New Round of Renewable Energy Contracts Offered at Lower Prices
Building on the success of the Feed-in Tariff (FIT) program, the Independent Electricity System Operator (IESO) today offered 936 renewable energy contracts, totalling 241.430 megawatts (MW) of power. Contract prices offered today reflect the Province's commitment to drive down costs and are lower than forecasted in Ontario's 2013 Long-Term Energy Plan.
The FIT 4 contracts were offered to developers, co-operatives, municipalities and Indigenous communities.
- More than 92 per cent of the successful applications received municipal council support resolutions
- 413 projects representing 67.26 MW have municipal or public sector entity participation
- 186 projects representing 60.24 MW have community participation
- 96 projects representing 41.45 MW have Indigenous participation
A variety of renewable energy sources were included in the contracts.
- Rooftop solar photovoltaic projects - 907 projects representing 232.258 MW
- Bioenergy - 14 projects representing 3.45 MW
- Wind energy - 6 projects representing 3.00 MW
- Waterpower - 9projects representing 2.722 MW
FIT prices for the contracts offered today are lower than those forecasted in Ontario's 2013 Long-Term Energy Plan (LTEP). Overall, costs associated with the FIT and microFIT programs have been reduced by about $800 million as a result of lower prices and reduced procurement capacity relative to the 2013 LTEP forecast. This represents an approximate reduction of about $0.32 per month on a typical residential electricity bill over the forecast period. Approximately $31 million of additional cost reduction will be achieved as a result of voluntary price reductions in FIT 4. This represents an approximate reduction of about $0.02 per month on a typical residential bill between 2018 and 2032.
Investing in a safe, clean, reliable and affordable energy system is part of the government's economic plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan includes helping more people get and create the jobs of the future by expanding access to high-quality college and university education. The plan is making the largest infrastructure investment in hospitals, schools, roads, bridges and transit in Ontario's history and is investing in a low-carbon economy driven by innovative, high-growth, export-oriented businesses. The plan is also helping working Ontarians achieve a more secure retirement.
- Launched in October 2009, the Feed-in Tariff (FIT) program allows municipalities, public sector entities, co-operatives, Indigenous communities, business owners and private developers to generate renewable energy and to sell it to the province at a guaranteed price for a fixed contract term (20 years for solar, wind and bioenergy and 40 years for hydroelectric).
- Since launching the FIT program in 2009, Ontario has established itself as a North American leader in renewable energy. Ontario’s clean energy initiatives have attracted billions of dollars in new private sector investments and generated thousands of jobs.
- The FIT program covers renewable energy projects greater than 10 kilowatts and generally up to 500 kilowatts in size. The program contributes to the province’s goal to have 10,700 megawatts of wind, solar and bioenergy online by 2021.
“Indigenous communities, municipalities and co-operatives have been key partners in helping Ontario become Canada’s leading province for installed solar energy capacity. The FIT program has provided significant opportunity for communities to participate in, and benefit from, renewable energy projects by prioritizing community participation within the program. I would like to congratulate the successful applicants for becoming leaders through their commitment to renewable energy.”