2012 apr 15 minister osea presentation fit 2.0 v7

7 things to make FIT 2.0 a success Minister of Energy and OPA briefing notes

www.ontario-sea.org April 25, 2012 Draft 7

http://tinyurl.com/d52cnkl

2013-‐05-‐07

OSEA builds community and commercial capacity and collaboration

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The Ontario Sustainable Energy Associa4on (OSEA) is a non-‐par3san, member-‐based non-‐profit dedicated to inspiring and enabling the people of Ontario to improve the environment, economy and their health by conserving and producing clean, renewable energy in their homes, businesses and communi3es. Who we represent: Members include individuals, manufacturers, installers, developers, municipali3es, First Na3ons, farmers, co-‐opera3ves and other community organiza3ons suppor3ve of, and engaged in, the full porHolio of sustainable energy in Ontario Vision: Every Ontarian conserves energy and generates sustainable energy either as a household or as part of a local community-‐owned business, contribu3ng to the rapid transi3on to 100% sustainable energy. Mission: To be recognized as one of Ontario’s most respected sustainable energy advocates and facilitators by providing credible, accurate and 3mely informa3on and an unparalleled network of community and commercial sector supporters and par3cipants.

OSEA works to advocate and facilitate the transition to a sustainable energy economy in Ontario

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1.  Re-instate the definition of community endorsed by the Community Power sector

2.  Require all projects to have a minimum of 15% Community, Aboriginal and/or Educational/Health ownership

3.  Create a Community Power Advisory to advise the CEPP, DeloiQe and the OPA on the challenges and needs of the sector.

4.  Allow each Aboriginal Support Resolu3on granted by an Aboriginal community to achieve the required criteria, gran3ng 1/2 a priority point up to a total of 2 points.

5.  Offer system benefits priority points and adder to all renewables 6.  Con3nue to use the regional alloca3on model for ground-‐mounted solar PV on

Class 3 Soils 7.  Raise the target for renewables and indicate capacity targets over the next 5-‐10

years

7 things to make FIT 2.0 a success

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Recommenda)on 1: For the purpose of the adder, access to the CEPP and the set aside re-‐instate the defini=on of community to include:

1.  One or more individuals Resident in Ontario; 2.  A Registered Charity with its head office in Ontario; 3.  A Not-‐For-‐Profit Organiza3on with its head office in Ontario; or 4.  A “co-‐opera3ve corpora3on”, as defined in the Co-‐opera3ve Corpora3on Act

(Ontario), all of whose members are Resident in Ontario.

The Challenge The revised defini3on in the draa FIT 2.0 rules: -‐  Constrains community innova3on excluding farmers, chari3es, community corpora3ons, LLPs, Not-‐

For-‐Profits and other structures (including municipali3es and u3li3es) -‐ all of which are currently being used by community groups across the province

Benefit -‐  Significant streamlining for the OPA -‐  The previous defini3on of community was based on extensive consulta3on and has been endorsed

by OSEA, the Community Power Fund, OFA and the OPA – the new defini3on has not -‐  The original defini3on spurs innova3on, broad par3cipa3on and does not punish those groups

already established and invested in a community based model

Re-instate the definition of community endorsed by the Community Power sector

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Recommenda)on 2: Require all small and medium sized projects to have a minimum of 15% aboriginal or non-‐aboriginal community par3cipa3on involving at least 1 Property Owner from within the upper-‐=er municipality where the project is located. The challenge -‐  To minimize administra3ve burden and unnecessary costs to the ratepayer -‐  To build long term community acceptance and support for renewable energy projects across

Ontario -‐  To distribute greater benefit to local aboriginal and non-‐aboriginal communi3es -‐  To increase par3cipa3on and build capacity in communi3es -‐  To spur increased renewable energy and create a culture of conserva3on -‐  To level the playing field and create a stable business environment for developers The benefit -‐  Reduced administra3on burden for the OPA and in turn lower cost to the rate payer -‐  Increases long term support and distribu3on of benefits -‐  Prevents the “purchase of priority” -‐  Increase the stability of the project development and investment environment

Require all projects to have a minimum of 15% Community, Aboriginal and/or Educational/Health ownership

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Recommenda)on 3: Create a Community Power Advisory to advise the CEPP, DeloiQe and the OPA on the challenges and needs of the sector. The challenge -‐  The CEPP Administrator is not an associa3on and does not represent a stakeholder

group or ac3vely engage all stakeholders on issues of program development and policy -‐  Recommenda3ons like the change of the defini3on of Community Power to only

include co-‐opera3ves (one form of Community Power) is contrary to the sector’s broader defini3on and vision of Community Power

The benefit -‐  The government and its agents would have direct formal and regular access to

construc3ve feedback from those on the ground that represent and support local residents and community groups including the Ontario Sustainable Energy Associa3on, the Ontario Federa3on of Agriculture, the Chris3an Farmers Associa3on, the Ontario Co-‐opera3ve Associa3on, the Non-‐profit Network and Greening Sacred Spaces.

