Canada: OPA criticized for intent to delay FIT timelines30. June 2010 | Markets & Trends | By: Becky Stuart
The Canada-based Ontario Power Authority’s intent to extend its feed-in-tariff (FIT) timelines for domestic content has been criticized by the country’s Ministry of Energy and Infrastructure.
In a letter, Minister Brad Duguid called on the authority to stick to its original timelines in order for the industry to meet its target of investment and creating 50,000 new jobs.
He stated: “I was troubled to learn how the Ontario Power Authority’s intent to postpone the imposition of liquidated damages for up to 120 days for some 200 contracts under the feed-in-tariff program has been characterized as extending timelines for domestic content.”
He continued: “Ontario’s targets and timelines for the FIT program, including domestic content, are ambitious, but we believe them achievable. We do not believe we need to, or can afford to, alter our timelines for creating jobs and investment in Ontario.
“Our targets for domestic content, for both 2010 and 2011 were, as you know, carefully considered. With them, Ontario has enjoyed great success in both growing existing companies and in attracting new firms to Ontario. I believe that on a go forward basis, we can confidently maintain the current timelines. I would ask that you proceed on this basis, and work with FIT applicants to meet them.”
The letter did, however, praise Ontario’s FIT program and went on to describe how “thousands of FIT applications” have already been received. Minister Duguid added that to ensure successful development and to meet the targets of the Green Energy Act – to create 50,000 Ontario jobs in the first three years – the projects under FIT must “utilize Ontario-based products and services”.
He said: "As you know, for 2010, wind projects require 25 percent domestic content, 40 percent for small solar, and for large solar projects, 50 percent. In future years, this will increase to 50 percent for wind projects (2012) and 60 percent for solar (2011)."
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