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Ontario Sustainable Energy Association. Presentation to the Board of Directors; Ontario Power Authority June 14, 2007. Agenda. Who Is OSEA?. Who Is OSEA?. Advanced Renewable Tariffs. Advanced Renewable Tariffs. The Standard Offer Program. The Standard Offer Program.

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Ontario sustainable energy association

Ontario SustainableEnergy Association

Presentation to the

Board of Directors; Ontario Power Authority

June 14, 2007


Agenda
Agenda

Who Is OSEA?

Who Is OSEA?

Advanced Renewable Tariffs

Advanced Renewable Tariffs

The Standard Offer Program

The Standard Offer Program

Comparison & Critique

Comparison & Critique

Intent of the SOC Program

Intent of the SOC Program

Moving Forward

Moving Forward

OSEA

ARTs

SOP

Critique

Intent

Future



About OSEA

  • A province-wide non-profit organization founded in 1999

  • A member-based organization

  • Currently 30 Member Organizations actively pursuing locally owned projects (Farmers, First Nations and Cooperatives)

OSEA

ARTs

SOP

Critique

Intent

Future


About osea
About OSEA

  • Education and Training

  • Policy Development

  • Initiation of new community power organizations and projects

  • Technical Assistance

OSEA

ARTs

SOP

Critique

Intent

Future


Current osea members
Current OSEA Members

Walford

Thunder Bay

MoCreebec

Temagami

Bobcaygeon

Waterloo

Ottawa

Manitoulin

Melancthon

Milford

Kitchener

Lion’s Head

Perth

Tiberton

Orangeville

Kingston

Kincardine

Caledon

Dufferin

Toronto

Bervie

Newmarket

Mount Forest

Midland

Barrie

Hamilton

OSEA

ARTs

SOP

Critique

Intent

Future


Osea s goals
OSEA’s Goals

  • 500 MW Community Power by 2012

  • 100% renewable energy supply in Ontario

  • Minimum 50% ownership by landowners, farmers, community organizations, local utilities, municipalities of all renewable energy generation within the Province

OSEA

ARTs

SOP

Critique

Intent

Future


Osea accomplishments
OSEA Accomplishments

  • SOC Program

  • Community Power Fund

  • WWEA Conference

  • Awards

  • Grants

OSEA

ARTs

SOP

Critique

Intent

Future


Community drives renewable energy
Community Drives Renewable Energy

  • 85% of wind in Denmark; 65% in the Netherlands, and 50% of wind in Germany is locally owned

    • Total installed Capacity of Wind in Germany is 20,600 MW

    • Germany is 1/3 size of Ontario and has similar wind resources

  • Ontario has ~ 400 MW of wind

  • Ontario has over 30 community power co-ops and groups

  • Ontario’s community power sector represents ~ 500 MW by 2012

OSEA

ARTs

SOP

Critique

Intent

Future


Advanced renewable tariffs the origin of arts in ontario
Advanced Renewable Tariffs:The Origin of ARTs in Ontario


Osea s arts campaign
OSEA’s ARTs Campaign

  • 2004 - OSEA launched campaign for Advanced Renewable Tariffs

  • Fall 2004 - Liberal Party Endorses ARTs

  • Winter 2004 - MoE Hires OSEA for SOC Study

OSEA

ARTs

SOP

Critique

Intent

Future


Osea s arts campaign1
OSEA’s ARTs Campaign

  • Fall 2005 - MoE issues directive to OPA to develop recommendations on a SOP for Ontario

  • March 2006 - Premier announces SOC Program

  • March-October - OPA&OEB Stakeholder Workshops

  • November 2006 - SOP rules issued

OSEA

ARTs

SOP

Critique

Intent

Future


Why arts
Why ARTs?

