Large Energy Projects

Project Funding Criteria

1. Large Energy Projects must facilitate the engagement of Aboriginal peoples and northerners in energy-related activities, and facilitate community driven strategies for addressing the use and provision of energy.  Specifically, projects must target Aboriginal and northern communities, peoples and organizations.
   
   
2. Large Energy Projects must implement renewable energy technologies for local energy generation and/or energy efficiency technologies for energy savings.
   
   
3. Proposals that include key partners (such as provincial/territorial governments, Aboriginal governments, educational institutions, professional or industrial associations, non-governmental organizations or the private sector) whose contributions are monetary or in kind will be given greater consideration for funding than proposals that do not have other identified partners.
   
   
4. Only direct costs for projects with greenhouse gas (GHG) and criteria air contaminant (CAC) emission reductions will be funded (i.e. project design, assessment, installation, etc.). Workshops, conferences and information meetings will not be funded.

Program Implementation

The ecoENERGY for Aboriginal and Northern Communities Program will support energy efficiency and renewable energy projects with active Aboriginal and northern community involvement that lead to concrete, quantifiable and verifiable GHG and CAC emission reductions.

Specifically, Large Energy Projects are designated as projects that have substantial GHG emissions reductions (above 4,000 tonnes over the project life cycle) and represent complex endeavours that require a range of partnerships and arrangements to implement. Some examples of projects that may be suitable for funding under the Large Energy Projects stream include: the design and installation of a heat recovery system on a diesel generating plant; technical feasibility studies for a micro-hydro project; and, negotiation of partnership agreement(s) or business planning for a new wind energy farm.

The maximum life cycle considered for GHG and CAC emission reduction calculations for Large Energy Projects is 20 years.

The maximum level of funding considered for projects is $250,000.

Eligible Recipients

Eligible recipients for program funding are:

• Aboriginal and northern communities
• Band Councils
• Tribal Councils
• National Aboriginal organizations and other Aboriginal organizations, including professional organizations
• Aboriginal community groups (volunteer groups, community associations and institutions)
• Territorial governments and northern organizations
• Aboriginal businesses and Aboriginal industries

In most cases, funds for approved projects will be flowed through a financial transfer from the INAC national office to the INAC regional office. A regional office will then make its own arrangements to transfer funding to the funding recipient. In all cases, funding recipients will be required to complete a final report on their project.

Reporting Requirements and Conditions on Approved Projects

While specific reporting requirements may depend upon project variables such as duration and complexity, and will be outlined to funding recipients in writing once a funding arrangement is in place, requirements are generally as follows:

1. The funding recipient will report on the project's progress at least twice in the fiscal year following approval of the funds at 6 month intervals and / or upon request.
   
   
2. Prior to receiving funding, the funding recipient will estimate variables such as current (i.e., in the absence of the renewable energy or energy efficiency project) energy consumption or fuel use as well as corresponding GHG emissions and costs.  As the project proceeds to implementation, variables such as power performance, energy and cost savings and actual greenhouse gas reductions resulting from the project must be estimated.  All estimates must normally be accompanied by a RETScreen analysis, or demonstrated with some other suitable tool.
   
   
3. The funding recipient will recognize the contribution made by the  ecoENERGY for Aboriginal and Northern Communities Program in communications and promotional literature associated with the project and its activities in general, where feasible.
   
   
4. A standard final report (template will be provided to all recipients) will be completed, and where feasible, recipients will supply copies of documents and reports created through the course of the project to ecoENERGY.
   
   
5. Recipients will provide either audited financial statements detailing the expenditure of ecoENERGY funds in as much detail as provided in the approved project proposal or financial report(s) with back-up documentation (e.g., receipts and invoices).

Proposal Review Process

 Applicants will receive an email or telephone confirmation when their application has been received.

Large Energy Project applications will undergo a systematic review by the Large Energy Projects Working Group.  This review process includes analyses of the technical aspects of the project, the project budget and partnerships, the economic, social and environmental benefits of the project and the likelihood that the project will succeed to implementation.  Applicants may be asked follow-up questions about the application, beyond what is asked for in the proposal template, before a final decision is made whether or not to fund the project.

Applicants will be notified by email or telephone whether their project has been approved for funding or not.

