclusion: Some first steps: 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

Thank you! On Thursday, please support the Anmore resolution regarding community sponsored power projects. 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)