International Energy Demonstration Fund Program Guidelines

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1 International Energy Demonstration Fund Program Guidelines Program Overview Ontario is internationally recognized for its energy sector expertise, positioning it well to participate in competitive global markets. And clean energy technologies are in demand: according to Canadian-based Analytica Advisors, the global market for clean technology has surpassed $1 trillion per year and is projected to keep growing over the next decade. However, for energy sector companies, demonstrations are a critical precursor to scaling up their growth, and each operational presents unique opportunities and challenges to test and further refine technologies. The 2017 Long-Term Energy Plan, outlines the Ontario government s intention to fund international demonstration projects to help Ontario s innovative energy companies diversify to new markets. This support is intended to help Ontario s innovative energy companies get a foothold with utilities and buyers in new markets by mitigating the risk of adopting Ontario technologies, and support the Province s commitments to help Ontario companies go global. The International Energy Demonstration Fund (IEDF) is a discretionary, non-entitlement funding program administered by the Ministry of Energy on a pilot basis. The program focusses on demonstrations of a range of innovative energy technologies in collaboration with domestic and international partners, to test these technologies in new operational s. Preference will be given to technologies that have not yet been demonstrated in new markets, and that offer additional al, economic and social benefits. NOTE: Applicants and any Canadian consortium partners are strongly encouraged to engage with Canada s Trade Commissioner Service to support international demonstrations. Canada s Trade Commissioners are located in 161 cities abroad and in Canada, and their services are provided to qualifying companies free of charge. Trade Commissioners can help companies navigate the complexities of international markets, including companies that are: looking to export, tackle any market access issues, pursue joint ventures or technology and R&D partnerships, and more. The Ministry of Energy can facilitate introductions to an appropriate Trade Commissioner for support. 1

2 What is the International Energy Demonstration Fund? The International Energy Demonstration Fund (IEDF) is a discretionary, non-entitlement funding program administered by the Ontario Ministry of Energy on a pilot basis. The program focusses on demonstrations of a range of innovative clean energy technologies, in collaboration with domestic and international partners, in order to test these technologies in new operational s. What amount of financial support would IEDF provide? IEDF funding will be allocated to eligible, selected projects. Per-project funding amounts will be based on the project type and total project costs, which are expected to range from $250,000 to $2 million per project. Funding under this program would cover costs incurred in Ontario (whether for domestic or non-domestic goods/services) up to a maximum of 50% of total project costs. A stacking limit of 75% from all domestic government sources would be applied. 1 What Project Types would the IEDF Support? All projects must be demonstrations. Eligible clean energy technology project types may include microgrid, solar, storage, smart meter data and nuclear projects. Other project types may also be considered eligible. In the project description section of the application, Applicants are required to show that the proposed project is a clean energy project. See IEDF Eligibility Requirements, below, for further details. 1 The stacking rule refers to project funding from multiple domestic government grant programs for the same project. Applicants can apply for and receive funding from other programs up to the maximum threshold of 75% from federal, provincial, territorial and/or municipal governments, as indicated above. It is incumbent upon Recipients to identify all other sources of Project funding, and to highlight any eligibility differences between programs in the IEDF Application Form and Budget Template, as outlined. 2

3 How can I apply for IEDF funding? 1. Create a ONe-Key account to access a secure Government of Ontario system, and register your organization as a potential Transfer Payment recipient on the Transfer Payment Common Registration system. (Note: some of this information will be used to auto-populate sections of your IEDF Application Form). Please click here for more information on how to register. 2. Request access to Grants Ontario (Note: confirmation may take up to two days), and log into Grants Ontario to start your application. Please click here for more information on how to apply in Grants Ontario. 3. Using materials available on the Grants Ontario IEDF website, start your application and submit it through Grants Ontario before the deadline. Completed applications will include: Completed Application Form, which is available on and submitted through Grants Ontario Completed IEDF Project Budget Template, which is available on and submitted through Grants Ontario Most recent 2 years of audited financial statements Letter of support from the demonstration host, such as from an electric utility, indicating whether the project is expected to be technically feasible and any local community engagement activities undertaken to date, with results of those activities. What happens to my application next? Project review and selection Applications to the IEDF will be reviewed by the Ministry of Energy and scored based on mandatory IEDF criteria, the strength of the project proposal, degree of need and support from the demonstration host, and additional criteria as outlined in the Application Form. Reviewers may contact Applicants for further information on their application or proposed demonstration project. Projects would be selected based on outcomes of this review and the availability of funding. Please note that the submission of an application does not guarantee that an Applicant will 3