-‐  Assurance that certain models and proponents are not being favoured by the CEPP Administrator

Create a Community Power Advisory to advise the CEPP administrator, Deloitte and the OPA

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Recommenda)on 4: When there are more than four aboriginal communi3es listed by the MOE for consulta3on, allow each Aboriginal Support Resolu3on granted by an Aboriginal community to achieve the required criteria, gran3ng 1/2 a priority point, up to a total of 2 points. For projects located on reserve land not owned by the aboriginal community a resolu3on passed by Chief and Council will result in 2 points. The challenge -‐  In some instances proponents may find themselves with four or more Aboriginal Communi3es on

the MOE roster. Recognizing that the support resolu3on is the beginning of a consulta3ve process, proponents should not be penalized for failing to obtain Support Resolu3ons in the short 3meline proposed while incen3ng the beginning of the consulta3ve process .

The benefit -‐  This approach is more in line with the level of engagement that will garner 2 points for Municipal

Support Resolu3ons -‐  The Support Resolu3on is an endorsement in principle for the project that ini3ates the consulta3ve

process

Award priority points for each Aboriginal Support Resolution secured

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Recommenda)on 5: Offer system benefits priority points and adder to all renewables including solar and wind if they can demonstrate firm supply and responsiveness (10% of peak supply). The challenge -‐  The variability of wind and solar -‐  Voltage quality -‐  Shortage of supply in load centers -‐  A lack of innova3on and support for the transi3on from the rigid Baseload paradigm to

a flexible and resilient Auxillary Load paradigm The benefit -‐  Captures surplus supply and shias it to when and where it is needed -‐  Firms up renewable supply and responsiveness -‐  Can address voltage quality issues -‐  Spurs developer investment rather than ratepayer investment, while avoiding costly

transmission and system upgrades -‐  Spurs innova3ve solu3ons for export without choosing “winners”

Include system benefits priority and adder for wind and solar

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Recommenda)on 6: Con3nue to use the regional alloca3on model for ground-‐mounted solar PV on Class 3 Soils while requiring cer3fica3on by an Agrologist un3l OMAFRA has updated its maps with more accuracy. The challenge -‐  OMAFRA’s maps have an error of 2-‐3kms and are out of date -‐  Farmers are interested in doing larger projects then 10kw -‐  Municipal leaders are frustrated that their control is being taken away The benefit -‐  Developers have the opportunity to demonstrate that their site is usable

u3lizing expert cer3fica3on -‐  Controlled release of some sites -‐  Farmers and municipali3es regain control and opportunity

Return to the allocation approach to Class 3 Soils

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Recommenda)on 7: Raise the target for renewables and indicate capacity targets over the next 5-‐10 years The challenge -‐  There is only ~1,000 MW of the 10,700 MW of capacity lea -‐  To build a strong export market there needs to be a healthy domes3c market -‐  To spur community and aboriginal development there needs to be real support and

accountability to measure whether the targeted progress is being made -‐  The remaining capacity is not enough to retain the current manufacturers and aQract

new investment The benefit -‐  Spread development while building up necessary supply to fill the gap in 2015 while

controlling surplus supply -‐  Create surety in the market for community and commercial developers and the

manufacturers that are going to supply them -‐  Minimum targets serve as success indicators and allow for review and improvement to

ensure the appropriate support is being provide to make community, aboriginal and commercial projects are opera3onal within a reasonable 3meframe

Raise the target now and indicate the yearly capacity available

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-‐  A combined renewable power plant -‐  Biogas storage facili3es -‐  100% distributed sustainable energy

communi3es -‐  Grid operators managing deep

penetra3on of renewables -‐  Financial experts who work with the

community and commercial sector -‐  Community wind, solar and biogas

projects -‐  The Community-‐Ci=zen Power World

Wind Energy Conference

Join us in Germany to visit

The old paradigm

Image by David Roberts, 2002 (Grist News) - http://tinyurl.com/cwn9w6o

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The new paradigm

Image by David Roberts, 2002 (Grist News) - http://tinyurl.com/cwn9w6o

A change in scale and distribution

Image by P Maegaard, 2010 – Nordik Folkecenter, Denmark

Image by P Maegaard, 2010 – Nordik Folkecenter, Denmark

An integrated approach to energy

2012 apr 15 minister osea presentation fit 2.0 v7

Technology

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