Ontario: Home of the Smart Grid
Ontario Clean Technology Alliance
Page 1
Contents
Ontario: Home of the Smart Grid
This presentation outlines the reasons why
Ontario is rapidly becoming a hub of smart
grid excellence. It provides an overview
of the provincial Government’s numerous
smart grid initiatives and sets out some
of the economic benefits of establishing
a smart grid business in Ontario. It also
includes case studies of some of the
most innovative home-grown smart grid
companies and a selection of the world’s
leading smart grid businesses that have
established offices in Ontario. Finally, this
presentation also contains investment
trends in smart grid and the wider clean
energy sector.
For more information on the business opportunity in
Ontario please visit:
www.ontariocleantechalliance.com
Jennifer Patterson
Ontario Clean Technology Alliance
Jennifer.Patterson@hamilton.ca
For more information on the data included in this
presentation please visit:
www.cleanenergypipeline.com
Thomas Sturge
Clean Energy Pipeline
thomas.sturge@vbresearch.com
The global clean energy investment landscape
• Total new global investment in clean energy: 1Q09 to 4Q12
• Total investment in private clean energy companies: 1Q09 to 4Q12
Pages 3 - 4
The smart grid market in numbers
• Where are smart grid companies based globally?
• Global smart grid market opportunity
• Total investment in private smart grid companies: 1Q09 to 4Q12
• An analysis of investment in private smart grid companies: 2012
Pages 5 - 8
Ontario – a hub of smart grid companies
• Many international blue chip smart grid companies have opened offices
in Ontario
• A large number of smart grid companies are headquartered in Ontario
• Grid energy management case studies (Headquartered in Ontario)
• Home energy management case studies (Headquartered in Ontario)
• Smart grid communications case studies (Headquartered in Ontario)
Pages 9 - 13
Ontario – a hub of smart grid research
• A series of prestigious smart-grid research associations are based in
Ontario
• Smart grid research centre case studies
• Smart grid research centre case study
Pages 14 - 16
Why is Ontario the destination of choice for smart grid companies?
• Why Ontario: located at the heart of the North American market
• Why Ontario: energy demand is expected to increase
• Why Ontario: large and growing deployment of renewable energy projects
• Why Ontario: the Government is supporting the smart grid industry
• Why Ontario: the Smart Grid Fund
• Why Ontario: highly attractive economic incentives
• Why Ontario: highly attractive economic incentives
Pages 17 - 21
Page 2
Total new global investment in clean energy
100
90
80
Deal value ($ billion)
70
1Q09 to 4Q12
$33
billion
invested in 2004
Total private investment in the global clean energy
sector hit $256 billion in 2012, a 14% decrease on
the $293 billion recorded in 2011. This is the first
time that total investment has ever fallen year-onyear. Despite this annual decline, investment in
2012 was at its third highest level ever. In addition,
the $68 billion invested in 4Q12 was more than
double the $33 billion invested throughout 2004.
$68
billion
invested in 4Q12
60
50
40
30
20
10
0
Project & asset finance
Small-scale project investment
Venture capital & private equity (excluding buyouts)
Note:
Total investment includes venture capital and private equity, project & asset finance,
investment in small-scale distributed capacity and public markets transactions.
Page 3
Public markets
4
3
2
1
0
6
300
5
250
4
200
3
150
2
100
300
1
50
250
0
200
0
Number of deals
Deal value ($ billion)
5
1Q09 to 4Q12
150
Smart grid companies are competing for a smaller pool of investment – venture capital and
private equity firms invested $7.4 billion in the clean energy sector globally in 2012, under half
the $15.4 billion invested in 2011. Venture capital and private equity investment fell for a fifth
100
consecutive quarter to $1.6 billion in 4Q12, the lowest level since the beginning
of 2009.
Notes:
[a] Venture capital (early-stage) comprises Series A – C funding rounds
[b] Venture capital (late-stage) comprises Series D and later funding rounds
*A private company is defined as a legal entity whose shares are not traded on a public exchange.
