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Project Neutral Summit

Jennifer Taylor y June 9, 2012

CEPP Overview
A grant program created under the Green Energy Act (2009) Provides early stage funding to cover soft costs of project development Current maximum total CEPP grant is $200,000 per project Co-managed by the Community Power Fund and Deloitte for g y y the Ontario Power Authority (OPA)

Program Objectives
Encourage a high level of local community engagement, participation and investment in development of renewable energy generation facilities Provide funding for a diversity of technologies, organizational and community types, and geographic regions in Ontario Level playing field for groups that may be excluded from renewable energy development Encourage local partnerships and help community partners maximize their equity share

CEPP Program Status

Currently on hold, stopped accepting applications in March due to the ongoing review of the Feed-In Tariff (FIT) program N grants approved since J No t d i January 2012 Continue to manage existing grants Undergoing a program review Likely to be significant changes to realign the CEPP with FIT 2.0 Target re-launch July 2012

CEPP 1.0 Eligibility

Applicants had to satisfy all of the following criteria: Size Between 10 kW and 10 MW (no upper size limit for co( pp ops) Technology Wind, solar PV, biomass, biogas, landfill gas or waterpower Location Ontario Business case Economically viable and subject of future FIT y j contract Developer A community

Current Definition of Community

Applicant had to be 100% community as defined in FIT 1.0 Rules
(a) One or more individuals (b) Registered charity (b) Not-for-profit organization ( ) (d) Co-op p (e) Private corporation (f) Limited partnership all shareholders / partners must be (a) (d) above; none of them can have commercial electricity generation as their primary business or employment cannot have commercial electricity generation as their primary business or employment

Joint ventures with non-community partners are permitted

Funded Activities Grant 1

Design & Development Phase
Site investigation and control Resource assessment Site planning Environmental and regulatory approvals analysis Business plan development Community consultation Engineering studies Project manager or Project coordinator Legal costs

Funded Activities Grant 2

Regulatory Approvals Phase
Renewable Energy Approval (REA) Final Business Plan Connection Impact Assessment Supplier and O&M agreements, construction contracts ESA Approval Offering Document / Membership agreement Sales and Marketing Plan (to find Members / Investors) I t ) Project Management or coordination

Grants Awarded
As of January 2012: 155 grants awarded Representing over 93 MW of new, community-owned renewable energy projects Majority are solar rooftop installations

FIT Program Overview

FIT program offers a guaranteed pricing structure for RE production stable prices under long-term contracts Open to solar wind hydro biogas biomass landfill gas solar, wind, hydro, biogas, biomass, developers Prices vary by technology Very popular - high volume of FIT applications >10,000 applications, ~2,000 signed contracts

FIT 2.0
Currently draft rules Price reductions for solar and wind Procurement limits - application windows for specific FIT project types Application p pp prioritization and ranking through point system g g p y Increased Land Class Restrictions on ground mount solar

Draft Priority Point System

PROJECTTYPE CommunityPart.Project(3) AboriginalPart.Project(3) EducationorHealthPart.(2) Education or Health Part (2) NONPROJECTTYPE MunicipalCouncilSupportRes. (2) AboriginalSupportRes.(2) ProjectReadiness(2) Project Readiness (2) EducationorHealthHost(2) SystemBenefit(1)

Successful Applicants S f l A li
Boys and Girls Club of London Solar Rooftop

Applicant: Boys and Girls Club of London Foundation Location: London, ON Organization: Charity g y Grant Awarded: $74,950 Project Size: 138 kW Status: Commissioned May 2011 May,

Successful Applicants S f l A li

Successful Applicants
Buckhorn Community Centre Solar Rooftop

Applicant: Buckhorn Community Centre Location: Buckhorn, ON Organization: Not-for-profit G Grants Awarded: $22 000 t A d d $22,000 Project Size: 74 kW Status: Commissioned Feb, 2012

Successful Applicants
SolarShare WaterView Project

Applicant: SolarShare Co-operative Location: Daimler Buses NA NA, Mississauga Organization: Co-op G Grants Awarded: $165 000 t A d d $165,000 Project Size: 438 kW (2.5 acres!!) Status: Commissioned July, 2011

ForProfitCoop InvestmentUnits I t t U it Returns Distributionof Profits Shares Sh Dividends ToShareholders

NonProfitCoop Bonds B d InterestPayments Tofulfill organizations mission FSCO FSCO

OtherNon Profit/Charities Bonds B d InterestPayments Tofulfill organizations mission OSC Noneifbenevolent N if b l t purposeexemption met,orOSC Profitsbenefit Profits benefit society OneMember,One Vote Boys&GirlsClub



CommunityOffering FSCO C it Off i Approval Benefits Governance Examples Maximizedreturns Maximized returns OneMember,One Vote OttawaRECoop

Profitsbenefit Profits benefit society OneMember,One Vote SolarShare

CEPP Boys and Girls Club of London Buckhorn Community Centre SolarShare The Ontario Co operative Association www ontario coop Co-operative Ontario Power Authority