Ontario and Nova Scotia are the only Provinces that have FIT legislation and an operating FIT program. British Columbia recently held a consultation on feed-in tariffs but no legislation or program is planned. New Brunswick has a special tariff for renewable power projects but it is not a true feed-in tariff as it is not based on providing a reasonable rate of return for investors. Several other provinces have net metering legislation.
The Ontario FIT program has been in place for 2 years and is undergoing its first scheduled review. It is the only state or province in North America with a full program that guarantees cost based tariffs and grid access for all sizes and types of renewable power generators. Nova Scotia's Community Feed-in Tariff (CMOFIT) program for community owned wind, biomass, hydro and tidal power projects began operation in the fall of 2011.
Ontario
Nova Scotia
New Brunswick
British Columbia
On September 24, 2009, the Ontario government officially launched its Feed-in Tariff (FIT) Program - the most comprehensive of its kind in the Americas. The Ontario Power Authority FIT program (and Micro-FIT program for systems <10kW) give priority grid access to renewable sources of power and set fixed tariffs under 20 year contracts.
By April 2010, the OPA had awarded contracts totally 2500 MW for solar, wind and hydro renewable power under the FIT program. This is in addition to 112 MW of mostly solar small scale (<10 KW) projects announced in March, 2010. These contracts have leveraged over $9 billion in private investment and will create 20,000 new jobs in Ontario. For more information on this milestone check Ontario's Feed-In Tariff Program Backgrounder.
For the latest on the Ontario Power Authority FIT programs please visit http://www.powerauthority.on.ca/fit/, or check recent post on the ARE web site. To download a copy of Bill 150 the Green Energy Act click here.
The feed-in tariffs were set under the powers of Ontario Bill 150, the Green Energy Act which was passed into law on May 14, 2009. The Act allows any renewable power system, from the smallest household solar system to large off shore wind farms in the Great Lakes, to connect to the grid and be paid tariffs that provide a reasonable return on investment.
The feed-in tariffs are as follows:
- 13.5 cents / kWh for on-shore wind
- 19.0 cents / kWh for off-shore wind
- 44.3 - 80.2 cents / kWh for solar,
- 12.2 - 13.1 cents /kWh for hydro, and
- 13.5 - 19.0 cents / kWh for biogas and biomass.
An “adder” of up 1.5 cent/kWh will be paid for community and First Nations projects. A premium will be paid for biomass and hydro projects that deliver power during peak periods.
Participation in the FIT program requires the payment of a registration fee and application security. Projects that require grid extensions will be required to meet transmission/distribution availability and economic connection tests. All these requirements are waived for MicroFIT projects less than 10 kW. Both FIT and MicroFIT projects must meet Ontario domestic content requirements.
In addition to the FIT Program, Ontario will make major new transmission investment for grid expansions to accommodate renewable energy development. For details please read the article: Ontario commits $2.3 billion over three years to grid upgrades, expansion. Ontario has also set up two new funds to support community power project design and feasibility studies and to support municipalities so they can recoup costs associated with infrastructure improvements as a result of renewable energy projects (road expansions, drainage, etc.).
The Ontario feed-in tariff is the culmination of several years of advocacy by the Green Energy Act Alliance http://www.greenenergyact.ca. On February 23, 2009 the Government of Ontario tabled Bill 150 the Green Energy Act. The Act also includes measures to accelerate the adoption of energy conservation measures, including the labeling of homes and buildings with their energy consumption. The introduction of feed-in tariffs and guaranteed access for renewable power sources represents a complete change in the way power will be provided to Ontarians in the 21st century. Up until now, renewable power sources had to be integrated into an existing grid. From now on, a new Ontario grid will be built around these renewable power sources.
For a comparison of the proposed individual tariffs with the approach used in Europe, read Paul Gipe's “Ontario Proposes Precedent - Setting Renewable Tariffs: World Class Tariffs for North America”
For more on renewable energy issues in Canada visit the Canadian Renewable Energy Alliance at http://www.canrea.ca.
Nova Scotia has become the second Canadian province after Ontario to adopt Feed-in Tariffs. The Province unveiled its new Renewable Electricity Plan on April 23.
The plan outlines an “orderly transition to new, local, renewable energy sources” with aggressive new targets of 25% by 2015 and a goal of 40% by 2020.