50
0
Page 4
PE - Development Capital
Venture capital (late-stage) [b]
Venture capital (early-stage) [a]
Number of deals
Number of deals
6
Deal value ($ billion)
Total investment in private* clean energy companies
Where are smart grid companies based globally?
NORTH
AMERICA
59%
EUROPE
32%
MIDDLE EAST
2%
ASIA PACIFIC
7%
Smart grid technology development and maturity levels
TECHNOLOGY AREA
MATURITY LEVEL
DEVELOPMENT TREND
Wide-area monitoring and control
Developing
Fast
Information and communications technology integration
Mature
Fast
Renewable and distributed generation integration*
Developing
Fast
Transmission enhancement applications**
Mature
Moderate
Distribution management
Developing
Moderate
Advanced metering infrastructure
Mature
Fast
Electric vehicle charging infrastructure
Developing
Fast
Customer-side systems
Developing
Fast
Source: International Energy Agency (2011)
* Battery storage tecnologies are less mature than other distributed technologies
** High Temperature Superconducting technology is still in the developing stage of maturity
Page 5
Global smart grid market opportunity
UK
$290 million
USA
ONTARIO
$1.0 billion
$7.1 billion
SPAIN
$807 million
SOUTH KOREA
$824 million
GERMANY
$397 million
FRANCE
$265 million
JAPAN
$849 million
CHINA
$7.3 billion
BRAZIL
$204 million
AUSTRALIA
$360 million
Note:
The above figures represent planned investment in smart grid infrastructure.
Page 6
Total investment in private* smart grid companies
1Q09 to 4Q12
350
35
Global venture capital and private equity investment
in smart grid companies totalled $450 million in
2012, an 8% decrease on the $491 recorded in 2011.
Despite the decline in dollars invested, the number of
investments remained robust at 73 in 2012, an uptick
on the 70 recorded in 2011.
300
25
200
20
150
15
100
10
50
5
0
0
VC - Early Growth (Series A to C)
VC - Late Stage (Series D+)
*A private company is defined as a legal entity whose shares are not traded on a public exchange.
Page 7
PE - Development Capital
Deal number
Number of deals
Deal value ($ million)
250
30
An analysis of investment in private* smart grid companies
NORTH
AMERICA
2012
UK
9%
FRANCE
GERMANY
5%
3%
82%
ISRAEL
1%
*A private company is defined as a legal entity whose shares are not traded on a public exchange.
Page 8
Many international blue chip smart grid companies have opened offices in Ontario
Ottawa, ON, Canada
ONTARIO
Offices throughout Ontario
Market Cap: $48.1 billion
Concord, ON, Canada
Toronto, ON, Canada
Burlington, ON, Canada
Market Cap: $5.5 billion
Market Cap: $2.3 billion
Mississauga, ON, Canada
Market Cap: $29.9 billion
Mississauga, ON, Canada
Page 9
Toronto, ON, Canada
RuggedCom Inc.
Richmond Hill, ON, Canada
Redline Communications Inc.
Markham, ON, Canada
Triacta Power Technologies Inc.
Carleton Place, ON, Canada
CASE STUDY
3
Concord, ON, Canada
N-Dimension Solutions Inc.
CASE STUDY
CASE STUDY
5
6
A large number of smart grid companies are headquartered in Ontario
Digital Engineering, Inc.
Thunder Bay, ON, Canada
ONTARIO
Agile Systems Inc.
Waterloo, ON, Canada
Energate Inc.
Ottawa, ON, Canada
Aztech Associates Inc.
Kingston, ON, Canada
REGEN Energy Inc.
Energent Inc
Toronto, ON, Canada
CASE STUDY
4
Waterloo, ON, Canada
CEM Specialties Inc.
Toronto, ON, Canada
Oldcastle, ON, Canada
Prolucid Technologies
Mississauga, ON, Canada
Page 10
Survalent Technology
Mississauga, ON, Canada
CASE STUDY
Essex Energy Corp
CASE STUDY
2
1
London, ON, Canada
ecobee Inc.