  • Community power proponents are precluded from participating in the RFP process for renewables

  • ARTs allows for broad based participation and ownership of renewable power generation

  • Simplified administrative process for government and suppliers

  • Markets with ARTs have more players, stronger local economies, more manufacturing, more jobs, more renewable energy generation

  • ARTs are a proven policy mechanism for the rapid deployment of renewable energy – Denmark, Germany, Spain, France, California

OSEA

ARTs

SOP

Critique

Intent

Future


Osea s goals past and present
OSEA’s Goals (Past and Present)

  • Encourage Broad Participation

  • Eliminate Barriers to DG

  • Provide a Stable Market for RE

  • Stimulate New Investment in RE

  • Provide a Rigorous Pricing Model

  • Create a Program for All Renewables

  • Provide a Simple, Streamlined, Cost-Effective Application Process

OSEA

ARTs

SOP

Critique

Intent

Future


Key components osea proposed
Key Components OSEA Proposed

  • Size (up to 10 MW) suggested cap

  • Open to all players

  • 20 year contracts

  • Price

    • set to encourage project development where there is community support and sufficient resource

      • (e.g. wind = or > 5.6 m/s)

    • specific to production and technology

  • Guaranteed access to grid

  • Pilot 2005-2010 (no cap), review in 2007

OSEA

ARTs

SOP

Critique

Intent

Future


Advanced renewable tariffs osea s proposed prices
Advanced Renewable TariffsOSEA’s ProposedPrices

Paul Gipe, wind-works.org

OSEA

ARTs

SOP

Critique

Intent

Future


Opa oeb program goals
OPA-OEB Program Goals

  • Be Simple

  • Remove Barriers to RE Generation

  • Balance RE Generation with Value to Ratepayers

  • Build on the Efforts of OSEA

OSEA

ARTs

SOP

Critique

Intent

Future


What we got the ontario standard offer program
What We Got: The Ontario Standard Offer Program


What we got ontario s sop
What We Got: Ontario’s SOP

  • Size (0 up to 10 MW) cap

  • Open to all players

  • Not a pilot program – no cap on program capacity

  • 20 year contract between generator and OPA

  • Standardized Prices

    • 11 cents/kWh base price (wind, hydro, bio-gas)

    • 42 cents/kWh solar PV

    • biogas and small hydro +possible 3cents for dispatchability

  • Guaranteed (Our wording or theirs – check rules) (within reason and established safety guidelines) access to the distribution grid (< 50MW? 44 kV)

OSEA

ARTs

SOP

Critique

Intent

Future


Ontario’s SOP/ARTs

  • Wind, Hydro, & Biomass: $0.11/kWh

  • Hydro & Biomass

    • $0.0352/kWh on peak

  • Solar PV: $0.42/kWh

  • Inflation Adjustment: 20%,

    • Except Solar PV (Punitive?)

  • Term: 20 years

  • OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Opa oeb value to ratepayers
    OPA-OEB & “Value to Ratepayers”

    • Criterion Subject to Internal Interpretation

    • Not Part of OPA’s Mandate

    • Not Part of OSEA’s Proposal

    • Neither Spain, France, or Germany Use “Value to Ratepayers” in Determining Tariffs

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future



    Ontario s standard offer program
    Ontario’s Standard Offer Program

    “The Most Progressive Renewable Energy Policy in North America in Two Decades”


    Prices for wind energy in europe
    Prices for Wind Energy in Europe

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Prices paid for biomass in europe
    Prices Paid for Biomass in Europe

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Prices paid for solar pv in europe
    Prices Paid for Solar PV in Europe

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Ontario solar tariff north american comparison
    Ontario Solar Tariff North American Comparison

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Ontario s soc s what s wrong
    Ontario’s SOC’s: What’s Wrong?

    Price

    • Tariffs Too Low

      • PV: 1/2 of What’s Needed

      • Wind: Only Windy Sites

      • Biomass: $0.17 CAD/kWh MoAF

    • Inflation Adjustment Too Low

      • 20% vs 50%: -2.5% ROI

      • Excluding Solar Punitive?

    Differentiation

    Valuation

    Transmission

    Capacity

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Ontario s soc s what s wrong1
    Ontario’s SOC’s: What’s Wrong?

