Isolated System Business Efficiency Program


The Isolated Systems Business Efficiency Program targets Newfoundland and Labrador Hydro’s (Hydro) commercial customers in isolated systems, providing support and financial incentives for a wide range of energy saving projects.

Incentives paid to the customer will typically be up to 80% of eligible project costs.

Potential Project Ideas

  • Replace older fluorescent lighting with high performance models
  • Reduce unnecessary lighting by installing occupancy sensors in spaces with variable occupancy, such as washrooms
  • Minimize compressed air use by fixing leaks, reducing system pressure, and installing intelligent controls
  • Install or upgrade insulation to reduce heat lost from refrigeration systems
  • Install variable speed drives on motors with varying loads, such as ventilation system fans
  • Replace old motors with high efficiency motors
  • Recover waste heat from refrigeration or compressed air systems to heat occupied spaces

Application Process

To apply, follow these main steps:

Step 1:
The program targets Hydro’s commercial customers in isolated systems. To confirm your businesses eligibility, call 709-737-4902.

Step 2:
Upon approval of eligibility, detailed facility information will be collected by Hydro staff, with the objective of identifying electricity savings potential.

Step 3:
Identified projects will be further analyzed by Hydro staff, with external assistance if required.

Step 4:
The customer and Hydro enter into a formal Project Development Agreement outlining the project deliverables, expected energy savings, incentives to be provided by Hydro, and obligations of both parties.

Step 5:
Project Close-Out/Measurement and Verification (M&V) primarily consists of quantifying energy savings and finalizing incentives to be dispersed.

For more information on how we can help your business, call 709-730-2695.

Process & Requirements

Step 1 – Facility Data Collection
The first step in the ISBEP is the collection of detailed information of the customer facility, which will typically involve Hydro staff interviewing an informed representative of the customer. In some cases, Hydro staff may visit the facility to confirm information and/or gather more detailed information. The expected outcome is to provide both the customer and Hydro with a summary of major electricity consuming equipment and identifying prioritized list of projects that may warrant further evaluation.

Step 2 – Project Analysis
After selecting a project (or projects) to investigate further, the second step of the ISBEP would begin with Hydro identifying projects that show high potential for electricity savings. If the customer supports further investigation, then Hydro staff will perform detailed project analysis to estimate energy savings, drawing on knowledgeable consultants if required. In parallel, the customer is expected to gather information on project costs, which will be used to determine incentive amounts and economic viability of the project.

Based on the results of this analysis, Hydro would decide whether the proposed project provides a suitable cost/benefit ratio and estimate an incentive amount to those projects which do. If the customer is satisfied with the incentive and commits to completing the project, the next step is a Project Development Agreement.

Step 3 – Project Development Agreement
The Project Development Agreement (PDA) would stipulate the terms and conditions of the incentive payments and define the payment schedule. This schedule will typically be based on specific project milestones, with many projects having incentives paid in full immediately following the installation and commissioning of the energy saving equipment.

The incentive offered by Hydro will typically be the lesser of:

  • an incentive based on first-year energy savings, at a rate of $0.4/kWh
  • 80% of eligible project costs

This PDA will also define the expected energy savings, and the obligations of both the customer and Hydro. A complete Project Development Agreement would typically contain the following information:

  • a detailed description of the project;
  • the estimated costs of implementing the project;
  • the estimated energy savings of the project;
  • the expected persistence (life) of the project;
  • the expected construction commencement and in-service dates;
  • a measurement and verification (M&V) plan satisfactory to Hydro;*
  • other details pertinent to evaluating the project, including other environmental or financial benefits.

Step 4 – Project Close Out / Measurement and Verification
After the project has been successfully implemented, the final step of the ISBEP is the Project Close Out/Measurement and Verification step. This step would use the M&V plan agreed to previously, to verify the energy savings which have been achieved. If savings are less than 85% of the estimate listed in the PDA, there may be reductions to the incentive. Once savings are measured and verified, final incentives would be paid out and the project considered complete. The project file will typically remain open for a term of 3 years, during which time Hydro may request a post-installation audit to confirm that the energy savings continue to be achieved.

Though the above mentioned steps represent the most common process to be followed, there is potential for variations. The most likely variations in this process would be in the case of a potential project which the customer had begun investigating prior to engaging Hydro. If sufficient investigation has been undertaken to satisfy the information requirements of Hydro, then the requirements for data collection and project analysis may be reduced. In addition to the steps listed above, Hydro has staff available to assist customers at any stage of project development.

For more information on how to save energy and save money:
Visit or call 1-888-737-1296

*The complexity of the project and the magnitude of the incentive/savings expected will determine the M&V plan. Approval of the M&V plan will be at the sole discretion of Hydro.