BILL 150: THE GREEN ENERGY AND GREEN ECONOMY ACT
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BUILDING THE GREEN ECONOMY
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POLLS SHOW OVERWHELMING SUPPORT FOR ONTARIO GEA
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Ontario Green Energy Act
Core Components of the Green Energy Act

To achieve the goals defined here, Ontario's Green Energy Act must include:

1. An obligation for the responsible power purchase authority to grant priority and obligatory purchase of green energy projects.

2. A system of Advanced Renewable Energy Tariffs as the primary procurement mechanism for renewable and clean distributed energy to ensure the equal participation of community energy in the sustainable energy sector. The tariffs per kilowatt-hour of generation are based on key components of the German and French models: 

  • Tariffs are differentiated on the basis of: technology, resource intensity, project scale and location to ensure projects are economically viable in communities across the province
  • Prices are set on the basis of cost and a reasonable return on investment 
  • A minimum profitability index of 0.1 for lowest yield and 0.3 for highest yield green energy projects
  • No cap on project size or program size 
  • No cap on voltage: The tariff includes all behind the meter, all distribution and all transmission connected projects 
  • 100% inflation protection at 2 levels: within the power purchase contracts, within the tariff program

3. An obligation for all utilities to grant priority grid access to green energy projects and an obligation for all utilities to connect green energy projects to the grid (within a reasonable limit to be determined by relative costs and goals related to the successful implementation of the Act).

Utilities are entitled and empowered to recover all related costs. Related costs are to be spread equally across the entire rate base.

4. The explicit and direct participation of First Nations and Métis as developers and owners in energy projects (generation, transmission, conservation) so they benefit directly from the resulting economic development in recognition of the additional and unique barriers they face.

5. The establishment of a Green Energy Debt Finance Program and a Community Power Corporation.

  • The Green Energy Debt Finance Program would be mandated to raise the financial capital required to meet the financial market short falls in the development of eligible and viable projects (individual, community and commercial) to meet the GEA targets. The intent is that over time the market and community will meet all financial requirements for these projects. Vehicles such as Green Bonds could be implemented under this program to raise a portion of the required capital.
  • A Community Power Corporation is necessary to ensure the equal opportunity for participation of the community power sector in recognition of the additional social and economic benefits of these projects to Ontario communities and the people of Ontario as a whole. The mandate of the Corporation would be to build the capacity of local communities to develop eligible and viable projects, provide early stage project funding, and to facilitate the develop of financing mechanisms. This corporation will require an initial investment of $25 million.

6. The adoption of smart grid technologies, including energy storage, in order to transform Ontario's energy system from highly centralized to more distributed.

7. A mandated commitment to a continuous improvement approach to conservation with a minimum 2.5% annual (compounding) reduction in energy resource needs from 2011 until 2027.

8. Electricity pricing that reflects its true cost and provides signals to consumers to manage their energy demand.

9 Priority for vulnerable consumers (including relevant industrial users) to reduce their energy burden through conservation, bill assistance, innovative utility policies and stronger consumer protection.

10. Streamlined regulatory and approvals processes that enable the rapid but prudent development of green energy projects across the province, reducing uncertainty and transaction costs to all involved.

This would include a comprehensive one-window approach to consultation with First Nations and Métis that will lead to their meaningful engagement in the energy sector and create certainty for the province.

Related Downloadable Files
Adobe Acrobat Green Energy Act Executive Summary
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A GREEN ENERGY ACT

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