EBC Dam Management Program
Small Hydropower
Developments in New England
Environmental Business Council of New England
Energy Environment Economy
Welcome
Chad Cox, P.E.
Chair, EBC Dam Management
Committee
Civil Engineer / Principal
GZA GeoEnvironmental, Inc.
Environmental Business Council of New England
Energy Environment Economy
Introduction to Program
William Felton
Program Chair & Moderator
Partner / Client Business Development
Willis
Environmental Business Council of New England
Energy Environment Economy
Stephen Mockler
Director of Major Projects
Brookfield Renewable Energy Group
Environmental Business Council of New England
Energy Environment Economy
New Development, Acquisitions
and the Challenges for Small
Hydropower
Brookfield Renewable A Leader in Renewable Power Generation
Brookfield Renewable Energy
Westborough MA, February 13, 2015
Meeting between Brookfield and EBC New England
6 6 CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS
This presentation contains forward-looking statements and information, within the meaning of Canadian securities laws and forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, safe harbor of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations, concerning the business and operations of Brookfield Renewable. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements in this presentation include statements regarding the quality of Brookfield Renewables assets and the resiliency of the cash flow they will generate, Brookfield Renewables anticipated financial performance, future commissioning of assets, contracted portfolio, technology diversification, acquisition opportunities, expected completion of acquisitions, future energy prices and demand for electricity, economic recovery, achievement of long term average generation, project development and capital expenditure costs, diversification of shareholder base, energy policies, economic growth, growth potential of the renewable asset class, the future growth prospects and distribution profile of Brookfield Renewable and Brookfield Renewables access to capital. Forward-looking statements can be identified by the use of words such as plans, expects, scheduled, estimates, intends, anticipates, believes, potentially, tends, continue, attempts, likely, primarily, approximately, endeavours, pursues, strives, seeks, or variations of such words and phrases, or statements that certain actions, events or results may, could, would, might or will be taken, occur or be achieved. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information in this presentation are based upon reasonable assumptions and expectations, we cannot assure you that such expectations will prove to have been correct. You should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.
Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to: our limited operating history; the risk that we may be deemed an investment company under the Investment Company Act; the fact that we are not subject to the same disclosure requirements as a U.S. domestic issuer; the risk that the effectiveness of our internal controls over financial reporting could have a material effect on our business; changes to hydrology at our hydroelectric stations or in wind conditions at our wind energy facilities; the risk that counterparties to our contracts do not fulfill their obligations, and as our contracts expire, we may not be able to replace them with agreements on similar terms; increases in water rental costs (or similar fees) or changes to the regulation of water supply; volatility in supply and demand in the energy market; exposure to additional costs as a result of our operations being highly regulated and exposed to increased regulation; the risk that our concessions and licenses will not be renewed; increases in the cost of operating our plants; our failure to comply with conditions in, or our inability to maintain, governmental permits; equipment failure; dam failures and the costs of repairing such failures; exposure to force majeure events; exposure to uninsurable losses; adverse changes in currency exchange rates; availability and access to interconnection facilities and transmission systems; health, safety, security and environmental risks; disputes, governmental and regulatory investigations and litigation; local communities affecting our operations; losses resulting from fraud, bribery, corruption, other illegal acts, inadequate or failed internal processes or systems, or from external events; risks relating to our reliance on computerized business systems; general industry risks relating to operating in the North American, Brazilian and European power market sectors; advances in technology that impair or eliminate the competitive advantage of our projects; newly developed technologies in which we invest not performing as anticipated; labour disruptions and economically unfavourable collective bargaining agreements; our inability to finance our operations due to the status of the capital markets; the operating and financial restrictions imposed on us by our loan, debt and security agreements; changes in our credit ratings; changes to government regulations that provide incentives for renewable energy; our inability to identify sufficient investment opportunities and complete transactions; risks related to the growth of our portfolio and our inability to realize the expected benefits of our transactions; our inability to develop existing sites or find new sites suitable for the development of greenfield projects; risks associated with the development of our generating facilities and the various types of arrangements we enter into with communities and joint venture partners; Brookfield Asset Managements election not to source acquisition opportunities for us and our lack of access to all renewable power acquisitions that Brookfield Asset Management identifies; our lack of control over our operations conducted through joint ventures, partnerships and consortium arrangements; our ability to issue equity or debt for future acquisitions and developments will be dependent on capital markets; foreign laws or regulation to which we become subject as a result of future acquisitions in new markets; and the departure of some or all of Brookfields key professionals.
