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

More documents

Recommendations

Info

TRCA Pearson Eco-Business Zone District Energy Feasibility Study 10 April 2012 Demand Identification In order to identify the potential customer thermal energy demand, aggregate natural gas consumption was compared against aerial maps to identify potential areas of interest. These areas were then surveyed from the exterior to identify 36 facilities, shown in Figure ES-1, with strong potential as district energy customers. Of these facilities, 15 participated in a detailed review consisting of an interview with key staff, inspection of the mechanical equipment, and study of natural gas consumption data. The thermal loads for the remaining facilities were estimated with benchmark data from the consultants’ database of similar buildings. The thermal heating load for the 36 facilities is estimated at 44,000 kW. Figure ES-1. Proposed District Energy System Customers and Route The estimated cooling load for the facilities is considerably lower, as is typical in Ontario. District cooling requires higher capital costs and is not cost effective in the study area. As a result of this analysis, two clusters of buildings were identified to be most suitable for a district energy system, and are recommended for the initial phase of a potential system. The first cluster has an estimated thermal load of 4,825 kW and consists of buildings number 1 to 5 in the area bounded by Highway 427, Airport Road and Elmbank Road. The second cluster has an estimated thermal load of 8,800 kW and includes buildings number 6 to 11 on Dixon Road to the east of Highway 427. Thermal Energy Supply Given the constraints of the existing energy generation facilities in the area, there would be a need to create a dedicated central thermal plant. For this study, it was assumed that this facility would be located on a vacant parcel of land on Elmbank Road. The facility would consist of four ES-ii
TRCA Pearson Eco-Business Zone District Energy Feasibility Study 10 April 2012 boilers each having a capacity to supply 4MW of heat and a CHP plant with an output of 4MW of heat and 4MW of electrical power. Distribution System Supply and return pipes are buried at least one meter below grade. Figure 1 shows recommended piping routes for the buildings under consideration with 3.1 km of piping required to connect buildings 1 to11. Financial Model Capital Cost Estimates The total capital cost of a district energy system connecting buildings 1 to 11, including construction of a dedicated energy centre consisting of four boilers and one CHP plant, distribution pipe systems, energy transfer stations and building modifications required for connection is estimated at $28,200,000. Operating Cost Estimates Operating costs include forecast commodity fuel and delivery costs, labour, maintenance, insurance, land lease, and overhead costs. Customer Pricing and Revenue Estimates The maximum price that a potential customer of a district energy system would be likely to pay is the avoided cost of generating their own thermal energy onsite. This avoided cost includes the price paid to the utilities as well as avoided operational and capital costs from owning and running a boiler. The suggested pricing, used in the model, sets a fixed monthly capacity charge and passes through the cost of energy. Electricity Revenue Estimates Electricity supplied by the CHP to Ontario’s grid is assumed to receive revenue under a contract with the Ontario Power Authority based on the current CHP Standard Offer Program. Financial Model Results The financial model developed for the district energy system connecting buildings 1 to 11 provides an estimated unlevered internal rate of return (IRR) of 5 per cent. Under the base case financing assumptions (D/E ratio of 6 per cent, repayment term of 20 years and an interest rate of 6 per cent), the levered IRR is improved to 8 per cent, a rate that is at the low end of the range for DES projects that typically generate 8 to 12 per cent. Government funding assistance through programs such as the Green Infrastructure Fund and Green Municipal Fund may be available to support a DES. If 30 per cent of project costs were funded, a level received by other Canadian DES’s, the unlevered project IRR would increase to 9 per cent. Ownership and Operational Structure Because of the high capital costs and long investment horizon, utilities (Enbridge), municipalities (Peel, Mississauga or Toronto), or other public sector bodies with access to low-cost capital are potential developers and/or owners of a district energy system. The system could have a number of potential ownership models, including: ES-iii
Page 1 and 2: Pearson Eco-Business Zone District
Page 3: TRCA Pearson Eco-Business Zone Dist
Page 7 and 8: TRCA Pearson Eco-Business Zone Dist
Page 55 and 56:
TRCA Pearson Eco-Business Zone Dist
Page 57 and 58:
Page 59 and 60:
Page 61 and 62:
Page 63 and 64:
Page 65 and 66:
Page 67 and 68:
Page 69 and 70:
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 81 and 82:
Page 83 and 84:
Page 85 and 86:
Page 87 and 88:
Page 89 and 90:
Page 91 and 92:
Page 93 and 94:
Page 95 and 96:
Page 97 and 98:
Page 99 and 100:
Page 101 and 102:
Bldg. No.1: Hilton Garden Inn Basic
Page 103 and 104:
Bldg. No.2: Fairfield Inn & Suites
Page 105 and 106:
Hampton Inn & Suites: 3279 Caroga D
Page 107 and 108:
Airway Centre: 5955 Airport Road -
Page 109 and 110:
Hilton Toronto Airport: 5827 Airpor
Page 111 and 112:
Bldg. No.7: Westin Bristol Place Ba
Page 113 and 114:
Bldg. No. 8: Quality Suites Toronto
Page 115 and 116:
Bldg. No. 9: Travel Lodge Basic Bui
Page 117 and 118:
Bldg. No. 10: Courtyard by Marriott
Page 119 and 120:
Bldg. No. 11: Toronto Marriott Airp
Page 121 and 122:
Page 123 and 124:
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 132:
Page 136 and 137:
Page 138 and 139:
Pro Forma Financial Statements Proj
Page 140 and 141:
Page 142 and 143:
Page 144 and 145:
Page 146 and 147:
Page 148 and 149:
Page 150 and 151:
Project: Pearson Eco Business Zone
Page 152 and 153:
Cooling Heating Phase 2: ($) ($) Di
Page 154 and 155:
Pearson Eco Business Zone - ETS Cos
Page 156 and 157:
Page 158 and 159:
Page 160 and 161:
Page 162 and 163:
Page 164 and 165:
Page 166 and 167:
Page 168 and 169:
Page 170:
show all

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

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?