Planning for Prosperity

Positioning remote communities to benefit from clean energy

Most of the nearly 300 remote communities in Canada are either partially or fully reliant on fossil fuels to meet their electricity and heating demands.
Considering the challenging and risky logistics of delivering fuel to these communities and rising fossil fuels coststhe wholesale price of diesel increased by 132% between 2001 and 2012 (NRCan, 2011)energy security concerns remain a pressing imperative for remote communities and the government departments that service them. Electrical production in Canadas remote communities is conventionally managed by federal agencies, or by provincial/territorial power corporations. Communities have rarely had the opportunity to directly control generation and distribution infrastructure, and as a result, long-term energy planning and energy efficiency programs in remote Canadian communities has been lacking. However, increasingly this trend has begun to shift. As remote communities across the country have begun to understand, Renewable Energy Technologies (RETs) not only represent a path to attaining energy independence and environmental sustainability, but also the opportunity for economic development for current and future generations.

CTCG is a neutral, not-for-profit organization comprised of public and private sector partners who are collaborating to develop and deploy clean energy solutions within remote communities.

Rewards and Opportunities For remote communities, there are a number of benefits associated with RETs:
The levelized cost of energy is often lower than diesel, with less longterm variability (CTCG, 2012); Reduced energy-related payments leaving the community; The ability to establish long-term energy use and efficiency goals, and better predict future energy costs; Increased energy security through localized energy production; Reductions in greenhouse gases (GHG) and other pollutant emissions; Lower environmental risks associated with large-scale diesel storage and transport (including decreased risks of oil spills); and Potentially increased opportunities for employment and training for residents (NRCan, 2005, p. 6).

Overcoming Challenges Despite the clear benefits, a number of barriers continue to beset communities considering project development.
Barriers Description and Mitigation Remote communities struggle to attract investment. Mapping resources to determine renewable energy potential can help project proponents to identify rural communities that might serve as a project site, reducing developer exploration risk. Establishing economic development corporations in these communities can also spur development. Lower levels of community ownership mean that fewer economic benefits will remain in the community. Partial ownership requirements tied to policy measures can help improve local project ownership. Costs can be significantly reduced if local skills and labour can be engaged at all steps of the process from project development, to construction, to operations and maintenance. Training programs and incentives for projects that employ locals may also help. Remote and rural communities often face additional costs due to large distances from suppliers and service providers. Cultivating expertise within communities and working with partners committed to finding economically sustainable solutions is part of the answer. Often renewable energy systems have an inverse relationship between the size of the system and the cost per unit of energy produced. Targeting the high-emitting and costly energy sources typically found in the smallest remote communitiessuch as diesel generatorscan help to maximize environmental and community benefits even when smaller, potentially more costly renewable energy systems are utilized.

Limited financial capacity

Limited ownership

Limited human capacity

Logistics in remote communities

Smaller scale production

Adapted from (Canada's Rural Partnership, 2009)

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Community Energy Planning Cycle

Comprehensive and inclusive energy planning is the best method to address barriers to entry. Energy planning in remote communities requires that special consideration be given to regional infrastructure, historical management practices, cultural traditions, population size, community capacity, and the sensitivity of the local ecosystems to global warming.
1. Define Vision

5. Implement & Monitor Plan

6. Update & Revise

2. Determine Current Status

4. Evaluate Options & Design Projects

3.OutlineTargets & Evaluation Criteria

Creating a Community Energy Plan

The issues addressed in a Community Energy and Emissions Plan (CEP) are at the discretion of the community, but it is worth noting that most greenhouse gas (GHG) emissions in remote communities result from energy consumption and the burning of fossil fuels. Given this link, combining GHG emissions and energy into a single integrated plan is the most effective means to address both issues. Generally speaking, community energy planning should begin by establishing a team of people keen on moving energy issues forward. This energy committeereflecting the diverse interests and viewpoints of the communitywill be responsible for collecting relevant data, obtaining and delegating funding as appropriate, monitoring progress, and interacting with external agencies. While an in depth technical understanding of energy issues is not a prerequisite for membership, it is vital that a trusted partner is sought, often in the form of private consultants, public sector organisations, or non-profits, to ensure that technical evaluations are founded in sound decision-making. The planning that is required to develop a CEP is a cycle involving several stages: first the community vision must be identified; then the current status and future expectations of the community are established; and finally the programs and projects needed to reach desired targets are planned and implemented.

