Transcript Slide 1
Feed In Tariff (FIT) and Renewables Procurement in Ontario
Dirk van de Waal – Business Analyst, Renewables Procurement
October 16, 2013
Ontario Power Authority
Ensure reliable, cost-effective, sustainable electricity supply for Ontario.
Key Activities Long-Term Power System Planning Procuring New Supply Enabling Conservation Across the Province 2
A cleaner electricity system
• Phasing out coal by the end of 2014 – 75 percent reduction in electricity sector’s carbon footprint • Replacing coal with clean, renewable energy resources – FIT Program is helping to bring on more renewable generation
System Capacity 2009 Efficiency/ DR 2013 (est.) Efficiency/ DR Coal Coal Gas Coal Natural Gas Solar PV Bioenergy Hydro Hydro Wind Gas Solar PV Natural Gas Nuclear Bioenergy Wind Hydro
3
Wind Nuclear Hydro
Feed-in Tariff (FIT) Program
• Launched in 2009 • First comprehensive FIT program in North America • Open to various renewable energy supply technologies – Solar Photovoltaic (PV) – Wind power – Waterpower – Bioenergy technologies (biogas, biomass, landfill gas) • Different prices for different technologies and project sizes • Long-term contracts (
e.g.
20 years) 4
FIT Program Impact
• Has encouraged billions of dollars of investment • More than 30 companies have already invested in Ontario – manufacturers/generators/related services • Created thousands of direct and indirect clean energy jobs 5
Procurement to date
3 500 3 000 Non-Hydro Renewables – Executed Contract Capacity
3 237
Bio-energy Solar PV 2 500
2 320
Wind 2 000 1 500 1 000
779
500
314
0
424 391 447 245 (Est) ~170
2004 2005 2007 2008 2009 2010 2011 2012 2013 6
FIT Launched
MicroFIT Program
Applications
70 000 60 000 50 000 40 000 30 000 20 000 10 000 microFIT Applications and Contracted Capacity Accumulated Capacity Accumulated Applications 0 Q4 2009 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Q1 2013 Q2 Q3 60 40 20 0
(MW)
160 140 120 100 80 * Data as of Oct 1, 2013 7
FIT 3 and Beyond
• June 12, 2013 Minister’s direction further clarifies policy goals • Support long-term sustainability of FIT program by setting annual procurement targets for next 4 years: – 150 MW/yr for Small FIT – 50 MW/yr for microFIT • Replace Large FIT program with new competitive procurement process – Work with municipalities and Aboriginal communities to identify appropriate locations and siting requirements • Strengthen participation of municipalities and public sector entities in Small FIT – Schools, colleges, universities, hospitals, long-term care homes, public transit services and Metrolinx • Measures to bring program into compliance with May 24, 2013 WTO rulings 8
Fall 2013 Procurement Targets
• FIT 3 application window to open on November 4, 2013 targeting 123.5 MW – Encourage participation by municipalities and public sector entities (revised points system, CCSAs, price adders) – Rules and application process have been improved • 15 MW pilot program for rooftop solar projects on unconstructed buildings to run concurrently • 30 MW Fall 2013 microFIT procurement target 9
Unconstructed Rooftop Solar Pilot Program
• Pilot stream for applicants with unconstructed buildings • Small FIT rooftop solar projects – 10 kW – 500 kW • Up to 15 MW in 2013 • Considerable industry stakeholdering • Goal is to synchronize successful pilot framework into regular FIT program in 2014 10
August 26, 2013 Price Schedule
Renewable Fuel Project Size Tranche* Solar (PV) (Rooftop) Solar (PV) (Non-Rooftop) On-Shore Wind Waterpower Renewable Biomass On-Farm Biogas Biogas Landfill gas
≤ 10 kW > 10 ≤ 100 kW > 100 kW ≤ 10 kW > 10 kW All sizes All sizes All sizes ≤ 100 kW > 100 kW ≤ 250 kW All sizes All sizes * The FIT 3 program is available to projects generally ≤ 500 kW
August 26, 2013 Price (¢/kWh) 39.6
34.5
32.9
29.1
28.8
11.5
14.8
15.6
26.5
21.0
16.4
7.7
11
April 5, 2012 Price (¢/kWh)
54.9
54.8
53.9
44.5
38.8
11.5
13.1
13.8
19.5
18.5
16.0
11.1
% Change
-27.9% -37.0% -39.0% -34.6% -25.8% 0% 13.0% 13.0% 35.9% 13.5% 2.5% -31%
2013 Procurement Schedule
• This is an anticipated schedule and is subject to change 12
2014 Procurement Schedule
• This is an anticipated schedule and is subject to change 13
FIT Application and Contracting Process
Application Review *60 DAYS Connection Screen *60 DAYS
*Timelines are targets
Contract Execution, Approvals, NTP, COD
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Large Renewable Projects
• No more procurement under Large FIT program (generally > 500 kW) • Large FIT program to be replaced by competitive procurement process • Engage stakeholders and provide interim report – Through August 2013, OPA facilitated various engagement activities for municipalities, Aboriginal communities, industry associations, general public and other stakeholders.
• OPA submitted interim recommendations report to Minister of Energy on August 30, 2013 • Interim recommendations report publicly available 15
Hydroelectric Standard Offer Program (HESOP)
• Municipal Stream – Eligible municipal waterpower projects – New-build – 10 MW for projects 500 kW – 5MW – 50 MW for projects > 5 MW – Pre-existing FIT applicants prior to June 5, 2010 • Expansion Stream – NUG or HCI contracted facilities – Procurement for expansion potential at existing facility 16
Questions and Resources
Questions regarding FIT or microFIT, including application questions: [email protected]
Questions regarding your existing FIT or microFIT contract: [email protected]
Where to find additional information: fit.powerauthority.on.ca
microfit.powerauthority.on.ca
ontario.ca/refo 17