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Province changing renewable energy project procurement process

Ontario is changing the procurement process for renewable energy projects, which it says will give municipalities more control over where projects are located.

Ontario is changing the procurement process for renewable energy projects, which it says will give municipalities more control over where projects are located.

Working with the Ontario Power Authority (OPA) and municipalities, the province said it will develop a competitive procurement process for renewable projects over 500 kilowatts (kW). The new process will replace the existing large project stream of the Feed-In Tariff (FIT) program and better meet the needs of communities. It will require energy planners and developers to work directly with municipalities to identify appropriate locations and site requirements for any future large renewable energy project, according to a news release.

To further strengthen municipal participation and support communities, Ontario said it will:

* revise the Small FIT program rules for projects between 10 and 500 kW to give priority to projects partnered or led by municipalities;

* work with municipalities to determine a property tax rate increase for wind turbine towers; and

* provide funding to help small and medium-sized municipalities develop Municipal Energy Plans—which will focus on increasing conservation and helping to identify the best energy infrastructure options for a community.

Ontario is making 900 megawatts (MW) of new capacity available, between now and 2018, for the Small FIT and microFIT programs. This fall, the OPA will open a new procurement window for both programs, and starting in 2014, annual procurement targets will be set at 150 MW for Small FIT and 50 MW for microFIT. These measures are expected to create 6,400 jobs and produce enough electricity each year for more than 125,000 homes.

The OPA’s fall procurement window will be for 70 MW for Small FIT and 30 MW for microFIT.

Ontario recently asked the Independent Electricity System Operator (IESO) and the OPA to consult on the development of Regional Energy Plans to ensure that Ontario gets siting decisions right the first time.