The Alliance for Renewable Energy

Status of FITs in Ontario

Ontario Power System: The generation and distribution of electric power in Ontario is regulated by the Ontario Energy Board. The Independent Electricity System Operator (IESO) manages Ontario’s wholesale power generation and sales market. The Ontario Power Authority (OPA) is responsible for power planning, conservation, and the contracting of generation capacity outside the wholesale market. Transmission and rural distribution is run by a provincial government corporation - Hydro One. Urban distribution is operated by a series of private or municipal owned Local Distribution Utilities. Large rural renewable energy generators are mostly connected to the transmission system while smaller generators feed into local distribution systems.

Ontario also has a competitive retail market for electricity so that individual customers can purchase 100% renewable power from retailers at a premium price.

Ontario FIT and MicroFIT Programs: The Government of Ontario officially launched its feed-in tariff in initiative in 2009 through the Green Energy and Economy Act – at the time the most comprehensive of its kind in the Americas. The Ontario FIT and Micro-FIT (for systems <10kW) programs are operated by the Ontario Power Authority and give priority grid access to renewable sources of power and set fixed tariffs under 20 year contracts. The FIT Programs allows any renewable power system, from the smallest household solar system to large wind farms, to connect to the grid and be paid tariffs that provide a reasonable return on investment.

By the end of 2012, contracts for over 9000 MW of new renewable power had been offered with more than 1300 MW in commercial operation – the rest under development. These contracts have already leveraged over $10 billion in private investment and resulted in significant new solar and wind manufacturing capacity and hundreds of new jobs in Ontario. The program has been so successful that the 2018 provincial targets of 10.7 GW of new renewable power producing 10-15% of the Ontario’s electricity will be reached 5 years early. Increasing grid capacity has become a major factor in rate of deployment of new renewable power systems.

The two original FIT and MicroFIT programs were put on hold in 2011 while they underwent their first scheduled price and rule review. The review report released on March 22, 2012 can be viewed at http://www.energy.gov.on.ca/en/fit-and-microfit-program/2-year-fit-review/.  For a variety of reasons (see commentary below), the programs have been very slow at re-starting. A new MicroFIT 2 Program was opened in August 2012 with a target of 50 MW. A new “Small FIT 2 Program” window was opened for only six weeks in December 2012 with a target of only 200 MW. 

The new Program rules give priority to community or First Nation owned projects, and those on health care and municipal facilities, through a series of “set asides” and a priority points system . An “adder” of up 1.5 cent/kWh will continue to be paid on non-solar projects for community and First Nations projects and a premium paid for biomass and hydro projects that deliver power during peak periods. Community power projects will also continue to be eligible for legal and project development grants under the Community Energy Partnership Program.

The new rates reflect the lower cost of solar and wind systems in 2012 – a sign of success of the program to date.

For more details on the new FIT Program rates and rules visit http://fit.powerauthority.on.ca/

Participation in the FIT program requires the payment of a registration fee and application security. Projects that require additional grid capacity are 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 is making major new transmission investment for grid expansions to accommodate increased renewable energy deployment and to develop a smart grid – see http://www.ieso.ca/imoweb/siteShared/ontarios_smart_grid.asp?sid=md .

Commentary: The introduction of feed-in tariffs and guaranteed access for renewable power sources in 2009 promised a complete change in the way power would be provided to Ontarians in the 21st century, with a new Ontario grid built around these renewable power sources. Up until then, renewable power sources had to be integrated into an existing grid. However, the government’s commitment to this transition in 2013 is not as strong. Insufficient support for community ownership in the initial FIT Program led to several large wind farms being opposed by local residents. The very success of the FIT programs also led quickly to grid constraints and renewable capacity outstripping the power planning process. The long delays in re-starting the FIT programs and the new short application windows have resulted in many renewable energy companies closing down and a struggling community power sector.

Hopefully, provincial targets for renewable power will be raised and a more stable feed-in tariff program established in 2013.

What Feed-in Tariffs Could Do for Japan's Electricity Shortage

 

What Japan Could Do if It Followed Germany's Lead on Renewable Energy

Within one Decade Japan Could Halve its Dependence on Nuclear Power

April 14, 2011

By Paul Gipe

If Japan adopted an aggressive renewable energy policy like that of Germany, it could, within ten years, generate more than four times the electricity lost at the Fukushima 1 nuclear power plant, cutting the country's reliance on nuclear power by one-half or more.

As Japan expands the evacuation zone around the damaged Fukushima 1 nuclear plant from 20 km to 30 km and Tokyo Electric Power (TEPCO) skirts the edge of bankruptcy, the country confronts a stark choice: undertake a massive construction program to replace the nuclear reactors with more of the same, or, instead, follow a new, less risky, and potentially more strategic path toward rapid renewable energy development. The stakes are high and the fight is already intense as Japanese elites debate the future of their electricity system, and literally, the future of their country.

2,100 Miles Later, "Rocket Trike" Nearing Washington, DC

The Alliance for Renewable Energy is sponsoring one man's ride to Washington, DC. Learn more:

And check out his blog for beautiful photos and updates from his trek across the United States!

Los Angeles Solar FIT Proposed

From Wind-Works.org:

The Los Angeles Business Council (LABC) today released a report calling for a modest solar photovoltaic (PV) feed-in tariff program in the City of Angels.

The second of two reports by UCLA's Luskin Center lays out a detailed economic proposal for creating a multi-tiered system of feed-in tariffs (FIT) for solar PV that would result in 600 MW of solar PV within ten years.

The proposal's limited objective will contribute to only 3% the city's electricity supply in 2020. Further, LABC's proposal considers only solar PV and not any other form of renewable energy.

