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HomeMy WebLinkAboutDSD-2025-403 - Rooftop Solar InstallationsStaff Report J IKgc.;i' r� R Development Services Department www.kitchener.ca REPORT TO: Special Council DATE OF MEETING: October 6, 2025 SUBMITTED BY: Rosa Bustamante, Director, Planning & Housing Policy, 519-783- 8929 PREPARED BY: Janine Oosterveld, Manager, Customer Experience & Project Management, 519-783-8942 Sloane Sweazey, Senior Policy Advisor, 519-783-8988 WARD(S) INVOLVED: Wards 1 and 5 DATE OF REPORT: October 6, 2025 REPORT NO.: DSD -2025-403 SUBJECT: Request by Dream Industrial Canada Solar Inc. for Municipal Support Resolutions for Rooftop Solar Installations at 1460 Strasburg Road, 250, 500 and 550 Trillium Drive, 60 Steckle Place, and 355 Shirley Avenue RECOMMENDATION: That Municipal Support Resolution associated with properties addressed as 1460 Strasburg Road, 550 Trillium Drive and 500 Trillium Drive for the installation of rooftop solar panels as part of the Second Long -Term Request for Proposals (LT2 RFP) attached to Development Services Department report DSD -2025-403 as Attachment `A' be endorsed; and further, That Municipal Support Resolution associated with properties addressed as 250 Trillium Drive, 60 Steckle Place and 355 Shirley Avenue for the installation of rooftop solar panels as part of the LT2 RFP attached to staff report DSD -2025-403 as Attachment `B' be endorsed; and further, That the Mayor and Clerk be authorized to execute the Municipal Support Resolutions attached to staff report DSD -2025-403 as Attachment `A' and `B' and any other additional documents in support of the Municipal Support Resolutions as required by the Province of Ontario, to the satisfaction of the City Solicitor. REPORT HIGHLIGHTS: • The purpose of this report is to seek a Council decision on 2 Municipal Support Resolutions for Dream Industrial Canada Solar Inc. to install 2 proposed Long -Term Request for Proposals submissions to the Province. • The key finding of this report is that staff recommend Council's endorsement of the subject Municipal Support Resolutions as they are in alignment with the City's climate *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 5 of 15 goals, land use planning policies and economic development objectives and do not pose any undue impacts on the surrounding community. • There are no financial impacts associated with this report. • Community engagement included the staff report posted on the City's website. Council may choose to direct the applicant to conduct further engagement through the Municipal Support Resolutions if deemed appropriate. • This report supports Cultivating a Green City Together: Focuses a sustainable path to a greener, healthier city; enhancing & protecting parks & natural environment while transitioning to a low -carbon future; supporting businesses & residents to make climate - positive choices. BACKGROUND: As part of the Province's plan to meet growing electricity demand, the government has tasked Ontario's Independent Electricity System Operator (IESO) with managing a series of competitive electricity resource procurements focusing on delivering new electricity generation and capacity resources. The Second Long -Term Request for Proposals (LT2 RFP) launched in July 2025 and includes a series of annual procurements. The first submission deadline is in Q4 2025, with contracts awarded in Q1 2026 and expected commercial operation in 2029/2030. Four subsequent annual submission windows are expected to follow a similar schedule. Municipal governments have an important role in these procurements, determining whether to host projects in their communities, and overseeing local development approvals. All proponents are required to obtain written confirmation of municipal support for energy projects within municipal boundaries through a Municipal Council Support Resolution. In anticipation of receiving proposals from energy developers, staff is in the process of developing a governance framework to help guide the City of Kitchener's review and assessment of proposed projects. Although the governance framework is still in development, staff has established an initial basis for assessment, which has been applied to the proposed long-term energy project. The City of Kitchener received a pre -engagement notification from Dream Industrial Canada Solar Inc. regarding their intention to submit two long-term energy projects to the IESO LT2 RFP with one back-up location. This report provides staff's evaluation and recommendation of endorsement of Municipal Council Support Resolutions for the proposed rooftop solar installations. REPORT: Project Details Moose Power on behalf of Dream Industrial Canada Solar Inc. has submitted two requests for rooftop solar installations on the following properties with each grouping of properties with a maximum project capacity of 5.0 megawatts (MW) that feeds into the electricity grid as part of the LT2 RFP: 1. "Project Q" includes 1460 Strasburg Road, 500 and 550 Trillium Drive; 2. "Project S" includes 250 Trillium Drive, 60 Steckle Place and 355 Shirley Avenue. The subject properties are identified on Location Maps 1 and 2. Page 6 of 15 Page 7 of 15 Ok OWN 011 am//O///o%r /*00/01 /%l r r«rr t t ��� / // % '!