On Thursday March 12, 2009, the Honourable George Smitherman,
Deputy Premier and Minister of Energy and Infrastructure, (the
"Minister") and Colin Andersen, CEO,
Ontario Power Authority, provided further details of the proposed
feed-in tariff program for renewable energy projects contemplated
under Bill 150, the Green Energy and Green Economy Act,
2009 ("Bill 150").
Bill 150 was introduced in the Ontario legislature on February
23rd, passed second reading on March 11th, and was ordered to the
Standing Committee on General Government. It proposes an amendment
to the Electricity Act, 1998 that allows the Minister to
issue directives to the Ontario Power Authority to develop a
feed-in tariff program to procure energy from renewable energy
sources, including wind, water, biomass, biogas, biofuel, solar,
geothermal, tidal forces and other sources prescribed by
regulations (the "FIT"). The FIT will
combine standard pricing with standard program rules and standard
long-term contracts, the details of which have yet to be
The March 12th joint announcement by the Minister and the OPA
provided further details of the proposed FIT, including:
Proposed FIT prices that differ based on project size and type
of renewable energy technology (see the table below). These prices
may be refined over the next few weeks during stakeholder
Prices intended to cover total project costs and provide a
reasonable rate of return over a long-term contract (20
In contrast to RESOP, there are few upper limits on project
Focused incentives for rooftop solar and community based wind
and hydropower projects.
Additional consultations with, and new incentives for First
Nation and Métis community-based projects.
If Bill 150 is passed, the OPA anticipates being in a position
to quickly implement the FIT program this summer. As of next week,
the OPA will begin consulting with renewable energy stakeholders on
the proposed design of a FIT program, including eligibility
criteria and the proposed pricing model. Weekly sessions will run
from March 17 to May 5, 2009.
The Ontario FIT program draws on models that have successfully
driven renewable energy developments in Germany and Spain. The
proposed FIT prices were developed based on experience here in
Ontario and in other jurisdictions. They are intended to cover
building and maintenance costs and the basic connection costs for
typical projects as well as allow for a reasonable rate of return
on investment over an approximate 20-year period.
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.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).