The New Green Economy

The FIT Program is part of Ontario’s Green Energy and Green Economy Act, signed into law last year as part of the province’s commitment to “...fostering the growth of renewable energy projects, which use cleaner sources of energy, and to removing barriers to and promoting opportunities for renewable energy projects and to promoting a green economy.”¹

FIT is currently the largest and most comprehensive renewable energy program in North America.  Individuals and businesses are guaranteed long-term, fixed government subsidies through their participation in the program, which aims to phase out coal-fired electricity generation by 2014, as well as jumpstart the local economy by creating new green industries and jobs.

The program targets homeowners, farmers, and small business owners through its microFIT initiative, which encompasses renewable projects generating up to 10 kilowatts of electricity.  Larger-scale projects, generating anywhere from 10 to 500 kilowatts, are subject to a different set of rules and eligibility requirements.

Qualifying renewable energy sources under include bioenergy (biogas, biomass, and landfill gas) as well as solar voltaic, waterpower, and wind.  Bioenergy—energy derived from organic waste—is an important component of OPA’s program.  Ontario currently relies on the by-products of wood, agricultural, livestock, and food processing production as sources of bioenergy.

To boost the FIT Program, the Ontario government announced last week 510 new renewable energy contracts for its microFIT and FIT projects.  Most of the contracts were awarded to rooftop solar projects, but also included wind, water, biomass, and biogas initiatives as well.  The government estimates these new initiatives will create some 112.2 megawatts of energy production, reducing up to 6,000 tons of CO₂ emissions annually.

Dr. Rick Smith, Executive Director of Canada’s Environmental Defence, commented on OPA’s recent announcement: "Ontario is on its way to becoming an international renewable energy powerhouse.  These new projects will not only have lasting impacts on Ontario’s greenhouse gas emissions, but they will help Ontario move towards a green economy by supporting local manufacturing and construction."

"This announcement is great for showcasing businesses in Ontario, but should also send the message that the Green Energy Act is for households and small businesses as well as individuals and First Nations,” said Robert Hellier, Chair of the Ontario Sustainable Energy Association.  “Everyone can now participate in generating green energy."

The Green Energy Act Alliance is the group of organizations accredited with developing and endorsing the Green Energy and Green Economy Act.  The group is comprised of over 4000 members, including the Ontario Sustainable Energy Association, Community Power Fund, the David Suzuki Foundation, Environmental Defence, United Steelworkers, the First Nations Energy Alliance, the Ivey Foundation, and the Ontario Federation of Agriculture and the Pembina Institute.

SOURCES

¹ http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en&BillID=2145

² http://fit.powerauthority.on.ca/Storage/97/10759_FIT-Program-Overview_v1.1.pdf