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Clarington Energy Summit Ministry of Economic Development and Trade MAY 30, 2011
Outline <ul><li>Energy Connections – Key Objectives </li></ul><ul><li>Energy and the Economy  </li></ul><ul><li>Long-Term ...
ENERGY CONNECTIONS – KEY OBJECTIVES <ul><li>To support Ontario companies and regions in exploring existing and emerging di...
Energy and the Economy - Long-Term Energy Plan <ul><li>Over 95,000 Ontarians directly/indirectly employed by energy sector...
Long-Term Energy Plan <ul><li>Electricity sector is a $15 billion annual industry  </li></ul><ul><li>System investments st...
Renewable Energy – A Key Priority <ul><li>The success of renewable energy in Ontario is a priority. </li></ul><ul><li>Rene...
Ontario’s Green Energy Act <ul><li>The landmark Green Energy Act (GEA) will boost investment in renewable energy projects ...
Ontario Power Authority Contracts   FIT / microFIT – To Date <ul><li>As of March 4, 2011 - 1,231 contracts (2,577 MW) have...
Domestic Content  - How FIT Program Works  <ul><li>FIT domestic content provisions were designed to help ensure that the t...
Inter-ministerial Domestic Content Working Group <ul><li>An Inter-ministerial Domestic Content Working Group (IDCWG) has b...
Wind and Solar Manufacturing Announcements <ul><li>The large number of FIT applications indicates that we will be well on ...
Supply Chain Opportunities <ul><li>The Ontario Ministry of Economic Development and Trade continues to work with other Min...
Ontario employers have access to a wide range of support programs and incentives <ul><li>Scientific Research & Experimenta...
Ontario employers have access to a wide range of support programs and incentives (cont’d) <ul><li>Eastern Ontario Developm...
Why Ontario? <ul><li>Generous and long term FIT contracts for electricity generated from renewable sources. </li></ul><ul>...
Ministry of Economic Development and Trade <ul><li>Please contact us for assistance with: </li></ul><ul><li>The latest inf...
http://www.mei.gov.on.ca/en/pdf/MEI_LTEP_en.pdf
http://www.mei.gov.on.ca/en/pdf/EnergyPlan_EN.pdf
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2011 Clarington Energy Summit - MEDT Presentation by Rick Grandin

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  • Examples include: Heliene, making modules in Sault Ste. Marie. Samco, making mounting systems in Scarborough. Satcon Power Systems, making inverters in Burlington. Celestica Inc. and Recurrent Energy, a subsidiary of Sharp Corporation, have partnered to manufacture modules at the Celestica facility in Toronto. CS Wind, who will manufacture wind turbine towers in Windsor. Siemens, who will produce turbine blades in Tillsonburg.
  • Durham Region Companies on the database Fabricated Machining Group – Whitby Geradau Amersteel – Whitby Miratec – Pickering Signature Aluminum – Pickering Wegu Manufacturing - Whitby
  • Transcript of "2011 Clarington Energy Summit - MEDT Presentation by Rick Grandin"

    1. 2. Clarington Energy Summit Ministry of Economic Development and Trade MAY 30, 2011
    2. 3. Outline <ul><li>Energy Connections – Key Objectives </li></ul><ul><li>Energy and the Economy </li></ul><ul><li>Long-Term Energy Plan </li></ul><ul><li>Renewable Energy – A Key Priority </li></ul><ul><li>Ontario’s Green Energy Act </li></ul><ul><li>Ontario Power Authority Contracts </li></ul><ul><li>Domestic Content - How FIT Program Works </li></ul><ul><li>Supply Chain Opportunities </li></ul><ul><li>Ontario Employers - Support Programs & Incentives </li></ul><ul><li>Why Ontario? </li></ul>
    3. 4. ENERGY CONNECTIONS – KEY OBJECTIVES <ul><li>To support Ontario companies and regions in exploring existing and emerging diversification opportunities with a focus on energy supply chains across North America. </li></ul><ul><li>To identify energy market opportunities including oil and gas, renewable energy, as well as nuclear. </li></ul><ul><li>To connect the right Ontario companies to specific new market opportunities – matchmaking. </li></ul><ul><li>To aid Ontario companies in selling products and services into national and international markets. </li></ul><ul><li>To provide market/industry intelligence to Ontario companies and regions to assist in strategic planning. </li></ul><ul><li>To assist Ontario companies, in particular SMEs, with new business development skills as an enabler to explore non-traditional market opportunities. </li></ul><ul><li>To build long-term relationships with other provinces, including Alberta, Quebec and Saskatchewan. </li></ul>
