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GUELPH, ON, Feb. 27, 2007 -- Canada NewsWire
The McGuinty government is increasing the amount of clean, green energy used to power Ontario's electricity grid with 22 new renewable energy projects awarded through the Standard Offer Program (SOP), Energy Minister Dwight Duncan announced today. "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," Duncan said. "I want to congratulate the first successful proponents who will help us increase Ontario's supply of clean renewable energy." The 22 projects are the first awarded under Ontario's Renewable Standard Offer Program (SOP), which allows small, renewable electricity generators under 10 megawatts to supply energy to the grid. The program is the largest of its kind in North America and is expected to add 1,000 megawatts of clean energy to the grid over the next ten years. The contracts represent a capital investment of some $336 million and involve four renewable "fuels"-solar, water power, bio-mass and wind. They range in size from a 3 kilowatt residential solar photovoltaic installation to a 10 megawatt wind farm. Total capacity for the first group of contracts will be more than 140 megawatts-enough to supply over 30,000 homes. "This represents a tremendous opportunity for farmers and our communities to build greater economic prosperity in our rural areas," said Leona Dombrowsky, Minister of Agriculture, Food and Rural Affairs. It is yet another example of how this government is acting to create jobs and a better future for rural Ontario." "We are pleased to see these projects move forward," said Paul Shervill, VP of the Ontario Power Authority with responsibility for administering the Standard Offer Program. "There has been broad interest from across the province, including proposals representing all approved fuel types and engaging a selection of Local Distribution Companies." "Our standard offer program provides an excellent opportunity for organizations to get involved in green power programs," said Liz Sandals, MPP for Guelph-Wellington. "Here in Guelph, the Fire Fly Energy division of Ag Energy Co-operative will be supplying 10kW from the photovoltaic system installed on the roof of their office building." In addition to the first 22 contracts, a further 58 applications have been submitted - contracts will be awarded as they are evaluated. As part of the application process, each project has demonstrated the commencement of the environmental screening process, if required. "This is great news for renewable energy and all Ontario communities," said Deborah Doncaster, Executive Director of the Ontario Sustainable Energy Association. "The government is delivering on its commitment to help smaller and community-based projects participate in building a sustainable electricity system." The program is intended to make participation in the energy market easier for small projects and to support the government's renewable energy targets. The program is a collaboration of the OPA, the Ontario Energy Board, Local Distribution Companies and organizations promoting renewable energy For a complete list of the successful submissions, please see the attached Backgrounder. All Standard Offer contracts are contingent on municipal and environmental approvals. For further information on the Standard Offer Program-Rules, Application Forms, Contracts, and tips on how to become a small generator - please find www.powerauthority.on.ca/sop. Ontario's Standard Offer Program - the largest of its kind in North America - is the culmination of a year-long process to encourage small generators to participate in the province's electricity system. The program is a collaboration of the Ministry of Energy, OPA, the Ontario Energy Board, Local Distribution Companies and organizations promoting renewable energy. Ontario depends on a safe, clean, reliable and affordable supply of electricity to power our homes, our schools and our hospitals - and renewable sources can provide an important share of Ontario's supply mix. Ontario's Standard Offer Program will make it easier and more cost-effective for businesses and entrepreneurs to sell renewable power to the grid by setting a fixed price for small generation projects that use renewable energy. Over the next 10 years, this will add up to 1,000 megawatts of renewable power to Ontario's electricity system. Standard Offer is another important component in the McGuinty government's energy plan and strategy for fighting climate change. History ------- While the government has been successful in contracting larger renewable energy projects through its Request for Proposal process, this approach for selling renewable power to the grid has been too costly and complex for smaller energy producers. To encourage the development of more renewable energy in Ontario, the government asked the Ontario Sustainable Energy Association (OSEA) to put together a report outlining the criteria for a program offering a standard rate for electricity to small or community-based renewable power projects. In 2005, after gathering research from best practices around the world, OSEA released its report called "Powering Ontario Communities," which recommended that the government move quickly to develop a Standard Offer Program in Ontario. Later that year, the Minister of Energy asked the Ontario Energy Board and the Ontario Power Authority to work with stakeholders to develop the terms and conditions for a Standard Offer Program. Eligibility ----------- Under a Standard Offer contract, all small-scale renewable energy producers will be able to sell renewable power to the grid for 20 years. Other key characteristics of the program include: SOURCE: Ontario Ministry of Energy News Provided By |
