Transcript Slide 1

Insights from a
solar co-operative
Judith Lipp
Executive Director, TREC
November 2012
A project of:
Contents
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Intro to community power
The SolarShare story (RE co-op model)
Considerations for RE co-op development
Other community power models
About TREC
WindShare turbine, Toronto
• A not-for-profit co-operative, established in 1998 to
build community owned renewable energy projects
• Built the first wind co-op in Canada – WindShare – in
2002 - a Joint Venture with Toronto Hydro
• Completed the first RE co-op in Ontario under FIT 1.0
- SolarShare (18 sites operational since 2011)
• Leader in sustainable energy education – reaching
20,000 children & families every year
• Leader in capacity building, development tools and
services for community power
• Direct project and co-op experience feeds into policy
discussions/decisions & capacity building
SolarShare installation, Mississagua
Community Power
1) Communities
finance projects
2) Local jobs created to
build and host projects
4) Electricity consumed in
community
3) Profit kept in
community
COMMUNITY POWER: Positive Outcomes
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Environmental impacts
Community Economic Development
Capacity-building
Energy literacy and behavioural change
Energy Security
Reduced social friction/social license
Ownership of Renewables in Germany, 2010
Individuals
42%
Farmers
9%
15%
Developers
13%
1%
2%
7%
11%
Others
Regional Su
Industries
Utilities
Investment Funds
www.unendlich-viel-energie.de
RE Co-op activity in Ontario
• Since GEA/FIT launch in 2009: 25 co-ops formed or emerging
• Only 2 have operational facilities (Agris Energy and SolarShare)
• Only 4 have receipted offering statements (Agris, OREC, Options,
SoarShare) – all solar
• Many awaiting FIT contract (need to resubmit FIT 2.0): ZooShare,
LakeWind, LIFE, Options, etc.
• Many expected to pursue commercial partnership option under new
rules (FIT 2.0)
• Federation of Community Power Co-operatives formed in 2012 to
address barriers, share experiences, advocate for policy change
RE Co-op Models
The Community Bond Model
Bond Offering:
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$1,000/bond
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5-6% annual return
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5-15 year term
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Co-op surplus used for
new
projects/education
SolarShare Projects
WaterView
SunFields
SunField Projects
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10kW x 17 sites across Ontario
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Annual revenues of approximately
$238,000
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All sites generating revenue as of
June 2011
WaterView Project
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438kW rooftop installation, over 2.5
acres, Mississauga
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Annual revenues of $294,000
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Generating revenue since Nov 2011
Co-op Achievements and Goals
To date:
Goals mid-2013:
• $4 million worth of
projects built
• 350 member-investors
• Raised $500 K in bond
investments
• $10 million worth of
projects built
• 750 member-investors
• $3 million in bond
investments
Scale is important
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Single-site, small project scale might not carry a co-op
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Need multiple (or large) installations to spread risk and reach
economies of scale
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Tendency to underestimate the cost of developing & maintaining a
project and co-op
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Budget needs to account for all costs at the project and co-op
level over life of the project (e.g. 20 years)
Project vs. Co-op Costs
Project expenses
(post construction/operation)
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Land/site lease payments
Maintenance contract
Insurance
LDC account fees
System monitoring
Cost of borrowing money
Interest expense (bond, LTD,
bridge interest)
• System replacement/repair costs
(e.g. inverter, spare panels)
• Ammortization
Co-op expenses
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Legal fees
Accounting & audit
Liability and D&O insurance
OS development & renewal
Sales & Marketing
Member communications & AGM
Investor management & security
Bank Fees, postage, etc.
Office Supplies
Travel Exp.
Staff time for many of the above
Protocols are important
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Establish member engagement processes and protocols for
maintaining your projects and co-op over the long ter
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Project monitoring
Member communications
investment security maintained
Financial reporting
Annual audit
Annual general meeting
Board recruitment, etc.
TREC is institutionalizing these learnings and making services
available to others to achieve economies of scale.
TREC incubated co-ops
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Renewable energy
education
Energy conservation
Awareness raising
Community outreach
Project incubator
Capacity-building and
training
Co-op Development
Project Development
Sales and Marketing
Administrative Services
Member Management
Serving new co-ops
•Mentorship
•Development
•Training and fostering
growth