ENBALA Power Networks
Toronto, ON, Canada
Grid energy management case studies (Headquartered in Ontario)
CASE STUDY
1
CASE STUDY
ENBALA Power Networks
2
Survalent Technology
FOUNDED
2003
FOUNDED
1964
CORPORATE HEADQUARTERS
Toronto, ON
CORPORATE HEADQUARTERS
Mississauga, ON
ADDITIONAL OFFICES
Conshohocken, PA and North Vancouver, BC
ADDITIONAL OFFICES
US, Latin America and Europe
SECTOR
Grid energy management software
SECTOR
Grid management systems including SCADA
FUNDS RAISED TO DATE
FUNDS RAISED TO DATE
c.$16 million, including $7.4 million raised in January 2013
Undisclosed
INVESTORS
INVESTORS
EnerTech Capital, Chrysalix Energy LP, Export Development Canada, XPV Capital Corp
Undisclosed
FINANCIAL INFORMATION
FINANCIAL INFORMATION
Not disclosed although revenues are expected to grow 5x-10x this year on 2012
Undisclosed
EMPLOYEE NUMBERS
Undisclosed
EMPLOYEE NUMBERS
c.35
COMPANY DESCRIPTION
COMPANY DESCRIPTION
ENBALA has developed a smart grid platform that manages the way electrical
equipment uses power. This enables electricity system operators to better balance grid
systems, thus improving the overall efficiency of the grid, reducing costs and cutting
greenhouse gas emissions.
Survalent Technology provides real-time grid management systems that enable utilities
to visualise and optimise the reliability and efficiency of their grids. Its suite of solutions
include: Supervisory Control and Data Acquisition (SCADA), Outage Management
Systems (OMS), Distribution Management Systems (DMS), Distribution Automation (DA)
and Demand Response (DR).
RECENT NEWS/SUCCESSES
RECENT NEWS/SUCCESSES
The company operates in PJM, the world’s largest electricity transmission company,
which serves the US northeast market. It currently has 25 industrial customers whose
equipment it controls. In December 2012 it was named as one of the top 10 most
promising Canadian cleantech companies according to Corporate Knights. It was also
awarded the Ontario Energy Association’s Excellence Award as Small Company of the
Year in October 2012 and was also listed on the 2012 Global Cleantech 100 list.
Survalent Technology has provided grid SCADA systems to over 400 utilities since
its inception five decades ago. Flagship customers include Comision Federal de
Electricdad, BC Hydro, Sho-Me Power G&T and Electricities NC.
Page 11
Home energy management case studies (Headquartered in Ontario)
CASE STUDY
3
CASE STUDY
Energate Inc.
4
ecobee Inc.
FOUNDED
2004
FOUNDED
2007
CORPORATE HEADQUARTERS
Ottawa, ON
CORPORATE HEADQUARTERS
Toronto, ON
ADDITIONAL OFFICES
Laguna Woods, CA and Toronto, ON
ADDITIONAL OFFICES
Northboro, MA, Chandler, AZ, Largo, FL, & Greenwood, IN
SECTOR
Home energy management demand response software
SECTOR
Thermostat-based home energy management systems
FUNDS RAISED TO DATE
FUNDS RAISED TO DATE
c.$7 million
$6.7 million
INVESTORS
INVESTORS
Cycle Capital Management, Ontario Emerging Technologies Fund
Tech Capital Partners, JLA Ventures, Government of Ontario
FINANCIAL INFORMATION
FINANCIAL INFORMATION
Undisclosed
Undisclosed
EMPLOYEE NUMBERS
35 (as of May 2012)
EMPLOYEE NUMBERS
Undisclosed
COMPANY DESCRIPTION
COMPANY DESCRIPTION
Energate is developing a suite of home energy management and demand response
solutions. Its Consumer Connected Demand Response (CCDR) product, which includes
smart thermostats, wireless communications, consumer displays and ancillary
software, enables users to more efficiently manage energy use.
ecobee has developed a WiFi-enabled smart touch-screen thermostat system that
enables homeowners to monitor and manage the energy consumption of heating
and cooling systems. The solution also includes a web-based interface that enables
homeowners to monitor energy savings.
