the rationale for ontario's green energy act
DESCRIPTION
An explanation why Ontario is pursuing a feed-in tariff whereas US states are pursuing Renewable Portfolio StandardsTRANSCRIPT
John Dalton
Tel: 978 369-2465
2009 OEA Industry Leaders’ Roundtable
Ontario’s Feed In Tariff in the Context of North
American Renewable Energy Policies
April 30, 2009
Renewable Energy Policies in North America
Objectives
Creating Manufacturing Jobs
Renewable Portfolio Standards
Feed In Tariffs
Objectives
Challenges
Ontario’s approach
Presentation Outline
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Alternatives include:
Purchase mandates, including Renewable Portfolio
Standards (RPS) and Standard Offers
Tax incentives
Grants
Policies driven by objectives including:
Environmental benefits
Price stability
Economic development
Range of renewable policies being employed across North
America
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Providing the conditions to attract industry
Competitive, skilled labour force
Logistics: minimizing shipping costs
Procurement of components and delivery of
product
Close to the market
Driven by incentive levels (PV) and resource base
(wind)
Access to other markets
Economic development focused on manufacturing jobs
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State renewable portfolio standard
State renewable portfolio goal
www.dsireusa.org / April 2009
Solar water heating eligible *† Extra credit for solar or customer-sited renewables
Includes separate tier of non-renewable alternative resources
WA: 15% by 2020*
OR: 25% by 2025 (large utilities)
5% - 10% by 2025 (smaller utilities)
CA: 20% by 2010
☼ NV: 20% by 2015*
☼ AZ: 15% by 2025
☼ NM: 20% by 2020 (IOUs)
10% by 2020 (co-ops)
HI: 20% by 2020
☼ Minimum solar or customer-sited requirement
TX: 5,880 MW by 2015
UT: 20% by 2025*
☼ CO: 20% by 2020 (IOUs)
10% by 2020 (co-ops & large munis)*
MT: 15% by 2015
ND: 10% by 2015
SD: 10% by 2015
IA: 105 MW
MN: 25% by 2025(Xcel: 30% by 2020)
☼ MO: 15% by 2021
IL: 25% by 2025
WI: Varies by utility;
10% by 2015 goal
MI: 10% + 1,100 MW
by 2015*
☼ OH: 25% by 2025†
ME: 30% by 2000New RE: 10% by 2017
☼ NH: 23.8% by 2025
☼ MA: 15% by 2020
+ 1% annual increase
(Class I Renewables)
RI: 16% by 2020
CT: 23% by 2020
☼ NY: 24% by 2013
☼ NJ: 22.5% by 2021
☼ PA: 18% by 2020†
☼ MD: 20% by 2022
☼ DE: 20% by 2019*
☼ DC: 20% by 2020
VA: 15% by 2025*
☼ NC: 12.5% by 2021 (IOUs)
10% by 2018 (co-ops & munis)
VT: (1) RE meets any increase in retail sales by 2012;
(2) 20% RE & CHP by 2017
28 states & DChave an RPS
5 states have goals
RPS the predominant form of procurement policy in the US
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Restructured markets, RPS utilize RECs
RECs represent the environmental attributes
Benefits of RECs: market-based signal of attributes
Can lower costs of realizing target
Disadvantages: uncertainty regarding REC value
REC markets short term
Discount for long-term sales
Net effect can be higher costs for renewable energy
New York RPS: central procurement: $22 to $15
New England states utilize RECs: $45 to $35
RPS structures vary by state
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Most appropriate where costs and performance well
known
Key is stability offered by the program
Allows manufacturers to make investment decisions
Risk if you get the FIT price wrong
Depends on the premium relative to market
Asymmetrical: prices too high versus too low
Major source of tension with FIT implementation
Enable project development on sustainable basis
FITs effective in developing renewable energy industry
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Program pricing balances the following objectives:
Promote broad participation in program
Provide price stability necessary to promote
investment
Encourage efficient project development
Electricity market reforms must ultimately consider the
impacts on customers
Ontario’s FIT seeks to resolve this tension
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Introducing Power Advisory
Power Advisory specializes in electricity market analysis and strategy, power procurement, policy development, regulatory and litigation support, resource planning and project feasibility assessment.
Our consulting support is driven by the objective of offering clients strategic and tactical insights that provide competitive advantage.
Our approach is based on an understanding of fundamental economic drivers as shaped by market structures and market participant behavior.
Our consulting services are provided by seasoned electricity sector professionals, offering a wide breadth and significant depth of industry knowledge.
For additional information regarding our services, please contact:
John Dalton
978-369-2465
Power Advisory LLC 2009
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Introducing Power Advisory
Clients include:
Algonquin Power
Atlantic Power
Bluewater Power Generation
Bruce Power
Canadian Wind Energy Association
Connecticut Resources Recovery Authority
Great Lakes Power
Manitoba Hydro
National Energy Board
Natural Resources Canada
Northland Power
New Jersey Resources
Ontario Energy Board
Ontario Power Authority
Suncor
TransAlta
TransCanada
Wheelabrator Technologies, Inc.Power Advisory LLC 2009
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