Last week, a number of changes were made to the process of
developing and operating a renewable energy project in the province
of Ontario. The changes are summarized below.
Changes to Feed in Tariff (FIT) Contract Terms
The Ministry of Energy directed the Ontario Power Authority
(OPA) to offer FIT contract holders the opportunity to have the
OPA's termination rights under the FIT Contract waived. The
directive allows renewable energy project developers to elect to
obtain a waiver of the OPA's termination rights contemplated in
Section 2.4(a) of the FIT Contract (the "Waiver").
In conjunction with the Waiver, developers who have identified
solar (PV) or wind as their renewable fuel type must submit the
following additional information to the OPA:
1. For projects defined as "non-Capacity Allocation Exempt
Facilities" by the OPA (projects with no more than 250 kW of
generating capacity where the facility is connected to a line rated
less than 15 kV or projects with no more than 500 kW of generating
capacity where the facility is connected to a line rated 15 kV or
the Waiver by October 14, 2011;
a Domestic Content Plan, in the prescribed form, by October 14,
evidence of agreement(s) for the purchase of generating
equipment, in the form of a statutory declaration, by November 30,
2. For projects defined as "Capacity Allocation Exempt
Facilities" by the OPA, the Waiver and Domestic Content Plan
must be submitted by December 30, 2011.
In a further effort to expedite the project development process,
the OPA also announced that it will make a commercially reasonable
effort to review and execute by September 30, 2011 any Waiver it
has received by August 15, 2011.
The Waiver does not alter the Notice to Proceed requirements set
out in the FIT Contract. Developers must still provide the OPA with
an NTP Request and satisfy the NTP Pre-requisites specified in
Sections 2.4(b)(i);(ii);(iii) and (iv) of the FIT Contract.
Developers of clean energy programs that do not require Domestic
Content Plans – hydro, biogas, landfill gas and biomass
– may also request that the OPA waive its termination
Changes to Renewable Energy Approval Process
The Ministry of Environment has committed to a reduction in the
amount of time it takes for the initial screening review of
applications from 90 days to 40 days.
The Ontario government announced an amendment to its agreement
with Samsung C&T Corporation and the Korea Electric Power
Corporation (Samsung). In February 2011, holders of FIT contracts
were granted a one year extension to their commercial operation
date. In exchange for a similar extension, Samsung has agreed to
amend its original agreement signed in January 2010.
Under the amended agreement, the economic development payments
to Samsung are reduced to a maximum of $110 million –
down from a projected $437 million when the deal was first signed.
These payments will only begin after manufacturing plants Samsung
has committed to build start operating, job commitments are met and
the solar and wind projects begin producing clean energy. Should
job levels fall or a plant close, payments will be reduced
The revised agreement will also see all manufacturing plants
open their doors one year earlier than previously committed to by
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The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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