Ontario plans feed-in tariff

Ontario plans feed-in tariff to boost investment in renewable energy

Queen’s Park’s new tool to help drive construction and development in Ontario’s green economy is a proposed feed-in tariff to sweeten the renewable energy investment pot. “The proposed feed-in tariff program would help spark new investment in renewable energy generation and create a new generation of green jobs,” George Smitherman, Deputy Premier and Minister of Energy and Infrastructure, said in a statement. “It would give communities and homeowners the power and tools they need to participate in the energy business in the new green economy.”

Ontario’s feed-in tariff is a North American first and introduces new electricity pricing to encourage renewable energy development from homeowners to large scale commercial generators. The guaranteed pricing structure in the feed-in tariff would offer a stable, competitive price combined with a long-term contract. The tariff would establish prices for energy generated from renewable sources such as onshore and offshore wind, hydroelectric, solar, biogas, biomass and landfill gas.

“Ontario has a number of advantages in developing its offshore wind potential and those advantages should provide for a lower price point than offshore wind projects in Europe,” said John Kourtoff, president and chief executive officer of Trillium Power Wind Corporation. “The announced tariffs are very progressive and are a tremendous start for renewable energy in Ontario.”

Trillium plans to build a 710 MW offshore wind facility in the middle of Lake Ontario, 28 kilometres away from the Prince Edward County shoreline. This project, known as Trillium Power Wind 1, will result in a facility that will power at least 300,000 Ontario homes annually, offsetting nearly 1.7 million tons of carbon emissions each year. The feed-in tariff’s proposed prices for this type of project is a good start, added Kourtoff.

“The 19 cents is a good reference point for offshore wind and we are looking forward to working with the provincial government to make sure that it is a good deal for consumers as well as developers,” said Kourtoff.

SunEdison Canada is currently building a 9 MW solar PV project near Kingston which will power over 1,000 homes when completed later this summer. The new feed-in tariff will encourage companies like it to purse more renewable projects on a larger scale, said Ron Mantay, country manager at SunEdison Canada.

“We anticipate that a number of renewable energy companies will consider increased investments in Ontario in response to the government’s call for ‘green jobs’ and renewable energy generation,” said Mantay.

The province explained that under the feed-in tariff a farm-based 250 kW biodigester would cost around $1.7 million to install, and could earn back this investment in approximately 12 years. A 10 MW, community-owned wind farm, would cost around $32 million to construct and have an expected 10 year payback.

An eight-week consultation with renewable energy stakeholders, hosted by the Ontario Power Authority and open to the public, is currently underway and ends May 5. The consultation sessions will seek renewable energy suppliers seek and feedback from on proposed program rules and contracts.