While 600 MW of new large scale renewable power projects will still be procured using a bidding process, community based feed-in tariffs (COMFITs) will be established for 100 MW of local power projects developed by municipalities, First Nations, co-operatives, and non-profit groups. Electricity produced from wind, biomass, tidal, wave, in-stream hydro as well as combined heat and power projects will be eligible for COMFIT rates that reflect basic cost-recovery, including the cost of capital. Rates are to be set in the Fall of 2010
Many observers have congratulated Nova Scotia on the introduction of feed-in tariffs and for the leadership and example that this provides to other smaller provinces. Others are disappointed that feed-in tariffs will not be used for all renewable power procurement as they are in Europe and Ontario. Individuals and businesses wanting to invest in renewable power projects are offered only “enhanced net metering” - payment for power produced at the same price as they pay for power used. The absence of solar from COMFIT effectively rules out investment in solar photovoltaic power systems in Nova Scotia.
Farmer developed projects are also not currently defined as ”community” projects and are therefore also not eligible for the feed-in tariff as they are in Ontario. To ensure renewable power is developed sustainably, biomass power generation has been limited to 700 GWh/yr and tidal power will be developed “safely”.
The Province will review all of the components of the Plan in 2012, including the possibility of expanding the use or feed-in tariffs.
The Nova Scotia feed in tariff program was implemented in response to a province-wide consultation led by David Wheeler of Dalhousie University. Dr. Wheeler’s report “A New Renewable Energy Strategy for Nova Scotia” was tabled on December 31, 2009. It made three key recommendations:
1. Power utilities and independent power producers be responsible for the delivery of the bulk of the target, overseen by a new renewable energy procurement body and system operator;
2. Community enterprises receive a guaranteed price for electricity through a feed-in tariff with an initial goal of 100MW capacity; and
3. Ordinary citizens and small and medium sized enterprises be encouraged to become engaged in renewable energy generation and use.
For more details and NGO comment visit the CanREA web site www.canrea.ca/site
New Brunswick
On February 9, 2010 New Brunswick Energy Minister Jack Keir announced a new special tariff that will pay 10 cents/kWh for power generated from new community power projects of all types. Many observers agree that this price is far too low to encourage investment in renewable energy projects, and is not a true feed-in tariff like those used in Ontario, Nova Scotia and in Europe, as it is not based on providing a reasonable rate of return to investors.
The new policy also does not guarantee access to the grid as a true feed-in tariff program should. The initial phase of the will consist of 75 MW, of which 50 MW will be assigned to community-owned projects and the other 25 MW to First Nations projects. To qualify under the policy, projects must not be larger than 15 MW in capacity. They must be majority-owned by First Nations, municipalities, co-operatives, not-for-profit organizations or institutions. New Brunswick-based private corporations and investors may be minority partners.
For more details and NGO comment visit the CanREA web site www.canrea.ca/site
The British Columbia Ministry of Energy, Mines and Petroleum Resources has announced its intention to introduce a Feed-In Tariff Regulation under Section 16 of the Clean Energy Act to support fulfillment of British Columbia’s Energy Objectives. The Ministry objective is for the regulation to come into force in early 2011.
The Regulation would require the BC Hydro and Power Authority to establish a feed-in tariff in accordance with the Act. The purposes of BC’s FIT are to foster the development of innovative technologies, reduce GHG emissions, encourage job creation, help First Nations and rural communities get off diesel, and reduce waste by the use of waste heat, biomass and biogas.
A Consultation Paper has been produced and can be accessed by clicking here. The deadline for submitting responses is September 30, 2010. The consultation paper addresses the paradox that BC finds itself in. Much of the province’s power already comes from renewable sources (hydro-electricity). At the same time, pockets of high cost fossil fuel supply exist, while other forms of renewable power are shut out of the market.
A number of limits are proposed:
- FIT not intended as a general power procurement tool
- $25 million limit to annual expenditure above the cost of acquiring the power through BC’s existing Standing Offer Program
- 5 MW limit on size
- 5 year contract limit
- Limited on-grid to biomass, biogas, geothermal, instream hydrokinetic, and ocean energy.
- Solar or wind included off-grid
The BC Sustainable Energy Association thinks that the opportunities for renewable power development will be severly restricted by the 5-year contract limit and will not give developers sufficient time to make a return on their investment. BCSEA also notes that the 5 MW limit may rule out geothermal developments. Limiting solar and wind to off-grid applications means they would have to compete in the Standing Offer Program.
