Supporting Solar Success in Ontario 10 th February 2010, Milano, Italy Richard Todd Ontario Ministry of Economic Development & Trade
Agenda 1. Introduction to Ontario 2. Context of energy sector 3. Supporting the Market - Green Energy Act and Feed-In Tariff Programme 4. Supporting Manufacturing 5. Other Support Programmes
1. Introduction
Introduction Canada, huge country + x 3
Introduction Ontario an economic power by itself Seventh largest state/province in North America - GDP 1,847 800 Ontario s GDP a comparison 801 Billion US $ 1600 1200 800 400 0 California Texas 1,224 New York 1,144 Florida 744 634 Illinois Pennsylvania 553 Ontario 481 475 472 New Jersey Ohio North Carolina 400 Billion US $ 600 400 200 0 Australia Netherlands 677 656 481 387 341 335 320 310 Poland Ontario Belgium Sweden Greece Austria Switzerland Norway Czech Republic 270 260 247 200 192 190 188 Portugal Denmark Ireland Hungary Finland Figures for 2008, Ontario s at PPP (purchasing power parity) Latest figures at PPP for all OECD countries are available for 2008. Estimates for Ontario Source: US Bureau of Economic Analysis, Ontario Ministry of Finance, OECD, CIA World Factbook
Introduction, Ontario - strategic location 160 Million Population within a one-day truck drive
2. Context of Energy Sector
Electricity Consumption in Canada Canada's Electricity Mix 16% 17% 5% 2%1%1% hydro coal nuclear gas oil 58% biomass renewables
Energy Mix Ontario -2006 & 2025 (Target) 2006 In-Service Capacity Mix Target in 2025 Capacity Mix Source: 2006 Supply Mix: IESO 2025 Supply Mix: Ministry of Energy Directive to the OPA
Solar Radiation in Canada
Solar Radiation in Ontario
3. Supporting the Market - Green Energy Act and Feed In Tariff Programme
Green Energy Act The Green Energy and Green Economy Act (passed by Parliament on 14 th May 2009) and has two main goals, equally important: i) to stimulate renewable energy projects in the Province ii) to promote usage of energy efficient technologies among for householders, schools, authorities and industry
Green Energy Act new policy for new age The Green Energy Act will expand renewable energy generation in Ontario by: Implementing a smart power grid in Ontario, making it easier to connect renewable energy generation to the system Establishing right to connect for renewable energy projects on the transmission and distribution systems Smart Power Grid Right to Connect Streamlined Approvals Feed-in-tariff program Establishing a streamlined approvals process, and provide service guarantees for renewable energy projects Fostering a culture of conservation by assisting consumers, government, schools and industry to transition to lower and more efficient energy use Promoting Conservation Domestic Content Setting procurement targets for domestic content by technology (currently under negotiation) Creating an attractive feed-in-tariff regime that will guarantee rates for renewable energy projects
The new tariffs (from 1 st October 2009) Technology Size Cents/kWh Hydro (water) smaller than 10 MW 13.1 between 10 MW and 50 MW 10.3 Landfill Gas smaller than 10 MW 11.1 larger than 10 MW 10.3 Wind Onshore (no limit) 13.5 Offshore (no limit) 19.0
The new tariffs (from 1 st October 2009) Technology Size Cents/kWh Biomass smaller than 10 MW 13.8 larger als 13.0 Biogas on farm smaller than 100 kw 19.5 on farmbetween 100 & 250 kw 18.5 Biogas smaller than 500 kw 16.0 between 500 kw and 10 MW 14.7 larger than 10 MW 10.4
The new tariffs (from 1 st October 2009) Technology Size Cents/kWh Solar PV any Smaller than 10 kw 80.2 Roof between 10 and 250 kw 71.3 Roof between 250 and 500 kw 63.5 Roof larger than 500 kw 53.9 GM larger than 10 kw 44.3
Feed-in Tariff - Adder (Bonus Payment) Energy Type Wind Solar PV Ground Mounted Water Biogas Biomass Landfill Gas Maximum Aboriginal Preis Adder (cents / kwh) 1.5 1.5 0.9 0.6 0.6 0.6 Maximum Community Preis Adder (cents / kwh) 1.0 1.0 0.6 0.4 0.4 0.4 The adder varies according to the percentage of shreholding heldby aboriginal or community group, for example: 50+%»100% of the price adder 40%»80% of the price adder 25%»50% of the price adder 10%»20% of the price adder
Local Content local production required Developers need to source certain percentage of value of their projects from local partners For solar projects Projects smaller than 10 kw 40%, after 1 st Jan. 2011 60% Projects larger than 10 kw 50%, after 1 st Jan. 2011 60%
4. Support for Manufacturing
Support for Manufacturers Government Support Programmes - Advanced Manufacturing Investment Strategy Programme, interest free loan of up to 30% of an investment for up to 5 years, Can$ 500 Mill. Fund - Ontario Emerging Technologies Fund, Can$ 250 Mill. Fund - Innovation Demonstration Fund, Can$ 50 Mill. Fund - Eastern Ontario Investment Fund, Can$ 80 Mill. Fund - Northern Ontario Heritage Fund Corporation - Apprenticeship Training Tax Credit - and many other programmes -Of note: deal with Samsung and Korea Electric Power Corp.
5. Other Support Programmes
Supporting Grid Expansion The Green Energy Act requires the expansion and strengthening of the transmission grid to support decentralised energy production Smart grid Implementation the establishment and support for a Smart Grid in the Province The government has recommended Hydro One (the largest transmission company) to start with planning and implementation of 20 transmission projects
Other support for renewable energies in Ontario Provincial Programmes -Matching of Federal ecoenergy Bonus of Can$500 for the installation of solar thermal systems (residential) -Matching of Federal ecoenergy Bonus of 25% of the costs of installation of solar thermal systems (industry), Can$ 14.4 Million Programme -Can$ 250 Million Aboriginal Loan Guarantee Programme, which can lend up to 75% of the costs of a project -One Stop Informations Centre for Solar Energy, Internet and free telephone advice -100,000 Solar roof programme. Establishment of taskforce to look at how to achieve this goal through solar PV and solar thermal installations - tax advanatges, such as accelerated depreciation -Can$ 120 Million Programme for renewable energies for schools and social housing
Richard Todd Heidkekrautweg 6 47807 Krefeld, Germany Tel. + 49 2151 6199 744 richard.todd@investinontario.com