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Feed In Tariff and Renewables Procurement Shawn Cronkwright – Director, Renewables Procurement Ontario Construction Secretariat – 2013 State of the Industry & Outlook Conference March 6, 2013 Ontario Power Authority Ensure reliable, cost-effective, sustainable electricity supply for Ontario. Key Activities Long-Term Power System Planning Procuring New Supply 2 Enabling Conservation Across the Province Transforming Ontario’s Electricity Grid • Ambitious conservation targets • Smart grid leaders • Managing Nuclear Refurbishments • North America’s first and most comprehensive FIT Program • Diversified supply mix with significantly increasing role for renewables 3 A cleaner electricity system • Phasing out coal by 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 2010 Capacity (MW) NonHydroelectric Renewables 2015 Capacity (MW) Demand Response Demand Response NonHydroelectric Renewables Nuclear Nuclear Hydroelectric Hydroelectric Coal Gas Gas 4 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) 5 FIT Program Impact • Has encouraged billions of dollars of investment • More than 30 companies have already invested or plan to invest in Ontario – manufacturers/generators/related services • Created thousands of direct and indirect clean energy jobs 6 Types of Jobs Created • • • • • Engineering – electrical, civil, mechanical, computer Business development – sales, financing, legal Manufacturing – raw materials, valued-added products Construction – solar/wind/hydro installation Operations – day-to-day operations, maintenance 7 FIT Contracts and Large FIT Applications Number of Contracts and Applications Contracts Executed [#] Energy Group Existing Applications [#] Pre-NTP NTP COD Total Contracts Bioenergy 18 11 20 49 29 Solar PV (Rooftop) 575 332 508 1,415 180 Solar PV (Ground) 95 44 6 145 483 Water 35 9 0 44 38 Wind 60 7 8 75 152 TOTALS 783 403 542 1,728 882 8 FIT Contracts and Large FIT Applications Capacity for Contracts and Applications Contracts Executed [MW] Energy Group Existing Applications [MW] Pre-NTP NTP COD Total Contracts Bioenergy 18 27 14 58 146 Solar PV (Rooftop) 103 67 81 251 64 Solar PV (Ground) 543 374 21 939 3,787 Water 123 63 0 185 155 Wind 2,450 407 257 3,113 6,425 TOTALS 3,237 937 373 4,546 10,577 * Values and totals may vary slightly due to rounding 9 Results of the Two-Year FIT Review • Ontario’s Feed-in Tariff Program Two-Year Review Report released on March 22, 2012 • Six strategic areas of recommendations: – Continue commitment to clean energy – Streamline processes and create jobs – Encourage greater community and Aboriginal participation – Improve municipal engagement – Reduce prices to reflect lower costs – Expand Ontario’s clean energy economy • MicroFIT 2.0 Rules and Contract posted on July 12, 2012 • FIT 2.1 Rules and Contract posted on December 14, 2012 10 FIT 2 Highlights • • • Initial Small FIT (≤ 500 kW) procurement target of 200 MW Prioritization of applications based on applicant type and priority points Contract Capacity Set Aside (CCSA) Eligible projects with greater than 50% community or Aboriginal participation receive top priority – Subject to CCSA MW limits • • Application security required for all projects Land use siting restrictions for ground-mounted solar of any size – Both soil class and land use type • • • • No Economic Connection Test (ECT): connections based on existing capacity and planned upgrades Small FIT projects now subject to connection capacity screening Rooftop solar projects must reach commercial operation within 18 months, with an exception for portfolios >15 MW Applicants will receive the price in effect at the time the contract offer list is posted on the FIT website 11 FIT 2 Summary – Small FIT Applications Application Period December 14, 2012 – January 18, 2013 Technology Resubmitted Applications New Applications Total Applications Resubmitted kW New kW Total kW Biogas 7 42 49 2,239 12,963 15,202 Biomass 4 11 15 2,000 4,225 6,225 Landfill Gas 0 0 0 0 0 0 152 310 462 63,755 118,191 181,946 1,826 1,559 3,385 294,962 318,237 613,199 Water 1 18 19 120 5,743 5,863 Wind (on-shore) 2 6 8 140 3,000 3,140 1,992 1,946 3,938 363,216 462,359 825,575 Solar PV (nonRooftop) Solar PV (Rooftop) TOTALS 12 FIT Application and Contracting Process *Timelines are targets 13 microFIT 2 Projects Application Stage Contract Stage Approved Applications Capacity [kW] Applications Connected / Contract Executed Capacity [kW] 0 0 0 0 2,728 25,387 624 5,239 Solar PV (Ground) 79 785 31 305 Water 0 0 0 0 Wind 0 0 0 0 2,807 26,172 655 5,544 Energy Group Bioenergy Solar PV (Roof) TOTALS * Data as of February 18, 2013 14 11.7 MW remaining towards 50 MW Procurement Target Questions and Resources Questions regarding FIT or microFIT, including application questions: [email protected] [email protected] Questions regarding your existing FIT or microFIT contract: [email protected] [email protected] Where to find additional information: fit.powerauthority.on.ca microfit.powerauthority.on.ca ontario.ca/refo 15