Ontario’s landmark “buy local” renewable energy Feed-In Tariff program launched in late 2009. After four years, the program has created thousands of jobs, helped close coal fired power plants and made energy producers of many Ontarians. But roadblocks remain, and changes are needed.
2. ONTARIO’S RENEWABLE ENERGY
2004
Ontario Power
Authority
launched
1,500 MW of
large wind
power
contracted
2005 2006-08
Renewable
Energy
Standard
Offer
Program
contracts new
<10 MW wind
and solar
2009-13
FIT program
launched and
contracted ~5,000
MW of new
renewable energy
PROGRAMS
3. • Achievements
• Reduce from 25% to 0% coal-fired power by 2014
• 2,600 MW of new renewable energy
• 31,000 new jobs
• Significant local participation (1 in 7 farmers)
ONTARIO’S RENEWABLE ENERGY
PROGRAMS
6. ONTARIO’S FIT PROGRAM
• Long-term contract (e.g. 20 years) like RESOP
• Fixed price (like RESOP) with prices sufficient for return on
investment
• Priority grid connection
• Minimum “domestic content” requirements
• Now 50% of wind project and 60% of solar project
• Launched 2009
“Feed-In Tariff”
7. ONTARIO’S FIT PROGRAM
• Goal: 5,000 MW of new renewable energy by 2030
• Goal: 50,000 new jobs by 2012
“Feed-In Tariff”
8. 0 MW
100 MW
200 MW
300 MW
400 MW
500 MW
2009 2010 2011 2012 2013
FIT HISTORY
Program open (FIT 1.0)
Already
15,000
MW in
applications
Programreview
MicroFIT
open
Small
FIT
openFIT 2.0
Goals:
5,000 MW by 2030
50,00 jobs by 2012
9. FIT ENERGY HISTORY
0 MW
100 MW
200 MW
300 MW
400 MW
500 MW
2009 2010 2011 2012 2013
Program open (FIT 1.0) Programreview
MicroFIT
open
Small
FIT
open
Solar power
Wind power
Total
FIT 2.0
487 MW
developedGoals:
5,000 MW by 2030
50,00 jobs by 2012
10. FIT ENERGY HISTORY
0 MW
100 MW
200 MW
300 MW
400 MW
500 MW
2009 2010 2011 2012 2013
487 MW
Under contract:
4,750 MW
Huge project queue
Goals:
5,000 MW by 2030
50,00 jobs by 2012
11. FIT JOB HISTORY
0
10,000
20,000
30,000
40,000
50,000
2009 2010 2011 2012 2013
Program open (FIT 1.0) Programreview
MicroFIT
open
Small
FIT
openFIT 2.0
20,000
jobs
31,000
jobs
Target:
50,000 jobsGoals:
5,000 MW by 2030
50,00 jobs by 2012
12. NEW MANUFACTURING
0 1 2 3 4 5 6
Delivered jobs as promised
Behind schedule
No operations in Ontario
Number of manufacturers responding to 2013 survey
with intentions to locate in Ontario in 2011
16. CHALLENGES
Hydro One
Most U.S. utilities
Hawai’ian utilities
California utilities
0% 10% 20% 30% 40% 50%
50%
25%
15%
7%
Limit as a percent of peak demand
Hydro One’s measly 7%
limit on distributed
renewable energy is
much lower compared
to other jurisdictions
18. ADJUSTMENTS
Technology Size Price
Inflation
Adj.
Biomass
< 10 MW 13.8¢ 20%
> 10 MW 13¢ 20%
Biogas
On-farm < 100 kW 19.5¢ 20%
On-farm 100 to 250 kW 18.5¢ 20%
Biogas < 500 kW 16¢ 20%
Biogas 500 kW to 10
MW
14.7¢ 20%
Biogas > 10 MW 10.4¢
Waterpower
< 10 MW 13.1¢ 20%
> 10 MW 12.2¢ 20%
Landfill gas
< 10 MW 11.1¢ 20%
> 10 MW 10.3¢ 20%
Solar PV
Any type < 10 kW 80.2¢
Rooftop 10 to 250 kW 71.3¢
Rooftop 250 to 500 kW 63.5¢
Rooftop > 500 kW 53.9¢
Ground
Mounted
> 10 kW 44.3¢
Wind
Onshore any 13.5¢ 20%
Offshore any 19¢ 20%
Technology Size Price
Inflation
Adj.
Solar PV
Rooftop < 10 kW 54.9¢
Rooftop 10 to 100 kW 54.8¢
Rooftop 100 to 500 kW 53.9¢
Rooftop > 500 kW 48.7¢
Ground
Mounted
< 10 kW 44.5¢
Ground
Mounted
10 to 500 kW 38.8¢
Ground
Mounted
500 kW to 5 MW 35¢
Ground
Mounted
> 5 MW 34.7¢
Wind
Onshore any 11.5¢ 20%
Offshore any n/a 20%
FIT 1.0
Lower prices
Changes for FIT 2.0
19. Changes for FIT 2.0
ADJUSTMENTS
Local Ownership
Min.15% ownership by co-op with > 35 owners +3
Min. 15% ownership by Aboriginals +3
Public education or health owned project +2
Local Support
Resolution of local municipal orAboriginal support +2
Local Host
Public education or health hosted project +2
Priority Points for Local
20. Priority Points for Local
Local Ownership
Min.15% ownership by co-op with > 35 owners +3
Min. 15% ownership by Aboriginals +3
Public education or health owned project +2
Local Support
Resolution of local municipal orAboriginal support +2
Local Host
Public education or health hosted project +2
Technology Size Price
Inflation
Adj.
Solar PV
Rooftop < 10 kW 54.9¢
Rooftop 10 to 100 kW 54.8¢
Rooftop 100 to 500 kW 53.9¢
Rooftop > 500 kW 48.7¢
Ground
Mounted
< 10 kW 44.5¢
Ground
Mounted
10 to 500 kW 38.8¢
Ground
Mounted
500 kW to 5 MW 35¢
Ground
Mounted
> 5 MW 34.7¢
Wind
Onshore any 11.5¢ 20%
Offshore any n/a 20%
Lower prices
Changes for FIT 2.0
ADJUSTMENTS
Will
adjustments
matter?
With the 2030 goal nearly met?
21. LESSONS LEARNED
• FIT program enables democratic energy: 1 in 7 Ontario
farmers is participating
• Local content requirements lead to local jobs
• Ambitious renewable energy program helped close all coal-
fired power plants in Ontario
22. LESSONS LEARNED
• Power Authority and utilities need to get projects online faster
and/or sign fewer contracts
• Price adjustments should happen more quickly, especially for
solar power
• More local ownership – and earlier – could have alleviated
political and project problems