Canada

CA-7:Efficiency New Brunswick Industry Program

Policy Description

Efficiency New Brunswick (Efficiency NB) is a New Brunswick government Crown Corporation established in 2005 to promote and deliver energy efficiency solutions in the residential, community and business sectors of New Brunswick.

Description

While this policy database focuses principally on federal policies, this provincial program was selected because it is considered to be one of the most successful and innovative programs in North America.

 

Efficiency New Brunswick (Efficiency NB) is a New Brunswick government Crown Corporation established in 2005 to promote and deliver energy efficiency solutions in the residential, community and business sectors of New Brunswick [1].  Efficiency NB developed a 5-year strategic plan in 2009 in which the reduction target for the large industry sector to 2014 was set at 2,500 TJ (all fuels), which amounts to about a 7% reduction of all of the industry sector energy use in 2008.. [2].  

 

In order to reach its target, Efficiency NB created the Industrial Program (the Program) to assist eligible New Brunswick industrial organizations to improve their competitiveness, productivity, and environmental performance through the implementation of both capital and operating energy efficiency improvements. The Program is targeted to the largest companies in the Province (about 30 plants) with an average peak monthly load exceeding 2 MW (*1).

 

This is a voluntary program being delivered by Efficiency NB through a customized account management approach that aims to:

  • Engage company executives and to align the Program to their strategic objectives, foster recruitment into the Program and establish the foundation for an effective engagement;
  • Work closely with staff designated within participating industrial facilities to identify and implement a custom suite of solutions to best match the specific energy efficiency opportunities and needs of each company (*2); and
  • Facilitate the development of future projects by providing proof of project success.

To bring companies into the Program, Efficiency NB negotiates participation agreements that elaborate the responsibilities of the Program and the participating companies. The main Program streams are [1]:

  • Project Pipeline Stream: The objective of the Project Pipeline stream is to provide a structured path that facilitates the identification, development, implementation and measurement of results from capital investments in energy efficiency measures.  The Program provides advice and technical assistance, where required, to coordinate and help advance industry energy efficiency projects. The Project Pipeline stream provides incentives in support of project business case development as well as to help measure and verify the energy savings from the implemented projects.

 

Efficiency NB will pay up to 50% of eligible costs incurred to produce two levels of business case development: i) opportunity identification to generate a preliminary energy audit, resulting in a pre-feasibility report (*3) and ii) business case incentive to produce a detailed feasibility assessment of an individual or a group of eligible projects, resulting in a detailed feasibility report (*4).  Efficiency NB will also provide incentives for implementation of systems in accordance with Efficiency NB’s M&V guideline for measurement of the energy savings results from the implementation of eligible projects.  Companies may use the incentive to implement a single M&V System or multiple M&V Systems up to the incentive maximum per Facility. 

 

The Program incentives in theProject Pipeline stream are “stage-gated” in that payment of the full incentive amounts are triggered only when:

  • the pre-feasibility and detailed feasibility reports identifies eligible projects that meet the industry investment criteria and the participant demonstrates action in proceeding to a detailed feasibility study,
  • the participant demonstrates implementation of the M&V system and a report documenting three consecutive months of M&V reports.

 

  • Energy Management Information System Stream - An Energy Management Information System (EMIS) is a performance management system that makes energy performance visible to different levels of the organization so that actions can be taken to create financial value for the company [1]. The Program provides incentives to help companies:
    • Conduct an EMIS Audit to establish the financial case for EMIS Implementation and help sell it to the decision makers within the organization.  Companies are able to engage an external EMIS auditor.  The Program will offer up to 100% of eligible costs incurred, up to a maximum of $15,000.  The companies may use the incentive to conduct a single study or multiple studies up to the incentive maximum per facility.
    • Develop an EMIS implementation plan- The purpose is to carry out the conceptual and detailed design of the EMIS, to obtain quotations and complete a detailed cost estimate and to provide a detailed project management plan for successful EMIS implementation.  The Program will offer up to 50% of eligible costs incurred, up to a maximum payment of $35,000.  The companies may use the incentive to conduct a single study or multiple studies up to the incentive maximum per facility.
    • Implementation of EMIS Systems-The Program will offer up to 50% of costs incurred by to a maximum payment of $100,000 in accordance with the approved EMIS implementation plan. Companies may use the incentive to implement a single EMIS system or multiple EMIS systems up to the incentive maximum per facility.

