On April 7, 2015, the Minister of Energy issued a direction (the
"Direction") to the Independent
Electricity System Operator (the "IESO")
directing it to make certain changes to the Feed-in Tariff (FIT)
program, while noting there are no substantial changes to be made
to the microFIT program in 2015. The Direction is effective as of
April 7, 2015.
The IESO is directed to incorporate certain changes to the
prioritization points system, as set out in the
"Prioritization Table" below. The purpose of these
changes is two-fold: to enable the participation of a wider range
of applicants and incorporate cost-saving mechanisms.
Contract Price Reduction
First Tier Reduced Price
Second Tier Reduced Price
Third Tier Reduced Price
Local Municipal Council Support Resolution
Aboriginal Community Support Resolution
Municipal or Public Sector Entity Site Host
Aboriginal Community Site Host
Similar to previously implemented prioritization points systems
of the FIT program, pursuant to these new changes, a project must
have at least one (1) priority point before the IESO may offer it a
FIT contract; and priority is determined between projects that have
an equal number of priority points by the timestamp of the
projects. Under this new Direction, each project is only eligible
for one tier of Contract Price Reduction Priority Points, however,
Contract Price Reduction Priority Points may be combined with
Additional Points; projects are only eligible for one Support
Resolution Priority Point category and, likewise, projects are only
eligible for one Site Host Priority Point category.
Removal and Addition of Points
Presumably to allow for a broader range of applicants, the
Direction removes "Project Type" priority points from the
FIT Program (although, this is possibly a typo and the Direction
should likely direct the IESO to remove "Applicant Type"
priority points, in accordance with the direction issued on July 11, 2012).
"System Benefit (water and bioenergy)" priority points
are also removed from the prioritization points system as
small-scale projects required to be connected to the distribution
system are generally not required to respond to IESO dispatch
In connection with cost-saving intentions of the Direction, the
IESO is directed to develop a tiered pricing model which will set a
base FIT contract price and a series of price reductions from that
base for each fuel type. Priority points will be awarded with each
corresponding price tier, as set out above.
Municipal site host priority points will only be awarded to
those projects located entirely on sites that are within the
boundaries of the municipality that is the site host, and
Aboriginal Community Site Host priority points will only be awarded
to those projects located entirely on First Nation Lands or
Contract Capacity Set-Asides
In line with the contract capacity set-asides
("CCSAs") provided for in the April 5, 2012 direction to the
Ontario Power Authority (predecessor to the IESO), the IESO shall
maintain CCSAs for municipal and public sector entities, Aboriginal
communities and communities with greater than 50% equity
participation in a proposed project.
Pursuant to the Direction, the total annual allocation of all
CCSAs will be two-thirds (2/3) of the total annual FIT procurement
target (the "CCSA Allocation"), which
includes the allocation of any MW from a previous procurement
target. The CCSA Allocation is broken down as follows:
one-third (1/3) portion to each of (a) Aboriginal communities,
(b) municipalities and public sector entities, and (c) communities;
with respect to (a) Aboriginal communities: two-thirds (2/3)
apportioned to applications with greater than 50% First Nations
equity participation and one-third (1/3) to applications with
greater than 50% Métis equity participation.
The Milestone Date for Commercial Operation for projects
developed entirely on lands included under part (a) of the
definition of First Nation Lands in the FIT rules is extended to
five (5) years. However, milestone dates for rooftop solar and
waterpower projects will not be affected.
The IESO is directed to incorporate rooftop solar projects on
unconstructed buildings into the FIT program, after much success in
the FIT 3 pilot project.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
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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