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Step-By-Step:
Creating beneficial green economies in remote Canadian communities.
The foundation of any successful long-term planning process is a vision that broadly reflects the goals of the entire community. The visioning process encourages a community to engage itself in thinking about its future form, function, resource base, finances and quality of life. The Council of the Haida Nation, on Haida Gwaii, has a vision of entirely meeting its energy needs through renewable sources and demand side management by 2020. 1. Define the Vision Having established the broad vision of the community, the first step towards reaching this vision is to develop a clear picture of the communitys current energy use and emissionsits baselineand what the future could look like if various alternatives to business as usual were pursued. Establishing an energy baseline offers a highlevel understanding of sectoral energy and emissions trends within the community. Assistance in planning this baseline stage can be received from non-profits like CTCG, provincial and federal government agencies, and utilities. The scope for the CEP should also be established at this point. This includes the time frame considered and the physical and functional boundaries of the plan. 2. Determine Current Status Targets and evaluation criteria are designed to turn the vision into reality based on what is known about the community. The challenge lies in selecting future targets that are both aspirational and also realistically achievable. This stage may include community workshops to outline the baseline, collaborative target setting, and the creation of a list of recommended performance assessment measures (PAMs). PAMs are quantitative targets used in combination with indicators for the purpose of evaluating the effectiveness of community planning actions (Natural Resources Canada, 2007). 3. Outline Targets and Evaluation Criteria

This stage draws upon research and feasibility studies (discussed below) to determine the viability of various technologies and projects. At this juncture its also critical to outline the activities required to build capacity in the community in order to undertake project implementation. To achieve a balanced and sustainable approach to energy planning, projects should be drawn from across the 4 Rs of Sustainable Community Energy Planning and Implementation (see next page, (Community Energy Association, 2008)). 4. Evaluate Options & Design Projects
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The 4 Rs of Energy Planning & Implementation

Renewable Energy for Electricity e.g. biomass/biogas combined heat and power, micro-hydro, wind, solar, tidal, and geothermal. Renewable Heat Sources to heat buildings and hot water e.g. solar thermal and geo-exchange. Re-use Waste Heat to heat buildings and hot water e.g. industrial or commercial waste heat, sewer and wastewater heat recovery, and heat pumps. Reduce Energy Demand through community design, green buildings, changing habits, and energy efficiency (e.g. LiveSmart and PowerSmart Programs).

Stage Five consists of projects such as renewable energy integration projects, and Demand-Side Management activities, like energy efficiency programs. Capacity building activities will also occur during the early stages of project development to ensure that local skills are cultivated. Financial support for community energy projects may come in the form of government or non-profit grants, private investment, or financial lenders. The available sources of funding will depend in large part on the nature of the project and its proponents (CTCG is able to provide a list of potential funding sources). 5. Implement & Monitor Plan A Community Energy Plan is a living document; it is important to establish review and revision periods whereby progress is evaluated and assessed as part of an ongoing planning cycle. This review process is critical to ensuring continued progress and collaboration, and will allow for honest review of what has been successful, and what has not.

6. Update & Revise

A Note on Community Support and Engagement: Community engagement is an ongoing requirement throughout the planning cycle. Ideally, the committees that have been formed are representative of the diverse interests of the community and its stakeholders. There is no hard and fast rule about how to engage with stakeholders; different forms of engagement will be suitable for each community or project. The nature of remote communities is such that it may even be feasible to contact all or nearly all of the community directly.
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Resource & Technology Feasibility

As renewable energy resources are highly site-specific, the first question of energy planning is not, What technology should be used? but rather, What resources are available? Government databases are often a critical source of reliable data. Natural Resources Canada (NRCan), National Research Council (NRC), Aboriginal Affairs and Northern Development Canada (AANDC), and provincial ministries can all be consulted. Organizations specializing in particular technology sectors (e.g. BC Bioenergy Network, Canadian Wind Energy Association, Ocean Renewable Energy Group) are also useful in determining potential power supply options. Energy demand in the community is the other key component to initial project planning. Data for electricity and natural gas demand can be acquired from the appropriate utilities. Availability of Various Renewable Resources
Expected Availability Real time - minutes Diesel Generator Geothermal hot rock Biomass Small Hydro Photovoltaic Solar Wind Tidal Wave Hydrogen Storage Battery Storage (VRB, NaS) Hours to days Months Years

It is important to consider the challenges of peak load and intermittency when evaluating the use of renewable energy to meet a communitys demand. Further, many RETs do not have the ability to ramp up and down to meet community loads. Daily and seasonal tendencies are equally important, for example solar power is only available during the day, and seasonally, wind and hydro tend to be more plentiful in the winter. Tendencies for several renewable supply and storage technologies are shown below.

Fully Available at all times Fully available at all times Fully available provided fuel is abundant and right technology is used Sometimes No No No Yes Yes Yes Yes Sometimes Sometimes Yes Yes Hours only Hours only Sometimes Sometimes Yes Yes Yes No No Sometimes Yes Yes Yes Yes No No

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Case Study Haida Gwaii

Description: Haida Gwaii, formerly known as the Queen Charlotte Islands, is the ancestral home of the Haida Nation. The archipelago, located off the northwest coast of British Columbia, is one of BC Hydros non-integrated areas (NIA), or off-grid areas.

