Your SlideShare is downloading. ×
The Rationale for Ontario's Green Energy Act
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

The Rationale for Ontario's Green Energy Act

681
views

Published on

An explanation why Ontario is pursuing a feed-in tariff whereas US states are pursuing Renewable Portfolio Standards

An explanation why Ontario is pursuing a feed-in tariff whereas US states are pursuing Renewable Portfolio Standards


0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
681
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. 2009 OEA Industry Leaders’ Roundtable Ontario’s Feed In Tariff in the Context of North American Renewable Energy Policies April 30, 2009 John Dalton jdalton@poweradvisoryllc.com Tel: 978 369-2465
  • 2. Presentation Outline  Renewable Energy Policies in North America  Objectives  Creating Manufacturing Jobs  Renewable Portfolio Standards  Feed In Tariffs  Objectives  Challenges  Ontario’s approach Power Advisory LLC 2009 All Rights Reserved 2
  • 3. Range of renewable policies being employed across North America  Alternatives include:  Purchase mandates, including Renewable Portfolio Standards (RPS) and Standard Offers  Tax incentives  Grants  Policies driven by objectives including:  Environmental benefits  Price stability  Economic development Power Advisory LLC 2009 All Rights Reserved 3
  • 4. Economic development focused on manufacturing jobs  Providing the conditions to attract industry  Competitive, skilled labour force  Logistics: minimizing shipping costs  Procurement of components and delivery of product  Close to the market  Driven by incentive levels (PV) and resource base (wind)  Access to other markets Power Advisory LLC 2009 All Rights Reserved 4
  • 5. RPS the predominant form of procurement policy in the US www.dsireusa.org / April 2009 WA: 15% by 2020* VT: (1) RE meets any increase ME: 30% by 2000 New RE: 10% by 2017 MN: 25% by 2025 in retail sales by 2012; MT: 15% by 2015 (Xcel: 30% by 2020) (2) 20% RE & CHP by 2017 ☼ NH: 23.8% by 2025 OR: 25% by 2025 (large utilities) ND: 10% by 2015 MI: 10% + 1,100 MW ☼ MA: 15% by 2020 5% - 10% by 2025 (smaller utilities) by 2015* + 1% annual increase (Class I Renewables) SD: 10% by 2015 WI: Varies by utility; ☼ NY: 24% by 2013 10% by 2015 goal RI: 16% by 2020 ☼ NV: 20% by 2015* CT: 23% by 2020 IA: 105 MW ☼ OH: 25% by 2025† UT: 20% by 2025* ☼ PA: 18% by 2020† IL: 25% by 2025 VA: 15% by 2025* ☼ CO: 20% by 2020 (IOUs) ☼ NJ: 22.5% by 2021 CA: 20% by 2010 10% by 2020 (co-ops & large munis)* ☼ MO: 15% by 2021 ☼ MD: 20% by 2022 ☼ AZ: 15% by 2025 ☼ DE: 20% by 2019* ☼ NC: 12.5% by 2021 (IOUs) 10% by 2018 (co-ops & munis) ☼ DC: 20% by 2020 ☼ NM: 20% by 2020 (IOUs) 10% by 2020 (co-ops) TX: 5,880 MW by 2015 HI: 20% by 2020 28 states & DC have an RPS 5 states have goals State renewable portfolio standard ☼ Minimum solar or customer-sited requirement * State renewable portfolio goal Extra credit for solar or customer-sited renewables Solar water heating eligible † Includes separate tier of non-renewable alternative resources Power Advisory LLC 2009 All Rights Reserved 5
  • 6. RPS structures vary by state  Restructured markets, RPS utilize RECs  RECs represent the environmental attributes  Benefits of RECs: market-based signal of attributes  Can lower costs of realizing target  Disadvantages: uncertainty regarding REC value  REC markets short term  Discount for long-term sales  Net effect can be higher costs for renewable energy  New York RPS: central procurement: $22 to $15  New England states utilize RECs: $45 to $35 Power Advisory LLC 2009 All Rights Reserved 6
  • 7. FITs effective in developing renewable energy industry  Most appropriate where costs and performance well known  Key is stability offered by the program  Allows manufacturers to make investment decisions  Risk if you get the FIT price wrong  Depends on the premium relative to market  Asymmetrical: prices too high versus too low  Major source of tension with FIT implementation  Enable project development on sustainable basis Power Advisory LLC 2009 All Rights Reserved 7
  • 8. Ontario’s FIT seeks to resolve this tension  Program pricing balances the following objectives:  Promote broad participation in program  Provide price stability necessary to promote investment  Encourage efficient project development  Electricity market reforms must ultimately consider the impacts on customers Power Advisory LLC 2009 All Rights Reserved 8
  • 9. Introducing Power Advisory  Power Advisory specializes in electricity market analysis and strategy, power procurement, policy development, regulatory and litigation support, resource planning and project feasibility assessment.  Our consulting support is driven by the objective of offering clients strategic and tactical insights that provide competitive advantage.  Our approach is based on an understanding of fundamental economic drivers as shaped by market structures and market participant behavior.  Our consulting services are provided by seasoned electricity sector professionals, offering a wide breadth and significant depth of industry knowledge.  For additional information regarding our services, please contact: John Dalton jdalton@poweradvisoryllc.com 978-369-2465 Power Advisory LLC 2009 All Rights Reserved
  • 10. Introducing Power Advisory  Clients include:  Algonquin Power  Atlantic Power  Bluewater Power Generation  Bruce Power  Canadian Wind Energy Association  Connecticut Resources Recovery Authority  Great Lakes Power  Manitoba Hydro  National Energy Board  Natural Resources Canada  Northland Power  New Jersey Resources  Ontario Energy Board  Ontario Power Authority  Suncor  TransAlta  TransCanada Power Advisory LLC 2009  Wheelabrator Technologies, Inc. All Rights Reserved

×