Province announces overhaul of FIT program for renewable energy projects; Officials doubt new MOE process will help

A new competitive procurement process for large renewable energy projects is supposed to hand down more control over the process to municipalities, but some local officials aren't buying it.

According to the Ontario Ministry of Energy, which announced the changes last Thursday, the new process, which replaces the current Feed-in-Tariff (FIT) program, will require energy planners and developers to work directly with municipalities to identify locations for turbines and determine site requirements. The changes do not apply to existing contracts and there will not be any adjustments made to the province's current guidelines for the setback of turbines from neighbouring properties.

In a conference call with media on Friday, Ontario Minister of Energy Bob Chiarelli said the new process is in response to concerns voiced by municipalities. 

"As a former mayor, I understand in a significant way the concerns expressed by (municipalities)," he said. "Communities spoke, mayors spoke and we listened. We have a new premier and it was time to do a fine-tuning of the system."

In the same announcement, the Ministry stated that it is "renewing its commitment to small renewable energy projects by making 900 megawatts of new capacity available, between now and 2018, for the Small FIT and microFIT programs. Those programs include both solar and wind energy projects. This fall, the Ontario Power Authority (OPA) is expected to open a new procurement window for 70 megawatts for Small FIT and 30 megawatts for microFIT. 

Under the new program, priority ranking will be given to projects that partner or are led by municipalities. Developers who have the blessing of the host municipality will also move up the queue.

"Priority approval will be given to developers who have willing communities," Chiarelli said. "That is very powerful." 

He added that developers will be expected to meet with communities and municipal officials before they bring their projects in front of the province.

"It will be difficult for projects to get approval without community engagement," he said. 

Kincardine CAO Murray Clarke said the memorandum received from the province last week outlining the announcement is a welcome initiative that reflects Premier Kathleen Wynne's statement that communities will have more involvement in the process around renewable energy projects. But, he noted, it does not address the current situation Kincardine is facing with the Armow Wind Project.

"It remains to be seen just how, or if, this new direction will have any impact on Pattern and Samsung's project, which already has Feed-in-Tariff approval," Clarke said. "Going forward, if there will be a more inclusive process that engages municipalities, that's fine, but what does it mean for current projects?" 

Huron-Bruce MPP and PC deputy energy critic Lisa Thompson said, seeing is believing.

"The devil will be in the details," she said in a media release. "This is another case where the Liberal government moved forward too hard and too fast and is now backtracking - at a huge cost to the taxpayers. The announcement does nothing to solve the current problems and help the municipalities and communities impacted by renewable energy projects; particularly wind turbines." 

Thompson said she will be looking for more clarification about the announcement, which she said is too little too late.

"There are still many more questions to be answered," she said. "If the Liberals were actually serious about this they would have passed my Ensuring Affordable Energy Act last month so we could get to work on repairing the damage they created. I am proud of all the hard work the PCs have done to lobby on behalf of municipalities and concerned citizens - and this is not the end. The Minister should know I am watching this very closely to ensure the Liberals have not created another smokescreen."

Chiarelli said in addition to the changes to the renewable energy approval process the province will work with municipalities to determine a property tax rate increase for wind turbines and will provide funding to assist small and medium-sized municipalities develop municipal energy plans, with a focus on conservation and identifying "the best energy infrastructure options for a community." 

In addition, the Ministry of Energy has requested that the OPA and the Independent Electricity System Operator jointly develop a regional energy planning process to improving the planning, siting and building of future large energy infrastructure. Chiarelli said the plan would include input from municipalities and communities, as well as the energy sector. The plan is expected to be provided to the province by August 1.