 Minister George Smitherman, Ministry of Energy and Infrastructure |
The introduction of the Green Energy Act by the Ontario government in February was well received by members of the Ontario Sustainable Energy Association. They have high hopes the legislation will break down barriers currently preventing them from contributing to Ontario’s electricity supply.
“It is heartening to see this shift in priorities. The government is to be commended for recognizing the considerable benefits of renewable energy, not only for our economy, with the potential of thousands of green jobs, but also for energy security and for our environment, with the reduction of greenhouse gases," said Nicole Foss, executive co-ordinator of the AgriEnergy Producers' Association of Ontario.
Most widely welcome is the provision for feed-in tariffs: profitable, long-term prices for renewable energy fed into the electricity grid. The bill recognizes feed-in tariffs as not only the most effective mechanism for procuring renewables, but as the best means of spurring their wide spread deployment as rapidly as is required to address global warming. However, prices still have to be determined and the AgriEnergy Producers' Association for one is hoping they will be set soon.
“The suspension of the Renewable Energy Standard Offer Program has left renewable energy in limbo since May 2008, and we need to revive the industry as soon as possible by reinstituting a realistic renewable tariff regime,” said Foss.
The Ontario Power Authority has drafted different rates for solar photovoltaics, hydro, biomass, biogas, biomass, and on and off shore wind. The Green Energy Act Alliance will be making recommendations during the ongoing period of consultation to ensure they reflect the cost of production and allow for a reasonable return on invested capital. Importantly though, these rates need to be differentiated by the intensity of the energy resource, to encourage project development in communities across the province
Provisions for community power
Feed-in tariffs, while attracting and securing investment, also level the playing field for small community power producers by preventing large producers from undercutting them with lower prices.
The Ottawa River Institute with its mission to foster sustainable communities and ecological integrity, understands this benefit. “Although the levels of the tariffs still have to be worked out, we are encouraged that the government has followed the lead of the renewable powerhouses of Europe, such as Germany. There, feed-in tariffs have proven to be a huge incentive for many people to become energy producers, not just consumers, spurring the wide deployment of renewables,” said Ken Birkett, ORI president.
Community power is also supported in the legislation with changes to the Co-operative Corporation Act that would make it easier to form energy co-ops.
"This amendment will permit energy co‐operative to sell the energy they produce to others, rather than just to their own members, as is currently required," explained Doug Fyfe, general manager of Countryside Energy Co-operative. “This is good news for our members who want to do their part in mitigating adverse climate change and eliminating the summer smog that is affecting the health of their families and neighbours."
Getting on the grid
Also vitally important to OSEA’s members is the provisional promise in the proposed legislation to connect green energy producers to the electricity grid as long as economic and technical regulations are met.
"Access to the grid is absolutely essential if people are to be encouraged to invest in renewables," said Fyfe. "Nobody wants to produce energy that cannot be sold for a fair and reasonable profit. Investors need the assurance that their energy will get to market. Giving renewables priority access is a major step that will advance green energy. "
Foss concurs but has concerns. “This is essential if the full potential of renewable energy is to be developed. However, the specifics are lacking. We need to see technical standards for connection, a realistic cost-risk basis for connection costs, and defined limits to the costs attributable to specific projects, as opposed to spread across the rate-base as a whole.”
Connecting the countryside
Jon Lechowicz, a director of Farmers for Economic Opportunities, couldn’t agree more. “We need specifics especially when it comes to covering the costs. We in Ontario must ensure that smaller, diversified and geographically diverse, community and agricultural based projects be allowed priority access to the electricity grid.”
To get more renewables online, ministerial directives may require amendments to the licenses of distributors and transmitters in order for them to enhance, reinforce or expand their transmission systems to accommodate renewable energy. And Lechowicz wants some of the $5 billion the government has earmarked to upgrade transmission and distribution lines over the next three years so that more renewable-energy projects can connect is spent in rural area.
“This is where renewable energy is going to be produced whether on the farm or by windmills on the highlands. It is essential that the current grid system in these rural areas be upgraded so they can transmit the new renewable energy,” he said.
Green energy generators along with members of the public have an opportunity to comment on the proposed legislation on the Environmental Bill of Rights Registry (www.ebr.gov.on.ca) and at committee hearings, due to start in the spring.
