OPA backs down on microFIT pricing
Thursday, August 12, 2010
by SUSAN MANN
Farmers who applied before noon July 2 to supply electricity through ground-mounted solar projects will get the original price of 80.2 cents a kilowatt hour even if they haven’t received a conditional offer or contract, the Ontario government announced today.
The announcement from the Ontario Power Authority (OPA) and the provincial Energy and Infrastructure Ministry comes after massive opposition to the Authority’s proposal earlier this summer to retroactively impose a price of 58.8 cents per kWh for ground-mounted solar projects under the micro feed-in-tariff (microFIT) program. The price for eligible ground-mounted solar applicants submitted after noon on July 2 will be 64.2 cents per kWh. For roof top solar projects in the microFIT program the price remains at 80.2 cents per kWh.
The Ontario Federation of Agriculture is pleased with the OPA’s announcement, says vice-president Don McCabe. “It illustrates they’ve heard the concerns raised by the Ontario Federation of Agriculture in spades.”
The Federation, other farm groups, organizations and rural property owners urged the government to honour the original promised price of 80.2 cents a kWh for ground-mounted solar projects.
People submitting applications before noon on July 2 have until May 31, 2011 to install and request a connection for their projects before higher domestic content requirements come into place.
“The (64.2 cents per kWh) price strikes the right balance between providing a reasonable rate of return to electricity generators and protecting ratepayers from higher than necessary electricity prices,” says an OPA press release.
The OPA also notes the finalized price reflects input received during the consultation process and incorporates a wider variation of cost inputs and project configurations including higher operating and maintenance costs for ground-mounted tracking systems.
The OPA says it received 1,645 written submissions and 1,665 participants took part in three web-enabled teleconferences. Many people urged the government to cut the original price retroactively. Many also agreed 80.2 cents was too high for the new ground mounted category but 58.8 cents was too low, a spokesman for Energy and Infrastructure Minister Brad Duguid says.
Along with the pricing announcement the OPA says it’s setting up a microFIT advisory panel to give advice on program evaluation. The OFA’s McCabe is on the advisory panel.
McCabe says all of the Federations’ 38,000 members are energy users and not all of them are energy providers. “My presence on this committee is to make sure as we move forward. We’re always finding equitable returns for folks who want to be pioneers in this industry” coupled with ensuring electricity rates are the lowest possible so farmers remain competitive.
The OPA is hosting a webinar on Aug. 18 from 2-4 p.m. to answer questions about the finalized price and advisory panel. Details are on the OPA web site at: www.powerauthority.on.ca . BF