Community Energy Planning: The Value Proposition

Community Energy Plans (CEPs) provide the pathway for communities to become aware of and take part in solid economic returns on investments, environmental gains, health benefits, and improved quality of life for local residents.

Canadian cities, towns and villages have influence over approximately 60 percent of energy consumption and over half of all GHG emissions in Canada. Consequently, communities have the potential to make significant contributions to addressing Canada’s current and future energy and climate challenges.

A Community Energy Plan (CEP) is a tool that drives community priorities around energy with a view to increasing efficiency, reducing emissions and driving economic development.

The report draws primarily on the findings of six comprehensive economic analyses of CEP actions and programs, and case studies to illustrate the value proposition of CEP implementation to communities across Canada.

Clean Energy for a Green Economy

Clean Energy for a Green Economy is an introduction guide to the wide range of clean energy strategies and green economy opportunities for rural communities in British Columbia. Rural communities can benefit by leading the development of clean energy and energy efficiency, and the transition to a green economy.

Primary benefits include:

  • improved air quality
  • local economic development through attracting investment, clean energy job
    creation, infrastructure development and keeping energy dollars circulating locally
  • increased local energy reliability, resilience and security.

These projects can result in significant greenhouse gas (GHG) reductions, which support local, provincial and global climate objectives. The report is written written primarily for local governments and band councils, elected officials and staff, to support an active local government and band role in the development of clean energy and a green economy.

Banking on Green A Look at How Green Infrastructure Can Save Municipalities Money and Provide Economic Benefits Community-wide.

The Banking on Green report focuses on the economic impacts caused by polluted urban runoff, also known as “stormwater,” and the co-benefits of energy reduction, flood mitigation, and improved public health outcomes. The report provides case studies and examples which highlight instances of how green infrastructure can provide cost-effective adaptation solutions. Green Infrastructure (GI) can help increase energy efficiency with green roofs and reduce heating and cooling costs. Additionally, GI practices that capture, infiltrate, and reuse rainwater can reduce the energy needed to pump and treat drinking water and wastewater.

Summary Report on Local Government Climate Actions 2018

This report illustrates the continued progress by local governments to reduce carbon emissions through highlighting examples of the achievements and experiences of small, medium, and large communities in 2018. It includes:

  • Update on local government progress towards corporate carbon neutrality
  • Highlights of climate mitigation and adaptation actions taken by small, medium, and large communities across BC
  • Hyperlinked list of funding sources and programs used by local governments in support of climate action

Becoming Carbon Neutral Guidebook

The Becoming Carbon Neutral Guidebook builds on the Carbon Neutral Workbook and provides the next level of guidance for local governments on how to become carbon neutral, including step-by-step guidance on how to balance corporate emissions to zero by investing on GHG reduction projects and/or through purchased offsets.

See also:

Screen capture from CLIC tool

Community Lifecycle Infrastructure Costing (CLIC) Tool

Infrastructure and services have financial, social and environmental implications. There is plenty of evidence showing that compact, complete community development is more financially and environmentally sustainable over the long term. The Ministry of Municipal Affairs created the CLIC tool to help local governments make informed decisions related to the long-term sustainability of infrastructure development. The tool enables local governments to compare the infrastructure costs of different development scenarios over a 100-year period informing sustainable development and asset management decisions. The tool is effective in facilitating integrated decision making by bringing together engineering, finance and planning perspectives.
Civic building or office

Civic Building Retrofit

Building efficiency retrofit programs have been successfully undertaken by many local governments. Unlike most capital projects, energy efficiency upgrades for buildings provide an economic return through energy savings. They can therefore be viewed as investments opportunities, rather than simply expenditures.

A civic building energy retrofit can:

  • Reduce energy consumption and associated utility costs of the existing building portfolio
  • Be cost-neutral
  • Reduce emissions resulting from existing buildings, improving the carbon neutral status of local government operations
  • Improve working conditions and productivity for employees

Process to guide retrofits

Typical steps in civic building energy retrofits include:

  1. Establish policy and commitment, such as a Civic Green Building Policy
  2. Conduct an energy audit and opportunity assessment – usually done by a specialized energy consultant or engineering firm
  3. Prioritize actions and study feasibility of opportunities further where necessary
  4. Make decisions on investments and financing
  5. Design
  6. Tender
  7. Construction and commissioning
  8. Monitor results and report

The above steps are not necessarily done in sequence. Though there are advantages to comprehensive retrofits, individual buildings can also be selectively retrofitted – this can be a “quick start”, especially for small communities. For example, an older municipal hall can be upgraded with ENERGY STAR windows, better insulation and efficient heating and ventilation systems, improving efficiency and the working environment.

Retrofits will generally involve measures like efficient lighting, control systems, high efficiency mechanical (HVAC) systems, high performance windows, and water-efficient fixtures and appliances. These measures should be complemented with low-cost measures like improving building operating procedures and educating building users.

The right set of measures will be different for every building, as they will vary by type, age and condition of building, climate, and other factors. These are determined during the process steps 2-5 outlined above and driven by investment criteria.

Investment Criteria

Energy efficiency projects can be viewed as investments, as they provide a monetary return through energy savings. Financial analyses should therefore be appropriate for this type of investment.

Energy projects are often assessed solely in terms of simple payback, with short paybacks (e.g., 7 years) required. While this method is straightforward to calculate, it does not reflect the true long-term value of the project. Utilizing a more sophisticated method such as Net Present Value (NPV) or Internal Rate of Return, over a full life cycle such as 15 or 20 years, more accurately reflects the benefit of the investment. A positive NPV using life-cycle costing may therefore be considered as a primary investment criterion.

Implementation and Financing

A retrofit project may be managed and implemented internally, or via an Energy Services Company (ESCO) – this is called energy performance contracting. Energy performance contracts are turnkey projects, where the ESCO guarantees the upfront cost as well as future energy savings, minimizing risk to the local government. Costs of the initial energy studies, as well as a markup on services such as design and project management, are rolled into the overall project cost.

In some cases, an ESCO can also provide financing. However, local governments can usually arrange financing through the Municipal Financing Authority at much more favourable rates. In any case, the contracts are created such that the energy savings will cover all financing costs, so that there is no net cost to the local government.

Energy Efficiency and Buildings – A Resource for BC’s Local Governments, produced by Fraser Basin Council in association with Community Energy Association, provides further guidance on civic building retrofits as well as other building efficiency measures.

Examples

Examples of ways local governments have retrofitted civic buildings include:

  • Incorporating biomass energy boilers as primary heating sources
  • Re-insulating roofs
  • Installing energy efficient windows and doors
  • Renewing weather stripping
  • Installing solar arrays to heat pools
  • Replacement of dated HVAC systems