Save money and help the economy

A New Revenue Source

The sale of community-based energy can provide local governments with an additional source of much-valued revenue.

For instance, the Revelstoke wood waste district energy system yields a guaranteed stream of non-taxable municipal revenue from the energy sales to a local sawmill and downtown buildings

Similarly, the Vancouver Landfill cogeneration (combined heat and power) facility is providing up to $310,000 in annual electricity revenues to the City of Vancouver and up to $110,000 annually in new tax revenue for the Corporation of Delta [link to Showcase].

In Victoria, the Capital Regional District receives a yearly royalty of at $250,000 or more from electricity generated at the Hartland Landfill gas utilization project. (1)

 

 

Note: (1)   CRD (2005), Hartland Landfill Gas Utilization Project: Submission to the 2005 UBCM Community Excellence Awards, http://www.crd.bc.ca/es/sw/publications.htm.

Energy Savings

Energy costs can be important to local governments, especially for smaller communities with more limited resources.

By designing energy efficient communities and supporting local renewable energy development?, a local government can reduce its energy expenditures and become less vulnerable to swings in imported fuel prices.

These savings can then go toward meeting the costs of other local services and help relieve taxpayer burden.

Submissions for the Energy Aware Awards have noted some significant reductions in energy consumption and significant cost savings:

Community Energy Savings
Community ProjectEnergy Savings
2006 Award Submissions 
Kamloops green buildings2 buildings, $176,000 annual cost savings
Maple Ridge flee vehicles $1,080 per vehicle annual fuel savings
Surrey building retrofitsReductions of 44,457 gigajoules annually
Langley green building$40,000 saved annually
2003-2005 Submissions 
North Vancouver lonsdale energy (2005)Annual savings of 230,000 gigajoules by 2010
Burnaby building retrofits$500,000 in annual energy savings
Revelstoke biomass energy~45,000 gigajoules displaced annually
White Rock operations building (2003)60% better than Model National Energy Code

Job Creation and Economic Spin-offs

Community energy has been shown to create more jobs per dollar invested than developing conventional energy supplies. Moreover, these jobs tend to be local, higher value, and longer lasting.

Examples from several studies demonstrate the dramatic economic development potential of local sustainable energy.

  • The Pembina Institute for Appropriate Development has reported that, "for every million dollars invested, an average 36.3 jobs are created in the energy efficiency sector, 12.2 jobs in the renewable energy sector, and only 7.3 jobs in the development of conventional energy." (1)
  • The borough of Merton in the UK passed a resolution (PE13) stating ""The Council will expect all new building development to incorporate renewable energy equipment to cut CO2 emissions by at least 10%." This is also known as the "Merton Rule". This requirement is being adopted across the 425 local governments in England and generating a 1.725 billion pound industry. (2)
  • Research included in the CEA Toolkit V1 states that most expenditures on fuels and electricity leave the community. Relieving this outflow, through investment in energy efficiency or local supply options, stimulates the local economy. An energy efficiency investment, for example, can recirculate one-third to two-thirds more money locally than a comparable expenditure on energy supply.(3)
  • Province-wide, the BC Sustainable Energy Association estimates that energy efficiency and renewable energy could create 400,000 jobs over the next 30 years. Sectors with exceptionally high jobs potential include efficiency retrofits and solar energy. (4) 

  

 

 

 

(1)   Pembina Institute for Appropriate Development (1997), Comparative Analysis of Employment from Air Emission Reduction Measures, Report Prepared for Environment Canada. See estimates cited at http://www.pembina.org/media/media-release.php?id=1030

(2)   Presentation by Adrian Hewitt, Climate Change Leader, London Borough of Merton at "Empowering the Community" workshop held in Vancouver, BC on April 25, 2007, co-hosted by Community Energy Association.

(3)   CEA Toolkit, Volume 1.

(4)        BCSEA [write out full name here] (2005), Sustainable Energy Solutions for BC, Prepared for the Alternative Energy & Power Technology Task Force, http://www.bcsea.org/policy/taskforcereport.asp

Savings in non-energy costs

Reductions in non-energy capital and operating expenditures can be a bigger incentive for community energy investment than energy savings alone.

For example, the installation of low-flow showerheads not only lowers customers’ energy and water bills, but also means reduced requirements for new water supply and treatment infrastructure.

Likewise, green buildings are designed to save on building materials (through recycling and reuse), water, waste management, and other costs besides energy, as well as providing benefits such as improved comfort, aesthetics, and indoor air quality.

A study for a new development in Coquitlam found that an energy-efficient community design could deliver 30% less infrastructure capital and operating costs, a 5% reduction in total energy, and a 400% increase in local job opportunities.