However, the study itself, Bringing Solar Energy to Los Angeles: An Assessment of the Feasibility and Impacts of an In-basin Solar Feed-in Tariff Program weighs the costs and benefits of a program installing up to 1,000 MW of solar PV by 2020, the equivalent of 5% of electricity supply under conditions in southern California.

Read more.

(Photo courtesy of Flickr user tiarescott, shared under a Creative Commons license.)

Italy Surpasses US in Solar PV

 

From Wind-Works.org:

In a dramatic display of the power feed-in tariffs have in driving markets, Italy installed more solar photovoltaics (PV) in 2009 than the entire US. Moreover, within the first quarter of 2010, Italy's total installed solar PV capacity was expected to exceed that of the US.

Italy installed 720 MW of solar PV in 2009, nearly all of that on rooftops. In contrast, the US installed 435 MW during the same period, according to a draft report by the Interstate Renewable Energy Council (IREC).

Italy introduced a system of feed-in tariffs for solar PV in February, 2007 after concluding that the previous program of Tradable Green Certificates was not delivering the results desired.

By the end of 2007, Italy had installed five times more solar PV than in the previous year. Despite numerous bureaucratic roadblocks, the solar industry took off in 2008 and installed nearly 350 MW, then a record-breaking number. Solar PV installations have been doubling since then and are expected to reach 1,500 MW in 2010.

Read more.

(Photo courtesy of Flickr user francesco sgroi, shared under a Creative Commons license.)

San Francisco Feed-in Tariff Conference

From the press release:

Pacific Environment, the World Future Council, the Boell Foundation and others are hosting a one-day conference titled “Feed-in Tariffs: A Time for Real Action on Renewable Energy.” The event will be held in San Francisco on July 12, 2010 to discuss the rapid deployment of renewable energy in the U.S. using Feed-in Tariffs (FiT), a policy mechanism that has been successfully implemented in Europe and other areas of the world. Focusing mainly on California and the West Coast, industry experts from government, business, and the environmental field will discuss Feed-in Tariffs as a policy option, and as a way to stimulate investment in renewable energy, increase energy security and promote economic development inCalifornia.

 

Key objectives of the conference include:

• Increasing understanding of Feed-in Tariffs (FiT), including their significant potential to address climate change, create new jobs and rapidly develop renewable energy
• Discussing how to draft and implement renewable energy laws in the United States, with a focus on California and the West Coast, looking specifically at Feed-in Tariffs
• Developing political strategies for implementing robust Feed-in Tariffs
• Building new coalitions and networks

Learn more and register.

Oregon’s New Solar Law Not a Good FIT

Sad news from Oregon:

Contrary to what some commentators are saying, Oregon did not just adopt a feed-in tariff (FIT).  ELAW has been working diligently to ensure that Oregon adopts a FIT because FITs have been proven to be the most effective and efficient means of moving renewables onto the grid. Sadly, Oregon’s program falls far short of the mark.

Read more.

Fascinating, Simple Explanation of How FITs (a.k.a REPs) Work

Feed-in Tariffs are also referred to as "Renewable Energy Payments," or "REPs." This video from the non-profit Solar One explains how FITs work:
How Renewable Energy Payments (REPs) Work. from Chris Neidl on Vimeo.

Also, please take a moment to become a fan of Feed-in Tariffs on Facebook!

Dow Corning Sees Bright Future for Solar - If FITs are Adopted

From The Energy Collective:

The first objective is to establish “a broad federal legislative and regulatory package” to accelerate the growth of the solar industry and encourage consumer adoption of solar technologies. This includes specific incentives for U.S.-based clean energy manufacturing – the company recommends a permanent extension of the Section 48c advanced manufacturing tax credit – and a package of policies to clear hurdles to market adoption and provide strong, consistent domestic demand for solar power.

This package of incentives includes a broad and robust national renewable electricity standard (RES) to “get the whole country marching in the right direction,” Mr. Peeters said, as well as targeted and robust production incentives in the form of feed-in tariffs or other “renewable energy payment” policies.

These targeted incentives are particularly important, Mr. Peeters said, “because solar is an infant industry really. It's young. There is a lot to learn. Technology development is very very fast. Solar will get to a cost where it is competing with traditional sources of energy … We will see it in the next ten years the technology will evolve fast enough so that in many places, those incentives will go way way down, maybe down to zero. But right now, today,” Peeters noted, “[production incentives] are an important tool to bring some people over this initial barrier, to give the activation energy to make this happen."

Read the full article.

New York Solar Energy Society Calls for Feed-in Tariffs

 
From Paul Gipe:

The New York Solar Energy Society (NYSES) has sent out an action alert calling on its members to support Senate Bill S2715A, the New York Renewable Energy Sources Act. The bill was introduced by State Senator Antoine M. Thompson (D-Buffalo), Chair of the Senate's Standing Committee on Environmental Conservation.

NYSES' alert includes 14 talking points that explain why New York state needs renewable energy now and how feed-in tariffs will make it happen.

Previously, the New York State Solar Energy Industry Association (NYSEIA) had called for action on feed-in tariffs in support of Senator Thompson's bill. See New York SEIA Calls for Feed-in Tariffs.

Both Florida's SEIA and California's SEIA have called for various versions of feed-in tariffs in their respective states.

Neither the American Solar Energy Society nor the national Solar Energy Industries Association has explicitly called for feed-in tariffs. Recently, however, the Solar Alliance, a trade association of solar PV manufacturers and developers, posted its policy in support of feed-in tariffs. See Solar Alliance Position Paper on Feed-in Tariffs.

NYSES' campaign for feed-in tariffs in the Empire State is being led by Wyldon Fishman, the founder and current president of NYSES.

(Photo courtesy of Flickr user fergusonphotography, shared under a Creative Commons license.)