/%///////////�0 jt t V, /, % ,, . r' �/ / rii� , b_........_ ._..w. = _.........w_.._...:......_......... _ _w .... _.... f��� ... _....._ -:_.__u Project Q: 1460 Strasburg Rd, 550 Trillium Dr, 500 Trillium Dr V Project S: 250 Trillium Dr, 60 Steckle PI 5u "I DO 2011 Location Map 1. Proposed Project Locations Page 7 of 15 i ;Z 4/ it OPlipj % ,, . r' �/ "Op',,, FP ��� !»% 0001 y441, * o", ism J, Project 5: 355 SHIRLEY AVE Q 50 100 200 MM'i' u Location Map 2. Proposed Project Location (Part of Project S) Page 7 of 15 A 5.0 MW (AC) solar project in Southern Ontario will typically produce about 4.8 to 6.6 Gigawatt hours (GWh) per year. The range (4.8 to 6.6 GWh) reflects differences in weather, sunlight, and how efficiently the system is designed and maintained. In Southern Ontario, a solar project of this size would typically generate enough electricity each year to: • Power about 530 to 730 homes, or • Charge electric vehicles for millions of kilometres, or • Replace thousands of tonnes of carbon emissions from fossil fuels A rooftop solar project involves the installation of photovoltaic (PV) panels on the roof of an existing building to generate renewable electricity. Rooftop projects maximize unused roof space, reduce greenhouse gas emissions, and provide long-term cost savings on electricity while supporting sustainability goals. Project analysis Climate and Energy Goals. Through the provision of locally generated, renewable solar energy, the subject proposals demonstrate clear alignment with the City's climate and energy commitments to reduce greenhouse gas emissions and transition to clean energy sources through the City's Corporate Climate Action Plan 2.0; TransformWR Community Climate Action Plan; Kitchener Utilities' Clean Energy Transition Strategy; Waterloo Region Community Energy Investment Strategy; and, the declaration of a climate emergency [2019]. Land Use Planning. The subject properties have industrial land use designations including Business Park Employment and Heavy Industrial Employment in Kitchener's Official Plan with associated employment zoning. Utilizing the expansive rooftops of existing industrial buildings, the proposed rooftop solar facilities complement the planned function of the subject properties. The proposed rooftop solar installations are also consistent with energy conservation and generation policies of the Official Plan whose objectives support and maximize renewable energy systems in appropriate locations. There are no identified compatibility or adverse effects to the community with the subject proposals. Environmental Protection. The projects are not subject to any provincial assessments and the proponent stated that there are no anticipated environmental impacts during the construction and operation of the projects. The proponent emphasized the need for proper recycling of end -of -life solar panels. Moose Power partners with a Nigerian developer to remove and ship panels for reuse in Nigeria. Inverters also require careful recycling, and recyclers purchase used inverters for their metal content. Additionally, the proponent estimates that each project will generate enough clean, renewable energy to power 530 to 730 homes per year. Local Approvals. After a municipal support resolution is issued, municipalities continue to reserve the authority to determine whether to issue permits or other local approvals. Successfully obtaining these approvals is a condition of the contract between the IESO and project developers. The decision of a municipality to provide a Municipal Support Resolution on a specific project is not intended to replace, or guarantee that additional approvals will Page 8 of 15 be provided. In this case, staff anticipate subsequent municipal approvals will be limited to building permit issuance. All properties are subject to Site Plan Control and some are regulated by the Grand River Conservation Authority (GRCA). Neither site plan amendments nor GRCA permits are anticipated if construction is limited to the rooftops. Emergency Management. As the primary provider of certain emergency services, municipalities should be actively engaged in discussions with energy developers to ensure that adequate emergency response plans are in place, and appropriate. As part of their submission to the Province, the proponent will submit an Emergency Management Plan for each project. Kitchener's Chief Fire Prevention Officer stated that rooftop solar panels present certain risks for firefighters, but these concerns are addressed through education and training. Solar panels are commonly installed throughout Kitchener and do not represent a new risk. Enova Consultation. It is essential that the proponent consults with Enova as the local electricity distribution company to ensure the proposals are aligned with both local and regional planning objectives and complies with all specific grid connection requirements. The proponent has initiated consultation with Enova and there were no identified concerns. The proponent must further