    Price

    • Wind Tariff Differentiation

      • Not Enough at Less Windy Sites

      • Too Much at Windy Sites

    • Fundamental Philosophical Shift

      • Cost vs Value Debate Continues

      • Minister of Energy--Yes

      • OPA--Absolutely, Positively No!

    • Antiquated Grid

      • 7 month Hydro One Backlog!

    Differentiation

    Differentiation

    Valuation

    Valuation

    Transmission

    Capacity

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Hydro one queue gaming
    Hydro One Queue Gaming

    Price

    Total Generating Capacity below red line (will not be processed) is over 1,200MW, or enough to cover ~5% of Ontario’s peak capacity demand

    Differentiation

    Valuation

    Transmission

    Capacity

    www.hydroonenetworks.com

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Results of the of ontario s sop
    Results of the of Ontario’s SOP

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Ontario sop arts results

    Residential PV: 150 kW?

    Commercial PV: 50 MW?

    ~20 MW Hydro

    230 MW Wind

    ~50 MW Installed in 2007?

    ~100 MW/month in Contracts

    Rush for Connections

    Ontario SOP/ARTs Results

    (November-April 2007)

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future



    Through renewable energy we are also opening up opportunities for communities and, moreover, for citizens to participate in our electricity future.”

    Donna Cansfield, Minister of Energy

    16th National Energy Services Conference

    February 6, 2006

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “Standard Offer will open up the opportunity for community-based projects to sell power to the grid.”

    Donna Cansfield, Minister of Energy

    16th National Energy Services Conference

    February 6, 2006

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “Standard Offer for small renewable energy projects is valuable from a range of perspectives. It adds to the energy supply, it opens up the market to smaller projects … to businesses, rural landowners or farmers.”

    Donna Cansfield, Minister of Energy

    16th National Energy Services Conference

    February 6, 2006

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “ Standard Offer is absolutely critical to smaller generators who aim to sell electricity to the grid, because it eliminates the complex bidding, assessment and quote-based competition that has discouraged investment in smaller projects.”

    Donna Cansfield, Minister of Energy

    Integrated Solutions to Manure Management III

    March 9, 2006

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “We’re giving Ontarians, whether they be farmers, cooperatives, or small businesses – the opportunity to help strengthen our energy system, reduce our reliance on coal, and clean up our air through Ontario’s Standard Offer Program,”

    Dwight Duncan, Minister of Energy

    February 27, 2007

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “This represents a tremendous opportunity for farmers and our communities to build greater economic prosperity in our rural areas,” It is yet another example of how this government is acting to create jobs and a better future for rural Ontario.”

    Leona Dombrowsky, Minister of Agriculture,

    Food and Rural Affairs

    February 27, 2007

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “We’re taking a bold new step that will allow hundreds of small, local, renewable energy producers to get into the energy market – providing cleaner energy that will help meet Ontario’s needs today – and in the future”

    Premier Dalton McGuinty

    March 21, 2006

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “ Until now, it was too costly and complex for small, renewable power producers — such as farmers, rural landowners, community groups, First Nations, business owners or municipalities — to sell their energy to the grid.”

    Premier’s Press Release

    March 21, 2006

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “ Standard Offer contracts have been the fastest and most successful way of producing renewable energy throughout the world,”

    Premier Dalton McGuinty

    March 21, 2006

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “ Encouraging communities to develop more renewable electricity will spur the kind of innovation in the energy sector that will help clean up our air, create jobs and contribute to our long-term prosperity.”

    Premier Dalton McGuinty

    March 21, 2006

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “. . . Find the right mechanism to spread the use of wind across the province.”

    Minister of Energy Dwight Duncan

    April 12, 2007

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “. . . We will bring the barriers down.” across the province.”

    Minister of Energy Dwight Duncan

    April 12, 2007

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    “We did it because it was the right thing to do.” across the province.”

    Minister of Energy Dwight Duncan

    April 12, 2007

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Going forward
    Going Forward across the province.”


    SOC Program: What’s Next? across the province.”

