Ontario unveils feed-in tariff program promised under the Green Energy Act

On March 12, the Ontario Power Authority ("OPA") unveiled its proposal for Feed-in Tariff ("FIT") pricing. The FIT is a key feature of the Ontario Green Energy Act, which is currently working its way through the Ontario legislature (see our bulletin for details).

The proposed rates, reproduced below, vary by technology and project size. The prices are intended to cover capital, operating and maintenance costs while providing a reasonable rate of return on a 20-year investment. According to the OPA, the FIT prices were "developed based on experience here in Ontario and in other jurisdictions."

Proposed Feed-In Tariff Prices for Renewable Energy Projects in Ontario

Biomass
Any size: 12.2¢/kWh

Biogas
5 MW or less: 14.7¢/kWh
over 5 MW: 10.4¢/kWh

Waterpower
50 MW or less: 12.9¢/kWh
Community-base, 2 MW or less: 13.4¢/kWh

Landfill gas
5 MW or less: 11.1¢/kWh
over 5 MW: 10.3¢/kWh

Solar PV
Rooftop
10 kW or less: 80.2¢/kWh
10 to 100 kW: 71.3¢/kWh
100 to 500 kW: 63.5¢/kWh
over 500 kW: 53.9¢/kWh

Ground
10 MW or less: 44.3¢/kWh

Wind
Onshore, any size: 13.5¢/kWh
Offshore, any size: 19.0¢/kWh
Community, 10 MW or less: 14.4¢/kWh

(All but wind and solar may be subject to different peak and off-peak prices).

For comparison, natural gas plants are currently paid between 8.5-11¢/kWh; nuclear plants between 6-7¢/kWh; and hydro plants between 5.7-6.2¢/kWh.

The OPA will be holding a series of 8 weekly stakeholder consultation workshops from March 17 to May 5. The agenda for the first session, which will deal with the objectives of the FIT program, is already available.

The OPA will continue to post updates about the program in a new section of its website.

Tagged as: Ontario - renewable energy