Ontario's Ruling Party Endorses Progressive Renewable Energy Policy--A First in North America

The following is a press release from the Ontario Sustainable Energy Association.

November 11, 2004

For immediate release.

For more information contact Melinda Zytaruk at 416 977 4441, or Brent Kopperson at 905 895 1926.

Ontario's Ruling Party Endorses Progressive Renewable Energy Policy--A First in North America

(Toronto, Ontario) Ontario's Liberal Party has endorsed a policy mechanism widely used in Europe to spur the rapid development of renewable energy.

The Ontario Liberal Party adopted a resolution supporting Advanced Renewable Tariffs at its Provincial Policy Conference--the first ever held by the party on energy policy--at the Deerhurst Conference Centre in Huntsville, Ontario, November 6.

The move marks the first time that a major political party in North America has opted for the innovative mechanism at the heart of Germany's successful Renewable Energy Sources Act.

The Liberal Party is the ruling party in the provincial legislative assembly. The resolution endorsing renewable tariffs was introduced and passed by elected delegates from each constituency association in the province, Canada's most populous.

Southern Ontario is home to one-third of Canada's population, and is about the size of Germany.

The rocketing growth of wind and solar energy in Germany is the direct result of the country's ground breaking law that permits farmers, cooperatives, and businesses to connect their wind turbines and solar panels to the grid. Equally important, the law also specifies how much they will be paid and for how long.

Discussion at the Policy Conference on renewable energy was moderated by Donna Cansfield, MPP and parliamentary assistant to the Minister of Energy. Cansfield has taken the lead in the Liberal Party for finding innovative ways to meet the need for new supply and reducing consumption. The party, from grassroots to elected members, is considering how market mechanisms, like those that have worked so successfully in Germany, can be adapted to Ontario.

Unlike other mechanisms used to develop renewable energy, the German law elicits the active participation of its citizens and businesses.

"This is a milestone," says Paul Gipe, an adviser to the Ontario Sustainable Energy Association. "There's a growing realization in North America that a new approach is needed if renewable energy is to quickly reach its full potential. The Germans, French, Portuguese and a host of others have found a market mechanism that works. Ontario may well become a model for the rest of North America."

The Liberal Party was swept into office in the fall of 2003 on a platform that included closing Ontario's notorious coal-fired power plants. Action by Minister of Energy Dwight Duncan implementing the Policy Conference resolution on renewable energy tariffs will be necessary for the party to meet its campaign commitment. However, the resolution by the party's Policy Conference is nonbinding.

German homeowners, farmers, and businesses will invest 1.2 billion Euros, about $2 billion CAD, in solar-electric systems this year. They will also install an estimated 3 billion Euros, or $5 billion CAD, of wind turbines as well.

Canadian provinces are now poised to take the lead in renewable energy policy in North America. Though several American states have set renewable energy targets, they have yet to introduce mechanisms that will lead to the rapid growth of renewables. Canadian provinces are not only setting aggressive targets but taking the necessary steps to reach them.

Prince Edward Island's ruling Progressive Conservative Party has also introduced a comprehensive renewable energy proposal to produce 100% of the island's electricity with wind energy by 2015. Wind turbines at North Cape currently produce 5% of Prince Edward Island's electricity, the highest percentage of wind generation within a state or province in North America.

In a recent report the David Suzuki Foundation estimated that a rapid deployment mechanism, like that endorsed by the Liberal Party, could meet a significant portion of the province's need for new sources of electricity. According to the study, wind energy alone could meet nearly 10% of the province's needs by 2012, more if consumption was reduced.

Background on the Ontario Sustainable Energy Association and Advanced Renewable Tariffs can be found at www.ontario-sea.org.

Information on the David Suzuki Foundation's report, Smart Generation, can be found at www.davidsuzuki.org/Climate_Change/.

T2 Renewable Energy

Whereas advanced Renewable Tariffs allow farmers and others to connect their solar, small hydro, or wind generators to the provincial grid; and

Whereas Germany has found that Advanced Renewable Tariffs bring clean renewable generation on line faster than any other mechanism and these tariffs have resulted in $20 billion in private investment in Germany; and

Whereas the Electricity Conservation & Supply Task Force (ECSTF), "envisions that over time, centralized contracting with generators would give way to more decentralized contracting" ¹; and

Whereas the Task Force "recognizes the value of 'distributed generation' and advances several recommendations that either remove barriers to such generation or encourage it..." ²; and

Whereas the Task Force calls for quick action to implement the Renewable Portfolio Standard and it has been estimated that it is possible for Ontario to develop 2000 MW of Renewable Wind Energy within four years; and

Whereas the advantages of using wind power include: speed of installation (6 months to a year after permitting is completed), no fuel cost, stable generation cost, a strong correlation to electricity requirements (installations produce more power in winter and during the day) and the cost of wind energy has come down as larger units have been developed" ³; and

Whereas Ontario manufacturers will be able to develop expertise and employment in a new industry; therefore

Be it resolved that the Government of Ontario encourage the use of renewable energy by implementing Advanced Renewable Tariffs that will allow distributed solar, small hydro, or wind energy to be established by farmers, co-ops, and locally owned enterprises and to be able to market this energy on the provincial grid.

Be it further resolved that the Government of Ontario make a subsidy available for the purchase and installation of all major Green" technologies which can be utilized to provide energy for residential dwellings, offices businesses and industry (products such as geothermal heat systems, solar-assisted hot water heaters, heat pumps, small-scale wind generators, net metering equipment, etc.).

¹ECSTF; Executive Summary, page iii

²ECSTF; Executive Summary, page iii

³ECSTF; Final Report, page 50