Ontario Creates Feed-In Tariff for Renewables

The government of Ontario, Canada has launched what it says is the nation’s first feed-in tariff (FIT) for renewable power. Established under Ontario’s Green Energy Act, the FIT is part of a series of initiatives designed to promote the creation of 50,000 renewable energy jobs over the next three years.

The FIT offers long-term price guarantees for renewable electricity generators. The program allows all sizes of generators, from homeowners to large developers to participate, and it has different prices for different technologies and different project sizes.

Ontario officials said it is priced to cover total project costs and provide a reasonable rate of return over a 20-year contract (40 years for waterpower).

FIT payments range from 10.3 cents per kilowatt-hour (c/kWh) for landfill gas projects larger than 10 megawatts (MW) to 80.2 c/kWh for residential solar rooftop projects 10 kW or smaller. The FIT also includes a "price adder" for Aboriginal and community projects to encourage participation.

Renewable energy developers participating in the FIT are required to have a certain percentage of their project costs come from Ontario goods and labor.

For wind, the requirement will start at 25% and increase to 50% on Jan. 1, 2012. For micro solar PV (10 kW or smaller), the requirement will start at 40% and increase to 60% on Jan. 1, 2011. For larger solar PV, the requirement will start at 50% and increase to 60% on Jan. 1, 2011.

The Ontario Power Authority will begin accepting FIT applications on Oct. 1, 2009 and expects to sign the first contracts in early December.

Ontario also created a Renewable Energy Approval (REA) process designed to facilitate the approval process for renewable energy projects, while protecting the environment and cultural interests. The newly created Renewable Energy Facilitation Office (REFO) will oversee the FIT process. 

In Related News…

Korean conglomerate Samsung is considering building a 200-turbine wind farm in Ontario on the shore of Lake Erie, according to a Canadian Press story available at the link below.

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