Ontario feed-in-tariff programs

Recent feed-in-tariff (FIT) programs in Ontario, Canada have elicited a very strong supply response. Within the first year of their inception, the Ontario Power Authority received applications totaling over 15,000 MW, equivalent to about 43% of current Ontario electricity generating capacity. The overwhelming share of applications is for wind-power (69%) and solar photovoltaic (28%) generating facilities. Wind generation is being remunerated at 14–19 ¢/kWh. Solar facilities receive from 40 to 80 ¢/kWh. The initiative, which responds to Provincial legislation is administratively divided into applications for facilities exceeding 10 kW (the FIT program) and those less than or equal to 10 kW (the microFIT program). This paper describes the programs and their features, compares them to their predecessors in Ontario as well as to programs elsewhere, analyses the reasons for the very strong response, and assesses their efficacy and sustainability.

Research highlights
► Recent feed-in-tariff (FIT) programs in Ontario, Canada have elicited a very strong supply response. Within the first year, applications totaled over 15,000 MW, equivalent to about 43% of current Ontario electricity generating capacity.
► Most projects are either solar or wind.
► Likely causes of strong supply response—preferred system access and favorable, secure tariffs. (Wind generation is being remunerated at 14–19 ¢/kWh. Solar facilities receive from 40 to 80 ¢/kWh.)
► Long term political sustainability of present program is in question.