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Reviewing Ontario’s “Buy Local” Renewable Energy ProgramJohn Farrell, 5/20/13
ONTARIO’S RENEWABLE ENERGY2004Ontario PowerAuthoritylaunched1,500 MW oflarge windpowercontracted2005 2006-08RenewableEnerg...
• Achievements• Reduce from 25% to 0% coal-fired power by 2014• 2,600 MW of new renewable energy• 31,000 new jobs• Significa...
ONTARIO’S RENEWABLE ENERGY05001,0001,5002,0002,5002007 2008 2009 2010 2011 2012RESOP FITSolar Power by Program645 MW (AC)C...
ONTARIO’S RENEWABLE ENERGY05001,0001,5002,0002,5002007 2008 2009 2010 2011 2012Large wind RESOP FIT2000 MWWind Power by Pr...
ONTARIO’S FIT PROGRAM• Long-term contract (e.g. 20 years) like RESOP• Fixed price (like RESOP) with prices sufficient for ...
ONTARIO’S FIT PROGRAM• Goal: 5,000 MW of new renewable energy by 2030• Goal: 50,000 new jobs by 2012“Feed-In Tariff”
0 MW100 MW200 MW300 MW400 MW500 MW2009 2010 2011 2012 2013FIT HISTORYProgram open (FIT 1.0)Already15,000MW inapplicationsP...
FIT ENERGY HISTORY0 MW100 MW200 MW300 MW400 MW500 MW2009 2010 2011 2012 2013Program open (FIT 1.0) ProgramreviewMicroFITop...
FIT ENERGY HISTORY0 MW100 MW200 MW300 MW400 MW500 MW2009 2010 2011 2012 2013487 MWUnder contract:4,750 MWHuge project queu...
FIT JOB HISTORY010,00020,00030,00040,00050,0002009 2010 2011 2012 2013Program open (FIT 1.0) ProgramreviewMicroFITopenSmal...
NEW MANUFACTURING0 1 2 3 4 5 6Delivered jobs as promisedBehind scheduleNo operations in OntarioNumber of manufacturers res...
CHALLENGES$0 trillion$0.50 trillion$1.00 trillion$1.50 trillion$2.00 trillion2006 2007 2008 2009 2010 2011Global Recession...
CHALLENGESNIMBY
CHALLENGES15.9%34.6%49.5%2011 Ontario Election Results (Control of Assembly)LiberalProgressive ConservativeNew Democratic2...
CHALLENGESHydro OneMost U.S. utilitiesHawai’ian utilitiesCalifornia utilities0% 10% 20% 30% 40% 50%50%25%15%7%Limit as a p...
01,0002,0003,0004,0005,0002009 2013 2017 2021 2025 2029CHALLENGES5,000 MWtarget2030201320184,750 MWunder contract5,000 MWl...
ADJUSTMENTSTechnology Size PriceInflationAdj.Biomass< 10 MW 13.8¢ 20%> 10 MW 13¢ 20%BiogasOn-farm < 100 kW 19.5¢ 20%On-far...
Changes for FIT 2.0ADJUSTMENTSLocal OwnershipMin.15% ownership by co-op with > 35 owners +3Min. 15% ownership by Aborigina...
Priority Points for LocalLocal OwnershipMin.15% ownership by co-op with > 35 owners +3Min. 15% ownership by Aboriginals +3...
LESSONS LEARNED• FIT program enables democratic energy: 1 in 7 Ontariofarmers is participating• Local content requirements...
LESSONS LEARNED• Power Authority and utilities need to get projects online fasterand/or sign fewer contracts• Price adjust...
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Expect Delays: a Presentation Reviewing Ontario’s “Buy Local” Renewable Energy Program

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Ontario’s landmark “buy local” renewable energy Feed-In Tariff program launched in late 2009. After four years, the program has created thousands of jobs, helped close coal fired power plants and made energy producers of many Ontarians. But roadblocks remain, and changes are needed.

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Expect Delays: a Presentation Reviewing Ontario’s “Buy Local” Renewable Energy Program

