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October 16, 2013

October 16, 2013. Feed In Tariff (FIT) and Renewables Procurement in Ontario Dirk van de Waal – Business Analyst, Renewables Procurement. Ontario Power Authority . Ensure reliable, cost-effective, sustainable electricity supply for Ontario. Key Activities. A cleaner electricity system.

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October 16, 2013

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  1. October 16, 2013 Feed In Tariff (FIT) and Renewables Procurement in Ontario Dirk van de Waal – Business Analyst, Renewables Procurement

  2. Ontario Power Authority Ensure reliable, cost-effective, sustainable electricity supply for Ontario. Key Activities

  3. A cleaner electricity system • Phasing out coal by the end of 2014 • 75 percent reduction in electricity sector’s carbon footprint • Replacing coal with clean, renewable energy resources • FIT Program is helping to bring on more renewable generation System Capacity 2009 2013 (est.) Coal Nuclear Gas Nuclear Gas Wind Hydro Hydro

  4. Feed-in Tariff (FIT) Program • Launched in 2009 • First comprehensive FIT program in North America • Open to various renewable energy supply technologies • Solar Photovoltaic (PV) • Wind power • Waterpower • Bioenergy technologies (biogas, biomass, landfill gas) • Different prices for different technologies and project sizes • Long-term contracts (e.g. 20 years)

  5. FIT Program Impact • Has encouraged billions of dollars of investment • More than 30 companies have already invested in Ontario – manufacturers/generators/related services • Created thousands of direct and indirect clean energy jobs

  6. Procurement to date Non-Hydro Renewables – Executed Contract Capacity FIT Launched

  7. MicroFIT Program * Data as of Oct 1, 2013

  8. FIT 3 and Beyond • June 12, 2013 Minister’s direction further clarifies policy goals • Support long-term sustainability of FIT program by setting annual procurement targets for next 4 years: • 150 MW/yr for Small FIT • 50 MW/yr for microFIT • Replace Large FIT program with new competitive procurement process • Work with municipalities and Aboriginal communities to identify appropriate locations and siting requirements • Strengthen participation of municipalities and public sector entities in Small FIT • Schools, colleges, universities, hospitals, long-term care homes, public transit services and Metrolinx • Measures to bring program into compliance with May 24, 2013 WTO rulings

  9. Fall 2013 Procurement Targets • FIT 3 application window to open on November 4, 2013 targeting 123.5 MW • Encourage participation by municipalities and public sector entities (revised points system, CCSAs, price adders) • Rules and application process have been improved • 15 MW pilot program for rooftop solar projects on unconstructed buildings to run concurrently • 30 MW Fall 2013 microFIT procurement target

  10. Unconstructed Rooftop Solar Pilot Program • Pilot stream for applicants with unconstructed buildings • Small FIT rooftop solar projects • 10 kW – 500 kW • Up to 15 MW in 2013 • Considerable industry stakeholdering • Goal is to synchronize successful pilot framework into regular FIT program in 2014

  11. August 26, 2013 Price Schedule * The FIT 3 program is available to projects generally ≤ 500 kW

  12. 2013 Procurement Schedule • This is an anticipated schedule and is subject to change

  13. 2014 Procurement Schedule • This is an anticipated schedule and is subject to change

  14. FIT Application and Contracting Process Application Review *60 DAYS Connection Screen *60 DAYS Contract Execution, Approvals, NTP, COD *Timelines are targets

  15. Large Renewable Projects • No more procurement under Large FIT program (generally > 500 kW) • Large FIT program to be replaced by competitive procurement process • Engage stakeholders and provide interim report • Through August 2013, OPA facilitated various engagement activities for municipalities, Aboriginal communities, industry associations, general public and other stakeholders. • OPA submitted interim recommendations report to Minister of Energy on August 30, 2013 • Interim recommendations report publicly available

  16. Hydroelectric Standard Offer Program (HESOP) • Municipal Stream • Eligible municipal waterpower projects • New-build • 10 MW for projects 500 kW – 5MW • 50 MW for projects > 5 MW • Pre-existing FIT applicants prior to June 5, 2010 • Expansion Stream • NUG or HCI contracted facilities • Procurement for expansion potential at existing facility

  17. Questions and Resources Questions regarding FIT or microFIT, including application questions: FIT@powerauthority.on.ca microFIT@powerauthority.on.ca Questions regarding your existing FIT or microFIT contract: FIT.contract@powerauthority.on.ca microFIT.contract@powerauthority.on.ca Where to find additional information: fit.powerauthority.on.ca microfit.powerauthority.on.ca ontario.ca/refo

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