 

The EMIS incentives are also stage-gated according to whether the EMIS implementation plan identifies eligible projects that meet the investment criteria of the participating company and where the participant demonstrates action in proceeding to implement a substantial portion of the EMIS System defined in the EMIS implementation plan.

 

  • Capacity Building- This Program stream complements the Project and EMIS streams and provides: i) manuals, guides and tools in support of project business case development, implementation and M&V.  – In addition, the Program a suite of six capacity building workshops focused on project development, M&V, EMIS audit and project development, as well as EMIS implementation and performance monitoring.

 

 

As of August 2013, this program has been suspended due to budget cuts. Advice and guidance is being provided to industry but no incentives are currently available.

Policy Information Expand this section for information on the key features of the policy, such as its date of introduction, categorization, main objective(s) and linkages with other policies.

Position in the Pyramid

About Us

Participation: Voluntary

Period

Start Date: 2007

Agencies Responsible

Efficiency New Brunswick
Natural Resources Canada (NRCan)

Primary Objective: Energy

Objective

­Help accelerate industry investments in energy-reducing practices and new equipment that will lower energy intensity.

Target Group

Large industry, companies that operate a facility with an average monthly peak electrical load in excess of 2MW.

Driver of energy consumption or emissions affected by policy: Total energy use / Specific energy consumption/ Relative efficiency / Rate of change / Technology implementation rate

Implementation Information Expand this section for information on targets, monitoring, verification and enforcement regimes, and implementation requirements and tools.

Coverage

Large industry, companies that operate a facility with an average monthly peak electrical load in excess of 2MW.

Quantitative Target? yes

Target: Yes, the target for the large industry sector program to 2014 was 2,500 TJ.

Progress Monitored? yes

Verification Required? yes

Enforced? yes

Sanctions: not applicable

Requirements on the Target Group

Program participants have to follow specific guidelines and reporting procedures.  Stage gated feasibility studies in the project development stream must be approved by Efficiency New Brunswick before proceeding to the next stage.

Support by Government

Efficiency New Brunswick (a government agency) provides on-going implementation support.

Implementation Toolbox

- Guidelines for the Project Pipeline program stream

- Energy Management Information Systems (EMIS) audit manual and audit guidelines

Complexity of Implementation

Government

The program is complex in design and scope and requires intensive account management.

Target Group

This is a comprehensive program with three main program streams. As noted, the provision of financial incentives is stage-gated.

Impacts, Costs & Benefits Expand this section to find information on policy effectiveness and efficiency.

Impact Quantitative Estimate Qualitative Estimate
Estimated effect on energy consumption or emissions ­2,547 TJs and 175 kilo tonnes GHG (estimated to end of March 31, 2012), the program will exceed target. These estimates are conservative because savings attributed to the EMIS stream are based on initial projections. Evidence to date indicates that EMIS savings are running at two to three times the initial estimates. There are spin-off economic benefits as well, as much of the $92 million investment has stayed within the province for the purchase of materials, engineering and labour for construction and retrofits. Aside from the quantitative performance metrics, the Program has been well received by industrial companies operating in the province.
Estimated costs/benefits for industry It’s estimated that, to date, companies have invested $92 million in capital moving from feasibility study to construction stage.
Estimated cost for government Since program inception, the cumulative costs have been $6 million of which 35% was incentives.

References & Footnotes

References

[1] Efficiency New Brunswick web site http://www.efficiencynb.ca/home/about-us.html

[2] Personal communication with Efficiency New Brunswick

Footnotes

(*1) Efficiency NB also provides a program targeted to companies below 2MW average peak monthly load.

(*2) Typically, an energy champion refers to a mid to senior staff who is assigned to lead energy management responsibilities or who has volunteered to do so.

(*3) Efficiency NB will pay up to a maximum of $50,000.

(*4) Efficiency NB will pay up to a maximum of $250,000.