Industrial Electricity Incentive Program
Ministry of Energy
Ontario is introducing the Industrial Electricity Incentive program, which would make it easier for large industrial companies to expand and encourage new operations to locate in Ontario.
The program would encourage existing industrial companies to make use of Ontario's strong supply of energy. Eligible companies could qualify for a reduced electricity rate in exchange for creating new jobs and bringing new investment to the province.
The Industrial Electricity Incentive program is designed to promote long-term economic development and employment in Ontario. If a company does not meet its jobs commitment, it will lose the incentive.
By January 2013, businesses will be able to apply to the program through two streams:
- Available to companies looking to establish new operations in Ontario.
- To be eligible, companies must make a minimum investment of $250 million that supports new technology, products or processes.
- Long-term contracts will be offered through the Ontario Power Authority.
- Contract terms will vary depending on the size of the project.
- Proposals from companies will be ranked according to job and economic benefits.
- Available to companies which have already established operations in Ontario.
- To be eligible, companies must be expanding their operations.
- By expanding operations, companies would be eligible to pay only the market price of electricity on the additional consumption until 2020.
The government will be consulting with industry over the next few month and plan to have specific rules available by the fall with a full program launch in January 2013.