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

TRCA Pearson Eco-Business Zone District Energy Feasibility Study 10 April 2012
Based on the projected customers’ avoidable costs informed by discussions with the
prospective customers, a final pricing structure will be developed and its acceptability tested in
discussions with customers.
9.4 Project Review
Stock will be taken of the prospects and suggested character of the DES as informed by
ongoing and previous efforts. An especially important step would be to solicit comments on the
current effort from prospective customers, as these will form the basis of MOU’s that they will be
asked to sign. The list of prospective customer peak loads and energy use, and consequently
the cost/revenue may be revised as a result of this work.
9.5 Revised Business Plan
The DE technical concept and Business Plan should be modified as necessary based on the
project review, e.g. system capacity, temperature profile, DPS route, size and schedule of ETS
and expected revenue would all be modified as a result of those discussions. The Capital Cost
Estimate and Business Plan would be adjusted accordingly. Technical planning and
coordination with the GTAA as necessary would occur, along with liaison with local community
planning officials and municipal engineers responsible for the intended DPS right of way.
9.6 Design Basis Document
As the project becomes better defined, a Design Basis Document (DBD) should be developed.
The DBD will include initial sizing of equipment, schematics and layouts, including pipe route
and sample pipe details. The capital cost estimates would be refined in accordance with the
DBD. Application for site plan approval would be submitted based on the DBD.
9.7 Obtain Customer Commitment
With a solid business plan (including pricing) in hand, presentations will be made to senior
representatives of the building owners aimed at securing sign-off of MOU’s. Explanations will
be given describing what it means for a building to be connected to district energy from both a
technical and business perspective. The land owners/developers will be asked to sign-off on
MOU’s, in acknowledgement of draft ESA’s that will also be presented to them.
Experience has been that execution of ESA’s can be a time consuming process. MOU’s
provide the DE owner with some assurance of customer commitment to support application for
capital approvals and construction financing, even while final customer review and execution of
ESA’s are in process.
9.8 Finalize Project Definition
The project technical definition (in the DBD) and business plan will be reconfigured as
necessary in accordance with the MOU’s. This may include some refinement to the pricing and
consequently revenue projections.
The final Business Plan should include owner/operator options, governance, pricing,
cost/revenue projection, project schedule, risk management plan, environmental and social
performance and samples of MOU and ESA.
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