ERO 2021-2024 – Conservation…

ERO 2021-2024 – Conservation and Demand Management Feedback

Thank you for the opportunity to provide feedback on the future Conservation and Demand Management Framework. We understand the importance of regularly reviewing government programs, such as this, to ensure that it is achieving optimum results. Recognizing that this may mean that some programs will come to end as market transformation is achieved. Having said that, there remains a for several programs currently being provided that allow for customized incentives and energy managers that result is significant energy and financial savings. As municipalities review all options available in response to the financial impact of COVID 19, energy conservation is one area where there is great potential when supported through Provincial incentive programs. In turn, these programs boost the economy through job creation, increased consumer spending, and build investor confidence.

The below highlights how funding from the Independent Electricity Systems Operator(IESO) has given the Region of Peel the opportunity to improve energy performance while fostering the mind to think modernistically about the future.

Benefits from the Energy Management Program
The IESO Energy Management Program has brought great savings for the Region of Peel and the provincial electricity grid. The Region of Peel owns more than 150 facilities that include administrative buildings, affordable housing, paramedics, long term care and water and wastewater treatment facilities. In 2019, the Region of Peel’s energy consumption was 427,000,000 kWh at a cost of just over $50 million dollars.

The Region of Peel has delivered 21,950 MWh of energy savings since inception of the Embedded Energy Manager’s Program which is 323% of the program target. Continuing this path of success, the larger projects being considered by the Region in the coming years are highlighted below:

o Organic Rankine Cycle at G.E. Booth wastewater treatment plant (Alectra)
o Combined heat and power plant extension (2nd co-gen unit) at Clarkson wastewater treatment plant (Alectra)
o Combined heat and power at Lakeview water treatment plant (Alectra)
o High efficiency new construction of a Long-Term Care Facility (Alectra)
o Numerous new constructions of Affordable housing, built to net zero energy (ready) and / or net zero carbon
o Numerous deep energy retrofits of existing buildings to net zero energy (ready) and / or net zero carbon
o Various renewable energy projects for solar thermal, PV as well as geothermal

The Energy Managers Program plays a significant role in the energy saved through non-incented retrofit projects that have improved the grid capacity.

Custom Process and Systems Upgrade Program Stream
The Region of Peel, like other Regional municipalities have many energy conservation opportunities that can be implemented at its industrial sites, specifically water and wastewater facilities.
For facilities such as these, unique design options are required to ensure that specific requirements (including energy conservation) are met due to complexity of processes and equipment. Programs to incentivize and further improve energy efficiency of custom solutions are helpful for initiatives like this. One program that supported the work that was being conducted at the Regional wastewater treatment facility similar was the Save On Energy Process and Systems Upgrade Program (PSUP). With the funding support received through this program, the Region of Peel was successful in completing its first-Co-Generation project at the Clarkson Wastewater Treatment Plant (11,500MWh/year and 1.4MW reduction). This Co-Generation installation received over $2 million dollars of funding which has covered around 15% of project’s capital cost. With the success of this project, there is consideration to expand the co-generation facility soon while looking for similar funding sources like the Save on Energy PSUP.

The Region of Peel has several projects at water and wastewater facilities where energy conservation component can be improved if additional customized incentives are available. Projects include the replacement of the aeration blowers, air diffusers upgrades, instrumentation and controls upgrade at wastewater treatment plants are great examples where efficiency of processes can be improved with additional funding.
Another consideration is the life-cycle of these large energy intensive projects. The course of the project could take between 3-5 years from initiation to completion. Having said that, certainty around funding of energy efficient components is critical to integrate that efficiency with the project from the early stages. It would be beneficial for both participants and incentive program managers to enable a process when a large and long lead project (up to 5 year) can rely on additional funding through a PSUP-like program to realize extra electricity and demand savings.

District Energy/ Battery Storage
With rising energy prices, the Region is paying close attention to the role of energy in the design, development and operation of buildings and various other municipal operations and processes. Support for district energy systems can help Region address concerns about the reliability of municipal infrastructure and the effects of greenhouse gases, coupled with opportunities presented by the emergence of alternative fuels and improvements in technology.
The Region of Peel is also exploring Battery Energy Storage solutions that could support current or future load reduction or demand response programs. Possibly leading to the option to participate in wholesale energy sales, ancillary services and qualify for resource adequacy or generation capacity credits.

The incentive offerings through the IESO play an important role in supporting Peel’s project work that keep the conversation about climate change and energy management at the forefront while providing the Region of Peel to continue to responsibly manage taxpayer dollars during this next phase of economic recovery.