To maintain momentum and ensure Ontario remains North America’s leading jurisdiction for clean energy investment, Ontario is making it easier for energy developers and manufacturers to do business in the province. This is part of ongoing efforts to help provide stability and create jobs in Ontario’s clean energy sector.
To support manufacturing supply chain development, on August 2, 2011, the Ministry of Energy directed the OPA to offer FIT contract holders the opportunity to have the OPA’s termination rights under section 2.4(a) of the FIT Contract waived.
The directive is available by clicking here [1]. A Ministry of Energy news release is available by clicking here [2].
Section 2.4(a) of the FIT Contract says that either the OPA or the Supplier may terminate the FIT Contract until the OPA issues a Notice to Proceed (NTP) and the Supplier has paid the Incremental NTP Security.
The Minister’s Directive established a December 31st, 2011, deadline for approved Domestic Content Plans and equipment purchase agreements. These plans need to be reviewed by the OPA. To ensure that there is enough time to thoroughly review plans, the OPA has established the following timeline:
Non-Capacity Allocation Exempt projects (generally larger than 500 kW) must submit the waiver, a Domestic Content Plan and evidence of agreement(s) for the purchase of Generating Equipment as follows:
the Waiver [3] by October 14, 2011;
a Domestic Content Plan, in the Prescribed Form titled FIT Contract Form of Domestic Content Plan (Waiver) [4], by October 14, 2011 (form updated August 9); and
evidence of agreement(s) for the purchase of Generating Equipment, in the form of a Statutory Declaration [5], by November 30, 2011.
The Domestic Content Plan will be reviewed for completeness and substantiation.
Capacity Allocation Exempt projects must submit the [3]Waiver [3] and a Domestic Content Plan [4] by 5 p.m. December 30, 2011.
If those requirements are not met by the specified deadline, the waived termination rights will be reinstated.
All Suppliers still need to submit an NTP Request to the OPA and provide evidence of regulatory approvals (Renewable Energy Approval, or environmental assessment or screening in the case of a hydroelectric project), a completed Financing Plan, a Domestic Content Plan, if applicable, and documentation related to required impact assessments, as well as pay the required security.
More details about submitting the waiver and the required additional information are available here [6].
This change will further advance Ontario as the leading destination for clean energy investment. Ontario’s clean energy sector has already created 20,000 jobs to date and is on track to create 50,000 jobs by the end of 2012.
The OPA hosted web-enabled teleconferences on August 9 and August 23 to discuss the process for obtaining a waiver. Below are the links to the session archives where you will be able to listen to the sessions and view the presentations. A PDF copy of August 23 presentation is also posted here [7].