engage with them for a comprehensive engineering review during the Connection Impact Assessment Stage later in the process. This process will determine whether a service upgrade is necessary and if sufficient capacity exists within the Kitchener service area. Economic Development. As part of the innovation corridor, Kitchener serves as an innovation hub and a major attraction for technology and manufacturing companies. Reliable energy infrastructure is critical to job creation, innovation, and attracting investment. Additionally, the construction of long-term energy projects has the potential to generate local employment opportunities and enhance the regional labour market. These initiatives will also contribute to increased electrical generation capacity, which can attract further investment in Kitchener. Overall, this initiative offers potential economic development benefits, including enhanced local energy capacity and the possibility of attracting businesses by demonstrating increased clean energy production. Community Benefit Agreement. In the energy sector, municipalities are increasingly looking to community benefit agreements (CBAs) as opportunities to recover costs, secure meaningful local benefits, and share in project revenues so they can be reinvested into the community in the long-term. The Association of Municipalities of Ontario has encouraged municipalities and developers to seek to negotiate and conclude a community benefit agreement (CBA) to address priorities and opportunities in a potential host community. Municipalities may choose to require a CBA as a condition in passing a municipal support resolution. In evaluating whether a CBA was warranted for the proposed projects, staff considered both the potential financial implications for the municipality and the broader community impacts. Ultimately, it was determined that the projects would not introduce new costs to the municipality, such as infrastructure upgrades, increased demand on City services, or specialized training, and do not pose environmental or aesthetic concerns. As such, a CBA is not recommended for the subject projects. Page 9 of 15 As staff advances efforts to finalize a Governance Framework for evaluating future LT2 long- term energy project proposals, they will continue to closely monitor developments related to the potential role of CBAs in future LT2 long-term energy project proposals. Conclusion and recommendation Staff recommend endorsement of the Municipal Council Support Resolutions for the two subject projects (Attachments A and B). Staff are of the opinion that they are in alignment with the City's climate and energy objectives and land use planning policies. Further, as rooftop solar installations on existing industrial rooftops, the projects have no anticipated negative environmental or community impacts. The projects will have a positive impact on the community by supporting the community's transition to clean, renewable energy as part of the electricity grid and a cleaner, more resilient energy supply. STRATEGIC PLAN ALIGNMENT: This report supports Cultivating a Green City Together: Focuses a sustainable path to a greener, healthier city; enhancing & protecting parks & natural environment while transitioning to a low -carbon future; supporting businesses & residents to make climate - positive choices. FINANCIAL IMPLICATIONS: Capital Budget — The recommendation has no impact on the Capital Budget. Operating Budget — The recommendation has no impact on the Operating Budget. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the Council meeting. The IESO mandates proponents to provide municipalities with a pre -engagement notification at least 60 days prior to the submission deadline to support comprehensive engagement and consideration of local needs. Should Council feel that additional consultation is warranted, they may provide direction through the Municipal Council Support Resolution for the proponent to conduct additional consultation should their project(s) be selected by the Province to advance through the next stage of the LT2 RFP. Further, the tenants in the buildings are industrial businesses. The proponent, who is also the property owner, has confirmed that tenants of all six buildings have been notified regarding the proposed projects and no objections have been raised to date. Given the type of energy technology, staff are satisfied that there are no anticipated negative impacts to surrounding community and natural conservation lands that would warrant further community consultation. PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter. APPROVED BY: Rosa Bustamante, Acting General Manager, Development Services Page 10 of 15 ATTACHMENTS: Attachment A — Municipal Support Resolution for Project Q: and 550 Trillium Drive Attachment B — Municipal Support Resolution for Project S: Steckle Place, and 355 Shirley Avenue 1460 Strasburg Road, 500 250 Trillium Drive, 60 Page 11 of 15 Attachment A. MUNICIPAL RESOLUTION IN SUPPORT OF PROPOSAL SUBMISSION Date: WHEREAS: 1. The Proponent is proposing to construct and operate a Long -Term Energy Project located on Municipal Project Lands, as defined and with the characteristics outlined in the table below, under the Long -Term 2 Energy Supply (Window 1) Request for Proposals ("LT2(e-1) RFP") issued by the Independent Electricity System Operator ("I ESO"). 