ontario sustainable energy association

Ontario SustainableOntario SustainableEnergy AssociationEnergy AssociationOntario SustainableOntario SustainableEnergy AssociationEnergy Association

Presentation to thePresentation to the

Board of Directors; Ontario Power AuthorityBoard of Directors; Ontario Power Authority

June 14, 2007June 14, 2007

Presentation to thePresentation to the

Board of Directors; Ontario Power AuthorityBoard of Directors; Ontario Power Authority

June 14, 2007June 14, 2007

AgendaAgenda

Who Is OSEA?

Advanced Renewable Tariffs

The Standard Offer Program

Comparison & Critique

Intent of the SOC Program

Moving Forward

Who Is OSEA?

Advanced Renewable Tariffs

The Standard Offer Program

Comparison & Critique

Intent of the SOC Program

Moving Forward

OSEA ARTs SOP Critique Intent Future

WHO IS OSEA?WHO IS OSEA?

(Deb Doncaster)

About OSEAAbout OSEA

A province-wide non-profit organization founded in 1999

A member-based organization

Currently 30 Member Organizations actively pursuing locally owned projects (Farmers, First Nations and Cooperatives)

A province-wide non-profit organization founded in 1999

A member-based organization

Currently 30 Member Organizations actively pursuing locally owned projects (Farmers, First Nations and Cooperatives)


Current OSEA MembersCurrent OSEA Members

Manitoulin

Lion’s HeadTiberton

Kincardine

Bervie Toronto

Mount Forest

MelancthonWaterloo

Kitchener

Hamilton

Caledon

Orangeville

Dufferin

Newmarket

BarrieMidland

BobcaygeonOttawa

Milford

KingstonPerth

Temagami

WalfordMoCreebecThunder Bay


OSEA’s GoalsOSEA’s Goals

500 MW Community Power 100% Renewables

Minimum 50% Local Ownership

500 MW Community Power 100% Renewables

Minimum 50% Local Ownership


Community Drives Renewable EnergyCommunity Drives Renewable Energy

85% of wind in Denmark; 65% in the Netherlands, and 50% of wind in Germany is locally owned Total installed Capacity of Wind in

Germany is 22,600 MW Germany is 1/3 size of Ontario and

has similar wind resources Ontario has ~ 400 MW of wind

85% of wind in Denmark; 65% in the Netherlands, and 50% of wind in Germany is locally owned Total installed Capacity of Wind in

Germany is 22,600 MW Germany is 1/3 size of Ontario and

has similar wind resources Ontario has ~ 400 MW of wind


Advanced Renewable Tariffs:The Origin of ARTs in OntarioAdvanced Renewable Tariffs:The Origin of ARTs in Ontario

(Deb Doncaster)

OSEA’s ARTs CampaignOSEA’s ARTs Campaign

2004 - OSEA launched campaign for Advanced Renewable Tariffs

Fall 2004 - Liberal Party Endorses ARTs

Winter 2004 – Ministry of Energy Contracts OSEA for ARTs Policy Study

2004 - OSEA launched campaign for Advanced Renewable Tariffs

Fall 2004 - Liberal Party Endorses ARTs

Winter 2004 – Ministry of Energy Contracts OSEA for ARTs Policy Study


OSEA’s ARTs CampaignOSEA’s ARTs Campaign

Fall 2005 – Ministry of Energy issues directive to OPA to develop recommendations for a SOP for Ontario

March 2006 - Premier announces SOC Program

March-October - OPA&OEB Stakeholder Workshops

November 2006 - SOP rules issued

Fall 2005 – Ministry of Energy issues directive to OPA to develop recommendations for a SOP for Ontario

March 2006 - Premier announces SOC Program

March-October - OPA&OEB Stakeholder Workshops

November 2006 - SOP rules issued


Why ARTs?Why ARTs?

