What is the best strategy to facilitate the decarbonization of existing tower properties?

Sustainability Innovations Case CompetitionJanuary 21, 2017

Stakeholder: Entrepreneurs presenting to Building Owners

Presentation prepared for

Team: Need for SEEDTeam Members: Ally Cunliffe | Amber Daniels Josephine Pham | Safwan Rahman | Carlos Ruiz

Situational AnalysisRecommendation Business Models and SWOTFinancialsQ&A

2

Agenda

Situational Analysis

Transportation is the second highest GHG emitter in Canada4

Source: Environment and Climate Change Canada

GHG Emissions by Sector in Canada

Ontario relies on nuclear, hydropower and natural

gas.

QC, BC, MB, NL, and YT

have significant

hydroelectric resources

The Maritimesrely on hydro,

fossil fuels, nuclear, and non-hydro renewable resources.

Electricity Trends in Canada

#4Canada ranks 4th

in renewable power generation.

Other Provinces:Alberta - Phase out coal-fired generation by 2030 Saskatchewan - Increase renewable energy to 50% by 2030Nunavut - Goal of reducing dependence on fossil fuels through energy conservation and increase renewables

Source: National Energy Board 5

Ontario’s GHG Emissions by Sector and Energy Use

6Source: Ontario Ministry of the Environment and Climate Change Source: IESO

Recommendation

8

How to Decarbonize Existing Towers?

9

How to Decarbonize Existing Towers? Recommendation:Install electric vehicle (EV) charging stations

Exponential growth in 5 years…. THE FUTURE IS CLEAR

Source: International Energy Agency

EV Global Trends

10

11

+500 Public Charging Stations in Ontario by March 2017

Source: Ontario Ministry of Transportation

80-90% of charging happens at home

Growing Popularity of EVs = More Charging Stations

12

An EV can reduce GHG emissions by 67-95% per vehicle compared to a gas vehicle.

Even a 10% increase in EVs in 2020 can reduce GHGs by 236,000 metric tonnes in Ontario.

Since 26% of Ontarian household lives in a residential tower.

Imagine their impact if they have the opportunity to switch over to EVs.

Impact of EVs on GHG Emissions

Business Models and SWOT

Building owners pay 100% to install EV charging stations for communal usage.

14

Strengths:- Highest adoption rate for EV

purchases - Community sharing- Hassle-free for EV owners- Help lower GHG emissions

Opportunities:- Resident attraction and retention

through additional amenities offered

- Partner with neighbouring buildings/businesses

Weaknesses: - Increased maintenance and efforts - Red tape (applications, condo

board approvals)

Threats:- Potential changes in Condo law

(Condominium Act)

1. Plug Share/Community Charging

2. Incentive for EV Owners

EV owners receive government grant, up to $1,000 to install an EV charging station

15

Strengths:- Own a dedicated charging

station - Offset cost for charging station- Lead by example

Opportunities:- Attract tenants in the market for

a new car (marketing promotion)- Partner with stakeholders

Weaknesses: - Highest cost to building owner- Red tape (applications, condo

board approvals)

Threats:- Changes in Condo law

(Condominium Act)- Changes in Government

incentive programs

3. Third Party Vendor Utilize a third party vendor (e.g. Autochargers) to install EV charging stationsVendor will charge a small service fee per useBuilding owner could recover some costs by setting a higher price for premium parking or higher amenity fees

16

Strengths:- Low cost to building owners - Could be personal or

community charging model- Maintenance & administration

covered by 3rd party

Opportunities:- Encourage competition among 3rd party

vendors- Attract & retain tenants - Lead by example- Increase brand awareness through

stakeholder partnerships

Weaknesses: - EV owners could be paying

high prices to charge their cars

Threats:- Changes in Condo law (Condominium

Act)- Potential changes in vendor company

Financials

Level 1: Between $1K - $3K

Level 2: Between $5K - $17K; most common in residential towers

Level 3: Between $60K- $80K

18Source: Canadian Condominium Institute-Toronto and Plug’n Drive

Cost of Retrofitting

$140-160 million in incentives for EV car owners

$80 million to install charging stations

Additional funding to replace older cars, increase public awareness, etc.

19

Ontario Climate Change Action Plan

Source: Ontario Ministry of the Environment and Climate Change

$19.8 million to-date for 485 Level 2 & Level 3 chargers

20

Source: Ontario Ministry of Transportation

Despite all this, 80-90% of charging happens at home.People need access to charging stations at home.

EVCO Incentives for EV Charging Stations

21

Impact of Proposal

Transportation is the largest source of GHG emissions in Ontario, second largest in Canada10% increase in EVs can reduce GHGs by 236,000 metric tonnes26% of Ontario households live in towersImage their impact

Appeal to Stakeholders

Attract new owners - give EV owners the chance to live in towersIncrease property value and revenue opportunity Become an early adopter and beat the regulations Lead by example: EV chargers are billboards for sustainability

Novelty of Strategy

Thinking outside the box by pushing the (building) envelope Use an emerging technology and become an innovator

ScalabilityEV charging stations can be in every residential building in CanadaEven if current electricity mix remains non-renewable in some provinces, switching to EVs will reduce GHGs

Addressing transportation is the best strategy to decarbonize existing tower properties.

In Summary – Chase the Right Rabbit…

Thank Youand Q&A

Team: Need for SEEDTeam Members: Ally Cunliffe | Amber Daniels Josephine Pham | Safwan Rahman | Carlos Ruiz