2. Capitalized terms not defined herein have the meanings ascribed to them in the LT2(e1) RFP. 3. The Proponent has, no later than sixty (60) days prior to the Proposal Submission Deadline, delivered a Pre -Engagement Confirmation Notice to an applicable Local Body Administrator in respect of the Municipal Project Lands that includes the details outlined in the table below, except for the Unique Project ID which should only be required as part of the Pre -Engagement Confirmation Notice if available. Unique Project ID of the Long -Term LT2e1-1372 Energy Project: Legal Name of the Proponent: Dream Industrial Canada Solar Inc Name of the Long -Term Energy Project: Dream Industrial Rooftop Solar Project Q Technology of the Long -Term Energy Rooftop Solar Project: Maximum potential Contract Capacity of 5 MW the Long -Term Energy Project (in MW) Property Identification Number (PIN), or if • PIN 50061336, 500 Trillium Dr PIN is not available, municipal address or • PIN 50038970, 550 Trillium Dr legal description of the Municipal Project • PIN 50061335, 1460 Strasburg Rd Lands: 4. Pursuant to the LT2(e-1) RFP, if the Long -Term Energy Project is proposed to be located in whole or in part on Municipal Project Lands, the Proposal must include Municipal Support Confirmation which may be in the form of a Municipal Resolution in Support of Proposal Submission; NOW THEREFORE BE IT RESOLVED THAT: 5. The council of the City of Kitchener supports the submission of a Proposal for the Long -Term Energy Project located on the Municipal Project Lands. Page 12 of 15 6. This resolution's sole purpose is to satisfy the mandatory requirements of Section 4.2(c)(iii) of the LT2(e-1) RFP and may not be used for the purpose of any other form of approval in relation to the Proposal or Long -Term Energy Project or for any other purpose. 7. The Proponent has undertaken, or has committed to undertake, Indigenous and community engagement activities in respect of the Long -Term Energy Project to the satisfaction of the Municipality. 8. The Municipal Project Lands does not include lands designated as Prime Agricultural Areas in the City of Kitchener's Official Plan. DULY RESOLVED BY THE CITY OF KITCHENER on the day of , 20 Signed by Mayor City Clerk Page 13 of 15 Attachment B. MUNICIPAL RESOLUTION IN SUPPORT OF PROPOSAL SUBMISSION Date: WHEREAS: 1. The Proponent is proposing to construct and operate a Long -Term Energy Project located on Municipal Project Lands, as defined and with the characteristics outlined in the table below, under the Long -Term 2 Energy Supply (Window 1) Request for Proposals ("LT2(e-1) RFP") issued by the Independent Electricity System Operator ("I ESO"). 2. Capitalized terms not defined herein have the meanings ascribed to them in the LT2(e1) RFP. 3. The Proponent has, no later than sixty (60) days prior to the Proposal Submission Deadline, delivered a Pre -Engagement Confirmation Notice to an applicable Local Body Administrator in respect of the Municipal Project Lands that includes the details outlined in the table below, except for the Unique Project ID which should only be required as part of the Pre -Engagement Confirmation Notice if available. Unique Project ID of the Long -Term LT2e1-1374 Energy Project: Legal Name of the Proponent: Dream Industrial Canada Solar Inc Name of the Long -Term Energy Project: Dream Industrial Rooftop Solar Project S Technology of the Long -Term Energy Rooftop Solar Project: Maximum potential Contract Capacity of 5 MW the Long -Term Energy Project in MW Property Identification Number (PIN), or if . PIN 50038479, 250 Trillium Dr PIN is not available, municipal address or . PIN 50038484, 60 Steckle Place legal description of the Municipal Project PIN 50044856, 355 Shirley Avenue Lands: 4. Pursuant to the LT2(e-1) RFP, if the Long -Term Energy Project is proposed to be located in whole or in part on Municipal Project Lands, the Proposal must include Municipal Support Confirmation which may be in the form of a Municipal Resolution in Support of Proposal Submission; Page 14 of 15 NOW THEREFORE BE IT RESOLVED THAT: 5. The council of the City of Kitchener supports the submission of a Proposal for the Long -Term Energy Project located on the Municipal Project Lands. 6. This resolution's sole purpose is to satisfy the mandatory requirements of Section 4.2(c)(iii) of the LT2(e-1) RFP and may not be used for the purpose of any other form of approval in relation to the Proposal or Long -Term Energy Project or for any other purpose. 7. The Proponent has undertaken, or has committed to undertake, Indigenous and community engagement activities in respect of the Long -Term Energy Project to the satisfaction of the Municipality. 8. The Municipal Project Lands does not include lands designated as Prime Agricultural Areas in the City of Kitchener's Official Plan. DULY RESOLVED BY THE LOCAL MUNICIPALITY on the day of , 20 Signed by Mayor City Clerk Page 15 of 15