Proposed Green Energy Act sparks changes

The Green Energy Act, if passed, would establish Ontario as North America's leader in renewable energy, drive green investment in the province and create 50,000 jobs in the first three years.

The proposed GEA was introduced in the Ontario Legislature on Feb. 23, 2009. The legislation, and the expected regulatory changes and policies that would flow from it, include a range of measures intended to foster a culture of conservation and encourage the development of renewable energy projects.

Complementary to the GEA, the proposed feed-in tariff program (FIT) would guarantee specific prices for energy generated from renewable sources and drive investment to Ontario.

What is a Feed-In Tariff Program?

A FIT program is a simpler way to contract for renewable energy generation. It is simpler because of standardized program rules and standardized contracts, including standardized prices. Developers of renewable energy projects would receive a FIT contract if they meet all program requirements.

Benefits of Ontario's Proposed FIT Program

Ontario's proposed FIT program would have several key features. It would:

• Provide a simpler way to contract for generation 
• Be open to various renewable energy technologies (full list: wind, waterpower, solar and bio-energy technologies) 
• Allow all types of generators, from homeowners to private developers, to participate 
• Have different prices for different technologies and project sizes 
• Have prices that cover total project costs and provide a reasonable rate of return over a long-term contract (20 years) 
• Provide incentives for First Nation, Métis and community-based projects 
• Offer long-term price guarantees to increase investor confidence and access to financing 
• Provide a right to connect based on shared reasonable costs

For further information on the FIT program, please visit www.powerauthority.on.ca/FIT.