In January of 2011, CTCG began its flagship project with the Council of the Haida Nation (CHN), whose vision is to completely meet their energy needs through renewable energy and demand side management. Electricity on Haida Gwaii is provided to approximately 3000 consumers via two separate generation-distribution systems (The Sheltair Group, 2008). The cost of electricity production on Haida Gwaii is approximately $0.315 per kWh (CTCG, June 2012), and currently these costs to the utility exceed the revenue generated from customers, so the system operates at a loss (The Sheltair Group, 2008). CHN required a neutral body to objectively assess the viability and benefit of various clean energy projects within the community. Conducted in tandem with the BC Hydro north grid electrification process, CTCG began the clean energy plan by conducting a pre-feasibility assessment of the north grid to determine what renewable electricity resources were available. CTCG then began work on the overall community energy plan, developing a baseline inventory for energy usage and emissions. CTCG worked with the BC Climate Action Secretariat to create a custom extrapolation of the 2007 Community Energy and Emissions Inventory for Haida Gwaii. The baseline was used to benchmark the communities against each other and the provincial average, as well as to create modeled scenarios of future energy use. This project confirmed the potential value of local clean energy project development, and emphasized the need to address renewable heating options and demand side management. During this time, CTCG conducted a biomass energy pre-feasibility study for the north grid. The report indicated a sustainable supply of waste biomass, and highlighted the potential of utilizing waste heat for added economic and environmental benefits to the community. Finally, with a desire to give due consideration to demonstration-level technologies, CTCG was engaged by the National Research Council to assist in the creation of a primer document to help CHN better understand the state of the Tidal Energy industry. The report highlighted the need for detailed data collection, including on-site observation, cataloguing regional resource potential, and rethinking the nature of community engagement in demonstration technologies (report available upon request). It is anticipated that the Haida Gwaii initiative will create a template to assist neighboring Central and North Coast communities in transitioning to a sustainable future based on clean energy technologies.
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Mission
Our mission is to create opportunities to develop innovative, clean technology projects that assist remote communities to transition towards sustainable green economies.

Vision
Our vision is to be a catalyst in propelling British Columbia and Canada to become a powerhouse for clean energy solutions through building unique capabilities around system integration in remote communities.

What We Do
CTCG works with communities to identify and develop clean energy strategies and models based on locally available resources, and provide them with the tools and assessments they need to implement beneficial energy solutions. By developing relationships with all levels of government and industry, CTCG is able to ensure that remote communities have the resources required to move projects through development, and that clean technology companies create solutions tailored to the identified needs of the community. CTCG also assists in coordinating and aligning funding from various government programs, and in attracting investment to support the development of projects.

CTCG Services Communities

Clean Energy Planning & Deployment Advisory Services
Project Development/ Management

Government
Research Program Delivery
Toolset Development

Resource Inventories

Technology Assessments

Economic Modelling

Demand Side Planning

Finance Strategies

Tools & Assessments

CTCG is able to create custom tools and assessments for communities. Past assistance has included:
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Energy Systems Modeling (HOMER software) Renewable Energy Financial Analysis (RETScreen Software) Natural Resource Assessments (e.g. biomass inventories) Pre-Feasibility and Feasibility Studies Business Plans Funding Identification and Application Guidance
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important as clean energy, jobs, and training, is + Just as to integrate this technology new our own sustainable the need with culture language, art, values and traditions
T'Sou-ke First Nation, 2010
For further information, please contact: Alia Lamaadar Project & Business Development Manager alia.lamaadar@ctcg.org 778.866.9433 CleanTech Community Gateway 4250 Wesbrook Mall Vancouver, BC, V6T 1W5 www.CTCG.org 9
References & Resources Canada's Rural Partnership. (2009). Retrieved March 29, 2012, from Renewable Energy Policies for Remote and Rural Communities Energy Policy Assessment - Final Report: http://www.rural.gc.ca/RURAL/displayafficher.do?id=1291661164764&lang=eng Community Energy Association. (2008). Community Energy & Emissions Planning: A Guide For B.C. Local Governments. Vancouver, B.C. CTCG. (2012). Renewable Energy Systems - Business Case Analysis for Remote Communities Project. Clean Technology Community Gateway. Natural Resources Canada. (2007). Community Energy Planning. CANMET Energy Technology Centre. NRCan. (2005). COMMUNITY ENERGY PLANNING A Resource Guide for Remote Communities in Canada. NRCan. (2011). Energy Sources - Average Wholesale (Rack) Prices for Diesel. Retrieved 2012 from Natural Resources Canada: http://www2.nrcan.gc.ca/eneene/sources/pripri/wholesale_bycity_e.cfm?ProductID=13 The Sheltair Group. (2008). Haida Gwaii Community Electricity Plan. T'Sou-ke First Nation. (2010). Renewable Energy Toolkit: T'Sou-ke Solar Project.

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