We caution that the foregoing list of important factors that may affect future results is not exhaustive. The forward-looking statements represent our views as of the date of this presentation and should not be relied upon as representing our views as of any date subsequent to January 30, 2015, the date of this presentation. While we anticipate that subsequent events and developments may cause our views to change, we disclaim any obligation to update the forward-looking statements, other than as required by applicable law. For further information on these known and unknown risks, please see Risk Factors included in our Form 20-F.
7 Brookfield Asset Management Experienced Investor and Asset Manager
Brookfield is a global alternative asset manager with approximately $200 billion in
assets under management
PROPERTY RENEWABLE POWER INFRASTRUCTURE PRIVATE EQUITY
$113 billion AUM $19 billion AUM $31 billion AUM $23 billion AUM
Over 350 million sq. ft1:
office, retail, industrial,
multifamily and other
investments
235 hydro facilities,
28 wind farms
~6,700 MW
Ports, rails, toll roads,
natural gas pipelines,
transmission lines,
timberlands and
agrilands
Private equity in our
areas of expertise,
residential development
and service activities
1) Includes active developments and current projects in planning
Note: AUM above excludes Asset Management and Services, Cash and Financial Assets and Other Assets totaling $6 billion
Property, Infrastructure and Private Equity include BIM assets under management
8 Brookfield Renewable Overview
One of the largest public pure-play renewable power businesses in the world
100 years of experience in power generation
Over 1,300 employees with strong operating, regulatory and power marketing experience
$19B POWER GENERATING ASSETS
235 generating
facilities
84% HYDROELECTRIC GENERATION
Situated on
72 river systems
~6,700 MEGAWATTS OF CAPACITY
13 markets
in 5 countries
9 Established global operating platform
BREP maintains integrated operating platforms on three continents
with local operating and marketing expertise
North America
~$15 billion AUM > 5,700 MW 900 employees
Europe
~$1 billion AUM 330 MW 75 employees
Latin America
~$3 billion AUM 670 MW 340 employees
10
10
Key Items For Development & Acquisition
Indication Insight & Understanding of Key Stakeholders & Challenges Impacting Development
Clear Understanding of Costs & Revenue Knowledge of Critical Information Available Information & Time Schedule Knowledge of Key Material / Insight Necessary Summary of Key Factors for Successful Development & Acquisitions
Investors Are Looking For
Investors want a return on their investment Investors need certainty & information risks understood
Keep your Investors hat on!
11
The Objective
New Renewable Energy
Federal and State Agency
Missions
Legislation and Mandates
The specific Rules, Regulations,
Interpretations Also Known as the weeds!
Least likely to succeed Most likely to succeed
Analyze opportunities with the OBJECTIVE in mind, and determine how to make the regulations work.
