Flash: Ontario Power Authority Announces Second Round of Renewable Energy Contracts

February 24, 2011

Today, the OPA announced 40 new contracts for over 870 MW of renewable energy under the Feed-in Tariff Program. These new contracts include 257 MW of solar projects and 615 MW of onshore wind projects. Applicants who were not awarded contracts because transmission capacity is not currently available have been added to the OPA's priority ranking list and will proceed to the OPA's Economic Connection Test. In the coming weeks, the OPA also expects to begin awarding phase three contracts for smaller capacity allocation exempt projects. As announced earlier this month, the OPA will not proceed with proposed offshore wind projects while further scientific research is conducted. Applications for offshore wind projects will no longer be accepted and current applications will be suspended.

Last week, the McGuinty government also issued its Supply Mix Directive to the OPA, which sets the goals to be achieved through the OPA's long-term energy plan. This directive includes increasing hydroelectric generation to account for 20 to 25 percent of Ontario's supply mix, increasing renewable power generation to account for 10 to 15 percent of Ontario's supply mix (by 2018) and maintaining nuclear generation at 50 percent of Ontario's supply mix. This will require the procurement of two new nuclear units at Darlington to generate an additional 2,000 MW. Yesterday, the Joint Review Panel for Ontario Power Generation's proposed new nuclear units at Darlington confirmed three weeks of public hearings starting on March 21, 2011.

If you have any questions regarding the foregoing, please contact Sarah Powell (416.367.6931) or Alexandria Pike (416.367.6989) in our Toronto office.

Davies Ward Phillips & Vineberg LLP, with more than 240 lawyers, practises nationally and internationally from offices in Toronto, Montréal and New York and is consistently at the heart of the largest and most complex commercial and financial matters on behalf of its North American and international clients.

The information and comments herein are for the general information of the reader and are not intended as advice or opinions to be relied upon in relation to any particular circumstance. For particular applications of the law to specific situations, the reader should seek professional advice.

Environmental / Energy

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