  1. 1. Reviewing Ontario’s “Buy Local” Renewable Energy ProgramJohn Farrell, 5/20/13
  2. 2. ONTARIO’S RENEWABLE ENERGY2004Ontario PowerAuthoritylaunched1,500 MW oflarge windpowercontracted2005 2006-08RenewableEnergyStandardOfferProgramcontracts new<10 MW windand solar2009-13FIT programlaunched andcontracted ~5,000MW of newrenewable energyPROGRAMS
  3. 3. • Achievements• Reduce from 25% to 0% coal-fired power by 2014• 2,600 MW of new renewable energy• 31,000 new jobs• Significant local participation (1 in 7 farmers)ONTARIO’S RENEWABLE ENERGYPROGRAMS
  4. 4. ONTARIO’S RENEWABLE ENERGY05001,0001,5002,0002,5002007 2008 2009 2010 2011 2012RESOP FITSolar Power by Program645 MW (AC)CAPACITY
  5. 5. ONTARIO’S RENEWABLE ENERGY05001,0001,5002,0002,5002007 2008 2009 2010 2011 2012Large wind RESOP FIT2000 MWWind Power by ProgramCAPACITY
  6. 6. ONTARIO’S FIT PROGRAM• Long-term contract (e.g. 20 years) like RESOP• Fixed price (like RESOP) with prices sufficient for return oninvestment• Priority grid connection• Minimum “domestic content” requirements• Now 50% of wind project and 60% of solar project• Launched 2009“Feed-In Tariff”
  7. 7. ONTARIO’S FIT PROGRAM• Goal: 5,000 MW of new renewable energy by 2030• Goal: 50,000 new jobs by 2012“Feed-In Tariff”
  8. 8. 0 MW100 MW200 MW300 MW400 MW500 MW2009 2010 2011 2012 2013FIT HISTORYProgram open (FIT 1.0)Already15,000MW inapplicationsProgramreviewMicroFITopenSmallFITopenFIT 2.0Goals:5,000 MW by 203050,00 jobs by 2012
  9. 9. FIT ENERGY HISTORY0 MW100 MW200 MW300 MW400 MW500 MW2009 2010 2011 2012 2013Program open (FIT 1.0) ProgramreviewMicroFITopenSmallFITopenSolar powerWind powerTotalFIT 2.0487 MWdevelopedGoals:5,000 MW by 203050,00 jobs by 2012
  10. 10. FIT ENERGY HISTORY0 MW100 MW200 MW300 MW400 MW500 MW2009 2010 2011 2012 2013487 MWUnder contract:4,750 MWHuge project queueGoals:5,000 MW by 203050,00 jobs by 2012
  11. 11. FIT JOB HISTORY010,00020,00030,00040,00050,0002009 2010 2011 2012 2013Program open (FIT 1.0) ProgramreviewMicroFITopenSmallFITopenFIT 2.020,000jobs31,000jobsTarget:50,000 jobsGoals:5,000 MW by 203050,00 jobs by 2012
  12. 12. NEW MANUFACTURING0 1 2 3 4 5 6Delivered jobs as promisedBehind scheduleNo operations in OntarioNumber of manufacturers responding to 2013 surveywith intentions to locate in Ontario in 2011
  13. 13. CHALLENGES$0 trillion$0.50 trillion$1.00 trillion$1.50 trillion$2.00 trillion2006 2007 2008 2009 2010 2011Global RecessionLost Canadian GDP
  14. 14. CHALLENGESNIMBY
  15. 15. CHALLENGES15.9%34.6%49.5%2011 Ontario Election Results (Control of Assembly)LiberalProgressive ConservativeNew Democratic2011 Election cost Liberal Party9.5%23.8%66.7%BeforeAfter
  16. 16. CHALLENGESHydro OneMost U.S. utilitiesHawai’ian utilitiesCalifornia utilities0% 10% 20% 30% 40% 50%50%25%15%7%Limit as a percent of peak demandHydro One’s measly 7%limit on distributedrenewable energy ismuch lower comparedto other jurisdictions
  17. 17. 01,0002,0003,0004,0005,0002009 2013 2017 2021 2025 2029CHALLENGES5,000 MWtarget2030201320184,750 MWunder contract5,000 MWlikely installedWayahead ofschedule
  18. 18. ADJUSTMENTSTechnology Size PriceInflationAdj.Biomass< 10 MW 13.8¢ 20%> 10 MW 13¢ 20%BiogasOn-farm < 100 kW 19.5¢ 20%On-farm 100 to 250 kW 18.5¢ 20%Biogas < 500 kW 16¢ 20%Biogas 500 kW to 10MW14.7¢ 20%Biogas > 10 MW 10.4¢Waterpower< 10 MW 13.1¢ 20%> 10 MW 12.2¢ 20%Landfill gas< 10 MW 11.1¢ 20%> 10 MW 10.3¢ 20%Solar PVAny type < 10 kW 80.2¢Rooftop 10 to 250 kW 71.3¢Rooftop 250 to 500 kW 63.5¢Rooftop > 500 kW 53.9¢GroundMounted> 10 kW 44.3¢WindOnshore any 13.5¢ 20%Offshore any 19¢ 20%Technology Size PriceInflationAdj.Solar PVRooftop < 10 kW 54.9¢Rooftop 10 to 100 kW 54.8¢Rooftop 100 to 500 kW 53.9¢Rooftop > 500 kW 48.7¢GroundMounted< 10 kW 44.5¢GroundMounted10 to 500 kW 38.8¢GroundMounted500 kW to 5 MW 35¢GroundMounted> 5 MW 34.7¢WindOnshore any 11.5¢ 20%Offshore any n/a 20%FIT 1.0Lower pricesChanges for FIT 2.0
  19. 19. Changes for FIT 2.0ADJUSTMENTSLocal OwnershipMin.15% ownership by co-op with > 35 owners +3Min. 15% ownership by Aboriginals +3Public education or health owned project +2Local SupportResolution of local municipal orAboriginal support +2Local HostPublic education or health hosted project +2Priority Points for Local
  20. 20. Priority Points for LocalLocal OwnershipMin.15% ownership by co-op with > 35 owners +3Min. 15% ownership by Aboriginals +3Public education or health owned project +2Local SupportResolution of local municipal orAboriginal support +2Local HostPublic education or health hosted project +2Technology Size PriceInflationAdj.Solar PVRooftop < 10 kW 54.9¢Rooftop 10 to 100 kW 54.8¢Rooftop 100 to 500 kW 53.9¢Rooftop > 500 kW 48.7¢GroundMounted< 10 kW 44.5¢GroundMounted10 to 500 kW 38.8¢GroundMounted500 kW to 5 MW 35¢GroundMounted> 5 MW 34.7¢WindOnshore any 11.5¢ 20%Offshore any n/a 20%Lower pricesChanges for FIT 2.0ADJUSTMENTSWilladjustmentsmatter?With the 2030 goal nearly met?
  21. 21. LESSONS LEARNED• FIT program enables democratic energy: 1 in 7 Ontariofarmers is participating• Local content requirements lead to local jobs• Ambitious renewable energy program helped close all coal-fired power plants in Ontario
  22. 22. LESSONS LEARNED• Power Authority and utilities need to get projects online fasterand/or sign fewer contracts• Price adjustments should happen more quickly, especially forsolar power• More local ownership – and earlier – could have alleviatedpolitical and project problems
  23. 23. LEARN MORE.orgilsr.org

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