Yesterday, the Ontario Power Authority announced another change
to the Feed-in Tariff Program by offering a one-year extension to
allow FIT suppliers more time to obtain the Renewable Energy
Approval. The REA was intended to be a streamlined process but the
review requirements of various provincial ministries have caused
significant delays. By extending the milestone date for commercial
operation, the OPA recognizes the current uncertainties and delays
in the approval process and intends to provide protection to
suppliers. To be eligible for the extension, suppliers must enter
into an amending agreement with the OPA. This agreement will
outline how the extension will impact the supplier's Force
Majeure rights. The extension will not affect the domestic content
requirements for FIT projects, which will be tied to the
supplier's original milestone date.
This announcement follows last week's Directive from the
Minister of Energy requiring the OPA to sell some of its
environmental attributes derived through renewable energy
generation. The OPA must undertake a pilot program to realize
economic value and encourage expertise through a voluntary trading
market. All environmental attributes subject to the program are to
be fully retired within Ontario. A program manager will be selected
by March 15, 2011 and is to operate the program on a
revenue-sharing basis, with a net benefit to ratepayers
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