October 2015 Plug into the power of renewables The Role of Renewable Energy Co-ops in Ontario

A Renewable Energy Co-op incorporated in September 2010 under the Ontario Co-op Corporations Act. A way for any resident of the Eastern Ontario to jointly own and invest in community-owned renewable energy generation projects.

Current Membership: 450 Eastern Ontario residents Ontario’s first approved share offering for a renewable energy co-op Offering Statements: 1.$991,000 in $1.25 million in $1.34 million in Underway, seeking $1.7 million Projects: 12 complete, 1 under development (warehouse, barns, schools, housing)

Why Community Power Centralized electricity system challenges ▫ efficiency, vulnerable, psychological Distributed generation alternative Community ownership ▫ acceptance, local/rural benefit

Ontario Experience 1990’s Concern over health effects of coal Community power demonstration site 2000’s Blackout Coal Phase out Community power awareness program SOC, orange zones due to nuclear rebuild 2009 Public pressure results in Green Energy Act, FIT, and CP Fund Domestic content rule Grid upgrades 1970’s Grid capacity constraints Provincial election FIT review 2011 Targets for 2018 soon to be met 10,000 members in RE co-ops >$30 million, 30MW invested by co-ops 2015

Ontario Feed-in Tariff Program Introduced under Green Energy Act, 2009 to ensure energy conversation and renewable energy development Successful to date: On track for 10,700 MM of renewables by 2015 (ahead of 2018 goal) Over 50,000 homeowners have applied for solar 1/7 farmers have installed solar on their farms Contract new renewable energy generators for a 20 yrs; guaranteed price for electricity produced 90% of projects are solar

Produces power when we need it the most, hot summer afternoons Reinvigorate the manufacturing sector, lead in technology Clean energy Stable rates Reduced transmission losses

Impact Investing Now: $50 billion in assets Growth potential to $500 B

Target Dividend: 5% Support local economy Build local resilience Contribute to climate change mitigation Support community values Local ownership Example for future generations Wider community of interest

Eileen Tallman Housing Co-op Co-op Lafontaine Feb 2013: 250 kW, with Windmill DevelopmentJuly 2014: 74 kW, École Samuel Genest Feb 2015: 150, 100 kW, Écoles Franco-Cité and Franco-Ouest Ottawa’s 1,000 th Solar Rooftop, École Maurice Lapointe

Democratic governance Survival rate 2x that of regular businesses

Closes October 31 Target: $1.7 Million Preference Shares: $500 per unit Min/Max purchase: $2,500/$250,000 RRSP and TFSA eligible above $5,000 Intended return: 5% dividend annually; linear capital return starting in year 6 5-Year Member Investment Notes: $500 per unit Min/Max purchase: $5,000/$250,000 Interest rate: 3%; capital returned after year 5

Full capital value returned over a 20- year period at a rate of 1/15th per year, beginning in Year Six.

20-year power purchase contracts with Independent Electricity System Operator (arm’s length government entity) Guaranteed buyer and rate/kWh for 20 years Equipment has no moving parts and requires little maintenance No fuel cost escalation Annual sunshine typically varies by 3%

Wellington St. W., Ottawa