Ontario Sustainable Energy Association Presentation to the Board of Directors; Ontario Power...
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Transcript of Ontario Sustainable Energy Association Presentation to the Board of Directors; Ontario Power...
Ontario SustainableOntario SustainableEnergy AssociationEnergy AssociationOntario SustainableOntario SustainableEnergy AssociationEnergy Association
Presentation to thePresentation to the
Board of Directors; Ontario Power AuthorityBoard of Directors; Ontario Power Authority
June 14, 2007June 14, 2007
Presentation to thePresentation to the
Board of Directors; Ontario Power AuthorityBoard of Directors; Ontario Power Authority
June 14, 2007June 14, 2007
AgendaAgenda
Who Is OSEA?
Advanced Renewable Tariffs
The Standard Offer Program
Comparison & Critique
Intent of the SOC Program
Moving Forward
Who Is OSEA?
Advanced Renewable Tariffs
The Standard Offer Program
Comparison & Critique
Intent of the SOC Program
Moving Forward
OSEA ARTs SOP Critique Intent Future
WHO IS OSEA?WHO IS OSEA?
(Deb Doncaster)
About OSEAAbout 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)
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
Current OSEA MembersCurrent OSEA Members
Manitoulin
Lion’s HeadTiberton
Kincardine
Bervie Toronto
Mount Forest
MelancthonWaterloo
Kitchener
Hamilton
Caledon
Orangeville
Dufferin
Newmarket
BarrieMidland
BobcaygeonOttawa
Milford
KingstonPerth
Temagami
WalfordMoCreebecThunder Bay
OSEA ARTs SOP Critique Intent Future
OSEA’s GoalsOSEA’s Goals
500 MW Community Power 100% Renewables
Minimum 50% Local Ownership
500 MW Community Power 100% Renewables
Minimum 50% Local Ownership
OSEA ARTs SOP Critique Intent Future
Community Drives Renewable EnergyCommunity 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 22,600 MW Germany is 1/3 size of Ontario and
has similar wind resources Ontario has ~ 400 MW of wind
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 22,600 MW Germany is 1/3 size of Ontario and
has similar wind resources Ontario has ~ 400 MW of wind
OSEA ARTs SOP Critique Intent Future
Advanced Renewable Tariffs:The Origin of ARTs in OntarioAdvanced Renewable Tariffs:The Origin of ARTs in Ontario
(Deb Doncaster)
OSEA’s ARTs CampaignOSEA’s ARTs Campaign
2004 - OSEA launched campaign for Advanced Renewable Tariffs
Fall 2004 - Liberal Party Endorses ARTs
Winter 2004 – Ministry of Energy Contracts OSEA for ARTs Policy Study
2004 - OSEA launched campaign for Advanced Renewable Tariffs
Fall 2004 - Liberal Party Endorses ARTs
Winter 2004 – Ministry of Energy Contracts OSEA for ARTs Policy Study
OSEA ARTs SOP Critique Intent Future
OSEA’s ARTs CampaignOSEA’s ARTs Campaign
Fall 2005 – Ministry of Energy issues directive to OPA to develop recommendations for a SOP for Ontario
March 2006 - Premier announces SOC Program
March-October - OPA&OEB Stakeholder Workshops
November 2006 - SOP rules issued
Fall 2005 – Ministry of Energy issues directive to OPA to develop recommendations for 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
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
What We Got: The Ontario Standard Offer Program
What We Got: The Ontario Standard Offer Program
(Deb Doncaster)
10 MW Project Cap Open to all players 20 year contracts Price specific to production
and technologySolar: 63-84c/kWhHydro & BioGas: 13.3
c/kWhWind: differentiated pricing
ranging from 13.3 c/kWh – 6.9 c/kWh
80% Inflation Indexing Guaranteed access to grid Anti-Gaming Policy
10 MW Project Cap Open to all players 20 year contracts Price specific to production
and technologySolar: 63-84c/kWhHydro & BioGas: 13.3
c/kWhWind: differentiated pricing
ranging from 13.3 c/kWh – 6.9 c/kWh
80% Inflation Indexing Guaranteed access to grid Anti-Gaming Policy
Standardized Prices 11 cents/kWh base price
(wind, hydro, bio-gas) 42 cents/kWh solar PV biogas and small hydro +
3.5 cents for dispatchability
Guaranteed (Our wording or theirs – check rules) (within reason and established safety guidelines) access to the distribution grid (< 50MW? 44 kV)
Standardized Prices 11 cents/kWh base price
(wind, hydro, bio-gas) 42 cents/kWh solar PV biogas and small hydro +
3.5 cents 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 ComponentsOSEA ARTs SOP Components
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
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
Comparison and Critique of Ontario’s SOP - PGComparison and Critique of Ontario’s SOP - PG
