Squamish residents could have their very own run-of-river project if Renaissance Power plans move forward.
Guy Heywood, Renaissance Power vice president of finance, wants the District of Squamish to consider owning a community power project (CPP) that he says won't put taxpayers money at risk.
Heywood presented the Renaissance Power proposal at the committee of the whole meeting Tuesday (March 10).
He hesitated using the term independent power project (IPP) because Heywood said there is nothing independent about power.
"Power is not independent because you have to go to the community to build the project. We want to reframe these developments as community power projects," Heywood said.
Heywood asked council to consider partial ownership of a power project similar to the one being constructed in Whistler on Fitzsimmons Creek. Once finished the project will produce 33 GW per hour and a gross revenue of $8.5 million a year.
In order to make the dream a reality, Heywood said flow-through financing is key.
"One hundred per cent of the initial costs immediately flows through to the investor," he said.
In other words, if the district were to move ahead, Renaissance Power would find funding for the project. Heywood said a number of investment funds specialize in financing resource exploration. Once the funds are in place, construction would begin.
The district would have a share in the annual $2.8 million revenue after operation costs and debts are paid off.
"At the end of the purchase agreement, which is 40 years, the district would have full ownership of the project," Heywood said.
Heywood asked council to consider signing a letter of intent, develop a formal agreement and initiate the identification phase. Mayor Greg Gardner said further discussion of the proposal needs to be discussed in-camera, since it is a business deal.
Renaissance Power is in discussions with many other communities in the province but Squamish is the first to push the idea into the public eye.
"We wanted to hold this presentation in an open meeting to begin engagement with the public. We want to know whether the public endorses the idea of going down this road. This needs to be in the public domain before we make any commitments," said Coun. Doug Race.
The "greenness" of run of river projects is an open debate and Coun. Patricia Heintzman encouraged Renaissance Power to seek alternatives.
Renaissance Power is behind the Anmore Renewable Energy Project, which integrates various sources of energy production such as wind, run or river and solar. Heintzman asked if similar options could work for Squamish.
"Squamish is rich in many resources for energy production and we would like to explore alternatives to run or river," Heintzman said.
After initial investigation, Heywood said run of river would most likely work the best but a CPP doesn't have to be controversial.
"Things like the wind are too intermittent in Squamish," Heywood said. "In essence we are looking for the district to support this proposal so we can research specific options," Heywood.
Pentti Sjoman, vice president of engineering for Renaissance Power, said a few creeks within municipal boundaries such as the Squamish River could work. He said the potential for power certainly exists.
"If the district agrees to move ahead with a CPP what happens if a feasible project is found but council has a change of heart?" said Gardner.
If political or environmental reasons prevent the district from proceeding with a feasible project, Heywood said work would continue regardless.
"We would likely pursue the project as an IPP, which is not publicly owned," Heywood said.
Gardner said council would not commit to anything until feedback is received from the community.