12
12
ENVIRONMENT
for HYDRO
DEVELOPMENT
ILP / TLP
Law
yers
Key Stake Holders & Items Involved With Development & Acquisitions
13
Development-Acquisition Costs Vs Revenue
Cost & Risk To Build/Operate VS Revenue
Need to understand cost to build/acquire and risks around cost increases
Need to understand revenue stream and upside/downside scenarios as well as market & generation trends/expectations
14
14
Successful Development - Information and Time
- Make a Build or No Build Decision at the lowest possible cost
- Gather and analyze information move through decision gates
Information
Accurate and complete
Allows risks to be evaluated
Improve cost estimates of key
project variables
Update total project cost
estimate
Time
Directly relates to the financial
and human capital consumed
At each gate, need to
demonstrate that project has
sufficient value to justify
continued spending
Both Information and Time must be well managed as they
directly impact the Cost of Development and ultimately Project Cost
15
15
Development Process Gates Development costs increase as additional information is obtained
Origination Prospect Feasibility Advanced Construction
$M Outreach program NOI/PAD preparation FERC Study Plan determination Interconnect application and studies Completion of first EA studies Site technical assessment
Develop cost data base for major project components & use as a sanity check on project cost estimates
Continued stakeholder outreach Completion of EA studies Interconnection Agreement Issuance of FERC license USACE Access MOU
Final optimization design
Tender process Contract terms Marketing terms Finance terms
TIME
16
16
Project Development & Acquisition Process
Project $
TIME
Initial estimate
New information
Updated estimate -
Project cost investment limit - $60M
$50M
$58M
$55M
What else
may change?
Time Pressures = >Preliminary Permit expiration dates
>License expiration dates
>Construction Contract key dates
>Limited Due Diligence Time
Acquisition Process Possibly The Complete
Opposite From Development
17
17
BRP Key Elements for Project Development & Acquistition
Principle aspects of a project or acquisition that must be investigated and understood:
Land (Site Control) - Long-term rights necessary to construct and operate a power
generating facility and an understanding of lands as part of an acquisition.
Permits and Licenses - All material permits and licenses are obtained or sufficient
certainty to obtain as scheduled. Completed environmental assessment process or
sufficient certainty to complete as scheduled;
Stakeholders Alignment of critical stakeholders to the project has been achieved or an understanding of key stake holders involved with an operating asset to be acquired;
Engineering - Firm price, schedule and contract with equipment suppliers and
reputable contractors;
Interconnection (Transmission) Studies complete and certainty of interconnection capacity availability. Certainty in applicable transmission, interconnect and upgrade
costs and an understanding of any expiration of IAs associated with an existing assets
Revenue Long term Power Purchase Agreement or acceptable view of relevant wholesale market.
Relicensing Understanding of upcoming relicensing criteria and possible impact.
Environmental Understanding of potential environmental issues (fish passage) and impacts to capital spending and operations
18
18
Examples of Information Required
Drawings and original design info
Site meetings to review Preliminary Permit plans ok to drill a hole in the dam?
Ongoing stakeholder input
Navigation
Fish passage
Sediment issues
Flood control
Relicensing items
Each of these will be evaluated as a risk
Can they be managed and resolved in a timely and cost effective way?
Post / re-license issuance - Operating items impacting revenues
Once in development or acquisition required planning documents, design revisions, final acceptance of operating plans, changing regulations/stake
holders over the anticipated life of the projects
19
19
Factors that will facilitate development & acquisition investment
Start with Point People who develop an understanding of the project challenges From both the Developer and REG and Other perspectives Critical decision points time, technical requirements, resources
available
Investment depends on managing risks and costs
Clear and consistent rules similar interpretation among Federal Agency Regions Uncertainty and surprises can materially impact a project
Differences between Government agency Missions and various regions challenge new development at sites such as USACE.
