MARKETING YOUR DESFROM FEASIBILITY TO IMPLEMENTATION

December 2, 2014

Abby Dacho, EIT

FVB Energy

ALIGNING THE GOALS

1. Know your DES Set Goals Project Champion

2. Know your Community

3. Gather Support Community leader

support Start small and grow

1. Know your DES

2. Understand Community

3. Gather Support

STEP 1 – SET GOALS

Easily understood & communicated

GHG Reductions Economic Development

Check back as DES develops

1. Know your DES

2. Understand Community

3. Gather Support

STEP 1 – MANDATORY VS. VOLUNTARYConnection

Voluntary Required

Marketing

Effort

Low

Lack of Customer Choice

Revenue Assured

High

Revenue Uncertainty

Customer Sold

1. Know your DES

2. Understand Community

3. Gather Support

STEP 1 – PROJECT CHAMPION

Trusted by project owners

Strong working relationship with Key Stakeholders

Believes in the project

Maybe it’s you?

Keep all parties informed

Find grants/funding Work through conflicts

Who is it? How can they help?

1. Know your DES

2. Understand Community

3. Gather Support

STEP 2 – KNOW YOUR COMMUNITY

Identify Key Stakeholders Customers, building

owners, developers Municipality, local

residents

Convincing & Detracting points Environmental, social,

noise, space Costs (capital, O&M, BAU)

1. Know your DES

2. Understand Community

3. Gather Support

STEP 2 – UNDERSTAND THE CUSTOMER

What’s the real BAU?

Benefits Rate certainty Emission reductions Enhanced reliability Simplified building

operations Transfer of Risk

Reduced noise

Variable Energy

O&M

Capital Fixed

Capacity Charges

Variable Energy

CONVENTIONAL DISTRICT ENERGY

1. Know your DES

2. Understand Community

3. Gather Support

STEP 2 – UNDERSTAND BUILDING DEVELOPERS

How does it impact the timeline? Simplify the process

Deferral of capital costs conventional heating plant,

structure, stack, gas service

Space savings

Ease of Expansion / Flexibility1. Know your DES

2. Understand Community

3. Gather Support

STEP 2 – UNDERSTAND MUNICIPALITIES Good long term municipal investment

Cost of heating energy stays within the community Capital, O&M, Fuel

Economic Development

Employment

Environmental Benefits Fuel flexibility & diversity (and a bridge from non-renewable to

renewable fuels) Greenhouse gas emission reductions

1. Know your DES

2. Understand Community

3. Gather Support

STEP 3 – GATHER SUPPORT Tools:

Open house Focus groups One-on-one meetings

Engage early & often Show options & invite feedback

Leverage community leader(s)

Start small & grow Mandatory or Voluntary

1. Know your DES

2. Understand Community

3. Gather Support

STEP 3 – COMMUNITY LEADER SUPPORT

Identify community leaders

Convince them

Others will follow

Need to understand the community to identify leaders

People are risk adverse Status quo is safer May not have the

time/energy to fully investigate

Watch for how people they respect respond

1. Know your DES

2. Understand Community

3. Gather Support

STEP 3 – START SMALL AND GROW

Simpler to build a small DES than a large one Fewer stakeholders impacted by the system

Easier to extend an existing system than start a new one Established reputation References

May be more economical Capital costs match demand growth1. Know your DES

2. Understand Community

3. Gather Support

SUMMARY

1. Know your DES

• Set Goals• Mandatory

or Voluntary

• Project Champion

2. Understand the Community

• Identify Key Stakeholders

• Benefits/ Concerns

QUESTIONS?

Abby Dacho, EIT

FVB Energy

adacho@fvbenergy.com