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Mar 02
2009

Ontario's Standard Offer Program

Posted by: Geoff Jones

Tagged in: General

Geoff Jones

Did you know that the Ontario Power Authority (OPA) has a standard offer program for renewable energy supply based projects based on Water, Solar, Wind and Biomass power generation?

 The basics of the program are outlined below but for more information and details visit the Ontario Power Authority Website at http://www.powerauthority.on.ca/SOP/ as details and conditions may change in the future.

Basic Program Overview:

The intent of the program is to help Ontario meet its renewable energy supply targets by providing a standard pricing regime and simplified eligibility, contracting and other rules for small renewable energy electricity generating projects.


Eligibility

  • Projects must generate electricity from wind, solar photovoltaic (PV), thermal electric solar, renewable biomass, biogas, biofuel, landfill gas or waterpower.
  • Projects must be located in Ontario with an installed capacity of not more than 10 megawatts (MW) and connected to an eligible electricity distribution system in Ontario at a voltage of 50 kilovolts (kV) or less.
  • To be eligible, projects must have begun operation after the restructuring of Ontario's electricity sector took effect.
  • In some areas of the province, the Ontario Power Authority (OPA) may impose limits on eligible projects because of transmission system constraints.
  • Applicants must meet certain requirements, including a connection impact assessment, environmental assessment and demonstrated site access, as well as other contractual terms.


The Standard Offer Contract

  • Generators must enter into a contract with the OPA for a term of 20 years.
  • Initially, all generators except solar PV projects will be paid a base rate of 11.0 cents per kilowatt hour (kWh) for electricity delivered to the local electricity distribution company. Starting May 1, 2007, 20 percent of the base rate will be indexed annually for inflation.
  • Projects that demonstrate that they can operate reliably during peak hours will be paid an additional 3.52 cents per kWh for electricity delivered during peak hours.
  • Solar PV generators will be paid a fixed price of 42.0 cents per kWh for the full 20-year term of the contract.
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