switch letter to the ontario minister of energy regarding feed-in tariff changes

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  • 7/28/2019 SWITCH Letter to the Ontario Minister of Energy Regarding Feed-In Tariff Changes

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    To: Minister of Energy Bob ChiarelliCC: Premier Kathleen Wynne

    MPP John Gerretsen

    From: Tyson Champagne, Executive Director of SWITCH Ontario

    Re: Changes to Feed-In Tariff Program

    Date: June 21, 2013

    Dear Minister Chiarelli,

    Your recent directive to the Ontario Power Authority regarding changes to the feed-in tariff program

    touched on numerous areas that could significantly impact the success of clean, renewable energy in

    Ontario.

    SWITCH and its members applaud the Government ofOntarios renewed commitment to microFIT

    and small FIT projects and the decision to address the need for increased engagement with

    municipalities when choosing locations for large FIT projects. We would like to offer some input that

    may help the directive be successfully implemented and increase support for renewable energy

    generation in Ontario.

    SWITCH has facilitated sustainable energy development in Southeastern Ontario for over ten years.SWITCH brings together urban and rural businesses, researchers and innovators, educational

    institutions, the public sector, and a variety of community-minded people working to create a green

    future. SWITCH also believes that widespread support for sustainable energy projects is an integral

    part of a truly sustainable energy future and we look forward to building that support in any way

    possible. Our members are engaged in designing, building, operating and researching renewable

    energy in Ontario. We have seen proof that this sector is creating thousands of new jobs and local

    benefits at prices that are highly cost-competitive with other new sources of electricity, all while

    helping Ontario build a stronger, cleaner and more affordable power system.

    SWITCH and our membership of over 100 businesses and individuals involved in the sustainable

    energy sector could play a valuable role in contributing to a workable implementation of the points

    you put forward in your directive. Our access to experts and resources in the sector could be of

    assistance in ensuring that well-informed decisions are made and that renewable energy continues

    to be an important part of Ontarios energy mix.

    Some of the concerns already brought forward by our membership regarding the changes to the FIT

    program include:

    A need to reassess renewable generation capacity limitso The largest provincial utility, Hydro One, currently limits renewable energy to no

    more than 7% of peak demand on its distribution feeders. This is an exceedingly low

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    number that should be raised to match other regions (Utilities in California generally

    agree that 15% distributed generation on a local distribution circuit is the threshold

    for any problems and Hawaii allows 23% of peak load).

    o SWITCH can provide you or your staff with access to experts on electricitydistribution that can provide perspective on how this rule is perhaps applied more

    broadly in Ontario than technically necessary.

    Potential job loss due to reduction of the Small FIT Quota from 200MW to 150MWo Our membership has already faced job loss that was likely due to the small FIT

    category being reduced rather than increased.

    The difficulties small and medium sized companies will have participating in a competitiveprocurement process

    o Smaller developers do not have the deep pockets that will allow them to spendmillions of dollars to participate in an RFP process that could see them walk away

    with nothing. Mechanisms should be added to the RFP process to make room for

    smaller Ontario companies. The need to remove MW caps and provide grid access and capacity building resources for

    community power projects

    o Integrating commercial know-how with community interest will assist in localacceptance, more rapid deployment, and the creation of local resiliency as well as

    financial resources.

    The exclusion of farmers from the microFIT programo The restrictions limiting ground mount microFITs on land adjacent to residential

    zoned land removes the option of a microFIT installation for many farmers (even if

    they own hundreds of acres of land). A 100 metre setback would be a preferable

    option.

    o Also, many farmers could place 5 microFITs where they do not impact Class 1-3agricultural land or neighbours. If farmers with a current Farm Business Number

    were able to install up to 50kW of microFIT it would provide support to rural Ontario

    residents and local businesses.

    The Ministry of Energy recently funded our GreenProfit Conference which included an expert panel

    discussing many of the very issues addressed in your directive (IMBY: Earning Social License for

    Renewable Energy Projects). I now feel that there is an opportunity for SWITCH to provide input and

    access to resources that could assist in the development of the next generation of renewable energy

    project best practices. I request a meeting between SWITCH and you or your staff so that we can

    make these resources available and participate in the implementation of the directive to ensure that

    Ontario continues to be a world leader in the generation of clean, renewable energy.

    Thank you for your consideration and I look forward to your response.

    Sincerely,

    Tyson Champagne

    Executive Director, SWITCH