Green Energy applicants out pace contracts in Ontario

Far more people have applied to install small solar and wind projects than can possibly be awarded Ontario-subsidized contracts.

That soaring interest is because small energy projects offer such lucrative rates, at taxpayer expense, says Ontario?s Progressive Conservative Deputy Critic for Green Energy.

?At a time when we?re paying other jurisdictions to take surplus energy off our hands, we should be pushing the pause button (on green energy),? Huron-Bruce MPP Lisa Thompson said.

But Energy Minister Chris Bentley, also MPP London West, said the sky-high demand was expected, and it proves the program works.

Every home in London could be powered ? four times over ? if all of the almost 4,000 applications were approved.

Instead, it?s expected contracts will be signed for one-quarter that amount, as part of a provincial program that will pay a premium to renewable energy producers collectively generating 200 kilowatts of power.

A month-long window opened in December for small green projects, after having been halted temporarily while the province revamped criteria and pricing.

In contrast to the multimillion-dollar projects launched by multinational companies for large-scale wind and solar farms, these are small scale ? mostly institutions, small businesses and farms.

Bentley said earlier he expected strong interest in the program, dubbed ?small-FIT? because each project must be smaller than 10 megawatts.

Spokesperson Nauman Khan said Wednesday the number of applicants shows the program ?resonates with Ontarians ? we have something with great potential and economic benefit.?

But Thompson, the Tory energy critic, said the large response is hardly a surprise, given that successful bidders will be paid as much as five times the going rate of conventional energy.

That means Ontarians ultimately pay for this ill-conceived program, Thompson said.

The process created a pile of false expectations in even the most qualified applicants and most will go away disappointed, she said.

?We have to get this right and I don?t know why the Liberal government continues to lead people down the garden path.?

Andrew Hall-Holland, of the Solar Store on Adelaide St. in London, said any problem with the program is that it offers too few opportunities, not too many, for green energy.

He spent weeks preparing applications for four clients ? including getting engineering studies, municipal endorsement and structural assessments ? and isn?t sure those submissions will be successful.

The application process put it out of reach for ordinary applicants, Hall-Holland said.

?If your ultimate goal is to become self-sufficient (in energy production), this isn?t the way to do it.?

With 50 kilowatts of approval guaranteed for community and aboriginal projects, ?Unless you have one of those scenarios, based on the volume of applications, I don?t think (my clients) are going to get it,? Hall-Holland said.

He said the green energy program ? the cornerstone of which is the elimination of coal-fired electrical production by 2014 ? has created thousands of jobs and helped clean the air and more people should be encouraged to apply, not fewer.

Hall-Holland noted the ?micro-FIT? program, most of it solar panels on houses, remains active.

Khan said the process has been designed to be rational, practical and responsible to taxpayers and energy producers alike.

Projects will be assessed to make sure they can connect easily to the electrical grid and meet safety, technical and environmental standards. Those that have municipal and Aboriginal support get priority.

From now to May, the Ontario Power Authority will evaluate and rank each application and the first contracts are expected to be signed by late summer.

deb.vanbrenk@sunmedia.ca

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Small green energy applications:

Biogas

42 applications for a total of 15.2 megawatts

Biomass

11 applications for a total of 6.2 megawatts

Ground-mounted rooftop:

462 applications for a total of 182 megawatts

Rooftop solar:

3,385 applications for 613.2 megawatts

Water:

19 applications for 5.8 megawatts

Small wind:

8 applications for 3.1 megawatts

TOTALS:

3,938 applications for 825.5 megawatts

200 megawatts is enough to power 100,000 homes

825 megawatts could power 400,000 homes

Subsidized price to green energy producers (former rates in brackets)

Rooftop solar

ranges from 48.7 to 54.9 cents/kilowatt-hour, depending on size (was 53.9 to 80.2)

Ground-mounted solar

ranges from 34.7 to 44.5 cents/kilowatt-hour, depending on size (was 44.3 to 64.2)

Wind

11.5 cents/kilowatt-hour (was 13.5)

Water

12.2 to 13.1 cents/kilowatt-hour, depending on size (unchanged)

Biomass

13 to 13.8 cents/kilowatt-hour, depending on size (unchanged)

Biogas on farm

18.5 to 19.5 cents/kilowatt-hour, depending on size (unchanged)

Biogas off farm

14.7 to 16 (unchanged)

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Source: http://www.woodstocksentinelreview.com/2013/01/30/applicants-out-pace-contracts

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