Community power proponents are precluded from participating in the RFP process for renewables

ARTs allows for broad based participation and ownership of renewable power generation

Simplified administrative process for government and suppliers

Markets with ARTs have more players, stronger local economies, more manufacturing, more jobs, more renewable energy generation

ARTs are a proven policy mechanism for the rapid deployment of renewable energy – Denmark, Germany, Spain, France, California

Community power proponents are precluded from participating in the RFP process for renewables

ARTs allows for broad based participation and ownership of renewable power generation

Simplified administrative process for government and suppliers

Markets with ARTs have more players, stronger local economies, more manufacturing, more jobs, more renewable energy generation

ARTs are a proven policy mechanism for the rapid deployment of renewable energy – Denmark, Germany, Spain, France, California


What We Got: The Ontario Standard Offer Program

What We Got: The Ontario Standard Offer Program

(Deb Doncaster)

10 MW Project Cap Open to all players 20 year contracts Price specific to production

and technologySolar: 63-84c/kWhHydro & BioGas: 13.3

c/kWhWind: differentiated pricing

ranging from 13.3 c/kWh – 6.9 c/kWh

80% Inflation Indexing Guaranteed access to grid Anti-Gaming Policy

10 MW Project Cap Open to all players 20 year contracts Price specific to production

and technologySolar: 63-84c/kWhHydro & BioGas: 13.3

c/kWhWind: differentiated pricing

ranging from 13.3 c/kWh – 6.9 c/kWh

80% Inflation Indexing Guaranteed access to grid Anti-Gaming Policy

Standardized Prices 11 cents/kWh base price

(wind, hydro, bio-gas) 42 cents/kWh solar PV biogas and small hydro +

3.5 cents for dispatchability

Guaranteed (Our wording or theirs – check rules) (within reason and established safety guidelines) access to the distribution grid (< 50MW? 44 kV)

Standardized Prices 11 cents/kWh base price

(wind, hydro, bio-gas) 42 cents/kWh solar PV biogas and small hydro +

3.5 cents for dispatchability

Guaranteed (Our wording or theirs – check rules) (within reason and established safety guidelines) access to the distribution grid (< 50MW? 44 kV)

OSEA ARTs SOP ComponentsOSEA ARTs SOP Components


OPA-OEB & “Value to Ratepayers”OPA-OEB & “Value to Ratepayers”

Criterion Subject to Internal Interpretation

Not Part of OPA’s Mandate Not Part of OSEA’s Proposal Neither Spain, France, or Germany Use

“Value to Ratepayers” in Determining Tariffs

Criterion Subject to Internal Interpretation

Not Part of OPA’s Mandate Not Part of OSEA’s Proposal Neither Spain, France, or Germany Use

“Value to Ratepayers” in Determining Tariffs


Comparison and Critique of Ontario’s SOP - PGComparison and Critique of Ontario’s SOP - PG

(Paul Gipe)

Ontario’s Standard Offer ProgramOntario’s Standard Offer Program

“The Most Progressive Renewable Energy Policy in North America in

Two Decades”

“The Most Progressive Renewable Energy Policy in North America in

Two Decades”


Prices for Wind Energy in EuropePrices for Wind Energy in EuropePrices for Wind Energy in EuropePrices for Wind Energy in Europe

Feed Law-Germany

Feed Law-France

Feed Law-Spain

Quota-Italy

Quota-Britain

Feed Law-Ontario

Euro Cents/kWh

0 2 4 6 8 10 12 14


Prices Paid for Biomass in EuropePrices Paid for Biomass in EuropePrices Paid for Biomass in EuropePrices Paid for Biomass in Europe

Feed Law-Germany

Feed Law-France

Feed Law-France

Feed Law-Spain

Quota-Italy

Quota-Britain

Feed Law-Austria

Feed Law-Ontario

Euro Cents/kWh

0 5 10 15 20


Prices Paid for Solar PV in EuropePrices Paid for Solar PV in EuropePrices Paid for Solar PV in EuropePrices Paid for Solar PV in Europe