Predictable time schedules The shorter the better, but predictable will help for new development, longer time periods better for
acquisitions
Environmental impacts Local regulations (USACE, Wind Ordinances, Etc) Known ESA & other environmental impacts to development or operations
Maximize coordination between agencies Any steps that improve the process by sharing information or approvals
Expense of construction / operation versus relatively low power prices
Managing multiple critical path items and achieving required timeframes. Time passes quickly and its important to stay ahead of the curve
Communicate, Coordinate, Communicate
Noreen E. Kuziak
Director, Underwriting
The Hartford Steam Boiler Inspection and
Insurance Company
Environmental Business Council of New England
Energy Environment Economy
Risk and Hydropower Development and Operations
February 13, 2015 EBC Dam Management Program Small Hydropower Developments in New England Noreen E. Kuziak, CPCU, ARe
Risk and Hydropower Development and
Operations
Agenda
Focus:
How different aspects of a hydroelectric plant translate into insurance pricing,
terms and conditions. To that end, well discuss:
1. Information Upfront
2. Design Attributes of Dams and Penstocks
3. Catastrophe Considerations Flood and Earthquake
4. A Word About Risk Management
5. Questions to ask about Builders Risk or Operational
2/18/2015 22 2014 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Information Upfront
To get started, an Insurance Company should be asking for the following upfront:
Latest FERC Report
Latest 12D Report
Any other inspection reports
Power Purchase Agreement purchase of replacement power?
Details about any claims
Information about all of the equipment how large, how many, make / model
Flood, Soil or Seismic Reports if available
This will give anyone a good understanding of the plant before an onsite
inspection.
2/18/2015 23 2014 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Design Attributes of Dams and Penstocks
FERC Reports and 12D reports requirement to insure dam
Dewater Inspection reports requirement to insure penstocks and turbines.
Loss History of entire facility. If operational today, then were there losses during
the builders risk?
Construction
Timber and Embankment dams including Earthen / Earth.
Translation: Proceed with caution.
Is dam / penstock in need of repair?
Age
Built before or after 1981 were FERC standards / regulations in place?
Most dam losses will occur within the first 5 years after construction.
Values Reported
Replacement Cost or how calculated. Should not be an even figure.
Dam sublimit if lack of information.
2/18/2015 24 2014 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Catastrophe Considerations: Flood
This is a significant focus for an underwriter as I need to understand how
the water moves and functions.
What is the elevation of the river (normal levels) vs the flood elevation vs
the elevation of the powerhouse? Has the station ever flooded?
Are Waterway subject to tides? Storm surge?
Flood zone Identification of Flood Zone A will result in a different
deductible and additional premium
Flood risk may change over time. Understand any changes that have
occurred, such as flood control dam is built, levees are installed, etc.
May request additional reports: Elevation drawings, flood analysis,
inundation maps, dam inspection / condition reports
Emergency Procedures When to evacuate
2/18/2015 25 2014 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Catastrophe Considerations: Earthquake
EQ must be considered in New England; however, not same concern as
other parts of the world. No active volcanoes!
Actively Seismic Need seismic reports and study as part of submission
Different deductible, terms, conditions may be applied
Liquefaction strength and stiffness of soil is substantially reduced due
to an applied stress like earthquake.
Deforestation can make ground unstable.
Soil study looking for stability of soil.
2/18/2015 26 2014 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Risk Management
Routine maintenance and sound risk management practices will make the
risk more acceptable for different lines of business. Some general items:
Infrared testing - #1 cause of fire - Electrical
Transformer Oil and Gas Analysis (DGA)
Spares on hand
Containment of flammables / oil
Lets look at some examples of hazards that I would focus on:
Fire hazards, particularly transformers and oil
Misc hazards, as all hydros are unique
Construction of plant, security (fencing, is there public access?)
2/18/2015 27 2014 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Transformers
Spare step up stored inside
station, no containment, no
protection.
Top of step up transformer in
underground station
Located in blast resistant fire
rated vault with spill
containment and suppression
system.
Transformer with barrier walls,
containment, concrete wall to
the station.
2/18/2015 28 2013 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Fire Hazards Inside the Station
Oil reservoirs and storage
inside station
Fire rated room, automatic
suppression system
Oil storage in station
Fire rated room but no spill
containment
Fire door not automatic
Fire damper in oil storage
room wall good
Fire damper held open by
rope instead of fusible link
- bad
2/18/2015 29 2013 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Miscellaneous Station Hazards
The station should have
excellent housekeeping
with very limited
combustible storage
Cable tunnels may require
a suppression system.
