The Independent Electricity System Operator posted version 5.0.1 of its FIT Contract on July 12 and announced that the microFIT program will stop accepting new applications at the end of 2017.
The new contract includes “enhanced language to clarify the intention of Secured Lenders’ rights in the event of a termination due to a Supplier Event of Default, provides further clarity regarding the role of Independent Engineers” and incorporates a small number of administrative refinements.
“Only a Secured Lender that is both at Arm’s Length with the Supplier, and not acting as either an EPC Contractor or in a similar role in respect of the Facility, will be entitled to receive a Sponsor Statement and the option of entering into a New Agreement under Section 11.2(g) in the event of a termination due to a Supplier Event of Default.” These changes are intended to ensure that a New Agreement is only allowed in situations where the Secured Lender is not involved in the day-to-day development of the Facility.
“An Independent Engineer will be required to certify in any IE Certificate or similar certificate that it delivers that it is not acting, and has not acted, for the Supplier, the EPC Contractor or a Secured Lender to the Supplier in any professional role or capacity, other than as Independent Engineer, in respect of the Facility or any other Facility owned by the Supplier or an Affiliate of the Supplier.”
The IESO also announced, the same day, that, per the direction issued by the Minister of Energy on April 5, 2016, 2017 is the last year that it will accept applications for the microFIT Program. The IESO clarified that it will accept applications under the microFIT Program up to and including Thursday, December 28, 2017, or until the 50 MW procurement target is reached.
As of July 7, 2017, there was 28 MW remaining in the 2017 procurement target. Updates on the amount of capacity remaining in the 2017 Annual Procurement Target can be found in the microFIT bi-weekly reports. The IESO is required to stop accepting applications under the microFIT Program by December 31, 2017, as per a directive from the Minister of April 5, 2016.
Any microFIT application that is submitted to the IESO on or before 11:59 p.m. EPT on December 28, 2017, will be processed in accordance with the microFIT Rules. Applications will not be automatically terminated on December 31.
Applicants whose applications do not meet program requirements and are terminated after December 28, 2017, will not have an opportunity to submit a new one.