Feed Law-Germany

Feed Law-France

Feed Law-Spain

Feed Law-Italy

Quota-Britain

Feed Law-Austria

Feed Law-Ontario

Euro Cents/kWh

0 10 20 30 40 50 60 70


Ontario Solar Tariff Ontario Solar Tariff North American ComparisonNorth American Comparison

Ontario Solar Tariff Ontario Solar Tariff North American ComparisonNorth American Comparison

California Buy-Down

California Solar PBI

Washington State

New Jersey RPS

Wisconsin

Ontario Solar Tariff

$ CAD/kWh Over 20 Years

0 0.1 0.2 0.3 0.4 0.5


Ontario’s SOC’s: What’s Wrong?Ontario’s SOC’s: What’s Wrong?

Tariffs Too Low PV: 1/2 of What’s Needed Wind: Only Windy Sites Biomass: $0.17 CAD/kWh MoAF

Inflation Adjustment Too Low 20% vs 50%: -2.5% ROI Excluding Solar Punitive?

Tariffs Too Low PV: 1/2 of What’s Needed Wind: Only Windy Sites Biomass: $0.17 CAD/kWh MoAF

Inflation Adjustment Too Low 20% vs 50%: -2.5% ROI Excluding Solar Punitive?

Differentiation

TransmissionCapacity

Price


Price

Ontario’s SOC’s: What’s Wrong?Ontario’s SOC’s: What’s Wrong?

Wind Tariff Differentiation Based on Wind Resource; Specific to Resource and

Technology

Wind Tariff Differentiation Based on Wind Resource; Specific to Resource and

Technology


Differentiation


Price

Differentiation

Price

Hydro One Queue GamingHydro One Queue Gaming

Antiquated Grid 7 month Hydro One Backlog

No Anti-Gaming Provision in SOP

No Policy Mechanism for Larger Transmission-Connected Projects

Community & Locally-Owned Projects are left out of the SOP

Antiquated Grid 7 month Hydro One Backlog

No Anti-Gaming Provision in SOP

No Policy Mechanism for Larger Transmission-Connected Projects

Community & Locally-Owned Projects are left out of the SOP

Differentiation


Differentiation


Results of the of Ontario’s SOPResults of the of Ontario’s SOP

(Paul Gipe)

Ontario SOP/ARTs ResultsOntario SOP/ARTs Results

Residential PV: 150 kW?

Commercial PV: 50 MW?

~20 MW Hydro 230 MW Wind

Residential PV: 150 kW?

Commercial PV: 50 MW?

~20 MW Hydro 230 MW Wind

~50 MW Installed in 2007?

~100 MW/month in Contracts

Rush for Connections May 16: 396MW of

Contracts Signed

~50 MW Installed in 2007?

~100 MW/month in Contracts

Rush for Connections May 16: 396MW of

Contracts Signed

(November-April 2007)


A Disconnect Between Intent, Policy and ImplementationA Disconnect Between Intent, Policy and Implementation

(Paul Gipe)

“Standard Offer will open up the opportunity for community-based projects to sell power to the grid.”

“Standard Offer for small renewable energy projects is valuable from a range of perspectives. It adds to the energy supply, it opens up the market to smaller projects … to businesses, rural landowners or farmers.”

Donna Cansfield, Minister of Energy16th National Energy Services Conference

February 6, 2006

“Standard Offer will open up the opportunity for community-based projects to sell power to the grid.”

“Standard Offer for small renewable energy projects is valuable from a range of perspectives. It adds to the energy supply, it opens up the market to smaller projects … to businesses, rural landowners or farmers.”

Donna Cansfield, Minister of Energy16th National Energy Services Conference

February 6, 2006


“ Standard Offer is absolutely critical to smaller generators who aim to sell electricity to the grid, because it eliminates the complex bidding, assessment and quote-based competition that has discouraged investment in smaller projects.”

