ONTARIO NEWS

Toronto: In a bold move to green the province’s power system, Ontario Premier Dalton McGuinty and Energy Minister Brad Duguid proudly announced on April 8 that new contract offers had been made for 184 renewable energy projects totaling 2421 MW. Aside from major hydroelectric developments like Niagara Falls, it was the largest purchase of renewable energy in Canadian history, and one of the largest in the world. Already leading the country in renewable energy development, Ontario likely stands at the beginning of a period of massive expansion in the renewable power sector, unprecedented in its proportions and diversity.

            The government of Ontario characterizes the commitment as the most significant climate change initiative in Canada and the largest green energy investment of its kind in Canadian history. The 184 new project contracts are in addition to the 510 smaller renewable energy contract offers totaling 112 megawatts approved in March (see story on page 8) and approximately 700 micro-scale projects announced in December. The resulting investment is expected to exceed 8 billion dollars, placing the initiative on the scale of megaprojects like nuclear stations or northern hydro.

            “These projects are the latest accomplishments of the Green Energy Act, which is making Ontario a place of destination for green energy development, manufacturing, and expertise.” said Ontario Minister of Energy Brad Duguid. “The investments generated by FIT [Feed-in Tariff Program] will not only create green jobs, but will also build a coal-free legacy for future generations.”

            “The FIT was intended to spur renewable generation development and APPrO is very pleased that the OPA working with Hydro One has been able to award as many FIT contracts as announced today. Our member companies have already developed and built most of Ontario’s renewable and clean energy projects, investing billions of dollars into the Ontario electricity sector, and they intend to do more of the same through FIT,” said APPrO President Dave Butters. He added that the next big electricity sector challenge is to address the capacity constraints in our transmission system in order to realize the full potential for renewable generation in Ontario.

            Located in communities across the province, the 184 projects complete the initial round of offers expected under the Feed-in Tariff Program. The next round is not expected until September when further grid connection capacity is available. The total announced to date is 694 FIT contracts, which are projected to create 20,000 direct and indirect green jobs and attract about $9 billion in private sector investment, as well as investment in new Ontario-based manufacturing, the government said.

            “In six short months the Feed-in Tariff program has delivered strong results and has more than exceeded our expectations,” said Ontario Power Authority CEO Colin Andersen.

            Among them, 36 community and aboriginal projects will receive a first round FIT contract. “I’m pleased to see aboriginal and local communities across Ontario as active participants in the green energy movement. Their leadership enhances Ontario’s efforts to establish itself as a North American leader in renewable energy,” said Minister Duguid.

            Seventy-six of the approved projects are ground-mounted solar photovoltaic, 47 are on-shore wind and 46 are waterpower projects. There are also seven biogas, two biomass, four landfill gas, one rooftop solar and one off-shore wind projects. Detailed information about the projects, including their locations, is available on the Ontario Power Authority’s website at www.powerauthority.on.ca.

            Future transmission system expansion will open up capacity to accommodate more renewable projects, the Ministry adds. Projects that did not receive a first round FIT contract offer will now be put through what is called an Economic Connection Test (ECT) to identify transmission or distribution system expansion projects that support renewable generation and meet economic requirements. The first test will start in August. Renewable energy projects enabled by these expansion projects will be eligible for a FIT contract once required approvals are received for the projects.

            The Green Energy Act Alliance, a diverse coalition of Ontario groups committed to furthering green power, celebrated the announcement.

            “With this announcement, Ontario has flicked the switch on a new era of green energy prosperity,” said Dr. Rick Smith, Executive Director of Environmental Defence, an environmental group that has been pushing for green energy procurement for a number of years. “This occasion is potentially as significant for Ontario’s economic prosperity as the signing of the Auto Pact in 1965. The provincial government has served notice today that the new centre of global green investing is right here in Ontario. Ontario is the first jurisdiction in North America to adopt a feed-in-tariff and it’s working even better than we had hoped.”

            “Community power projects allow Ontarians to invest in and own a part of Ontario’s new green energy economy,” said Brent Kopperson, Chair of the Community Power Fund. “By granting contracts to community power projects, the government has ensured the people of Ontario can directly share the financial benefits of these renewable energy investments.”

            IPPSO FACTO will of course report on many of the individual projects underway in future issues.

FIT contract offers over 500 kW