RECENT NEWS/SUCCESSES
RECENT NEWS/SUCCESSES
Energate counts 30 utilities amongst its customers. In June 2012, the company secured
$2.9 million from the Ontario Ministry of Energy’s Smart Grid Fund to support its
participation in its Consumer Engagement for the Smart Grid (CESG) project. The purpose
of the project, which is being undertaken in conjunction with six Ontario Local Distribution
Companies (LDCs), is to stimulate consumers’ engagement in home energy management
by demonstrating the benefits of smart grid solutions in residential households.
In December, 2012, ecobee announced that it has formed a strategic partnership with
Austin Energy to launch the Texas utility’s 2013 Power Partner Thermostat Program
Pilot. Under the program, Austin Energy will deploy ecobee thermostats at homes
across the Austin area to help reduce peak electricity demand between June and
September 2013. In April 2012, ecobee was awarded the Green Toronto Award in the
Energy Conservation category for its suite of smart grid solutions.
Page 12
Smart grid communications case studies (Headquartered in Ontario)
CASE STUDY
5
CASE STUDY
RuggedCom Inc.
6
Redline Communications Inc.
(now part of Siemens)
(TSX: RDL)
FOUNDED
2001
FOUNDED
1999
CORPORATE HEADQUARTERS
Concord, ON
CORPORATE HEADQUARTERS
Markham, ON
ADDITIONAL OFFICES
Hollywood, FL and Bristol, UK
ADDITIONAL OFFICES
SECTOR
Smart grid communications
Miami Beach, FL, Dubai, UAE, Westmount, QC and Craiova, Romania
FUNDS RAISED TO DATE
n/a
SECTOR
INVESTORS
FUNDS RAISED TO DATE
n/a
INVESTORS
FINANCIAL INFORMATION
n/a
Revenues of C$94 million (fiscal 2011)
FINANCIAL INFORMATION
EMPLOYEE NUMBERS
c.400
Smart grid communications
n/a
Revenues of $15.05 million in 3Q12, up 25% on the previous quarter
COMPANY DESCRIPTION
EMPLOYEE NUMBERS
RuggedCom manufactures communications equipment that is capable of operating
in harsh environments including electricity networks, rail networks and oil and gas
facilities. It developed the world’s first IEC 61850-3 compliant Ethernet switch suitable
for use in electric utility substation environments.
COMPANY DESCRIPTION
Over 150
Redline Communications is a provider of advanced wireless broadband networks
that enable high-bandwidth video, voice and data communications. The company’s
wimax technology has a wide range of applications and are frequently used in the
telecommunications, energy, smart grid and public safety sectors.
RECENT NEWS/SUCCESSES
RECENT NEWS/SUCCESSES
In March 2012, RuggedCom was acquired by Siemens for C$382 million. The company
was previously listed on the Toronto stock exchange under the ticker symbol TSX: RCM.
The company has a global network of customers and secured certification from China’s
Ministry of Industry and Information Technology for its broadband wireless solution. Its
technology is also installed in China’s largest solar PV plant.
Redline Communications rugged communications solutions are used in the wide variety
of applications. The company has recently secured a multi-million dollar contract with
a US based oil and gas company to provide communications solutions at its drilling rigs
in Oman.