They should have a fire
detection system. They
may require fire barriers.
Cable penetration in fire
barriers should have a
listed penetration seal.
2/18/2015 30 2013 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Minimum Fire Protection for Small Stations
Fire alarm panel with
remote monitoring.
How far away is the fire
station? Response time of
FD?
Fire detection where
needed
Ample fire extinguishers of
the correct type
2/18/2015 31 2013 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Typical Focus Areas for Equipment
Electrical testing
Age, obsolescence,
design
Auto or remote reset
Location
Maintenance
Spares
2/18/2015 32 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Upfront: need blueprints, site
diagram, project plan timeframe?
NFPA 241 requirements to be
followed?
Site access control and security
Crane availability
Fire fighting systems ready /
installed?
What can cause a delay in
completion of the project?
Details of excavation and tunneling
Who is installing the equipment?
Will the OEM be starting and testing
the equipment?
Protection of equipment before,
during and once completed
Adequate lay down space?
Electrical Testing who, and to what
extent? (Electrical fires are the #1
loss leader.)
Questions to ask for a Builders Risk
Property Equipment
2/18/2015 33 2014 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
Questions to ask for an Operational Risk
If needed, do you have an Emergency Action Plan?
What electrical and mechanical testing is being performed?
What spares are on hand?
How is the station operated? Local? Remote?
Is there proper mechanical and electrical protection?
Equipment nameplate data? Is there an OEM warranty or service plan?
Major upgrade, repair, rebuild, inspection dates?
What if plant cannot produce power?
2/18/2015 34 2012 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
In Summary
On each and every submission, this is what I am going to do:
Ask for hard copy information upfront
Conduct an onsite inspection.
Evaluate the property
Evaluate the equipment
Determine any last questions / get responses
Assess overall risk, and provide best deductible, terms and conditions
2/18/2015 35 2014 The Hartford Steam Boiler Inspection and Insurance Company. All rights reserved.
You can contact me at:
860-722-5697
Thank you very much
for your attention
Michael Kerr
Co-Founder and CEO
New England Hydropower Company LLC
Environmental Business Council of New England
Energy Environment Economy
New Small Hydropower
Technologies
New England Hydropower Company LLC
www.nehydropower.com 38
New England Hydropower Company LLC
www.nehydropower.com
Michael Kerr, CEO and Co-Founder
EBC Dam Management Program
Small Hydropower Developments in New England
February 13, 2015
Restoring North Americas original renewable energy resource
39
New England Hydropower Company LLC
www.nehydropower.com
Should We Build More Large Dams? The Actual Costs of
Hydropower Megaproject Development published in March in Energy Policy. The study, by Atif Ansar, Bent Flyvbjerg, Alexander Budzier and Daniel
Lunn, draws upon cost statistics for 245 large dams built between 1934 and 2007.
Instead of building enormous, one-of-a-kind edifices like large
dams, the studys authors recommend agile energy alternatives like wind, solar and mini-hydropower facilities. Were stuck in a 1950s mode where everything was done in a very bespoke, manual way, Mr. Ansar said over the phone. We need things that are more easily standardized, things that fit
inside a container and can be easily transported.
New York Times Aug 22, 2014 by Jacques Leslie
40
Current Comment
New England Hydropower Company LLC
www.nehydropower.com
Traditional Hydropower targets sites
greater than 1 MW
New England Hydropower Company LLC
www.nehydropower.com
NEHC Targets the Long tail, ~54000 NPDs
New England Hydropower Company LLC
www.nehydropower.com
Data Abounds
New England Hydropower Company LLC
www.nehydropower.com
More than 80,000 Dams in the U.S.