    4. 5. Energy and the Economy - Long-Term Energy Plan <ul><li>Over 95,000 Ontarians directly/indirectly employed by energy sector. </li></ul><ul><li>The Green Energy Act will create 50,000 jobs over three years in construction, manufacturing, installation, and maintenance. </li></ul><ul><li>The Long-Term Energy Plan, released in November 2010, is building a clean energy future that provides a balanced mix of resources to power our homes and businesses across Ontario while creating a clean economy. </li></ul><ul><li>Hydroelectric power is expanding to include increased capacity from the Niagara Tunnel project and the Lower Mattagami project — producing clean energy by tapping into a renewable and free fuel source. </li></ul><ul><li>Traditional forms of generation will continue to play an important role (see pie chart on next slide for investment totals): </li></ul><ul><ul><li>Nuclear power will continue to reliably supply about 50 per cent of the province’s electricity needs. It does not emit air pollutants or emissions during production. </li></ul></ul><ul><ul><li>Natural gas-fired plants have the flexibility to respond when demand is high - acting as peak source or cushion for the electricity system. Natural gas is the cleanest of the fossil fuels, emitting less than half of the carbon dioxide emitted by coal. </li></ul></ul>
    5. 6. Long-Term Energy Plan <ul><li>Electricity sector is a $15 billion annual industry </li></ul><ul><li>System investments strengthen reliability, support jobs and economic opportunities </li></ul><ul><li>The equivalent of 70% of our current supply will need to be replaced, refurbished or built over the next 20 years. </li></ul><ul><li>Plan outlines essential capital expenditures </li></ul><ul><li>Plan forecasts $87 billion (2010 dollars) of public/private capital investment over life of Plan </li></ul><ul><li>Cost estimates will be further refined by Ontario Power Authority through Integrated Power System Plan </li></ul>
    6. 7. Renewable Energy – A Key Priority <ul><li>The success of renewable energy in Ontario is a priority. </li></ul><ul><li>Renewable energy is essential to accomplish Ontario’s: </li></ul><ul><ul><ul><li>Economic goals </li></ul></ul></ul><ul><ul><ul><li>Environmental goals </li></ul></ul></ul><ul><ul><ul><li>Long-Term Energy Plan </li></ul></ul></ul><ul><li>Ontario will continue to grow its hydroelectric capacity with a target of 9,000 MW. </li></ul><ul><li>Ontario’s target for clean, renewable energy from wind, solar and bio-energy is 10,700 MW by 2018 (excluding hydroelectric) – accommodated through transmission expansion and maximizing the use of the existing system </li></ul><ul><li>Ontario will increase conservation targets to 7,100 MW and reduce overall demand by 28 TWh by 2030. </li></ul><ul><li>Through the Plan, Ontario will continue to invest in upgrades to the transmission and distribution systems to accommodate the renewable energy supply </li></ul>
    7. 8. Ontario’s Green Energy Act <ul><li>The landmark Green Energy Act (GEA) will boost investment in renewable energy projects and increase conservation, creating green jobs and economic growth to Ontario. </li></ul><ul><li>Building a stronger, greener economy with lasting, well-paying jobs for Ontarians is a key goal of the GEA. </li></ul><ul><li>Key goals of the GEA: </li></ul><ul><ul><li>Providing certainty and clarity in the approvals process for renewable energy projects. </li></ul></ul><ul><ul><li>Enabling domestic content requirements for renewable energy projects, creating job opportunities in Ontario. </li></ul></ul><ul><ul><li>Helping local communities and First Nation and Métis communities to build, own and operate their own renewable energy projects. </li></ul></ul><ul><ul><li>Expanding our electricity grid to make it “smart”. </li></ul></ul>
    8. 9. Ontario Power Authority Contracts FIT / microFIT – To Date <ul><li>As of March 4, 2011 - 1,231 contracts (2,577 MW) have been executed for both large FIT and medium FIT. </li></ul><ul><ul><li>177 contracts executed with a potential generating capacity of 2,363 MW for large FIT projects. By MW, almost 50% wind. </li></ul></ul><ul><ul><li>1,054 contracts executed with a potential generating capacity of 214 MW for medium FIT projects. By MW, 92% rooftop PV. </li></ul></ul><ul><li>As of March 4, 2011 there were over 2,263 FIT applications totaling 1,559 MW. </li></ul><ul><li>As of March 4, 2011, the OPA has received over 23,000 microFIT applications and sent conditional offers to over 20,000 applicants. </li></ul><ul><ul><li>99% of applications are for solar PV. </li></ul></ul><ul><ul><li>The OPA is receiving about 1,500 microFIT applications a month. </li></ul></ul><ul><li>Note : On May 26, 2011, the OPA began offering contracts to 839 CAE (capacity allocation exempt) FIT projects, representing more than 140 MW of capacity. Contracts will be offered over the next 10 weeks </li></ul>
