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Ontario’s Feed-In Tariff Program Backgrounder
  • Ontario’s Feed-In Tariff (FIT) program for renewable energy generation is a cornerstone of the province’s Green Energy Act. The provincial government launched the program in September 2009, and the Ontario Power Authority (OPA) started accepting applications October 1, 2009. It is North America’s first comprehensive feed-in tariff program for renewable energy.
  • The program includes a stream called microFIT which is designed to encourage homeowners, businesses and others to generate renewable energy with projects of 10 kilowatts (kW) or less. MicroFIT is designed to make it simpler and faster to get small-scale renewable projects installed and producing power. The FIT program is designed for larger projects greater than 10 kW.
  • Prices paid for renewable energy generation under FIT and microFIT vary by energy source and take into account the capital investment required to get a project up and running:

    Renewable Technologies and Pricing

    Landfill gas
    10.3¢ - 11.1¢/kWh
    Biogas
    10.4¢ - 19.5¢/kWh
    Waterpower
    12.2¢ - 13.1¢/kW
    Biomass
    13.0¢- 13.8¢/kWh
    Windpower
    13.5¢ - 19¢/kWh
    Solar PV
    44.3¢ - 80. 2¢/kWh

    • Under the program, participants are paid a fixed-price for the electricity they generate. FIT and microFIT contracts are for 20 years, with the exception of waterpower, which has a 40-year contract.
    • Domestic content requirements for both FIT and microFIT projects are intended to help support the creation of 50,000 new green jobs in Ontario. MicroFIT projects will help create new local businesses and green jobs as demand grows for technologies such as solar panels, wind turbines, biomass and waterpower generation equipment, and for Ontarians who can design, build, install, operate and maintain these technologies.
    • Currently, about 1,300 MW of renewable electricity are in operation in Ontario, excluding large-scale hydro, enough to power more than 300,000 homes – or a city the size of Windsor.
    • Ontario is Canada’s leader in wind power and solar photovoltaic capacity. The province is home to both Canada’s largest wind and solar farms. Ontario is already among the top 10 solar jurisdictions in Canada and the United States, ranked even higher than sunny places like Florida and Texas.
    microFIT Applications

    • The first 700 microFIT conditional offers were issued on Dec. 16, 2009.
    • As of March 8, 2010, over 180 projects were connected to the grid and will be receiving payments for the electricity generated.
    • The OPA has received microFIT applications from across the province, from Windsor to Thunder Bay. There are some areas that have had a significant number of applications submitted, including Chatham-Kent, Toronto and Ottawa.
    • As of March 8, 2010, the Ontario Power Authority has received over 6000 microFIT applications. Ontario Power Authority is continuing to review and verify these applications.
    • Breakdown of microFIT applications received as of March 8, 2010 :

    Energy Source
    Number of Applications
    Capacity (Kw)
    Solar Photovoltaic (PV) 6,114 454,299.4
    Wind 40 305.4
    Renewable biomass 11 93
    Landfill Gas 6 52.4
    Water 4
    16.9
    Biogas 1 9.6
    Total 6,176 54,777

     

    • As of March 8, 2010, the Ontario Power Authority sent almost 2000 conditional offers to microFIT applicants subject to applicants obtaining approval to connect to the electricity grid from their local distribution company (LDC).
    • Once the connection offer is obtained from the local distribution company and a contract is signed, the length of time it will take for microFIT applicants to start generating electricity will vary depending on the readiness of individual projects.
    • MicroFIT is an ongoing program with applications being accepted on a continual basis. Once the current applications have been processed, the Ontario Power Authority anticipates a 30-day turnaround for microFIT applications.
    • Detailed information about the microFIT application process and program rules are available on the OPA website.

    FIT Capacity Allocation Exempt projects

    • The first of the 510 FIT Capacity Allocation Exempt contracts were awarded on March 10, 2010.
    • Capacity Allocation Exempt means that they can be developed without significant impact on the transmission or distribution systems, and through an expedited connection process.
    • As of Dec. 1, 2009 the Ontario Power Authority received 956 acceptable FIT applications. 510 of these projects were between 10 and 500 kilowatts and are Capacity Allocation Exempt.


     
    FIT Applications - Next Steps

    • The OPA has estimated that there is approximately 2,500 megawatts of available transmission connection capacity for renewable energy projects over 500 kilowatts. The Ontario Power Authority is continuing to review and verify these applications and will give priority to “shovel-ready” projects.
    • The first round of FIT applications are prioritized based on specific criteria to determine the most viable and “shovel-ready” projects that can be in operation soonest. FIT applications require a much more extensive review by the Ontario Power Authority, local distribution companies, transmitters and the Independent Electricity System Operator. Given the tremendous number of applications, the Ontario Power Authority has redeployed resources to complete the review.
    • In March, the OPA started offering FIT contracts beginning with Capacity Allocation Exempt projects (10 to 500 kW), and it will continue in April with the rest of the FIT projects.


     

    Transmission Expansion

    • 1,500 MW of additional transmission capacity will be delivered through the Bruce to Milton transmission project that Hydro One currently has underway.
    • Economically viable projects that do not receive contracts will be considered once more transmission connection capacity is available or approved. The OPA will determine viability through an Economic Connection Test. It will carry out this test every six months on a rotating basis throughout the province. The schedule for the test will be developed as part of the review process.
    • Ontario is undertaking an ambitious program of expansion and renewal of the province's transmission facilities. Twenty transmission projects as well as investments into the distribution network were announced last September to ensure there is enough capability for renewable generation resulting from the FIT and the Green Energy Act. The projects represent a potential investment of about $2.3 billion over the next three years, and are expected to result in about 20,000 jobs. They include core lines, which form the backbone of the transmission system, and enabler lines. Hydro One Networks is leading these transmission expansion initiatives.
    • Planning for six core transmission network upgrades are moving forward, including North-South lines from Sudbury to Barrie and Barrie to the Greater Toronto Area and an East-West line from Nipigon to Wawa. In addition to bringing more renewable power online, these significant upgrades will strengthen the reliability of Ontario's transmission system and increase energy transfer across the province.
      - 30 -


    Media Contact - Tim Butters, Ontario Power Authority, 416-969-6307 /
    Toll Free: 1-800-797-9604

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