Ontario's electricity supply has depended almost exclusively on nuclear, hydroelectric and fossil fuels (including coal). To achieve a cleaner energy mix, Ontario's Minister of Energy and Infrastructure tabled the government's much-anticipated Green Energy and Green Economy Act, 2009 (Bill 150) on February 23, 2009. If passed, Bill 150 will enact the Green Energy Act, 2009 and amend or repeal 20 related statutes with the goal of encouraging the development of renewable energy in Ontario, such as wind, solar, biofuel, biomass and geothermal projects.

Key components of Bill 150 include:

  • Feed-in tariff program – A feed-in tariff procurement program, which will essentially replace the Ontario Power Authority's current request for proposal process and standard offer program, is intended to increase investor confidence in renewable energy projects by providing standard program rules, standard contracts and standard pricing for classes of renewable energy. Prices may be differentiated by energy source or fuel type, generation capacity and the manner by which the generation facility is used, deployed, installed or located. The government may also direct the Ontario Power Authority to include goals for domestic content for renewable energy projects.
  • Streamlined approvals process – A 'one-stop' approvals process will combine existing environmental approvals into a single new 'renewable energy approval' and set province-wide standards for renewable energy projects. To minimize potential delays, Ontario's Planning Act will also be amended to exempt renewable energy projects from certain prescribed planning approvals (including official plan and zoning). Renewable energy project leases that have a term of 40 years or less will also be exempt from the Planning Act's subdivision and part-lot controls. Also, aboriginal consultation requirements may be specified by the government, including the timing of such consultations.
  • 'Right-to-connect' – Transmitters and distributors will be required to connect and grant priority access to renewable energy projects if the project meets prescribed technical, economic and other regulatory requirements.
  • 'Smart grid' – To fully exploit the potential of renewable energy, 'smart grid' technologies will be adopted to better accommodate the intermittent energy flows from wind and solar projects.
  • Energy conservation – Various proposed amendments will make energy conservation a priority in Ontario by developing Building Code conservation standards, requiring conservation and demand management plans for prescribed consumers, setting electricity conservation targets for local utilities, creating new financing tools to help consumers manage up-front costs of small-scale renewable energy projects and requiring energy audits prior to the sale of homes.

While nuclear and hydroelectric power will continue to be the backbone of Ontario's energy mix over the next few decades, the proposed Green Energy Act, 2009 should make it easier to develop renewable energy projects in Ontario. The specific details regarding the implementation of the Green Energy Act, 2009 will not be available until the regulations are released (likely not before 2010). Until such details are known, it is far from certain whether the Green Energy Act, 2009 will spark significant new development of renewable energy projects in Ontario or what impact it will ultimately have on the price of electricity in Ontario.

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