(Paul Gipe)
Ontario’s Standard Offer ProgramOntario’s Standard Offer Program
“The Most Progressive Renewable Energy Policy in North America in
Two Decades”
“The Most Progressive Renewable Energy Policy in North America in
Two Decades”
OSEA ARTs SOP Critique Intent Future
Prices for Wind Energy in EuropePrices for Wind Energy in EuropePrices for Wind Energy in EuropePrices for Wind Energy in Europe
Feed Law-Germany
Feed Law-France
Feed Law-Spain
Quota-Italy
Quota-Britain
Feed Law-Ontario
Euro Cents/kWh
0 2 4 6 8 10 12 14
OSEA ARTs SOP Critique Intent Future
Prices Paid for Biomass in EuropePrices Paid for Biomass in EuropePrices Paid for Biomass in EuropePrices Paid for Biomass in Europe
Feed Law-Germany
Feed Law-France
Feed Law-France
Feed Law-Spain
Quota-Italy
Quota-Britain
Feed Law-Austria
Feed Law-Ontario
Euro Cents/kWh
0 5 10 15 20
OSEA ARTs SOP Critique Intent Future
Prices Paid for Solar PV in EuropePrices Paid for Solar PV in EuropePrices Paid for Solar PV in EuropePrices Paid for Solar PV in Europe
Feed Law-Germany
Feed Law-France
Feed Law-Spain
Feed Law-Italy
Quota-Britain
Feed Law-Austria
Feed Law-Ontario
Euro Cents/kWh
0 10 20 30 40 50 60 70
OSEA ARTs SOP Critique Intent Future
Ontario Solar Tariff Ontario Solar Tariff North American ComparisonNorth American Comparison
Ontario Solar Tariff Ontario Solar Tariff North American ComparisonNorth American Comparison
California Buy-Down
California Solar PBI
Washington State
New Jersey RPS
Wisconsin
Ontario Solar Tariff
$ CAD/kWh Over 20 Years
0 0.1 0.2 0.3 0.4 0.5
OSEA ARTs SOP Critique Intent Future
Ontario’s SOC’s: What’s Wrong?Ontario’s SOC’s: What’s Wrong?
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?
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
TransmissionCapacity
Price
OSEA ARTs SOP Critique Intent Future
Price
Ontario’s SOC’s: What’s Wrong?Ontario’s SOC’s: What’s Wrong?
Wind Tariff Differentiation Based on Wind Resource; Specific to Resource and
Technology
Wind Tariff Differentiation Based on Wind Resource; Specific to Resource and
Technology
OSEA ARTs SOP Critique Intent Future
Differentiation
TransmissionCapacity
Price
Differentiation
Price
Hydro One Queue GamingHydro One Queue Gaming
Antiquated Grid 7 month Hydro One Backlog
No Anti-Gaming Provision in SOP
No Policy Mechanism for Larger Transmission-Connected Projects
Community & Locally-Owned Projects are left out of the SOP
Antiquated Grid 7 month Hydro One Backlog
No Anti-Gaming Provision in SOP
No Policy Mechanism for Larger Transmission-Connected Projects
Community & Locally-Owned Projects are left out of the SOP
Differentiation
TransmissionCapacity
Differentiation
TransmissionCapacity
Results of the of Ontario’s SOPResults of the of Ontario’s SOP
(Paul Gipe)
Ontario SOP/ARTs ResultsOntario SOP/ARTs Results
Residential PV: 150 kW?
Commercial PV: 50 MW?
~20 MW Hydro 230 MW Wind
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 May 16: 396MW of
Contracts Signed
~50 MW Installed in 2007?
~100 MW/month in Contracts
Rush for Connections May 16: 396MW of
Contracts Signed
(November-April 2007)
OSEA ARTs SOP Critique Intent Future
A Disconnect Between Intent, Policy and ImplementationA Disconnect Between Intent, Policy and Implementation
(Paul Gipe)
“Standard Offer will open up the opportunity for community-based projects to sell power to the grid.”
“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 Energy16th National Energy Services Conference
February 6, 2006
“Standard Offer will open up the opportunity for community-based projects to sell power to the grid.”
“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 Energy16th 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
“ 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 EnergyFebruary 27, 2007
“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 EnergyFebruary 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
“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 McGuintyMarch 21, 2006
“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 McGuintyMarch 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
“ 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
“ 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
“ 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
“. . . We need a good quote.”
Minister of Energy Dwight Duncan
Growing the Margins Conference
April 12, 2007
“. . . We need a good quote.”
