DE 17 Lonsdale Energy Corp
Total Page:16
File Type:pdf, Size:1020Kb
1 Case Study: Lonsdale Energy Corporation Spring 2009 COMMUNITY ENERGY CASE STUDIES: Lonsdale Energy Corporation City of North Vancouver, BC District Energy Community Biomass Solar Wind CHP Heat Pump Integrated Community Energy System Application Archetype • Neighbourhood Energy Utility (NEU). Characterization • Low temperature community energy system that delivers hot water for space and water heat to buildings (in the Lower Lonsdale Development Plan Area). • Archetype: • Three mini-plants using natural gas fired boilers provide heat. District Heating • Two separate grids serving Lower Lonsdale and Central Lonsdale. • Density: 11 buildings • Long term objective is to connect the grids as the service area expands. • Mix: • Additional capacity will be based on GHG neutral sources, such as ocean Lower Lonsdale Grid source heat pump and solar thermal collectors. primarily residential towers Upper Lonsdale grid Context institutional • The City of North Vancouver strives to enhance the sustainability of the community through a range of environmental programs. • Energy efficiency has been a strong theme as part of the broader commitment to sustainability. Drivers and Rationale to do the Project • Reduce electricity use for space heat in buildings. • Demonstrate a sustainable re-development of an industrial site, with a mix of residential, institutional and commercial activities centred around a transportation hub. canmetenergy.nrcan.gc.ca 2 Case Study: Lonsdale Energy Corporation Benefits Timeline and Status • Reduced greenhouse gas emissions by 21% relative to conventional design. 2004 • Reduction in local air pollution – 21% reduction in NOx. Feasibility work commenced Project Description (Neighbourhood Energy Utility – NEU) 2006 • The Lonsdale Energy Corporation is a heating only system. LEC start-up provided heat to Development of the system has occurred incrementally as 2 buildings on the Lower Lonsdale redevelopment of the City’s waterfront has progressed. The system Grid, planned to increase to originally had a distribution network connecting two buildings. 11 buildings in 2009 • The system has grown to three plants serving 11 buildings with two grids. 2008 • Eventually, the two grids will be connected as development of the Central Lonsdale grid operational providing heat to City Hall and the system continues. Library building • Heat is currently provided by gas fired condensing boilers. • The City will be installing solar collectors to offset use of natural gas and 2009 is exploring the use of ground source and ocean source heat pumps to further reduce the use of gas. Solar panels to be installed on the library of the central grid Considerations for Implementation and Ownership Future • As a small municipality, the City of North Vancouver was constrained in The system continues to grow in terms of customer base and geographic cover its ability to finance the project. Funding from the Federation of Canadian Municipalities (FCM) was a critical factor in moving to Plans underway to utilise ground construction. source and ocean loop heat pumps to provide base load and offsetting GHG • Developing the system incrementally to meet medium term loads has emissions from high efficiency boilers reduced the City exposure to uncertain build-out schedules. • To ensure that new buildings would hook up to the system, the City requires that any property that will be redeveloped within the district energy zone hook up to the system. Operation – Component Expectancy and Challenge • The Lonsdale Energy Corporation (LEC) owns and operates the system. • LEC is a wholly owned by the City of North Vancouver. • The system is operated by a contractor who is responsible for daily operation of the system, connection of new customers, and customer billing. • Whereas most utilities are regulated under the Utilities Commission Act, as a municipal utility, the Council of the City of North Vancouver regulates LEC, including setting rates. • The system uses a fixed temperature variable flow regime. Early projects that connected to the system had relatively small temperature drops across the heat exchangers, and resulted in reduced operating efficiency of the central boilers. canmetenergy.nrcan.gc.ca 3 Case Study: Lonsdale Energy Corporation Costs and Financing • As part of the original development, the LEC received $4 million in green municipal funding from FCM in 2003. • LEC received $204,000 from the Canada-BC Municipal Rural Infrastructure Fund to build 120 solar hot water panels for its central Lonsdale grid. • Rates include a commodity cost and a capacity charge. On average, customers pay approximately $74/MWh for heat, compared to $65/MWh for electricity. • As the system expands the fixed costs are spread over a larger customer base. In fact, the commodity costs for LEC customers has been reduced 20% between October 2008 and January 2009. Relationship to Other Best Practices • Development of the district energy is predicated on sufficient density. • The Lonsdale Energy Corporation is located within a mixed-use brown field development area. Intensification of the neighbourhood through densification has resulted in sufficient load to support the capital cost of the plant and distribution infrastructure. Lessons Learned • The mini-plant concept developed by the city was instrumental in getting the project off the ground. Development of a mini plants with local distribution grid enabled the City to manage exposure to financial risk by reducing the scale of initial investment. • The ability to control multiple mini-plants remains a challenge, meaning that heat is generally provided by a single plant. • Balancing customer rates versus cost recovery resulted in some customers paying more for district heat than conventionally heated buildings. As the system continues to expand, the rates have come down. Additional Information • Additional information may be obtained from the City’s web site at http://www.cnv.org//server.aspx?c=2&i=98 Notice: Preparation of this resource package was sponsored by CanmetENERGY of Natural Resources Canada. Neither CanmetENERGY nor any of its employees makes any warranty, express or implied, or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of its contents. Reference in the report to any specific commercial product, process, service or organization does not necessarily constitute or imply endorsement, recommendation or favouring by CanmetENERGY. The views and opinions of authors expressed in this report do not necessarily state or reflect those of CanmetENERGY. canmetenergy.nrcan.gc.ca .