Ontario has two main avenues to assist First Nation and Métis communities, one through the Ontario Power Authority, and one through the Ontario Financing Authority.
The Ontario Power Authority designed and administers the Aboriginal Energy Partnerships Program (AEPP), as a result of the ministerial directive on September 24, 2009 to establish measures, including programs or funding, to facilitate the participation of Aboriginal communities in the development of renewable energy generation facilities.
Within the AEPP, the OPA administers an Aboriginal Renewable Energy Fund, designed to support the up-front soft costs of a project. The fund will cover pre-feasibility activities such as resource and site identification, capital cost estimates, project management plan and developing a preliminary business plan. The fund will also cover funding for feasibility activities and studies such as resource assessment, site control, engineering and design studies and required regulatory approvals.
The Aboriginal Renewable Energy Fund began accepting applications on April 28, 2010 through the Aboriginal Renewable Energy Network at www.aboriginalenergy.ca. A recent announcement by the OPA gave a total of thirty communities, through five rounds of funding, that have received funding under this program.
Eligible Aboriginal communities may receive funding in the following amounts:
• Pre-Feasibility Phase: 80 percent of costs up to $20,000
• Design and Development Phase: 60 percent of costs up to $250,000, less any funding received in the first phase.
• Regulatory Approvals Phase: 40 percent of costs up to $500,000, less any funding received in the first two phases.
And on March 31 the OPA announced a new component to the Aboriginal Energy Partnerships Program: the Aboriginal Community Energy Plan. The ACEP is designed to help First Nation and Métis communities develop comprehensive energy plans about options and priorities for conservation and renewable micro-generation. It provides a step-by-step process for getting community members involved in providing direction on how future energy needs can be met. Applicants can apply to cover the cost of community meetings and planning sessions, as well as collecting baseline information required to proceed with conservation and renewable micro-generation projects. Full details, including programs rules and guidelines, are available from www.aboriginalenergy.ca.
The Aboriginal Renewable Energy Network (AREN) provides information on all aspects of the program, at www.aboriginalenergy.ca/.
Under the OPA's FIT program, Aboriginal community projects are eligible for adders to the standard FIT price, as follows:
|
| Wind | PV (ground mounted) | Water | Biogas | Biomass | Landfill gas |
| Maximum Aboriginal Price Adder(¢/kWh) | 1.5 | 1.5 | 0.9 | 0.6 | 0.6 | 0.6 |
The most recent FIT and microFIT program update from the OPA shows the following progress on energy projects from Aboriginal communities:
The Aboriginal Loan Guarantee Program, administered by the Ontario Financing Authority, was a commitment in the Provincial Budget 2009, with Ontario announcing it would move ahead with a $250 million loan guarantee program to help facilitate Aboriginal participation in renewable energy projects. The program will provide loan guarantees to Aboriginal communities for up to 75 percent of an Aboriginal corporation’s equity in an eligible renewable generation and transmission project. The goal of the Aboriginal Loan Guarantee Program is to guarantee loans that are provided to First Nation and Métis communities for equity in commercially viable projects, closer to the end of project development at the construction phase.
The Ontario government's 2011 budget, released in late March, notes that the program has so far received six applications for loan guarantee requests, totaling close to $150 million. Conditional offers for loan guarantees have been issued for Moose Cree First Nation’s investment in the Lower Mattagami Project, and for M’Chigeeng First Nation’s investment in the Mother Earth Renewable Energy Project.
The 440 MW Lower Mattagami Project is Ontario’s largest northern hydroelectric generating construction project in 40 years. The Mother Earth Renewable Energy Project is a four-megawatt M’Chigeeng First Nation community-owned wind farm on M’Chigeeng First Nation’s land on Manitoulin Island. The project will generate an additional source of revenue for M’Chigeeng First Nation for 20 years and is expected to create jobs and opportunities for the community during the project’s construction and operation.
For more information on the ALGP visit http://www.ofina.on.ca/algp/, or Sandy Roberts, Director of the Strategic Project Finance Branch, at 416-325-1557.
In total there are three avenues of funding for Aboriginal energy projects in Ontario: The Aboriginal Energy Partnerships Program is the umbrella program that includes the both the Aboriginal Renewable Energy Fund and the Community Energy Plan. The third source of funding is the Aboriginal Loan Guarantee Program. The Aboriginal Renewable Energy Network is a website OPA maintains to coordinate information about the above.
See related stories:
OPA funding for Aboriginal Community Energy Plans (below)
and
Grants awarded to Aboriginal and community groups for renewable energy
| OPA funding for Aboriginal Community Energy Plans |  |  |
The Ontario Power Authority announced the opening March 31 of a funding program to help First Nations and Métis communities develop energy plans. The energy plans will assist communities to become more energy efficient, meet future energy needs and explore adding small-scale clean energy projects.
The Aboriginal Community Energy Plan (ACEP) provides a step-by-step process for getting community members involved in providing direction on how future energy needs can be met. Applicants can apply to cover the cost of community meetings and planning sessions, as well as collecting baseline information required to proceed with conservation and renewable micro-generation projects. Full details, including programs rules and guidelines, are available from www.aboriginalenergy.ca.
The ACEP is the third component of the Aboriginal Energy Partnerships Program, announced in April 2010. The other two complementary initiatives, which also began operation in April 2010, are the Aboriginal Renewable Energy Fund (AREF) and the Aboriginal Renewable Energy Network (AREN).
The Aboriginal Energy Partnerships Program was created with the help of, and receives ongoing guidance from, the Aboriginal Advisory Committee, which comprises eight members nominated by First Nation Political Territorial Organizations, the Métis Nation of Ontario and the OPA.
The three modules of the Aboriginal Community Energy Plan specifically cover:
Education, Vision and Community Profile – To develop guiding principles and a common community vision. Participants will complete a profile with information about community size, location and its existing energy profile.
Community Baseline Study – To examine total energy use to find cost savings and conservation and renewable micro-generation benefits. It will also help determine the impact of existing community policies and procedures on meeting a community’s vision and guiding principles.
Development of a Community Energy Plan – To identify electricity conservation priorities and renewable micro-generation opportunities, develop an action plan and make recommendations for community policy changes on electricity use. The action plan can position communities to take advantage of conservation initiatives.
More information about these programs can be obtained from www.aboriginalenergy.ca; by email,