Minimum Criteria for Funding

The critical accountability of the ecoENERGY for Aboriginal and Northern Affairs Programto the Government of Canada is the reduction of GHG and CAC emissions in Aboriginal and northern communities.

In addition, through reducing GHG and CAC emissions, the ecoENERGY for Aboriginal and Northern Affairs Programis focused on enhancing the sustainable development of Aboriginal and northern communities through improvements in environmental quality, economic development and social well-being.

Only projects that contain the following minimum criteria will be considered for funding by the Large Energy Projects Working Group.

1. Clear impact on the reduction of GHG and CAC emissions:  A project’s clear impact on GHG and CAC emission reductions must be demonstrated through the use of the RETScreen tool   applied by the proponent.
   
   
2. Cost per tonne of GHG reductions: Projects will be evaluated in part based on their cost per tonne of GHG emission reductions.   Projects will be considered if the cost per tonne is less than $15, over the lifecycle of the project.
   
   
3. Community proponent and benefit: Agreement from the local band or community that it is supportive of the project is essential.  Local community participation in the project is also required.  In addition, project benefits must accrue to the community as a whole and not solely to an individual or a sub-group of the community.
   
   
4. Community champions:  There must be key people in the community who demonstrate the commitment to promote, develop and implement the project, potentially in partnership with external organizations / companies.
   
   
5. Likelihood of proceeding to implementation: Projects should represent a high likelihood of proceeding to implementation.
   
   
6. Proven project approach: The project will utilize an approach that has been proven before or has a high likelihood of being effective.
   
   
7. Renewable resource availability:  The resource that will be used (wind, water, solar) must be available in large enough quantities to make the project viable and sustainable.
   
   
8. Availability of technical infrastructure:  Technical infrastructure must be available to the community or be included in the project design (e.g. proximity of transmission lines).
   
   
9. Awareness of permitting process:  The applicant must have some awareness of environmental and other permitting processes.
   
   
10. Projects that leverage resources: Projects that have support or funding commitments from other partners (including other INAC programs, other federal departments, provincial and territorial governments, utilities, bands, local communities and / or the private sector), will be considered favourably for funding compared to those that do not.
    
    
11. Fully complete project submission template: The project proponent must fully complete the ecoENERGY for Aboriginal and Northern Communities Program Large Energy Project Submission Template (funding application).  This template includes a description of the project, quantitative information showing the current energy situation in the community, a description of the energy technology to be employed, identification of the impact of the proposed technology, identification of the amount of GHG and CAC emission reduction impacts of the project and documentation of other social, economic and community benefits arising from the project.

Project Funding Terms

The following terms apply to Large Energy Projects: 

1. Maximum percentage of project funding: The ecoENERGY for Aboriginal and Northern Communities Program will fund no more than 30% of the project development costs and capital costs in on-grid communities.  Off-grid communities may receive up to a maximum of 50% of project costs.   Ideally, projects will require less than this maximum percentage from INAC to make the project viable.
   
   
2. Maximum funding amount:  Total ecoENERGY for Aboriginal and Northern Community Program funding for a project will not exceed $250,000.
   
   
3. Use of ecoENERGY for Aboriginal and Northern Communities Program funding: Contributions can be allocated to one or more of the following types of project activities:
   
   
• Community climate change capacity development (directly related to the project)
• GHG emissions estimates and verification of reductions
• Project management components
• Pre-feasibility/feasibility studies, environmental assessments, and resource analyses
• Capital costs
• Project implementation costs
  
  
4. Community benefits: Where funding leads to revenue, it is highly desirable that a proportion of this revenue remain in the local community.
   
   
5. Other contributions and funding: Funding may be combined with other federal contributions as long as the total percentage of the federal contribution to the project does not exceed the requirements stipulated by other funding programs.
   
   
6. Nature of ecoENERGY for Aboriginal and Northern Communities Program funding: All funding provided will be in a form of a contribution to the local community towards the total cost of the project.  The precise scheduling of payments to the community will be based on the achievement of project milestones.  The recipient of the funds will be required to submit verification (e.g. a receipts, invoices, etc.) showing that the funds have been properly allocated and may be subject to audit. 

For more information about our large energy project funding, please contact ecoENERGIE-ecoENERGY@ainc-inac.gc.ca.