Implement energy efficiency projects, increase savings, and decrease energy costs
Enrolling in this program will help your business manage its energy usage and help Ontario meet its reduction targets.
What is the PROCESS & SYSTEMS Upgrade Program?
The PROCESS & SYSTEMS upgrade (PSU) program will help you identify and maintain major energy savings. It includes the valuable financial incentives and technical expertise that you need to upgrade and modernize your key systems and make improved energy management a part of how you do business.
Every day, more and more Ontario businesses are uncovering the bottom-line benefits of energy efficiency. That’s especially true of large industrial and commercial facilities, where bigger energy costs can easily translate into bigger opportunities to save.
What Can PSU Do For My Business?
The program is designed to help you:
- Study and identify your best opportunities to save energy along with energy costs.
- Modernize your key systems beyond energy efficiency to enhance reliability, productivity, and product quality
- Take charge of your energy with an on-site expert, so that your savings will continue to grow annually.
- Equip your team with accurate, up-to-the-minute data about your energy use, so that you can stay informed and responsive.
- Create a real, sustainable competitive advantage through energy management best practices.
A PROCESS & SYSTEMS upgrade will help you take control of the energy usage, consumption, and costs across your entire organization. We will provide you with support and assistance at every step of the way, from your application through implementation and beyond.
How Does The Program Work?
There are two complementary components to the program:
1. ENERGY EFFICIENCY Upgrades
This upgrade process helps you study and act on your best opportunities.
Engineering Studies
There is funding available to conduct Preliminary and Detailed Engineering Studies that will lead you to PROJECTS that will deliver Electricity Savings.
Project Incentives
You are provided incentives to complete PROJECTS identified in the Engineering Studies and approved by a Technical Reviewer and Hydro One.
2. ENABLING Initiatives
These initiatives provide long-term support so you can maintain and grow your savings well into the future.
Embedded Energy Manager
You are provided the opportunity to access funding for the engagement of an on-site, full-time energy manager. Your energy manager's role is to help you take complete control of your energy—by monitoring your performance, by leading awareness programs, by finding small-but-powerful ways to save, or by spearheading large upgrade PROJECTS.
To be eligible, the energy manager must meet the following requirements:
- implement 0.3MW of peak demand savings and 0.3MW x Facility Load Factor x 8,760 hours in energy savings each year. Of this, 30% of savings must be achieved without third party incentives;
- be hired by your company;
- enroll in energy management-related training programs;
- develop an energy management plan and provide quarterly reporting;
- commit to implementing PROJECTS with a less than one year payback.
Monitoring and Targeting
This initiative offers you funding for the installation of a Monitoring and Targeting System to help you understand your current energy consumption and further understand how your energy consumption might be reduced. Your facility energy manager, who regularly oversees energy usage, will now be able to use historical energy consumption performance to analyze and set targets. Typically this gives the ability to identify and reduce variations in energy consumption as a result of operational variability, improving overall energy-efficiency by between 5 and 10%.
To be eligible, your company must meet the following requirements:
- The employment of an Energy Manager, or a staff member, in an equivalent position to ensure the monitoring and targeting system is managed;
- Your facility must have a minimum annual electricity consumption of 15,000 MWh from the previous calendar year;
- Your facility must demonstrate, by the end of the second year of operation, 0.2 MW in peak demand savings and 0.2 MW x Facility Load Factor x 8,760 hours in energy savings;
- Your facility must commit to implementing PROJECTS with less than a one-year payback period;
- Your facility must agree to provide annual reports of opportunities implemented as a result of the monitoring and targeting system, for a period of five years.
Hydro One is here to help
Hydro One has Key Account Managers and Roving Energy Managers available to support you in pursuing energy management opportunities. A Key Account Manager can support you in identifying how best to take advantage of the PROCESS & SYSTEMS upgrade program, including help with your incentive applications. While Key Account Managers are assigned to those customers with load over 5MW, Roving Energy Managers are available to assist all customers.
What PROJECTS are Eligible?
- Eligible PROJECTS must be located in Ontario and connected to the Distribution System.
- PROJECTS must precede and Engineering Studies must be based on, a Detailed Engineering Study (not just a Preliminary Engineering Study) which is approved by the Technical Reviewer and Hydro One.
- PROJECTS must involve the installation of a savings measure that could include equipment productivity, product quality or yield.
- All PROJECTS must achieve an actual In-Service Date no later than the second anniversary of the date of the signed Agreement and such In-Service Date must have been achieved on or before December 31, 2014.
- PROJECTS require development of a measurement and verification (M&V) plan for assessing performance of the project.
- A proposed MICRO PROJECT will be expected to generate at least 100MWh but less than 700MWh of Annualized Electricity Savings.
- A proposed PROJECT will be expected to generate at least 350MWh of Annualized Electricity Savings.
What Types and Levels of Incentives Are Available?
Incentives for ENGINEERING STUDIES
Usually, applications for capital funding must be supported by a PRELIMINARY or DETAILED engineering study. This is not only a requirement, but also a great opportunity to find hidden opportunities that you might not already be aware of.
Preliminary Engineering Study
This is a general assessment of a key process or single system, comparing the cost-effectiveness of the various upgrades available to you. Funding of up to $10,000 per study is available.
Detailed Engineering Study
This study provides you with all of the in-depth technical and financial information you need to build a solid business case for your PROJECT. Funding of up to $50,000 per study is available.
PROJECT Incentives
Incentive amounts are based on the forecasted annualized electricity savings your project might deliver, using the lowest of:
- $200 per MWh for annualized electricity savings, or
- 70% of the eligible project costs, or
- Achieving a one-year simple payback .
You can apply using one of two approaches to receiving incentives:
- ADVANCED incentive PAYMENT OPTION: Payments are made during construction and must be supported by a letter of credit
- DEFERRED incentive PAYMENT OPTION: Payments are made after PROJECT completion and after measurement and verification tests have proven the existence of forecasted energy savings.
Embedded ENERGY MANAGERS
Embedded Energy Managers are funded as follows: 80% of actual annual salary up to a maximum amount of $100,000 plus 80% of actual reasonable expenses incurred up to maximum amount of $8,000 per year.
MONITORING AND TARGETING SYSTEMS Incentive
Hydro One will provide funding toward 80% of actual eligible costs (less any third party contributions) up to a maximum of $75,000 per site to purchase, install and make operational a monitoring and targeting system. Your company must contribute a minimum of 20% of the actual project cost.
Relevant Documents
- Preliminary Engineering Study
- Detailed Engineering Study
Where Can I Get More Information?
Email us at saveONenergy@HydroOne.com or call us at 1-877-345-6942.