New England Hydropower Company LLC
www.nehydropower.com
And so much New Stream Development
Potential
Ref: nhaap.ornl.gov
New England Hydropower Company LLC
www.nehydropower.com
10,000 Dams in New England
New England Hydropower Company LLC
www.nehydropower.com
Over 1,500 Dams in Connecticut
Alone
New England Hydropower Company LLC
www.nehydropower.com
Who We Are
New England Hydropower Company (NEHC) is an owner, developer and operator of small-scale hydropower facilities based in Beverly,
MA
With:
a skilled experienced team of employees and partners experienced in small hydro permitting and development
a target market of the 15,000 low head, non powered existing dams in the North East and a further 39,000 across the US
a strong reputation with U.S. Department of Energy, Energy Efficiency and Renewable Energy (EERE), U.S. Fish and Wildlife as
well as State Agencies
NEHC is creating a new profitable market segment in small scale hydro
48
New England Hydropower Company LLC
www.nehydropower.com
40-year plus useful life
Inherent efficiency with gearing ~70%
Capacity factor in NE typically 55%
Run of river no river flow change
Slow rotor speed at 30-40 rpms
Fish friendly
Low turbidity, low erosion
Durable, low maintenance and debris tolerant
49
The Reason It Works
Proven Technology, New Application
New England Hydropower Company LLC
www.nehydropower.com 50
Hanover Pond Dam Meriden, CT
Owner: Town of Meriden
River: Quinnipiac River
Power Potential: 192 kW
Generation: 898,000 kWh
Mean Flow: 4.92 m3/sec
Head: 4.87 m (16 ft.)
53% capacity utilization
FERC prelim. permit held by NEHC
City and CL&P PPA
First commercial ASG in the U.S.
New England Hydropower Company LLC
www.nehydropower.com
UK Project Installed by NEHC Partners in The
Lake District
51
New England Hydropower Company LLC
www.nehydropower.com 52
UK Project Installation By NEHC Partners
New England Hydropower Company LLC
www.nehydropower.com 53
Pershore U.K.
New England Hydropower Company LLC
www.nehydropower.com
Many Qualified Sites in New England
Enough to power over 40,000 homes
Meets 0.5% of home usage needs in New England
Does it count?
Enough to build a business
A valid contribution to the fight to reverse
climate change
Chad Cox
Civil Engineer / Principal
GZA GeoEnvironmental, Inc.
Environmental Business Council of New England
Energy Environment Economy
Eels and Small
Hydropower Sites
Eels and Small Hydropower Sites (a slippery problem)
Chad W. Cox, P.E. Civil Engineer / Principal
GZA GeoEnvironmental, Inc. Norwood, MA
American eel Anguilla rostrata
Duane Raver/USFWS
What is it?
Maryland Fishery Resources Office, USFWS
What is it?
Why is it Important/Whats to be Done?
American eels are of interest to fisheries agencies
Mitigations may be requested/required for accommodating American eels similar to other migratory fish, including:
Trash racks (3/4 bar spacing) Downstream passage Upstream eelpass structures
What do we need to do?
Trashracks (Hydrothane) with Spacing
What do we need to do?
