British Columbia’s Feed-in Tariff

Janice Larson

Director, Renewable Energy Development BC Ministry of Energy

Context

•

Bill 17, The Clean Energy Act builds on the foundation of the BC Energy Plan and the Climate Action Plan

•

Green Energy Advisory Task Force was appointed November 2009

•

2010 Speech from the Throne: “A Future Powered by Clean Energy”

BC’s Clean Energy Act (2010)

Ensure electricity self sufficiency at low rates Harness BC’s clean power potential to create jobs in every region Strengthen environmental stewardship and reducing GHGs 16 Energy Objectives, including:

        Electricity self-sufficiency Increased goals for conservation and electricity from clean & renewable sources Ensure BC ratepayers continue to benefit from the Heritage Assets Meet BC’s greenhouse gas reduction targets Pursue switching to lower emission energy sources Encourage First Nation and rural communities to reduce GHG emissions, use energy efficiently, and develop clean or renewable resources Economic development and job creation Become a net exporter

Feed-in Tariff

• Can be established by regulation (CEA sections 16 and 35(m)) • Would provide right for fixed price sale into grid • Will include emerging technologies • Can set classes for price, type of production and region • Exempt from BCUC review (CEA s.7(1)(i)) • Not expected have significant impact on rates (i.e. likely to be used differently than in Ontario) • A performance-based regulation

Feed-In Tariff Development Process

• • • • • Consultation Paper: Aug.-Sept.2010

Review responses (over 100 submissions received): Oct.2010

Develop regulatory framework, design features, criteria, etc.: ~Nov./Dec.2010

Draft regulation: ~Dec.2010/Jan.2011

Present regulation for Govt approval: ~Feb.2011

Consultation Feedback

• • • • Range of views on which CEA Energy Objectives should drive the FIT Range of views on proposed size limit for eligible projects, total program budget, rates of return, length of contract term, ‘first come, first served’ vs. technology-specific allocations, etc.

Range of views on what technologies should be considered “emerging” Concerns re: balancing competing uses (e.g. Biogas for electricity vs. heating vs. transportation applications)

Complementary Initiatives

• Standing Offer Program: – Any producer meeting requirements can sell to BC Hydro at fixed price without a call for power.

– Program rules expected to be broadened to improve accessibility and to allow pre-commercial technologies to participate.

• Section 18: GHG reduction – Regulations can specify programs for which BCUC must allow utilities to recover costs (e.g. using electricity, geoexchange or bioenergy instead of energy producing higher GHG emissions) • ICE Fund • Venture Capital Program • Renaissance Capital Fund • First Nations Clean Energy Business Fund • Climate Action Clean Energy Fund