    9. 10. Domestic Content - How FIT Program Works <ul><li>FIT domestic content provisions were designed to help ensure that the technology and the solutions behind renewable energy generation will create green manufacturing jobs in Ontario. </li></ul><ul><li>Developers are required to have a certain percentage of their total project cost come from Ontario goods and labour. Domestic Content requirements are: </li></ul><ul><ul><li>For Wind, 25% now and increasing to 50% on Jan. 1, 2012. </li></ul></ul><ul><ul><li>For microFIT solar (10 kW or smaller), began at 40% and increased to 60% on Jan. 1, 2011. </li></ul></ul><ul><ul><li>For larger solar PV (more than 10 kW), began at 50% and increased to 60% on Jan. 1, 2011. </li></ul></ul><ul><li>The percentage of qualifying domestic content is calculated based on a grid of specified activities. </li></ul><ul><li>As a result of the Domestic Content requirements, Ontario has attracted considerable investment and job creation, especially in the solar sector. Over thirty companies have announced plans to set up or expand operations in Ontario. </li></ul><ul><li>The design of the Domestic Content policy includes a role for supply of equipment from outside Ontario (only a portion of total costs to be spent in the province). </li></ul><ul><li>The program treats all investors equally: the same terms and conditions apply to all applicants whether they are currently in Ontario or coming to Ontario. </li></ul>
    10. 11. Inter-ministerial Domestic Content Working Group <ul><li>An Inter-ministerial Domestic Content Working Group (IDCWG) has been established with the Ministry of Energy (MEI), the Ministry of Economic Development and Trade (MEDT) and the OPA to assist the OPA in responding to questions about domestic content requirements from manufacturers in a timely, transparent fashion. </li></ul><ul><li>Other ministries such as the Ministry of Research and Innovation may be asked to participate as needed to address domestic content issues. IDCWG members from MEI, MEDT and any other participating OPS ministries will be drawn from the divisions or branches with the relevant expertise. </li></ul><ul><li>The IDCWG provides clarifications – more detailed explanations of the Designated Activities so that manufacturers are clear on what must be done in Ontario. </li></ul><ul><li>The IDCWG will also update domestic content requirements to incorporate new technologies. </li></ul><ul><li>The OPA, MEDT and MEI continue to work together to respond to questions regarding interpretations of designated activities from manufacturers in a timely, transparent fashion. </li></ul><ul><li>To date there have been 10 draft domestic content interpretation postings (inverters, concrete towers, hub assembly, other nacelle parts, gearless turbines, gearless pitch systems, thin film modules, thin film mounting systems, nacelle frame and nacelle shell) and 5 final interpretation postings (inverters, hub assembly, gearless turbines, gearless pitch systems and concrete towers). </li></ul>
    11. 12. Wind and Solar Manufacturing Announcements <ul><li>The large number of FIT applications indicates that we will be well on our way in meeting our target of 50,000 jobs in the first three years of GEA implementation. </li></ul><ul><li>The recently announced FIT contract offers are projected to result in the creation of 20,000 direct and indirect new green economy jobs, and about $9 billion in private sector investment, as well as investment in manufacturing. </li></ul><ul><li>To date more than 30 companies are investing in Ontario’s new clean economy. </li></ul>
    12. 13. Supply Chain Opportunities <ul><li>The Ontario Ministry of Economic Development and Trade continues to work with other Ministries as well as partners like the Canadian Manufacturers & Exporters (CME) to provide opportunities for manufacturers and developers to easily contact each other once FIT applications are announced. </li></ul><ul><li>During our last fiscal year MEDT partnered with the CME to conduct a series of 6 events under the “ Energy Connections ” banner to build awareness and linkages for Ontario’s manufacturers in Canada's fast-growing energy sectors; this included our Durham Regional event on December 1 st , 2010. </li></ul><ul><li>Any Ontario manufacturer looking for partnerships in the energy industry is encouraged to submit a profile detailing the capabilities of their firm as part of MEDT’s ENERGY CONNECTIONS online directory of Ontario Oil Sands / Wind / Solar / Nuclear energy manufacturers and suppliers. </li></ul><ul><li>For details please visit the following MEDT web page: </li></ul><ul><li>http:// www.ontario.ca/energyconnections </li></ul>