Page 13
(GE Canada & Ontario Government)
• $40 million investment
• 200,000 sq ft facility
CASE STUDY
Grid IQ Innovation Centre
9
CASE STUDY
7
A series of prestigious smart-grid research associations are based in Ontario
IBM Canada Research and
Development Centre
• $210 million investment
CASE STUDY
8
University of Ottawa
ONTARIO
Queen’s University
University of Ontario Institute of Technology
University of Toronto
University of Waterloo
Smart Grid Research and
Innovation Center
McMaster University
(Mahindra Satyam and
University of Waterloo)
Western University
Page 14
Smart grid research centre case studies
CASE STUDY
7
CASE STUDY
8
Smart Grid Research and
Innovation Center
Grid IQ Innovation Centre
GE Canada & Ontario Government
Mahindra Satyam and University of Waterloo
FOUNDED
2012
FOUNDED
2011
CORPORATE HEADQUARTERS
Markham, ON
CORPORATE HEADQUARTERS
University of Waterloo, ON
ADDITIONAL OFFICES
n/a
ADDITIONAL OFFICES
n/a
SECTOR
SECTOR
Research into a variety of smart grid technologies
Research into a variety of smart grid technologies including home energy management
FUNDS RAISED TO DATE
FUNDS RAISED TO DATE
n/a
$40 million
INVESTORS
INVESTORS
Mahindra Satyam
GE Canada
FINANCIAL INFORMATION
FINANCIAL INFORMATION
n/a
n/a
EMPLOYEE NUMBERS
EMPLOYEE NUMBERS
n/a
COMPANY DESCRIPTION
146 (when fully operational)
The Smart Grid Research and Innovation Center will provide students, teachers and
IT professionals with the tools to develop and evaluate new smart grid technologies.
The centre is part of an ongoing strategic relationship between Mahindra Satyam and
the University of Waterloo. Mahindra Satyam is an information technology services
company that has deep expertise in smart grid data analytics, renewable systems
integration and electric vehicles. Mahindra Satyam also recently announced the
opening of its Smart Grid Customer Demonstration Center (CDC), located in Hyderabad,
Andhra Pradesh, India.
COMPANY DESCRIPTION
In October 2012, GE Canada opened its 200,000 square foot Grid IQ Innovation
Centre, located in Markham, ON. Researchers at the centre will use new technology,
including a 60 foot video screen that demonstrates smart grid solutions, to undertake
research into new smart grid solutions.
Page 15
Smart grid research centre case study
CASE STUDY
9
IBM Canada Research and
Development Centre
FOUNDED
2012
LOCATION
University of Toronto, Western University, Queen’s University, McMaster University,
University of Waterloo, University of Ottawa and the University of Ontario Institute of
Technology.
ADDITIONAL OFFICES
n/a
SECTOR
Research into a variety of smart grid technologies
FUNDS RAISED TO DATE
$210 million
INVESTORS
IBM Canada ($175 million), Government of Canada ($20 million), Government of
Ontario ($15 million)
FINANCIAL INFORMATION
n/a
EMPLOYEE NUMBERS
145 when fully operational
COMPANY DESCRIPTION
IBM, the Governments of Canada and Ontario, and a consortium of seven universities
led by the University of Toronto and Western University are collaborating to invest
$210M to form a new research and development innovation network in Ontario that will
create 145 new highly skilled jobs. The investments will enable researchers to leverage
cloud computing and big data methods to examine challenges in the smart grid, water
and healthcare sectors.
Page 16
Why Ontario: located at the heart of the North American market
Page 17
Why Ontario: energy demand is expected to increase
The Ontario Ministry of Energy’s 2010 Long Term Energy Plan estimates that c.15,000 MW of power capacity will need to
be renewed, replaced or added by 2030, a significant volume given that 35,000 MW was operational in 2010. A significant
volume of renewable energy capacity has been brought online in the past three years, meaning that the province should
easily be able to meet its energy needs through 2015. However, due to the following four drivers, further capacity will need
to be added in order for the province to meet its energy demand post 2015.
• Population growth: The population of Ontario is expected to increase
28% by 2030 on 2010 levels, representing an increase of around
3.7 million people. Most of this increase will be concentrated in
urban areas – the population of the Greater Toronto Authority is
expected to increase c.38% by 2030 on 2010 levels.
• Industrial growth: According to the Ontario Ministry of Energy’s Long
Term Energy Plan, electricity demand of large industrial corporations,
which accounts for c.20% of total electricity demand, is expected to
grow ‘moderately’ in the next 20 years.
• Retiring coal generation: The Ontario Government has a long-standing commitment established in 2003 to shut down all coal-fired
power plants by 2014. When all plants are shuttered, Ontario will be
the first jurisdiction in North America to be completely coal-free. Only
ten years ago 19 coal fired plants supplied approximately a quarter
of the province’s power.
