Ontario Proposes Highest Biogas Tariffs in North America

July 12, 2009

The Ontario Power Authority released their final draft tariffs on July 8, 2009. The proposed final tariffs are, for the most part, identical to those released May 12, 2009.

However, the latest revision includes new tariffs for on-farm biogas. The new on-farm biogas tariffs will certainly please Ontario's dairy farmers who have been clamoring for better tariffs.

For projects less than 100 kW, OPA will pay $0.195 CAD/kWh ($0.168 USD/kWh, €0.123/kWh) and for projects from 100 kW to 250 kW they will pay $0.185 CAD/kWh ($0.159 USD/kWh, €0.117/kWh). These tariffs far exceed any paid elsewhere in North America and puts Ontario in a class with continental Europe.

Coupled with expected changes in connection requirements, the new tariffs may lead to a boom in new biogas construction.

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