Item - 2016.EX18.15
Tracking Status
- This item was considered by Executive Committee on October 26, 2016 and was adopted with amendments.
EX18.15 - Development of Low-carbon Thermal Energy Networks (District Energy)
- Decision Type:
- ACTION
- Status:
- Amended
- Wards:
- All
Committee Decision
The Executive Committee:
1. Directed the Chief Corporate Officer to:
a. identify appropriate market partner(s) using the three stage approach (Request for Pre-Qualification; Request for Proposals; Negotiate with One or Two of the Top Two Bidders) outlined in the Partnership/Procurement Strategy section of this report; and
b. report to the Executive Committee with recommended market partner(s) on or before its meeting of June 19, 2017.
2. Directed the Chief Corporate Officer to include the following conditions in the request for pre-qualification:
a. that the proponent has designed, developed and operated renewable energy based district energy systems
b. that the proponent has proven long term relationships working with Governments in the district energy field; and
c. that the proponent has the ability to mobilize resources quickly to be able to capitalize on the funding now available from the Province of Ontario's cap and trade program.
Origin
Summary
The purpose of this report is to inform the Executive Committee that:
- The Province has introduced cap-and-trade legislation that will both put a price on carbon emissions, and generate revenues for redistribution for investment in projects that reduce carbon emissions. The City needs to act quickly to ensure equitable access to these provincial funds.
- Transformational, large-scale, low-carbon thermal energy networks will be fundamental to enabling the City to achieve its Council-approved, long-term energy and climate goals. These initiatives will be eligible for provincial funding.
- The City intends to seek the advice of the marketplace to identify how to maximize the value of the opportunity to the City and to describe the structure of any business arrangements that may emerge from this evaluation.
- The City has been approached by several district energy developers who are interested in the large-scale development of renewable district energy systems. These organizations are well financed and have a demonstrated capability to deliver large scale energy projects.
- There are potential sources of revenue for the City.
- The next step will be to choose a partner(s) with whom to evaluate the opportunity and create a plan on which both parties can move forward.
Background Information
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-97245.pdf
Attachment 1 - Pre-identified Locations for New Thermal Energy Networks (District Energy in Toronto)
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-97246.pdf
Attachment 2 - What is Cap and Trade?
https://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-97247.pdf
Communications
Motions
That recommendation 1.a be amended by inserting the words "One or Two of the" so that it now reads as follows:
1. The Executive Committee directs the Chief Corporate Officer to:
a. Identify appropriate market partner(s) using the three stage approach (Request for Pre-Qualification; Request for Proposals; Negotiate with One or Two of the Top Two Bidders) outlined in the Partnership/Procurement Strategy section of this report;
That Chief Corporate Officer include the following conditions in the request for pre-qualification:
a. that the proponent has designed, developed and operated renewable energy based district energy systems
b. that the proponent has proven long term relationships working with Governments in the district energy field; and
c. that the proponent has the ability to mobilize resources quickly to be able to capitalize on the funding now available from the Province of Ontario's cap and trade program.