• Electric Vehicles: Ontario is targeting that one in every 20 vehicles
be electric-powered by 2020. This will not only increase electricity
demand, but will also require a smart grid that enables vehicles to
be charged efficiently.
Page 18
Why Ontario: large and growing deployment of renewable energy projects
• A significant proportion of the power capacity Ontario will need
to build out to meet rising energy demand will be added through
upgrading the province’s nuclear facilities at Darlington, Bruce and
Pickering B and by building two new nuclear units at the Darlington
facility. Due to the low cost of nuclear energy, the government has
committed for nuclear power to account for approximately half of the
province’s energy supply.
Installed wind capacity in Ontario (MW)
2500
Capacity (MW)
2000
• The province is also heavily relying on renewable energy to meet
capacity shortfalls. The Ontario Government is targeting 10,700 MW
of installed non-hydro renewable energy by 2015. This has led to a
rapid surge in renewable energy installations. According to a report
released by the Ontario Smart Grid Forum in 2011, over 25,000
homeowners, farmers, schools and businesses have signed up to
develop off-grid renewable energy projects.
1500
1000
500
• The volume of installed wind capacity in Ontario has grown significantly in recent years from 414 MW in 2006 to over 2,000 MW in
2012. Given the intermittency of renewables, smart grid technologies will need to be adopted to ensure that renewable energy is
integrated into the grid in an efficient way.
0
Source: CanWEA
Source: Ontario’s Long-Term Energy Plan
(http://www.energy.gov.on.ca/en/ltep/overview/)
Page 19
Why Ontario: the Government is supporting the smart grid industry
• Ontario has recently completed the $1 billion roll-out of 4.7 million
smart meters to every homeowner and small business, which
will enable time-of-use pricing that accurately reflects the cost of
power generation. It is the first jurisdiction in North America to have
completed such an initiative.
• The Government of Ontario has committed to continue investing in
smart grid initiatives. The Ontario Smart Grid Forum anticipates that
$390 million of public funds will be invested in Ontario’s smart grid
sector per year during the next five years. These investments will be
made in a number of areas, including grid automation, monitoring
and communications, smart grid research and pilot projects and
connecting renewable energy capacity to the grid.
• The province is taking strides to incorporate new smart grid
technology into the grid. In December 2012, Ontario’s Independent
Electricity System Operator (IESO) announced that it had entered
into contract negotiations with ENBALA Power Networks Inc., NRStor
Inc., and RES Canada to procure 10 MW of electricity grid regulation
services, which will help to match total electricity generation to total
demand on a second by second basis.
• The provincial government is also promoting the smart grid
sector through the ‘Ontario Green Button’ initiative, which will use
innovative smart grid technologies to enable homeowners and
businesses to view their energy consumption data through a web
portal.
• The Ontario Ministry of Energy is supporting smart grid innovation
through its Smart Grid Fund, which was launched in 2011 and
made its first investments in June 2012. An overview of its first 13
investments, which total c.$25 million, are listed on the next slide.
Page 20
Why Ontario: the Smart Grid Fund
The Ontario Government has established a Smart Grid Fund to invest in Ontario-based projects that test, develop and
commercialise innovative smart grid solutions. It has already invested in a number of projects, which are outlined below.
JOBS
CREATED
PROGRAM
COMPANY
PROJECT DESCRIPTION
Behind the meter
Ecobee
Placing smart office displays in 300 small and medium sized commercial buildings to demonstrate energy and
operational savings that can be achieved using a web based energy management system.
Behind the meter
Energate
Placing hundreds of smart energy management in-home displays to demonstrate their integration with advanced
metering infrastructure and to test their ability to help grid operators manage the system.
40
Integrating Distributed
Energy Resources
Enbala
Connection of 90 different commercial and industrial loads to the Enbala Power Network to test the capacity of the
network to serve as a grid management tool.