    • 2 Year Review (OSEA has Begun)

      • Consultation Fall 2007

      • New SOC Tariffs March, 2008

    Immediate

    Corrective

    Action

    Additions to

    The SOP

    General Policy

    Improvements

    To The SOP

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Sop immediate corrective action
    SOP: Immediate Corrective Action across the province.”

    Immediate

    Corrective

    Action

    • Grant priority access or set aside % capacity of distribution system for locally owned projects

    • Ease Burden on Distribution Grid

      • Lift Project Size Cap

      • Lift Voltage Cap

  • Make Locally-Owned Solar Viable

    • Raise Solar PV Tariff

  • Make On-Farm Biogas Viable

    • Raise Biogas Tariff

  • Additions to

    The SOP

    General Policy

    Improvements

    To The SOP

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Sop immediate corrective action1
    SOP: Immediate Corrective Action across the province.”

    Ontario Revised Solar PV Tariffs

    Immediate

    Corrective

    Action

    Additions to

    The SOP

    General Policy

    Improvements

    To The SOP

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Sop immediate corrective action2
    SOP: Immediate Corrective Action across the province.”

    Ontario Revised Biogas Tariffs

    Immediate

    Corrective

    Action

    Additions to

    The SOP

    General Policy

    Improvements

    To The SOP

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Sop immediate corrective action3

    To Build a Conservation Culture… across the province.”… You Must Be Able to See It

    Wind & Solar are the Most Visible Manifestations of Renewable Energy

    Solar PV can be Deployed Most Quickly

    Deploying Solar PV says: “Progress Being Made”.

    SOP: Immediate Corrective Action

    Ontario’s Conservation Culture

    Immediate

    Corrective

    Action

    Additions to

    The SOP

    General Policy

    Improvements

    To The SOP

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    SOC Program: What’s Next? across the province.”

    • Revisit

      • Prices

      • Increase Differentiation

      • Differentiated Tariffs for Wind

      • Inflation Indexing (60%)

  • Add Offshore Wind

  • Add Solar Thermal

  • Immediate

    Corrective

    Action

    Additions to

    The SOP

    General Policy

    Improvements

    To The SOP

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Soc program solar thermal
    SOC Program: Solar Thermal across the province.”

    Immediate

    Corrective

    Action

    • Germany

      • Proposed Wärme Gesetz

      • Costs Spread Across Heating Oil & Gas

  • Monitoring Technology Exists

  • Additions to

    The SOP

    General Policy

    Improvements

    To The SOP

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Soc program what s next
    SOC Program: What’s Next? across the province.”

    Immediate

    Corrective

    Action

    • Lift Voltage Cap

      • Transmission Voltages

    • Lift Project Size Cap

      • 50 MW?

    • Priority Access

      • Farmers, First Nations, Co-ops?

    • Priority Purchase

      • Renewables before Nuclear & Fossil Fuels

    Additions to

    The SOP

    General Policy

    Improvements

    To The SOP

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Replicating the ontario model
    Replicating The “Ontario” Model across the province.”

    • Official

      • BC, Saskatchewan, Manitoba

    • Unofficial

      • Québec, Nova Scotia, Michigan?

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Advanced renewable tariffs
    Advanced Renewable Tariffs across the province.”

    • Deliver More Capacity

      • More Quickly

      • More Equitably

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    Arts a question of equity

    Feed Laws are Fair across the province.”

    Nearly All Can Play

    Farmers, Ranchers, First Nations, & Co-ops

    ARTs: A Question of Equity

    OSEA

    ARTs

    SOP

    Critique

    Intent

    Future


    No time for half measures no time to lose
    No Time for Half Measures across the province.”…No Time to Lose


    Renewables
    Renewables… across the province.”

    • When You Look Closely . . .. . . Worth Every Cent


    Thank you
    Thank you! across the province.”

    Paul GipeRenewable Energy Consultant, OSEA

    Deb DoncasterExecutive Director,OSEA

    To contact OSEA:

    416-977-4441 or [email protected]

    www.ontario-sea.org


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