FIT Program Contract. June 17 Presentation
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1 FIT Program Contract June 17 Presentation
2 What is a FIT Program? Generators of renewable energy from homeowners to large developers are paid a reasonable price for the electricity they produce over the term of the contract Allows generators to recover expected cost of the investment plus a reasonable profit Can provide a predictable and stable source of revenue to reduce risks A FIT Program provides a simple way to contract for renewable energy supply 2
3 Standardized features of FIT Program Open to various renewable energy supply technologies Wind Waterpower Solar Photovoltaic (PV) Biomass technologies Different prices for different technologies and project sizes Long-term contracts (e.g. 20 years) Prices that aim to cover total project costs and provide a reasonable rate of return over the contract term Opportunities for promoting community-based and Aboriginal projects 3
4 FIT Price Schedule Renewable Fuel Capacity Range FIT Price ( /kwh) On Farm Biogas * ^ 100 kw 19.5 On Farm Biogas * ^ > 100 kw 250 kw 18.5 Biogas * ^ 500 kw 16.0 Biogas * ^ > 500kW 10 MW 14.7 Biogas * ^ > 10 MW 10.4 Biomass * ^ 10 MW 13.8 Biomass * ^ > 10 MW 13.0 Landfill gas * ^ 10 MW 11.1 Landfill gas * ^ > 10 MW 10.3 Rooftop or Ground Mounted Solar PV 10 kw 80.2 Rooftop Solar PV > 10 kw 250 kw 71.3 Rooftop Solar PV > 250 kw 500 kw 63.5 Rooftop Solar PV > 500 kw 53.9 Ground Mounted Solar PV * > 10 kw 10 MW 44.3 Waterpower * ^ 10 MW 13.1 Waterpower * ^ > 10 MW 50 MW 12.2 Off-shore Wind * Any size 19.0 On-shore Wind * Any size
5 Price adder Projects with aboriginal or community ownership receive additional payments on top of the posted FIT Price. Technology Wind PV (Ground Mounted) Water Biogas Biomass Landfill Gas Maximum Aboriginal Adder (cents / kwh) Maximum Community Adder (cents / kwh) Payments vary depending on level of ownership by community or aboriginal group (e.g., 10% community receives 20% of adder) Community means, for the purpose of the FIT Program: one or more individuals resident in Ontario a registered charity with its head office in Ontario a not-for-profit Organization with its head office in Ontario a "co-operative corporation", as defined in the Co-operative Corporations Act (Ontario), all of whose members are resident in Ontario. 5
6 Program Uptake 6
7 Program Uptake: FIT Projects > 500 kw 7
8 Aboriginal & Community: Summary of Projects Aboriginal Area Provincial East Central Niagara West of London Bruce Northwest Northeast Contract Offered Sum of MWs Provincial East Central Niagara West of London Bruce Northwest Northeast Contract Offered Summary of Aboriginal and Community FIT projects (> 500 kw) received between Oct 1 Dec 1, 2009 ( Launch Period)
9 FIT Contract Milestones 9
10 1. First Completion and Performance Security Due within 10 days of contract offer $50/kW for solar PV $20/kW for all other projects $5/kW for Aboriginal and community projects 10
11 2. Connection Impact Assessment/ System Impact Assessment (CIA/SIA) CIA/SIA Connection Impact Assessment (CIA) required for distribution-connected projects Customer Impact Assessment (CIA) AND System Impact Assessment (SIA) required for transmission-connected projects Supplier submits an application to the Local Distribution Company (LDC) or transmitter/ieso within the prescribed time Assessment will determine costs and timelines for construction of connection assets 11
12 3. Notice to Proceed (NTP) All projects must submit an NTP request to the OPA once the following items have been completed (as applicable): Renewable Energy Approval/ Environmental Assessment Domestic Content Plan (for wind and solar PV) Completed CIA/SIA Financing plan The domestic content plan may be submitted in advance of the NTP request OPA will provide guidance as to whether the Plan will comply with requirements OPA will assess: Have all the NTP requirements been met? Will required grid upgrades (if any) be ready on time? 12
13 4. Second Completion and Performance Security due within 30 days of receiving NTP $25/kW for solar PV $10/kW for all other projects $5/kW for Aboriginal and community projects Second security is in addition to the first security payment Both the first and second completion and performance security payments are returned to applicant when commercial operation is reached Once Supplier has NTP construction of project can commence 13
14 5. Commercial Operation From the date of contract offer, project must be completed within: 3 years for solar PV, bioenergy and wind 4 years off-shore wind 5 years for waterpower When project is constructed and connected to the grid, Supplier must declare commercial operation to the OPA Supplier must submit: Metering plan Single line diagram of connection configuration Independent Engineer Certificate confirming project size, connection point and completion Payments will not begin until OPA has confirmed the Supplier has met the requirements 14
15 6. Domestic Content Report For solar and wind projects Report must demonstrate that domestic content requirements have been met Must be submitted within 30 days of project reaching commercial operation Domestic content requirement based on Milestone Date for Commercial Operation, not inservice date Domestic Content Requirements and later and later Wind Solar 25% 50% 50% 60% 15
16 Information and Resources Information Available Questions and answers Tools and information Past session materials Application materials Rules, contracts and program guidance Web Resources Feed-in Tariff microfit Program call centre: Green Energy and Green Economy Act (Bill 150) More resources and information on the legislation 16
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