22
Regional Integration
Siemens
Building a control centre for three utilities to enable interaction, control, dispatching, monitoring, asset condition
assessment, and load modeling/control/balancing of their systems.
29
Regional Integration
Burlington Electricity
Services
Establishing a mixed residential-commercial community that integrates a variety of Smart Grid technologies, e.g.
distribution automation, increased distributed generation capacity, and home energy management.
53
Data Management
IBM
Creating a research collaboration centre that will use and analyze smart meter data. The project will leverage this
data to identify ways to improve conservation and shift usage away from peak times.
145
Data Management
Prolucid Developing, testing and gathering data in real time to give local distribution companies more automated control
over managing their systems by pinpointing outages and finding fault responses.
11
Data Management
N-Dimensions
Demonstrating cyber security capabilities for smart meter collector systems. This will help ensure data is secure.
14
Data Management
Essex Energy Corp.
Construction of a software system that will integrate data sources from a variety of technologies (including existing
smart meters) to monitor the state of the distribution system and alert operators to system problems.
16
Grid Automation
RuggedCom
Developing new infrastructure that will support and encourage the wide scale adoption of smart grid, renewables
energy and electric vehicle solutions.
14
Grid Automation
RuggedCom
Creating a demo of open, standards-based, real-time, two-way, broadband, secure, and reliable communications for
the smart grid.
10
Grid Automation
dTechs
Installing 225 high resolution wireless sensors on the medium voltage supply in Oakville to help the utility detect
issues on their grid, making the system more efficient and reliable.
Grid Automation
GE
Building a facility for research and development in substation and distribution automation, transmission protection
and control.
Source: Ontario Ministry of Energy
Page 21
7
8
370
Why Ontario: highly attractive economic incentives
Research & Development tax credits: Ontario’s R&D tax incentives are
highly competitive and are amongst the most favourable in the world.
When taking into account tax credits, a $100 R&D investment can be
reduced to an after-tax expenditure of $57, or $39 for small businesses.
Non refundable tax credits can be carried back three years or forward 20
years.
Business rates: Companies located in Ontario also enjoy business costs
that are the lowest in the G7. The province’s marginal effective tax rate,
which includes provincial and federal taxes, will be 16.3% in 2013, down
from 18.7% in 2010 and 33.7% in 2009. Business rates are now 4.2%
below the average across the US.
Free trade agreements: Ontario is a member of the $17 trillion
NAFTA market zone, enabling it to trade freely with the USA and
Mexico. Canada has also established free trade agreements with a
series of major trading blocks, including certain Central American and
European countries.
Reduced electricity rates: The Ontario Power Authority has
implemented the Industrial Electricity Incentive (IEI) program, which
is designed to address a five TWh decrease in industrial electricity
demand since 2007 across the Province. Companies eligible for the
initiative will be able to pay reduced electricity rates retroactively
from January 1, 2013. The types of companies that are eligible to
participate in this scheme are divided into two streams:
• Stream 1: Companies willing to operate an industrial facility
and undertake a large capital investment in technologies,
products or processes that are not currently being used or
produced in Ontario.
“This program will help create new jobs for Ontarians
by attracting companies to take advantage of our
strong power supply. It is not only great news for our
industrial sector but will strengthen local economies
across the province.”
• Stream 2: Companies in Ontario that will expand their existing,
or build a new industrial facility.
Chris Bentley, Minister of Energy
The program is capped at 5 TWh of annual electricity consumption,
of which 3 TWh is allocated to Stream 1, and 2 TWh is allocated to
Stream 2. Stream 1 companies will be able to apply to the initiative
from January 28 2012.
Page 22
Ontario: Home of the Smart Grid
For more information on the business opportunity in Ontario
please visit:
For more information on the data included in this presentation
please visit:
www.ontariocleantechalliance.com
www.cleanenergypipeline.com
Jennifer Patterson
Ontario Clean Technology Alliance
Jennifer.Patterson@hamilton.ca
Thomas Sturge
Clean Energy Pipeline
thomas.sturge@vbresearch.com
Page 23