Donna Cansfield, Minister of Energy

Integrated Solutions to Manure Management III

March 9, 2006

“ Standard Offer is absolutely critical to smaller generators who aim to sell electricity to the grid, because it eliminates the complex bidding, assessment and quote-based competition that has discouraged investment in smaller projects.”

Donna Cansfield, Minister of Energy

Integrated Solutions to Manure Management III

March 9, 2006


“We’re giving Ontarians, whether they be farmers, cooperatives, or small businesses – the opportunity to help strengthen our energy system, reduce our reliance on coal, and clean up our air through Ontario’s Standard Offer Program,”

Dwight Duncan, Minister of EnergyFebruary 27, 2007

“We’re giving Ontarians, whether they be farmers, cooperatives, or small businesses – the opportunity to help strengthen our energy system, reduce our reliance on coal, and clean up our air through Ontario’s Standard Offer Program,”

Dwight Duncan, Minister of EnergyFebruary 27, 2007


“This represents a tremendous opportunity for farmers and our communities to build greater economic prosperity in our rural areas,” It is yet another example of how this government is acting to create jobs and a better future for rural Ontario.”

Leona Dombrowsky, Minister of Agriculture,

Food and Rural Affairs

February 27, 2007

“This represents a tremendous opportunity for farmers and our communities to build greater economic prosperity in our rural areas,” It is yet another example of how this government is acting to create jobs and a better future for rural Ontario.”

Leona Dombrowsky, Minister of Agriculture,

Food and Rural Affairs

February 27, 2007


“We’re taking a bold new step that will allow hundreds of small, local, renewable energy producers to get into the energy market – providing cleaner energy that will help meet Ontario’s needs today – and in the future”

Premier Dalton McGuintyMarch 21, 2006

“We’re taking a bold new step that will allow hundreds of small, local, renewable energy producers to get into the energy market – providing cleaner energy that will help meet Ontario’s needs today – and in the future”

Premier Dalton McGuintyMarch 21, 2006


“ Until now, it was too costly and complex for small, renewable power producers — such as farmers, rural landowners, community groups, First Nations, business owners or municipalities — to sell their energy to the grid.”

Premier’s Press Release

March 21, 2006

“ Until now, it was too costly and complex for small, renewable power producers — such as farmers, rural landowners, community groups, First Nations, business owners or municipalities — to sell their energy to the grid.”

Premier’s Press Release

March 21, 2006


“ Encouraging communities to develop more renewable electricity will spur the kind of innovation in the energy sector that will help clean up our air, create jobs and contribute to our long-term prosperity.”

Premier Dalton McGuinty

March 21, 2006

“ Encouraging communities to develop more renewable electricity will spur the kind of innovation in the energy sector that will help clean up our air, create jobs and contribute to our long-term prosperity.”


March 21, 2006


“. . . We need a good quote.”

Minister of Energy Dwight Duncan

Growing the Margins Conference

April 12, 2007

“. . . We need a good quote.”

Minister of Energy Dwight Duncan

Growing the Margins Conference

April 12, 2007


Going ForwardGoing Forward

(Paul Gipe)

2 Year Review (OSEA has Begun) Consultation Fall 2007 New SOC Tariffs March, 2008

SOC Program: What’s Next?SOC Program: What’s Next?

OSEA ARTs SOP Critique Intent FutureImmediate Action Details General

SOP: Immediate ActionSOP: Immediate Action

1. Grant priority access or set aside % capacity of distribution system for locally owned projects

2. Ease Burden on Distribution Grid Lift Project Size Cap Lift Voltage Cap

3. Make Locally-Owned Solar Viable Raise Solar PV Tariff

4. Make On-Farm Biogas Viable Raise Biogas Tariff

1. Grant priority access or set aside % capacity of distribution system for locally owned projects

2. Ease Burden on Distribution Grid Lift Project Size Cap Lift Voltage Cap

3. Make Locally-Owned Solar Viable Raise Solar PV Tariff

4. Make On-Farm Biogas Viable Raise Biogas Tariff

Future Immediate Action Details General

SOP: Details of Price RevisionSOP: Details of Price Revision

Class Size (kW)Tariff

($CAD/kWh)

