Ontario’s FIT pricing changes, biomass rises
September 6, 2013
By
Scott Jamieson
September 6, 2013, Toronto - The prices that the Ontario Power Authority (OPA) has set for renewable energy recently changed, with solar and landfill gas prices declining but biomass and on-farm biogas prices climbing from 13 to more than 35 per cent.
The Minister of Energy directed the OPA to make changes to the FIT and
microFIT Programs, including changes to the domestic content rules
applicable to new contracts (for wind and solar). The OPA also reviewed and updated the FIT and microFIT price
schedule. The OPA is required to review the prices offered to generators
under the FIT and microFIT programs on a regular basis to ensure both
ratepayer value and a fair return on investment. This price schedule will apply to any new contracts that are issued while the price schedule is in effect.
As the table below indicates, the prices paid for solar power have dropped significantly, as a result of lower upfront and maintenance costs. While wind has remained unchanged at 11.5 cents/kWh, landfill gas projects will be paid 31 per cent less going forward. Otherwise all biomass-based projects will see higher rates. New renewable biomass generators will see rates climb from 13.8 to 15.6 cents/kWh, an increase of 13 per cent.
On-farm biogas projects to 250 kW will be paid almost 14 per cent more under the new FIT pricing scheme, while smaller on-farm projects will see a 36 per cent increase to 26.5 cents/kWh. Other biogas projects will enjoy a more modest 2.5 per cent increase.
FIT/microFIT Price Schedule Changes
|
Renewable Fuel |
Project Size Tranche* |
August 26, 2013 |
April 5, 2012 |
% Change |
|
|
≤ 10 kW |
39.6 |
54.9 |
-27.9% |
|
> 10 ≤ 100 kW |
34.5 |
54.8 |
-37.0% |
|
|
> 100 kW |
32.9 |
53.9 |
-39.0% |
|
|
Solar (PV) |
≤ 10 kW |
29.1 |
44.5 |
-34.6% |
|
> 10 kW |
28.8 |
38.8 |
-25.8% |
|
|
On-Shore Wind |
All sizes |
11.5 |
11.5 |
0% |
|
Waterpower |
All sizes |
14.8 |
13.1 |
13.0% |
|
Renewable Biomass |
All sizes |
15.6 |
13.8 |
13.0% |
|
On-Farm Biogas |
≤ 100 kW |
26.5 |
19.5 |
35.9% |
|
> 100 kW ≤ 250 kW |
21.0 |
18.5 |
13.5% |
|
|
Biogas |
All sizes |
16.4 |
16.0 |
2.5% |
|
Landfill Gas |
All sizes |
7.7 |
11.1 |
-31% |
Source: Ontario Power Authority
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