Summary of Ontario Power Authority Feed-in Tariff Program:

Turning Power Planning on Its Head

August 28, 2009

Staff of the Ontario Power Authority (OPA) made a presentation to the Métis Provincial Youth Forum in Sudbury Ontario August 21, 2009. This OPA presentation is significant for two reasons. First it is a good overall summary of OPA's proposed feed-in tariff program. And second, and probably more important, slide 5 illustrates the change in management thinking at OPA in how to view integrating renewables into Ontario's power system. This one slide represents probably one of the more profound changes in electric utility planning in North America in decades. It shows graphically how they have literally turned planning for renewables on its head.

See OPA Presentation to Métis Provincial Youth Forum (3.2 mb pdf) Note slide 5.

Also see an earlier assessment of the Green Energy Act by George Vegh The Green Energy and Green Economy Act: Green Energy Unbounded

"First, the Green Energy Act gives renewable generation a right to connect to the system and recover revenues for its power, presumably at cost.7 It does not have to compete with conventional generation and demonstrate (through externalities, etc.), that it provides a lower cost resource. Renewable generation is treated as inherently valuable.

Second, the Green Energy Act requires distributors and transmitters to expand their systems to accommodate renewable power. This means that if a renewable generation proponent is prepared to connect to the system, then a transmitter or distributor (or more specifically, electricity customers)8 must pay for the costs of reinforcing its networks to accommodate that generator.

Third, the Green Energy Act directs the Ontario Energy Board (the economic regulator) to require transmitters and distributors to file plans that will lead to the expansion of their systems to facilitate renewable and distributed generation. This puts the OEB in the position of encouraging system expansions, which is a reversal of its conventional role of providing a financial check on system expansions. . .

Again, the Green Energy Act takes a different approach to approving system expansions. Transmitters and distributors are required to expand their systems to accommodate renewable and distributed generation. A generator that requests a connection and complies with "the applicable technical, economic and other requirements" is entitled to a connection and the transmitter or distributor must make the necessary expansions to its system to accommodate the facilities.

Further, the Green Energy Act explicitly departs from the requirements of non-discriminatory access to transmission and distribution systems. It provides that renewable energy facilities are to be provided "priority connection access" to transmission and distribution systems."

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