10 <10 0.80

100 >10<100 0.70

1,000 >100<1,000 0.60

10,000 >1,000<10,000 0.42

Ontario Revised Solar PV TariffsOntario Revised Solar PV Tariffs


SOP: Details of Price RevisionSOP: Details of Price Revision

Size $CAD/kWh

<150 kW 0.16

<500 kW 0.14

<5 MW 0.12

<20 MW 0.12

Ontario Revised On-Farm Biogas TariffsOntario Revised On-Farm Biogas Tariffs


SOP: Further Details on RevisionSOP: Further Details on Revision

To Build a Conservation Culture…… You Must Be Able to See It

Wind & Solar are the Most Visible Manifestations of Renewable Energy

Solar PV can be Deployed Most Quickly Deploying Solar PV says: “Progress Being

Made”.

To Build a Conservation Culture…… You Must Be Able to See It

Wind & Solar are the Most Visible Manifestations of Renewable Energy

Solar PV can be Deployed Most Quickly Deploying Solar PV says: “Progress Being

Made”.

Ontario’s Conservation CultureOntario’s Conservation Culture


Revisit Prices Increase Differentiation Differentiated Tariffs for Wind Inflation Indexing (60%)

Add Offshore Wind Add Solar Thermal



SOC Program: Solar ThermalSOC Program: Solar Thermal

Germany Proposed Wärme Gesetz Costs Spread Across Heating

Oil & Gas Monitoring

TechnologyExists

Germany Proposed Wärme Gesetz Costs Spread Across Heating

Oil & Gas Monitoring

TechnologyExists



Priority Purchase Renewables before Nuclear &

Fossil Fuels

Streamlining the Process Chief Renewable Energy

Officer for Ontario

Priority Purchase Renewables before Nuclear &

Fossil Fuels

Streamlining the Process Chief Renewable Energy

Officer for Ontario


Replicating The “Ontario” ModelReplicating The “Ontario” Model

Official BC, Saskatchewan,

Manitoba Unofficial

Québec, Nova Scotia, Michigan?

Official BC, Saskatchewan,

Manitoba Unofficial

Québec, Nova Scotia, Michigan?

OSEA ARTs SOP Critique Intent FutureImmediate Action Details General

Advanced Renewable TariffsAdvanced Renewable Tariffs

Deliver More Capacity More Quickly More Equitably

Deliver More Capacity More Quickly More Equitably


ARTs: A Question of EquityARTs: A Question of Equity

Feed Laws are Fair Nearly All Can Play

Farmers, Ranchers, First Nations, & Co-ops

Feed Laws are Fair Nearly All Can Play

Farmers, Ranchers, First Nations, & Co-ops


No Time for Half Measures…

No Time to Lose

No Time for Half Measures…

No Time to Lose

Renewables…Renewables…

“ Standard Offer contracts have been the fastest and most successful way of producing renewable energy throughout the world”


March 21, 2006

“ Standard Offer contracts have been the fastest and most successful way of producing renewable energy throughout the world”


March 21, 2006

Thank you!Thank you!Thank you!Thank you!

To contact OSEA:

416-977-4441 or [email protected]

www.ontario-sea.org

Paul GipeRenewable Energy Consultant, OSEA

Deb DoncasterExecutive Director,

OSEA

Questions Regarding:Questions Regarding:Questions Regarding:Questions Regarding:Immediate Action

RequiredOSEA Pricing

Proposal

Ontario’s SOC:What’s Wrong?

General PoliciesMoving Forward

ontario sustainable energy association

Documents

renewable energy85

advanced renewable tariffsfall

origin of arts

size of ontario

similar wind resourcesontario

soc programmoving forwardwho

community power proponents

soc programmarch