Project Green District Energy Feasibility Study - Partners in Project ...

TRCA Pearson Eco-Business Zone District Energy Feasibility Study 10 April 2012
Appendices
Vancity is the largest credit union in Canada and currently the sole owner of the real estate
development company, Dockside Green Limited Partnership.
Corix Utilities have ownership and operating interests in a number of power and thermal
distribution systems, including military bases in Alaska and 40% of RPE.
Terasen Energy Services (TES) is a division of Terasen Gas, formerly BC Gas, now owned by
Fortis Inc (which also owns Fortis Ontario, the current owner of Cornwall Electric and Cornwall
District Heating). On their web-site, TES list four other DE projects they are involved with. They
are all in BC, appear to be very small-scale and at a preliminary stage of development.
Both the DES and the real estate development company originally included another company,
Windmill Developments, which has moved on to pursue other interests. It is worthy to note that
change of ownership has occurred in almost all DES in Canada that have included a private
component (e.g. the DES in Charlottetown, Cornwall, London, Ajax and the Energy Centre in
Windsor). When considering private involvement in DE, possible change in ownership should
be anticipated.
DGE is an interesting example as it is the only totally private, recent DES start-up above 1 MWt
in Canada. An analogous DE development structure for Project Green might involve a
partnership of land developers or building owners with energy companies, possibly Enbridge or
Corix Utilities. However, there are enough differences in circumstances to view this option as
unlikely for Project Green.
First as noted above, DE is regulated in BC and this appears to suit the energy companies
involved in DGE and would be expected to suit Enbridge or Corix Utilities, but there is no
regulatory regime for DE in Ontario. If regulation came in the future, the chances of a DGE type
of ownership model in Project Green might improve. In that event, if the DES had started under
a municipal model it could transition to the regulated private model.
The biomass fired district heating system is an important plank in the marketing mix that
stresses the sustainable character of Dockside Green. The developers were required to commit
to this approach under the Master Development Agreement with the City of Victoria. The City
purchased the Dockside Lands, a brown-field site from the Province in 1989. Then the City
went on to assess development opportunities and select the land developer through a RFP with
a view to creating a green community as was suited to the high-end ocean view location. This
scenario cannot unfold in the Pearson area because the municipalities do not own the land.
Whereas it is not obvious that a similar ownership model to Dockside Green would be possible
or appropriate for Project Green, the land and buildings owners should be consulted and
canvassed for their interest in participation in DE. As illustrated by the initiator role played by
Windmill Developments in Dockside Green, private companies may start things then move on
but this may still be useful in getting the DES up and running.
Land developers may be interested for a time period equivalent to the real estate development
phase. The capital and risks involved in the DES development may be seen by developers as a
relatively modest increment to the overall real estate development. Their opinion on this can
only be discovered through consultation and sharing of feasibility studies completed to date.
proposed capital structure and return on capacity.
http://docksidegreenenergy.com/regulatory_applications.html.
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