Northern Energy

By using innovative solutions to alternative renewable energy generation, northern clients will be able to better manage and reduce their costs of energy consumption, thus positioning the North for stronger growth.

This program is designed to help eligible northern organizations and businesses to pursue clean renewable energy generation capacity that will reduce their demand on external energy sources. The program will also provide assistance to clients to invest in renewable energy generation projects in Northern Ontario.

What is Eligible

The “Northern Energy Program” will provide funding assistance to organizations and businesses deemed eligible for one of the two sub-programs.

1. Renewable Energy Planning

   Businesses and not-for-profit organizations involved in the energy sector that intend to create renewable energy projects are eligible. Assistance may be provided for engineering and design costs and environmental studies required to undertake the project development.

   Applicants are required to demonstrate that they have the capacity to bring the capital project to fruition by having a Feed-in-Tariff offer, and an established partnership with a municipality and/or First Nation to undertake the project. NOHFC will consider only one project from an applicant at any one time.

2. Internal Energy Generation

   Businesses and not-for-profit organizations that intend to establish energy generation systems for their own use and that reduce demand on external energy sources are eligible. The project must generate energy (heat, electricity, bio-fuels or a combination of heat and power) from a renewable energy source. Energy sources include wind, solar, biomass, geothermal, waste heat recovery systems and hydro. Waste heat refers to heat produced by machines, electrical equipment and industrial processes and is regarded as a waste by-product. Funding assistance will be provided for capital equipment costs and for its installation.

   The program intent is to reduce the client’s demand on external power sources. The applicant must demonstrate energy and financial savings resulting from the project. Projects associated with Feed-in-Tariff or Micro Feed-in-Tariff projects are not eligible.

   Projects intended to conserve energy by the use of more efficient equipment, improvements to the building envelope, and retrofit projects for conservation are not considered eligible under this program.

What is Not Eligible

Certain costs will generally not be considered eligible for funding. These costs include, but are not limited to:

• Operating costs for capital projects
• Maintenance costs
• Renewable energy planning projects without community partnerships
• Feasibility and resource studies
• Feed-in-Tariff and Micro Feed-in-Tariff projects
• Rolling stock (e.g.: motor vehicles, boats, planes, etc.)
• Infrastructure costs for water, sewer, roads, parking lots and landscaping
• Costs for the construction of new “energy efficient” buildings
• Projects for buildings associated with residential use
• Joint projects
• Heat recovery ventilators
• Commercial and retail buildings
• Public buildings that do not provide broad public use/benefits
• Federal and Provincial infrastructure and buildings such as schools, medical centres and offices (excluding post secondary institutions)
• Conservation related projects

Funding

Funding assistance will be in the form of forgivable performance loans or conditional contributions.

1. Renewable Energy Planning

   The maximum contribution by the NOHFC to any one alternative planning project will generally not exceed 50 per cent of eligible project costs up to a maximum of $100,000.

2. Internal Energy Generation

   The maximum contribution by the NOHFC to any one internal energy generation project will generally not exceed 50 per cent of eligible project costs up to a maximum of $250,000.

All Projects:

Total government assistance for all projects should normally not exceed 75 per cent of total project costs.

The NOHFC may consider higher levels of assistance on a case-by-case basis.

Applicants requesting joint funding from the Northern Energy Program and any other NOHFC program are not eligible for assistance from both programs; applicants are required to identify which program they wish to apply to.

The NOHFC may also consider other innovative energy projects that, in the opinion of the Board, adhere to the mandate of the NOHFC.

Guidelines

Applicants will be required to identify all other funding sources to implement the project.

Costs incurred prior to the approved project start date will normally not be eligible for NOHFC funding.

The NOHFC support will be based on its determination of whether assistance is required to make the project viable.

Applications will be reviewed as they are received; there is no guarantee that all applications meeting program criteria and received prior to the deadline will be approved by the NOHFC.