Toronto: Ontario’s systems for procuring, approving and connecting generation are being completely reworked as the provincial government rolls out its Green Energy and Green Economy Act and other agencies unveil related programs and plans. Introduced on February 23, the wide-ranging legislation has received first and second reading, and is expected to be passed by the end of June. It is currently the subject of study before a committee of the Legislature, the Committee on General Government. At the same time, the Ontario Power Authority has released draft rules and rates for a Feed-In Tariff program, and begun extensive consultation on what is probably the most crucial feature of generation development, the procurement system. And as if in unison, Hydro One Networks has released a proposed new set of standards for connection of distributed generation, substantive changes to its rules and procedures on which it is also seeking input, on more or less the same time frame. At some point in the near future it is likely that the Ontario Energy Board will be seeking to clarify rules and procedures that arise from the new legislation.
“Taken together these initiatives represent major change in the framework for developing generation in Ontario,” says APPrO Executive Director Jake Brooks. “There are some clear improvements, especially for renewables, but the sheer volume of detail means that it will be some time before the industry will be able to judge how beneficial the improvements are.” Brooks notes that all three initiatives have implications for the regulatory system, and as a result it will be hard to be definitive about their impacts until the Ontario Energy Board has clarified what changes it anticipates making in response to the new framework.
This issue of IPPSO FACTO deals with the Feed In Tariff and Hydro One’s proposed new connection standards in two separate articles, and discusses the Green Energy and Green Economy Act in several places, including the lead editorial.
Major themes addressed in the Act include the following:
a) Fast-tracking the development of renewable energy capacity in Ontario
b) An expanded and reworked standard offer program for renewables in the form of a Feed-In Tariff offered by the OPA
c) Assistance for renewable energy projects in getting through various approval processes at the local and provincial level
d) More assurance of grid connection for renewables
e) Special measures to facilitate community and aboriginal involvement in power project development
f) Modifications to the mandate of the Ontario Energy Board to make it responsible for promoting renewable energy, “including the timely expansion or reinforcement of transmission systems and distribution systems to accommodate the connection of renewable energy generation facilities”
g) An increasingly central role for the Minister of Energy with additional powers to define the rules and financial arrangements applicable to renewable energy
h) Establishment of a facilitator’s office to champion renewable energy within government
i) Promoting a culture of conservation.
The Act is wide-ranging and generally described as creating enabling powers for various agencies, rather than as directly prescribing the specific techniques to be used for promoting renewable energy. It is not so much a set of rules for renewable energy as it is a signal to the industry, to regulators, to other arms of government, and to the public that installation of renewable energy projects is a major priority in Ontario, and that many of the costs associated with expediting the approval and connection of such projects are considered minor compared to their value. It also expresses a distinct emphasis on small-scale, community-owned and aboriginal power projects.
From a developer’s perspective, in principle the new framework will be an improvement on the RESOP program in that it removes the upper size limit and facilitates a wide range of approvals. At the same time, it is beneficial to the larger scale projects that can now apply for power purchase contracts whenever they are ready, without waiting for the artificial deadlines of an RFP process. And most projects will likely benefit from the streamlined approval system that’s envisioned by the Ministry in the changes being proposed.
IPPSO FACTO examines several of the aspects more closely. For more information see the following articles:
• Feed-In Tariff promises to make Ontario an international leader in renewables (next page)
• Hydro One invites input on new connection standards (page 9)
• How to make the most of Ontario’s Green Energy Act: Views from the experts (see links below)
• The growing use of regulatory policy (page 10)
• FAQ on the Green Energy Act (see page 20)
• The FIT program’s pricing models and categories (See the Financial Technical Supplement to this issue of IPPSO FACTO)
• The GEA introduces new concepts to the approval process (page 24).
Views from a range of experts:
Impressive steps to reduce delays and uncertainty
by Linda Bertoldi
The Green Energy Act: A new regulatory paradigm?
by Ian Mondrow
Green energy looks good to a lot of farmers
by Ted Cowan
Agency co-ordination and aboriginal training important
by Kristyn Annis
Associations comment on the Green Energy Act
Further articles and an editorial from April 2009 Issue of IPPSO FACTO on the GEA:
Resources on the Feed In Tariff Program