On 15th January the Ontario Power Authority [OPA] and Energy Advantage held an interactive session about OPA's initiative programs
By Tiffany Richmond

Energy Advantage, in collaboration with the Ontario Power Authority (OPA), recently held an interactive education session at the OPA’s offices in Toronto. The objective of the event was to invite industry participants to learn about the different OPA initiatives programs and for the OPA to gain an understanding of the industry’s participant’s experiences and learn about the gaps and barriers they have had to impede program uptake.

Laura Johnston, Account Manager, Conservation Sector Development at the OPA, delivered an informative presentation discussing the OPA’s strategy for conservation and incentives programs. The OPA’s long-term objective is to have 6,300 MW reduction in peak demand by 2025, with short term goals of 1,350 MW by 2007 and 2010. Ideally, the OPA would like to move towards a marketplace where energy initiative programs are sustainable and there is cohesive collaboration of industry leaders to help fight climate change.

Programs discussed during the afternoon events are summarized below.

• ERIP – Electricity Retrofit Incentive Program
  An incentive for sustainable, measurable and verifiable energy retrofits that result in on-peak demand savings and annual energy savings. Two incentive options: First option Prescriptive Projects, this involves rebates being offered for predefined technologies on a per unit performance basis; Second option, Customer Measures, involves all technologies and processes that result in real kW savings that are eligible under the program.
• Demand Response
  Demand Response 1 – Voluntary peak load shedding, settlement is paid on OPA approved strike price.
  Demand Response 2 – Contractual response load shifting from on peak to off peak hours.
  Demand Response 3 – Contractual response load shedding targeting the 100 –200 highest value peak hours.
• New construction program
  Provides assistance to incorporate CDM measures into the design, construction, and operation of new and substantially renovated buildings.
• City of Toronto Programs
  BOMA – Retrofits for buildings over 25,000 square feet. Provide sustainable savings in commercial buildings by reducing electric demand. o Better Building Business Program – Energy efficiency and building renewal retrofits in industrial, commercial, institutional and multi-residential buildings.
  Better Business New Construction Program – Promotes efficiency to all new Business Markets buildings.

As the topic of climate change becomes one of the greatest challenges to many industries, round table discussions were lively and productive for all involved. Energy Advantage clients were very direct in their feedback for the OPA. Some major issues and concerns that were raised during the session are listed below:

• The first issue is that interested companies have difficulties understanding which Local Distribution Center (LDC) represents the geographic area they conduct business in. Not knowing which LDC to contact to participate in a conservation program gives rise to various complications. This issue plays into effect when companies are trying to participate in City of Toronto Programs, such as Better Building Business Program. The OPA uses LDC as their channel to push programs through marketing efforts to their customers. However, when it is unclear as to which LDC provides which conservation program, it generates uncertainty in customers wanting to participate. Our clients argued that the OPA needs to clarify this issue if they want to increase their participation rates.
• A popular topic that was agreed upon during the sessions, was that the administration period for many programs is too convoluted. Many argued that it takes either too long to fill out applications or you have to fill out multiple applications for the same program and companies are finding both secenarios frustrating. The application process hinders many from joining programs because they want a relatively quick turn around period and the lengthy registration period does not allow this to happen.
• Along with little clarity for LDC, Energy Advantage’s clients explained their confusion when it comes to choosing which different City of Toronto Program to participate in. Since you can only participate in one program, many companies are unsure how to differentiate between programs and determine which program they should ultimately choose. This confusion in the marketplace deters companies from investing their time and capital into a program because it may may not in fact be the best option for them.
• With regard to the Demand Response programs, the feedback was generally that companies would like to participate in the programs and consider the incentive important to their business case. However, there is growing frustration with OPA’s changes to its DR programs, uncertain methodologies and rules.
• Probably the most important issue that was raised during the session was that there is no balance between the financial benefits and the process/payback period. All Energy Advantage clients firmly stated they would not participate in a program with a payback period of five years or more. This timeframe is considered too long and the financial benefit not large enough to be worth their time. Our clients even showed hesitation with a three year payback period. If companies are going to participate in a conservation program that has a payback period of three or more years, the OPA would have to consider reimbursing customers with a large financial benefit for it to be worth their invested time and efforts.
• Finally, the financial rewards are too low. Companies have to see positive ROI, which they are not finding when participating in specific OPA programs.

The OPA understood and agreed with all the gaps and barriers that were identified during the session. The OPA recognizes the importance of listening to their customers and finding solutions to improve their programs. A major issue for the OPA is that they are designing programs for everyone. However, everyone is different and finding the right balance to please all markets is quite the hurdle to overcome. Most OPA programs are relatively new and have been around only one to two years. Therefore, during this growth stage the OPA is taking responsibility to determine ways to improve future OPA programs. They are also dealing with specific mandates for program execution, which has led to much of the current feedback. Feedback sessions, such as this one, are very important since they will allow re-evaluations for future methodologies.

In summary,the session was a great learning experience for everyone involved. As we move forward into 2008 we can expect exciting and significant changes in the energy and environmental industry.

We at Energy Advantage feel that if the OPA can take the critical feedback and turn the industry’s leaders suggestions into solutions, the power and strength of the OPA mission can strategically make a difference. In order to see results we must see action first and we hope that this information session is the beginning.

For more information on OPA conservation programs please visit their website at: http://www.powerauthority.on.ca.