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April 19 th , 2011

April 19 th , 2011. The Feed in Tariff Program (FIT) BENJAMIN WEIR Sustainable Waterloo Environmental Forum. Ontario Power Authority (OPA). Mandate: Ensure reliable, sustainable electricity supply for Ontario Key activities: Long-term planning Procuring new supply

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April 19 th , 2011

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  1. April 19th, 2011 The Feed in Tariff Program (FIT) BENJAMIN WEIR Sustainable Waterloo Environmental Forum

  2. Ontario Power Authority (OPA) • Mandate: • Ensure reliable, sustainable electricity supply for Ontario • Key activities: • Long-term planning • Procuring new supply • Coordinating conservation

  3. FIT Program Overview What is a FIT Program? • Generators of renewable energy – from homeowners to large developers – are paid a reasonable price for the electricity they produce over the term of the contract • Allows generators to recover expected cost of the investment plus a reasonable profit • Can provide a predictable and stable source of revenue to reduce risks A FIT Program provides a simple way to contract for renewable energy supply

  4. Standardized features of the FIT Program • Open to various renewable energy supply technologies • Wind • Waterpower • Solar Photovoltaic (PV) • Biomass technologies • Different prices for different technologies and project sizes • Long-term contracts (e.g. 20 years) • Prices that aim to cover total project costs and provide a reasonable rate of return over the contract term

  5. FIT and microFIT Commercial FIT (CFIT) Program on the way…

  6. CFIT • In the coming weeks, the OPA will launch the commercial feed in tariff (CFIT) program which caters to commercial aggregators - businesses that lease land or rooftops from individuals for multiple renewable energy projects. • This program stream is intended for commercial entities with one or more micro-generation projects, those who are not eligible participants for the microFIT Program, and those who wish to take advantage of secured lender provisions not found in the microFIT contract.

  7. CFIT • 71.3 cents per kilowatt-hour (kWh) for rooftop solar PV projects, 44.3 cents/kWh for ground-mounted solar PV projects • Contract provisions which permit a lender to have step-in rights in the event of a supplier default to the lender • Application fee of $500 per megawatt, with a minimum fee of $500

  8. Eligible Proponents FIT microFIT Individual Farmer Renewable Energy Cooperative Municipality LDC Participant University School or College Hospital or Long-term Care Home Aboriginal Community Social Housing and Affordable Housing Faith Based Organization • Any participant is eligible under the FIT program • Price benefits are given via an “economic adder” for aboriginal and community projects. CFIT • Commercial Aggregators

  9. FIT Price Schedule

  10. FIT, microFIT and CFIT Process FIT process microFIT and CFIT process 1. Application + basic eligibility requirements 2. Connection capability screen 3. FIT Contract 4. Contracts milestones Connection Impact Assessment/ System Impact Assessment Renewable Energy Approval Domestic Content Plan Financing Plan 5. Commercial operation 1. Application + basic eligibility requirements 2. Offer to Connect from Local Distribution Company 3. microFIT Conditional Offer 4. Permits and approvals, installation, connection 5. microFIT Contract Note: microFIT process is for applications submitted after December 8, 2010

  11. Domestic Content • Local content requirements for solar and wind projects • FIT requirements based on Milestone Date for Commercial Operation. • microFIT requirements based on in-service date • Potential challenges • Timelines for project development • Timelines for local manufacturing • Impact on PV system costs

  12. Roads travelled

  13. Before FIT 13

  14. Roads travelled • Green Energy & Economy Act – May 14th 2009 • Launch of the OPA FIT and microFIT Programs – October 1st 2009 • Unprecedented interest in the programs

  15. Contract Awards - FIT • Oct 1st – Dec 8th 2009: Launch Period (Phase I) CAR Projects • 182 contracts • 2,414 MW • Oct 1st 2009 June 4th 2010: Phase I & II CAE Projects • 1,355 contracts • 278 MW • Dec 8th 2009 – June 4th 2010: Phase II CAR Projects • 40 contracts • 872 MW

  16. Program Uptake – FIT Applications (Apr 1, 2011)

  17. Program Uptake – FIT MWs (Apr 1, 2011)

  18. microFIT Program Uptake

  19. Local Successes • Terra View Custom Homes Ltd. • 3 kw panel system • Terra View Homes LTD is constructing a LEED platinum discovery home to be open to the public and will be used to display the newest in green technologies in energy conservation and materials. • Stevmyr Holdings • 9.45 kw system on the flat roof of an industrial building at 110 Baffin Place in Waterloo. • Solar Pure Energies • Working with local sources for all cable and wiring requirements for each system. • Does rooftop installation and leasing

  20. Challenges along the way • Processing time • Unprecedented interest and uptake • Connection issues • Existing infrastructure challenges • CAE Projects • “Capacity Allocation Exempt”

  21. Response to Connection Challenges • Ability to connect a project is fundamental • Starting December 8, 2010, application for microFIT and CAE projects (10 kW to 500 kW) must provide proof they can be connected to Ontario’s electricity grid. • Contact the LDC or transmission company as early as possible to make sure you understand any and all connection issues related to your project.

  22. Transmission Expansion After recent programs, new renewables projects are constrained in specific areas due to transmission bottlenecks. Connection and delivery of renewables projects will drive transmission development for the next 5-7 years.

  23. Transmission Expansion • Due to tremendous interest in the FIT program transmission constraints have arisen which are currently preventing the uptake of all interested applicants. • Hydro One working in concert with the OPA are identifying which transmission stations have the greatest potential uptake. • Hydro One will be working to upgrade those stations in order to connect the maximum amount of applicants.

  24. Looking Ahead • Processing backlog of applications • Further details and timing regarding ECT process • CFIT program launch

  25. Around the corner • Program Review • Alignment with the Long Term Energy Plan • Chart a course for program sustainability

  26. Information and Resources RENEWABLE ENERGY FACILITATION OFFICE (Ministry of Energy) For questions regarding getting started with renewable energy, renewable energy approvals and permitting, Website: www.mei.gov.on.ca/en/energy/renewable Email: REFO@ontario.ca Phone: 1-877-440-REFO (7336) Information Available • Questions and answers • Tools and information • Past session materials • Application materials • Rules, contracts and program guidance Web Resources Feed-in Tariff • http://fit.powerauthority.on.ca • fit@powerauthority.on.ca microFIT • http://microfit.powerauthority.on.ca • microfit@powerauthority.on.ca • Program call centre:1-888-387-3403

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