Automatic Trash Rake
Permanent Eelpass
Permanent Eelpass
Permanent Eelpass
Permanent Eelpass
Permanent Eelpass
Permanent Eelpass
Permanent Eelpass
Removable Eelpass
Removable Eelpass
Removable Eelpass
Removable Eelpass
Removable Eelpass
Removable Eelpass
Removable Eelpass
Removable Eelpass
Removable Eelpass
Removable Eelpass
Eels and Small Hydropower Sites (a slippery problem)
Chad W. Cox, P.E. Civil Engineer / Principal
GZA GeoEnvironmental, Inc. Norwood, MA
Amy Barad
Program Director
Massachusetts Clean Energy Center
Environmental Business Council of New England
Energy Environment Economy
MassCEC and Commonwealth
Hydropower Program
Commonwealth Hydropower
Environmental Business Council February 13, 2015
Amy Barad Program Director
Massachusetts Clean Energy Center
A program of the Massachusetts Clean Energy Center
a quasi-public state agency dedicated to advancing Massachusetts clean energy sector
Funded by the MA Renewable Energy Trust
surcharge on the electric bills of customers of the investor-owned utilities
Welcome to Commonwealth Hydro
Improve the efficiency and ecological compatibility of hydropower assets that are (or are likely to be) qualified for the MA RPS
Result in good return (incremental generation) for our investment (ratepayer funds)
Projects completed in a timely fashion (< 3 yrs)
Promote opportunities to generate hydropower in conduits
Program Goals
Upgrades to existing facilities
New conduit facilities, i.e., those eligible for a FERC conduit exemption
Commercially-available technology
Facility Types Supported
Grants for Design & Construction
Max $500,000 per facility; min 50% cost share
Up to $100,000 of total for Design phase
Grants for Feasibility Studies
Maximum $40,000 per facility
Minimum 10% grantee cost share for conduit
Minimum 20% grantee cost share for others
Types of Support
Cost-Effectiveness Metric:
Grant $_____
Incremental kWh/year must be
Maximum grant is the lesser of
$40,000 or
Estimated incremental kWh/yr x 20 yrs x $0.01/kWh
Note: grant maxes out at 200,000 kWh/yr
Funding Limit Feasibility Studies
Facility has an active license or exemption
Ok if project will require a minor amendment
Facility has a clear order from FERC indicating that FERC does not have jurisdiction
New facility would be eligible for a conduit exemption
Facility is on a FERC-licensed canal
Eligibility FERC Status Options
Facility is already qualified for MA RPS, or
Applicant provides documentation of consultation with MA Dept of Fish and Game indicating:
No obvious obstacles to MA RPS qualification (including Low Impact Hydro Institute certification)
For Feasibility Studies issues that may need to be addressed in the study to facilitate qualification
Note: Construction Phase funds will not be released until facility is qualified for MA RPS
Eligibility MA RPS Status Options
Owner commitment & water rights
Time to completion
Financial need (D&C), as demonstrated by
Stated financial threshold for investment
Demonstration of how requested amount enables project to meet threshold
Other Considerations
Applications evaluated as received (until 4/20/15)
Remaining funds updated on website
Multiple applications pending simultaneously may be in competition if funds are insufficient
Cost-effectiveness, quantity of incremental gen
Time to completion
Soundness of project plan
Other benefits
Application Process
Add new minimum flow turbine
Replace crossflow turbines with Kaplan
Add automated controls for better pond regulation
Install new trash rack and automated rake
Rewind generator
Study tailrace modifications for improved generation and fish passage
Project Examples
Study of technology options for water and wastewater treatment plants
Screening tool free! http://www.mass.gov/eea/agencies/massdep/climate-energy/energy/water-utilities/hydropower-project-screening-tool.html
Follow up with CommHydro feasibility study
Conduit Projects
MA Clean Energy Employer reviews pool of undergrad/recent grad/grad student resumes
Employer selects students to interview
Employer provides meaningful paid internship part-time work for 10 weeks
MassCEC reimburses employer $10/hour at end of internship
Info for summer round available March 1
MA Clean Energy Internship Program
What opportunities do you see for increasing MA RPS-qualified hydropower in MA?
What obstacles are you encountering?
What modifications to CommHydro would make the program more useful to you?
Are there any innovative technologies that you would like to pilot at your hydropower facility?
Wed like to hear from YOU
Questions? Comments?
Amy Barad
617-315-9310
Panel Discussion
Moderator: William Felton, Willis
Stephen Mockler, Brookfield Renewable Energy
Noreen Kuziak, HSBI&IC
Michael Kerr, New England Hydropower
Chad Cox, GZA GeoEnvironmental, Inc.
Amy Barad, MassCEC
Caleb Slater, MA Division of Fisheries & Wildlife
Environmental Business Council of New England
Energy Environment Economy
EBC Dam Management Program
Small Hydropower
Developments in New England
Environmental Business Council of New England
Energy Environment Economy