    13. 14. Ontario employers have access to a wide range of support programs and incentives <ul><li>Scientific Research & Experimental Development (SR&ED) </li></ul><ul><ul><li>SR&ED is a federal tax incentive program that in combination with Ontario incentives can cut the cost of $100 of R&D expenditure to as low as $36.90. </li></ul></ul><ul><li>Apprenticeship Training Tax Credit (Ontario) </li></ul><ul><ul><li>A 35% refundable tax credit on salaries and wages for new apprentices for the first 48 months of a qualified apprentice (up to $40,000 over 4 years). </li></ul></ul><ul><li>Apprenticeship Job Creation Tax Credit (Canada) </li></ul><ul><ul><li>A 10% federal tax credit to cover salaries and wages paid to train new apprentices in the first two years. $2,000 tax credit per year, per apprentice. </li></ul></ul><ul><li>Capital Cost Allowance (CCA) </li></ul><ul><ul><li>Increased depreciation rate for eligible M&P equipment (50% straight line rate) and computers and software (100%) purchased in 2010 and 2011 . </li></ul></ul><ul><li>Federal Economic Development Agency for Southern Ontario </li></ul><ul><ul><li>FedDev Ontario programs support economic and community development, innovation, and economic diversification, with contributions to communities, businesses and non-profit organizations. </li></ul></ul>Ontario welcomes manufacturing and R&D investments by offering programs including :
    14. 15. Ontario employers have access to a wide range of support programs and incentives (cont’d) <ul><li>Eastern Ontario Development Fund (EODF) </li></ul><ul><ul><li>EODF is a grant program for Eastern Ontario, which offers up to 15% of eligible expenses to a max or $1.5 million for approved projects. </li></ul></ul><ul><li>Export Development Canada (EDC) </li></ul><ul><ul><li>A Crown corporation that offers financing, credit insurance and bonding solutions for Canadian exporters through various financing and risk management programs. </li></ul></ul><ul><li>Industrial R&D Fellowship </li></ul><ul><ul><li>Contributes $30,000 per year for two years towards salary for companies that hire recent doctoral graduates in science and engineering to conduct industrial R&D. </li></ul></ul><ul><li>Job Connect (Ontario) </li></ul><ul><ul><li>Helps employers connect with people looking for work or on-the-job training opportunities. Employers may be eligible for training incentives. </li></ul></ul><ul><li>Targeted Wage Subsidies Program </li></ul><ul><ul><li>Subsidy of up to 60% of total wages for a maximum of 78 weeks to encourage employers to hire people who face barriers to employment. </li></ul></ul><ul><li>Co-operative Education Tax Credit </li></ul><ul><ul><li>Refundable tax credit for businesses hiring students enrolled in a recognized post-secondary co-operative education program. </li></ul></ul>
    15. 16. Why Ontario? <ul><li>Generous and long term FIT contracts for electricity generated from renewable sources. </li></ul><ul><li>Growing supply chains in both wind and solar. </li></ul><ul><li>Competitive business costs. </li></ul><ul><li>Business friendly regulations and low tax rates. </li></ul><ul><li>Proximity to U.S. market and strong global trade partnerships. </li></ul><ul><li>Well-developed transportation infrastructure with multiple border crossings. </li></ul><ul><li>Large talent pool of educated, skilled, productive and diverse workforce. </li></ul><ul><li>Commitment and support to innovation / R&D and commercialization. </li></ul><ul><li>Wide range of support programs to conduct R&D and manufacturing . </li></ul>Ontario is the manufacturing heartland of Canada. We offer:
    16. 17. Ministry of Economic Development and Trade <ul><li>Please contact us for assistance with: </li></ul><ul><li>The latest information on our economy and business climate. </li></ul><ul><li>Comprehensive profiles of Ontario communities. </li></ul><ul><li>Province-wide site searches of available industrial land and buildings. </li></ul><ul><li>Liaising of site selection and community visits throughout the province. </li></ul><ul><li>Contact with federal, provincial and municipal officials, as well as utilities, transportation firms and business facilitators. </li></ul><ul><li>Contact Information </li></ul><ul><li>Name: Rick Grandin </li></ul><ul><li>Division: Small and Medium Enterprise Division </li></ul><ul><li>Ph: 416-325-6864 </li></ul><ul><li>Email: [email_address] </li></ul><ul><li>Name: George Mandrapilias </li></ul><ul><li>Division: Economic Development Division </li></ul><ul><li>Ph: 416.325.6768 </li></ul><ul><li>Email: [email_address] </li></ul>Ontario has one of the most advanced GIS tools for site selection in North America. Please visit www.investinontario.com Energy Connections Please visit: http://www.ontario.ca/energyconnections
    17. 18. http://www.mei.gov.on.ca/en/pdf/MEI_LTEP_en.pdf
    18. 19. http://www.mei.gov.on.ca/en/pdf/EnergyPlan_EN.pdf

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