Yesterday, the Ontario Power Authority announced another change to the Feed-in Tariff Program by offering a one-year extension to allow FIT suppliers more time to obtain the Renewable Energy Approval. The REA was intended to be a streamlined process but the review requirements of various provincial ministries have caused significant delays. By extending the milestone date for commercial operation, the OPA recognizes the current uncertainties and delays in the approval process and intends to provide protection to suppliers. To be eligible for the extension, suppliers must enter into an amending agreement with the OPA. This agreement will outline how the extension will impact the supplier's Force Majeure rights. The extension will not affect the domestic content requirements for FIT projects, which will be tied to the supplier's original milestone date.
This announcement follows last week's Directive from the Minister of Energy requiring the OPA to sell some of its environmental attributes derived through renewable energy generation. The OPA must undertake a pilot program to realize economic value and encourage expertise through a voluntary trading market. All environmental attributes subject to the program are to be fully retired within Ontario. A program manager will be selected by March 15, 2011 and is to operate the program on a revenue-sharing basis, with a net benefit to ratepayers.
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