Ontario’s Fit 3.0 Program Lowers Domestic Content Requirements for Renewable Energy, Discourages Wind Projects

The final version 3.0 of Ontario’s Feed-in Tariff Rules, posted on October 9th, includes reductions to the minimum domestic content requirement levels (MDCR) in order to move towards compliance with the World Trade Organization ruling of May 2013. The levels of domestic content have been lowered from 50% to 28 – 19%, depending on the solar (PV) technology used. For on-shore wind projects, the MDCR has been lowered from 60% to 20%. Furthermore, minimum domestic content levels will no longer be required throughout the entire project, but only during the development and construction phases. According to the Minister’s letter of direction, further changes will follow.

An article in North American Wind Power discusses the new FIT program and concludes that wind power projects will suffer. He notes, “As long as the Small FIT cap remains at 500 kW, the FIT program is no longer accessible to wind developers, except for those using small-scale turbines”, and “The greater latitude given to municipalities in the location and siting of wind farms may make permitting more difficult for developers and preclude the siting of wind farms in municipalities that have a strong anti-wind bias.”

LINKS

Ontario Power Authority FIT 3.0 documents are available at:http://fit.powerauthority.on.ca/newsroom/october-9-2013-FIT-3-final-documents, with an August 16, 2013 background document about Domestic Content Regulations at:http://fit.powerauthority.on.ca/newsroom/august-16-2013-program-update, and the Minister’s Letter of Direction at:http://powerauthority.on.ca/sites/default/files/page/DirectionAdministrativeMatters-renewables-Aug16-2013.pdf

“Political Football: Ontario Sacks Large-scale Wind” in North American Wind Power (October 2013) at: http://nawindpower.com/issues/NAW1310/FEAT_01_Political-Football-Ontario-Sacks-Large-Scale-Wind.html

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s