Minister of Energy Dwight Duncan
Growing the Margins Conference
April 12, 2007
OSEA ARTs SOP Critique Intent Future
Going ForwardGoing Forward
(Paul Gipe)
2 Year Review (OSEA has Begun) Consultation Fall 2007 New SOC Tariffs March, 2008
SOC Program: What’s Next?SOC Program: What’s Next?
OSEA ARTs SOP Critique Intent FutureImmediate Action Details General
SOP: Immediate ActionSOP: Immediate Action
1. Grant priority access or set aside % capacity of distribution system for locally owned projects
2. Ease Burden on Distribution Grid Lift Project Size Cap Lift Voltage Cap
3. Make Locally-Owned Solar Viable Raise Solar PV Tariff
4. Make On-Farm Biogas Viable Raise Biogas Tariff
1. Grant priority access or set aside % capacity of distribution system for locally owned projects
2. Ease Burden on Distribution Grid Lift Project Size Cap Lift Voltage Cap
3. Make Locally-Owned Solar Viable Raise Solar PV Tariff
4. Make On-Farm Biogas Viable Raise Biogas Tariff
Future Immediate Action Details General
SOP: Details of Price RevisionSOP: Details of Price Revision
Class Size (kW)Tariff
($CAD/kWh)
10 <10 0.80
100 >10<100 0.70
1,000 >100<1,000 0.60
10,000 >1,000<10,000 0.42
Ontario Revised Solar PV TariffsOntario Revised Solar PV Tariffs
Future Immediate Action Details General
SOP: Details of Price RevisionSOP: Details of Price Revision
Size $CAD/kWh
<150 kW 0.16
<500 kW 0.14
<5 MW 0.12
<20 MW 0.12
Ontario Revised On-Farm Biogas TariffsOntario Revised On-Farm Biogas Tariffs
Future Immediate Action Details General
SOP: Further Details on RevisionSOP: Further Details on Revision
To Build a Conservation Culture…… 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”.
To Build a Conservation Culture…… 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”.
Ontario’s Conservation CultureOntario’s Conservation Culture
Future Immediate Action Details General
Revisit Prices Increase Differentiation Differentiated Tariffs for Wind Inflation Indexing (60%)
Add Offshore Wind Add Solar Thermal
SOC Program: What’s Next?SOC Program: What’s Next?
Future Immediate Action Details General
SOC Program: Solar ThermalSOC Program: Solar Thermal
Germany Proposed Wärme Gesetz Costs Spread Across Heating
Oil & Gas Monitoring
TechnologyExists
Germany Proposed Wärme Gesetz Costs Spread Across Heating
Oil & Gas Monitoring
TechnologyExists
Future Immediate Action Details General
SOC Program: What’s Next?SOC Program: What’s Next?
Priority Purchase Renewables before Nuclear &
Fossil Fuels
Streamlining the Process Chief Renewable Energy
Officer for Ontario
Priority Purchase Renewables before Nuclear &
Fossil Fuels
Streamlining the Process Chief Renewable Energy
Officer for Ontario
Future Immediate Action Details General
Replicating The “Ontario” ModelReplicating The “Ontario” Model
Official BC, Saskatchewan,
Manitoba Unofficial
Québec, Nova Scotia, Michigan?
Official BC, Saskatchewan,
Manitoba Unofficial
Québec, Nova Scotia, Michigan?
OSEA ARTs SOP Critique Intent FutureImmediate Action Details General
Advanced Renewable TariffsAdvanced Renewable Tariffs
Deliver More Capacity More Quickly More Equitably
Deliver More Capacity More Quickly More Equitably
OSEA ARTs SOP Critique Intent Future
ARTs: A Question of EquityARTs: A Question of Equity
Feed Laws are Fair Nearly All Can Play
Farmers, Ranchers, First Nations, & Co-ops
Feed Laws are Fair Nearly All Can Play
Farmers, Ranchers, First Nations, & Co-ops
OSEA ARTs SOP Critique Intent Future
No Time for Half Measures…
No Time to Lose
No Time for Half Measures…
No Time to Lose
Renewables…Renewables…
“ Standard Offer contracts have been the fastest and most successful way of producing renewable energy throughout the world”
Premier Dalton McGuinty
March 21, 2006
“ Standard Offer contracts have been the fastest and most successful way of producing renewable energy throughout the world”
Premier Dalton McGuinty
March 21, 2006
Thank you!Thank you!Thank you!Thank you!
To contact OSEA:
416-977-4441 or [email protected]
www.ontario-sea.org
Paul GipeRenewable Energy Consultant, OSEA
Deb DoncasterExecutive Director,
OSEA
Questions Regarding:Questions Regarding:Questions Regarding:Questions Regarding:Immediate Action
RequiredOSEA Pricing
Proposal
Ontario’s SOC:What’s Wrong?
General PoliciesMoving Forward