Conservation & Demand Management (CDM) Program Update Mike Mulqueen Lead - CDM Business Development Housing Services Energy Forum October 27, 2015

Toronto Hydro

Agenda •  CDM 2016 – Update

•  Current Programs

•  New Pilot Programs & Innovation

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Toronto Hydro

CDM - UPDATE

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Toronto Hydro

Conservation First Directive … What’s been happening? •  Ministry of Energy Directive received March 31, 2014 •  Conservation will not be going away any time soon

– Most cost-effective alternative to new generation – Renewal & Change

•  Local Distribution Companies (LDCs) now have energy-only targets (i.e. kWh)

•  LDCs formally launching in 2015 (July 1st in Toronto) •  LDCs are engaged in program development and renewal

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Toronto Hydro

How should the marketplace react?...

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….and carry on

Toronto Hydro

CDM Beyond 2015

•  Provincial Long-Term Energy Plan commits CDM to 6 more years of stable funding

•  Seamless transition for customers: work with your LDC •  2011-14 Incentive levels to remain unchanged in 2015 •  Incentive rates may change starting in 2016

2014 2015

2011-14 Programs

Project Completion

2015-20 Programs APPLICATIONS

APPLICATIONS

Start Date

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Amending Agreement

Toronto Hydro

CAUTION for Social Housing •  Projects submitted on or before July 31, 2014 were

approved under the previous social housing adder rules.

•  These projects must be completed by December 31, 2015 or the incentive is at risk

•  All projects completed after December 31, 2015 will be re-calculated and paid at the current social housing adder which is 2 times the standard incentive (up to 50% of project costs).

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Toronto Hydro

PROGRAM DEVELOPMENT

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Toronto Hydro

CDM Program Evolution

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Ist

Generation

(2015)

Interim Transition Programs

Redesigned Programs

Additional New Province-Wide

& Regional Programs

2nd Generation

(2016)

Starting any time

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2nd Generation and Beyond CDM Business Program Development

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Enhancement

•  Retrofit (2016)

•  Audit (2016) •  Home Assistance (2016) •  Energy Manager (Jan. 2016) •  HPNC (2016) •  P&S Upgrade (2016) •  P&S Upgrade/3rd Party (2015Q4) •  Existing Building Commissioning •  saveONenergy/LDC websites

New

•  Upstream/Midstream (2017) •  Operational Savings (2017) •  Direct Install (Regional)

Current incentive rates to remain at least until February 2016

Toronto Hydro

CURRENT PROGRAMS

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How to Get Started www.saveonenergy.ca/Find-Programs-in-My-Area.aspx

Toronto Hydro

Audit Funding Program

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•  Supports different types of “one-time” audits

•  Funding to cover up to 50% of audit cost

•  $0.10/sq ft up to $25,000

•  Covers 50% of most travel expenses

•  Requires approved 3rd party auditor

•  Building Systems Audit can be focused on specific systems, with up to $5000 available:

•  HVAC fans & pumps

•  Booster pumps

Toronto Hydro

Retrofit Program

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•  Funding to install high-efficiency equipment & control systems

•  Cover up to 50% of project costs

•  $0.10/kWh (non-lighting)

•  $0.05/kWh (lighting)

•  Monitoring & Targeting is eligible

•  Sub-metering is eligible and provides up-front incentives

•  Rooftop Unit Air Conditioning program allows for emergency replacement; enrolment up to 45 days after installation

•  Use in combination with Building Systems Audit to accelerate pump, fan and compressor projects

Toronto Hydro

HVAC

Lighting

Controls

Other: •  Pumps •  Monitoring & Targeting •  Elevators •  Appliances •  Building Envelope •  Submeters •  Pool

Eligible Retrofit Measures

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Home Assistance Program •  FREE energy efficiency upgrades for all income-

qualified residential customers (aligned with Ontario Electricity Support Program)

•  Non-Profit buildings 3 storeys or less are eligible

•  Home Energy Assessment to determine upgrades

•  Professional installation of energy-efficient equipment such as:

•  Lighting, power bars, aerators

•  Appliances (fridges, freezers, window ACs)

•  Draftproofing and attic insulation (electrically-heated homes only)

•  Where practical, program delivery co-ordinated with natural gas programs

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Toronto Hydro

Case Studies: Lighting Upgrades

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Masters Condominium Four buildings, 950,000 sq feet. 12 to T8 upgrade in common areas -  Project Cost: $83,320 -  Incentive: $20,893 -  Electricity Cost Savings: $41,785 -  Simple Payback time: Under 2 years

Toronto Community Housing 31 mid to high-rise apartment buildings LED lighting upgrades in common areas and parking garages

•  Total Project Costs: $1,310,688 •  Total Incentives: $520,177 (includes $338,560 social housing adder) •  Electricity Cost Savings: $435,880 •  Simple Payback time: 1.8 years (with incentives) •  Simple Payback time: 3 years (without incentives)

Toronto Hydro

Case Studies: Booster Pumps

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GWL Realty Advisors 24-storey condominium Variable speed drives installed on pumps

•  Project Cost: $19,130 •  Incentive: $6,508 •  Electricity Cost Savings: $7,810 •  Simple Payback time: 19 months

CAPREIT Eight high-rise apartment buildings Replacement of cold water booster pumps Most pumps reduced in size (ie. 10HP to 3HP) Variable speed drives installed

•  Project Cost: $209,588 •  Incentive: $41,829 •  Electricity Cost Savings: $43,586 •  Simple Payback time: 3.8 years

Toronto Hydro

NEW PILOT PROGRAMS & INNOVATION

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•  Demand Control Ventilation uses CO2 sensors to monitor fresh air requirements for the space and adjusts the dampers to control the intake of outside air

•  Typically reducing energy by 20 to 40% •  VFDs help save energy by ensuring the fans run at speeds appropriate to

requirements •  When the system isn’t conditioning indoor air, the VFD reduces fan speed to

use 60 to 80% less energy

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•  Optimizing hydronic systems by retrofitting pumps with Variable Frequency Drives (VFDs) could reduce electricity use by up to 30%

•  VFDs together with balancing by a qualified professional can impact electricity consumption

•  Paybacks on installations range from 2 to 4 years but can be as quick as 4 months, depending on pump size

Toronto Hydro

Summary •  CDM incentive programs are continuing •  Include conservation in your capital plans •  Speak to your LDC – We can help you with any project,

large or small. •  Stay tuned for new program announcements

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