Ontario Developing Standardized Pricing for On-Site Renewable Electricity

Date: 15 Sep 2005 | posted in: Energy, Energy Self Reliant States | 0 Facebooktwitterredditmail

Ontario’s Premier, Dalton McGuinty, has directed the Ontario Power Authority and the Ontario Energy Board to prepare a standard offer approach by the end of the year for distributed generation projects under 10MW. The new rules will be designed to encourage homeowners, farmers, schools and community co-ops to build renewable energy systems and sell excess clean electricity back to the grid at standardized prices.

The directive stems from recommendations put forth in a May 2005 report by the Ontario Sustainable Energy Association (OSEA). The authors conclude that standard offer contracts over a 20-year fixed period and the right to interconnect with the grid are the best policy options to move renewable energy forward in Ontario. The report states, “Furthermore, European experience indicates that small, distributed projects with community or local participation result in more renewable energy developed more quickly and increases the public’s acceptance of the technology.”

The standard offer program is one piece of the puzzle as the Ontario government plans to meet its commitment to close four coal power plants by 2009 [6,400 MW]. It plans to replace that power with a mix of renewable energy, nuclear and natural gas facilities as part of a more distributed electricity system.


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John Farrell

John Farrell directs the Energy Democracy initiative at the Institute for Local Self-Reliance and he develops tools that allow communities to take charge of their energy future, and pursue the maximum economic benefits of the transition to 100% renewable power.