May 28, 2009
OPA Support for Renewable Energy
Presentation by Paul Shervill, OPA VP, Conservation
to 3rd Industrial Revolution – Executive Roundtable Canada Meeting
The Ontario Power Authority
• Mandate is to ensure
reliable, sustainable
electricity supply for
Ontario
• Functional areas:
- planning
- conservation
- supply development
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Overview
• Feed-in Tariff Program for Ontario
– Objectives
– Key features
– Pricing
– Stakeholder Consultation
• Areas of Coordinated Development outside OPA
– Regulations
– Renewable Energy Approval
– Distribution Code
– Local Distribution Companies
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Culture of Conservation in Ontario
Conservation the other important part of the Green
Energy Act
– #1 planning resource for the OPA
Energy Conservation Week
– creating a culture of conservation in Ontario
– Count Yourself In! – take the pledge
www.energyconservationweek.ca
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Proposed FIT Program – Objectives
• Increase capacity of renewable energy supply to
ensure adequate generation and reduce emissions
• Will help Ontario eliminate coal-fired generation by
2014
• Simpler method to procure and develop generation
• Create new green industries through new investment
and job creation
• Provide incentives for investment in renewable
energy technologies
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Proposed FIT Program – Standardized Features
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•
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Will be North America’s most comprehensive FIT program
Open to various renewable energy supply technologies
Different prices for different technologies and project sizes
Long-term, fixed-price contracts
Prices that aim to cover total project costs and provide a
reasonable rate of return over the contract term
• Opportunities for promoting participation in projects by local
community members and Aboriginal communities
• Designed to require developer to undertake certain development
work in advance of contract execution
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Proposed FIT Program – Pricing
• Pricing by technology and size
• Prices aim to cover total project costs
and provide a reasonable rate of return
over the contract term
• Opportunities for promoting community-based and
Aboriginal participation in projects
• Prices derived using recent market data, OPA
experience with previous renewable energy contracts
(RES, RESOP), experience in other jurisdictions and
stakeholder consultation
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Summary of Changes – FIT Price Schedule
Technology
Capacity Range
Rooftop or Ground
Mounted Solar PV
Rooftop Solar PV
Rooftop Solar PV
Rooftop Solar PV
Ground Mounted
Solar PV
On-shore Wind
≤ 10 kW
Original Proposed Revised Proposed
Price (¢/kWh)
Price (¢/kWh)
80.2
80.2
71.3
63.5
53.9
44.3
Any size
71.3
63.5
53.9
44.3 (automatic
degression)
13.5
Off-shore Wind
Waterpower^
Any size
≤ 10 MW
19.0
12.9 / 20-yrs
19.0
13.1 / 40-yrs
Waterpower^
Biomass
Biomass
Biogas
Biogas
Biogas
Landfill gas
> 10 MW ≤ 50 MW
≤ 10 MW
> 10 MW
≤ 500 kW
> 500kW ≤ 10 MW
> 10 MW
≤ 10 MW
> 10 MW
> 10 kW ≤ 250 kW
> 250 kW ≤ 500 kW
> 500 kW
> 10 kW ≤ 10 MW
12.2
14.7
10.4
11.1
10.3
13.5
12.2 / 40-yrs
13.8
13.0
16.0
14.7
10.4
11.1
10.3
All prices increase by CPI to the earlier of the Commercial Operation Date and the Milestone Date for Commercial Operation, then
increase by 20% of CPI
All technologies eligible for Aboriginal or Community Price Adder up to 1.5 c/kWh for up to 50% equity share
(max. 1.5 for Aboriginal, max 1.0 for Community)
^ Contract term for waterpower projects proposed to8 increase to 40-years, therefore lower prices
Stakeholder Consultation
• 8 full-day sessions over nine weeks
– Workshops from March 17 to May 12
– Each covered a different topic
– 3 sessions for First Nations and Métis
representatives
• Q & A tool on OPA website
– Responses to questions posted publicly
– Could also submit comments and
recommendations
• Helped shape the program
– Prices, draft program rules, contract
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Coordinated Development Outside OPA
• To ensure successful and timely launch of the FIT
Program, the following areas are being developed in
coordination with development of the FIT Program:
– Regulations
• OPA is working with government to identify
(and potentially draft) key regulations needed
for FIT Program launch
• Key areas that may be covered by regulations
– Domestic/Provincial content
– Community funds
– Aboriginal funds
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Development Outside OPA (continued)
– Renewable Energy Approval (REA)
• Ministry of Environment is working with
other ministries and agencies to develop one
approval process
• REA will be a key FIT contractual
milestone
– Distribution System Code (DSC)
• Changes required to define cost allocation rules regarding
distribution system expansion
• Other DSC changes may include:
– Distribution system planning/connection tests
– Transmission Priority
• OPA working with IESO, MEI and Hydro One to prioritize
• Billions of dollars to be invested in both transmission and
distribution to connect renewable energy
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Role of Local Distribution Companies
• OPA working with LDCs to define their roles and
responsibilities in administering the FIT Program
• OPA will also propose LDCs to settle
applicable FIT contracts
– Consistent with settlement of Renewable Energy Standard
Offer Program (RESOP) contracts
• LDCs will be required to produce plans to expand
their distribution systems
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