October 2015

Plug into the power of renewables

The Role of Renewable Energy Co-ops in Ontario

• A Renewable Energy Co-op incorporated in September 2010 under the Ontario Co-op Corporations Act.

• A way for any resident ofthe Eastern Ontario to jointly own and invest in community-owned renewable energy generation projects.

What is OREC

• Current Membership: 450 Eastern Ontario residents• Ontario’s first approved share offering for a renewable

energy co-op• Offering Statements:

1. $991,000 in 20122. $1.25 million in 2013-143. $1.34 million in 2014-154. Underway, seeking $1.7 million

• Projects: 12 complete, 1 under development (warehouse, barns, schools, housing)

Milestones

Why Community Power

•Centralized electricity system challenges▫efficiency, vulnerable,

psychological•Distributed generation

alternative•Community ownership▫acceptance, local/rural

benefit

Ontario Experience

1990’s

• Concern over health effects of coal• Community power demonstration site

2000’s

• Blackout• Coal Phase out• Community power awareness program• SOC, orange zones due to nuclear rebuild

2009

• Public pressure results in Green Energy Act, FIT, and CP Fund

• Domestic content rule • Grid upgrades

1970’s

• Grid capacity constraints• Provincial election• FIT review2011

• Targets for 2018 soon to be met• 10,000  members in RE co-ops• >$30 million, 30MW invested by co-ops2015

OntarioFeed-in Tariff Program

• Introduced under Green Energy Act, 2009 to ensure energy conversation and renewable energy development

• Successful to date: On track for 10,700 MM of renewables by 2015 (ahead of 2018 goal)

• Over 50,000 homeowners have applied for solar

• 1/7 farmers have installed solar on their farms

• Contract new renewable energy generators for a 20 yrs; guaranteed price for electricity produced

• 90% of projects are solar

• Produces power when we need it the most, hot summer afternoons

• Reinvigorate the manufacturing sector, lead in technology

• Clean energy

• Stable rates

• Reduced transmission losses

Why Solar is Good for Ontario

Impact Investing•Now: $50 billion in assets•Growth potential to $500 B

• Target Dividend: 5%

• Support local economy

• Build local resilience

• Contribute to climate change mitigation

• Support community values

• Local ownership

• Example for future generations

• Wider community of interest

Value Proposition

Sample ProjectsEileen Tallman Housing Co-op

Co-op Lafontaine

Feb 2013: 250 kW, with Windmill Development July 2014: 74 kW, École Samuel Genest

Feb 2015: 150, 100 kW, Écoles Franco-Cité and Franco-Ouest

Ottawa’s 1,000th Solar Rooftop, École Maurice Lapointe

• Democratic governance• Survival rate 2x that of regular

businesses

Co-op Difference

New Offering – Class A Series 4• Closes October 31• Target: $1.7 Million• Preference Shares: $500 per unit

• Min/Max purchase: $2,500/$250,000• RRSP and TFSA eligible above $5,000• Intended return: 5% dividend annually; linear capital

return starting in year 6• 5-Year Member Investment Notes: $500 per unit

• Min/Max purchase: $5,000/$250,000• Interest rate: 3%; capital returned after year 5

Return on CapitalSample $10k Pref Share Investment

Full capital value returned over a 20-year period at a rate of 1/15th per year, beginning in Year Six.

• 20-year power purchase contracts with Independent Electricity System Operator (arm’s length government entity)

• Guaranteed buyer and rate/kWh for 20 years

• Equipment has no moving parts and requires little maintenance

• No fuel cost escalation

• Annual sunshine typically varies by 3%

Mitigating Portfolio Risk

janice.ashworth@OREC.ca

613-296-8232

969 Wellington St. W., Ottawawww.OREC.ca

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