1. Squamish Neighbourhood Energy Utility: Final Feasibility Presentation
Prepared for:
District of Squamish and Project Sponsors
Prepared by:
Compass Resource Management Ltd.
June 15, 2010

2. Study Overview Demand forecast (five target areas)
Analysis of business as usual (BAU)
Screening of many supply options
Detailed analysis of short-listed scenarios
Area A + expansion scenarios (Waterfront and Oceanfront)
Biomass, ocean heat, and natural gas co-generation
Staging and sensitivity analysis

3. Demand Forecast – Focus Areas and Phasing

4. Demand Forecast – Phasing

5. Supply Screening – Shortlist
Biomass
Abundant local resource
One of lowest cost options in screening and greatest GHG emission reductions
Ocean Heat
Potentially slightly higher cost than GX but more available resource
Best heat pump option for this location
Some further optimization may be possible with cooling service to commercial loads
Natural gas cogeneration
BC Hydro is interested in systems which also produce electricity
Best commercial electricity production option at this scale.
Natural gas cogeneration is a stepping stone to biogas cogeneration
GHG emissions depend on whether we use provincial perspective or regional trade perspective.

6. Summary Results – Base Case
No Grants, Private Financing, Property Taxes Included

7. Total Capital Costs by Demand and Supply Scenario
($,000)

8. Sample Phasing of Capital (All Three Service Areas)

9. Sample Cashflows - Municipal Financing

10. Summary Results - GHG Reductions
 Demand Scenario
Biomass
Ocean Heat
Cogen (BC Perspective)
Cogen (Regional Perspective)
tonnes / year change at build out
Area A Only
(1,300)
(1,100)
1,100
(900)
Area A + Waterfront
(3,000)
(2,200)
3,700
(1,800)
Area A + Oceanfront
(5,000)
(4,100)
(3,500)
Area A + Waterfront + Oceanfront
(6,600)
(5,200)
6,100
(4,300)
% change at build out
Area A Only 
(74%)
(62%)
62%
(51%)
Area A + Waterfront 
(79%)
(58%)
97%
(47%)
Area A + Oceanfront 
(81%)
(67%)
60%
(57%)
(80%)
(63%)
74%
(52%)

11. Summary Results – Gas and Electricity System Impacts
 Demand Scenario 
Biomass Scenario
Ocean Heat Scenario
NG Cogen Scenario
Area A + Waterfront + Oceanfront
Incremental gas increase (reduction)
(35,300)
(28,500)
38,400
Incremental electricity increase (reduction)
(9,200)
(1,000)
Additional electricity production -
26,900

12. Summary Results - Grant Requirements
Grant required to achieve competitive rates and target return on investment. Municipal financing scenario assumes 100% debt financing and no property taxes.
Biomass
Ocean Heat
Cogeneration
Private Financing Scenario
8,600
13,800
18,500
% of total capital
30%
41%
50%
Municipal Financing Scenario
1,900
8,300
13,400 7%
24%
36%

13. Summary Results – Conclusions
All options require some level of grants to achieve competitiveness and break-even requirements.
Biomass is least cost option in all demand scenarios and has the highest total GHG emission reductions and greatest reliance on local resources.
All options exhibit economies of scale. Competitiveness increases as total system size increases. Securing a large service area is critical to success.
Under a municipal financing model and excluding property taxes, the larger biomass system starts to approach BAU costs, even before taking into account grants.

14. Possible Optimizations (Design Phase)
Solar DHW
Alternate siting of energy centre
Multiple energy centres
Distribution layout
Actual sizing and staging of capital items
Specific technology / vendor selection

15. Key Implementation Risks for District Energy
Securing loads
Marketing
Relationship building
Policy / bylaw support
Minimizing installed capital costs
Technology selection
Coordination with other infrastructure
Competitive tendering
Performance contracting
Phasing of equipment relative to loads
Just in time capital where possible
Build in flexibility
Optimize staging and siting
Ensuring optimal building performance
Developer design document
Design and commissioning support
Retrofit support

16. District Vision / Policy Support District or Community Ownership
Paths Forward
District Vision / Policy Support
District or Community Ownership
District or Community Responsible for Design, Build, Own, Finance and Operate (some outsourcing).
Decisions on ownership structure and governance required
Private Ownership
District find third party owner and negotiate infrastructure agreement.
Third party DBFOO. P3
District find third party to lead or share Design, Build, Finance, Operate and/or Own (split assets)

17. District Policy Role Establishing target core service area boundaries
Cultivating community support
Developing measures to promote/require interconnection
Establishing commitment to interconnect municipal buildings
Creating mechanisms to support efficient planning/installation of linear infrastructure
Establishing policies and programs to encourage/facilitate access to energy resources
Facilitating the selection of site(s) for energy center(s)
Establishing policies for property taxes and franchise fees