The Two-Year FIT and MicroFIT Review Report
On March 22, 2012, the Two-Year FIT Review Report (“Review Report”) was released by the Government of Ontario disclosing the results of Ontario’s microFIT and FIT Scheduled Program Review. The Review Report made strategic recommendations in six areas to ensure the long-term success and sustainability of the programs. The areas are:
The Review Report also recommended expansive revisions to the FIT and microFIT 2.0 programs rules and contracts. The draft FIT 2.0 program rules and contract were released on April 5, 2012. Notable changes to the program involve pricing, the application process and the availability of contracts.
FIT and microFIT applications will no longer be accepted on an ongoing basis but only during respective application windows. Applications will be also no longer be accepted on a “first come, first served” basis but will be prioritized using a point system, where points are given based on applicant type, municipal support, Aboriginal support, project readiness and electricity system benefit. A minimum of 1 point is required to be eligible for a contract. Furthermore, even if projects qualify for these points, contracts may not be granted as a 2015 target of 10,700 MW of non-hydro renewable energy generation has been established. This target includes contracts already awarded, so in reality only 1,000 to 2,000 MW remains to be filled by 2015 (depending on the extent to which existing contracts are realized).
The Cassels Brock Renewable Energy and Clean Tech Group brings together a multi-disciplinary team of top-ranked lawyers with a wealth of expertise in electricity, infrastructure and project/equipment finance, environmental assessment and approval, government relations, land development and real estate, public-private partnerships and intellectual property. Our team is skilled at helping clients respond to the risks and opportunities presented by government regulations and programs, such as FIT and microFIT, aimed at reducing greenhouse gas emissions, or “carbon footprints,” through, for example, the development of alternative renewable energy resources.