4 be selected for funding. Applicants should be aware that the Province will not reimburse costs associated with the project if the application for funding is not approved and an agreement with the Province has not been signed. Contracting Subject to any required verification or due diligence procedures, successful Applicants will be asked to enter into contract negotiations with the Ministry of Energy. Successful Applicants will be required to agree on funding terms and conditions set out by the Ministry. Upon execution of funding agreements, funding will be flowed to Recipients according to milestones identified in the contracts. Performance Reporting As outlined in funding agreements with the Ministry, IEDF Recipients would be required to participate in an ongoing performance monitoring process for a period of up to three (3) years from the start of the project. IEDF Eligibility Requirements IEDF Applicant Applicant must be a company or organization incorporated in Ontario or Canada with permanent establishment in Ontario; it may represent a consortium of other domestic (i.e. provincial/territorial) and international partners. Applicant must act in a lead role in relation to the project, including in: o Execution of a contract with the Ministry o Formal communications for the signed contract and project reporting; o Submission of reports, receipt of disbursements and hosting/organizing site visits; o Project management responsible for management of the project including financing the project, leading the work of the project; and o Being the primary contact for communication with project partners. Agreements must be in place with any consortium partners that are necessary to enable the project to proceed. Note: Consortium partners may provide, for example, project funding, time spent on the project, discount on services, or in-kind contributions (e.g. equipment or host site for the demonstration project). 4

5 Applicant must have the rights, or demonstrate the ability to obtain the rights to utilize the technology solution, including rights to IP or IP ownership if applicable. Proposed Demonstration Project The proposed demonstration project must be carried out in a market (i.e. region or country) where the Applicant has not demonstrated the technology before. The proposed demonstration project must be a clean energy project, including microgrid, solar, storage, smart meter data and nuclear projects, or as determined by the Ministry of Energy. The timeline for completion of the project must be 2 years or less. The project must use technologies that at a minimum meet Technology Readiness Level 7 (see table below). Applicant must at a minimum meet the criteria for Commercialization Readiness Level 5, and preferably Level 7 or above (see table below). Any safety and/or regulatory approvals necessary to deploy the technologies in the project must be in place and the host must verify that the project is expected to be technically viable. The focus of the IEDF is on international markets, though the Ministry will consider projects in another Province or Territory on a case-by-case basis. Technology Readiness Levels (TRLs) Basic principles of concept are observed and reported Technology concept and/or application formulated Analytical and experimental critical function and/or proof of concept Component and/or validation in a laboratory Component and/or validation in a simulated System/ subsystem model of prototype demonstration in a simulated Prototype ready for demonstration in an appropriate operational Actual technology completed and qualified through tests and demonstrations Actual technology proven through successful deployment in an operational setting Commercialization Readiness Levels (CRLs) Startup Bootstrap operational business scaling up with initial customers but not financed or cash positive Operational business with adequate financing to continue scale-up Operational business has achieved sufficient revenues from initial customers to be cash positive Has made initial inroads in local/niche markets and is seeking strategic partners to enhance market reach Business has established a position in local or niche markets and has secured national distribution arrangements Business has established a position beyond initial markets and has secured continental distribution arrangements Business has established a position in continental markets and has secured global distribution arrangements Mature business has established a global market position and is exploring diversified potential 5

6 Funding Request Some elements of the project must occur in Ontario only costs incurred in Ontario (whether for domestic or non-domestic goods/services) will be considered eligible for funding Applicant must be seeking funding from the Province within the specified range ($250,000 to $2 million), and amounting to no more than 50% of total project costs A stacking limit of 75% from all domestic government sources will be applied While not required to be eligible for IEDF funding, preference will be given to projects that: meet a demonstrated need from the demonstration host; indicate the host community s acceptance of the project; indicate positive al impacts resulting directly from the project; and have a knowledge mobilization plan in place to share lessons learned, both in the host market and in Ontario. Project technologies with further commercialization potential are preferred. Applications must be complete, submitted by an authorized officer of the company or organization, must be submitted before the prescribed due date and time and must otherwise conform to the submission requirements specified in the application form. What Types of Costs Are Eligible? Eligible costs are those that are incurred and paid by the Applicant (including on behalf of a consortium) after the date of the Approval by Ministry. The costs must be incurred in Ontario (whether for domestic or non-domestic goods/services), and must relate to the implementation of the demonstration project. They could include: Overhead costs related directly to the project Equipment purchase, installation and retrofitting costs Materials required for the completion of the project Direct labour costs for personnel involved in the project (excluding e.g. benefits) Costs associated with training of skilled resources Professional services in support of project deliverables Performance Monitoring, third party validation and evaluation costs 6

7 Costs that are not eligible include but are not limited to the following: Application preparation, success fees, third party government relations consulting services, or similar Vehicles and off site equipment Land Travel, meals and hospitality General working capital requirements not directly attributable to the approved project including debt service costs, Federal or Provincial income taxes, surtaxes or special expenses Remuneration to Shareholders Costs incurred that are reimbursed by a third party or other government or agency Expenses must be documented through invoices and receipts and are subject to verification by an independent audit. Applicants should be aware that the Province will not reimburse costs associated with the project if the application for funding is not approved and an agreement with the Province has not been signed. If Applicants have any questions as to what qualifies as Eligible Costs, including whether a particular cost would be considered incurred in Ontario, it is recommended that they contact Ministry staff for clarification. CONTACT International Energy Demonstration Fund (IEDF) Ministry of Energy Strategic Policy and Research Branch 6 th Floor, 77 Grenville St. Toronto, ON M7A 2C1 iedf@ontario.ca 7