McGuinty Government Seeks More Clean, Green, Renewable Energy Supply
TORONTO, Apr 19, 2005 -- Canada NewsWire
The McGuinty government today announced it will boost Ontario's supply of renewable energy with the release of a Request for Proposals (RFP) for up to 1,000 megawatts of clean, green power - enough to power 200,000 homes.
This is the government's second RFP for renewable power. In November, the government announced 10 new renewable energy projects that will provide Ontario with 395 megawatts of clean power and $700 million in new investment. Today's announcement is expected to bring an additional $1.5 billion of new investment to Ontario, and will help the government reach its target of generating five per cent (1,350 MW) of Ontario's total energy capacity from renewable sources by 2007.
"The Canadian Wind Energy Association is very pleased to see this next step in Ontario's move to increased renewable energy supply," Robert Hornung, President, Canadian Wind Energy Association said. "It demonstrates that wind energy and other renewable sources are viable alternatives for power in this province."
"This announcement sends a clear signal about the government's commitment to new renewable energy," Paul Norris, President of the Ontario Waterpower Association said. "I am confident that waterpower will play an increasingly significant role in meeting the province's targets."
The government's RFP calls for wind, water, solar, biomass and landfill gas projects in Ontario that have a capacity of 20 megawatts or more. Proponents have until August to submit their proposals. It is expected that successful projects will be announced as early as this Fall.
"We're creating a new and exciting industry in Ontario," Duncan said. "Expanding our share of renewable energy will not only clean up our air, it will mean more jobs, more opportunities, more innovation and more economic growth across the province."
Minister Duncan also announced today that in June the government will issue an additional RFP for up to 200 megawatts of power from small and medium-sized renewable energy projects under 20 megawatts. This RFP will be coordinated with the Ministry of Natural Resources' efforts to make Crown sites available for waterpower development.
The government is also exploring a strategy to encourage very small community and agriculture-based renewable energy projects. The Ministry of Energy is consulting widely on the options available and expects to make an announcement later this year.
"Ontario has enormous potential for clean and efficient electricity generation," Duncan said. "Our government will continue to remove barriers and implement new ideas as we move vigorously to seek and encourage more clean, green energy in Ontario."
The government will formally release this RFP on Friday, April 22. More information can be found by visiting www.ontarioelectricityrfp.ca.
Today's Request for Proposals (RFP) to boost green power in Ontario by up to 1,000 megawatts is another step forward for the McGuinty government as it increases Ontario's supply of renewable energy in order to meet our electricity supply needs in a clean and sustainable way. Part of this strategy is to provide five per cent - or 1,350 megawatts - of Ontario's electricity capacity through renewable sources by 2007, and 10 per cent, or 2,700 megawatts, by 2010.
Today's RFP calls for wind, water, solar, biomass and landfill gas projects in Ontario that have a capacity of 20 megawatts or more. Proponents have until August to submit their final proposals, and it is expected that successful projects will be announced as early as this Fall.
A team selected from across ministries, the Ontario Energy Board, the Ontario Power Authority, and the Independent Electricity System Operator, will evaluate all proposals to first ensure they are complete and meet informational requirements. Proposals will then be evaluated to ensure they meet the minimum mandatory technical and financial requirements. Projects that meet these requirements will be ranked on the basis of total proposal price from lowest to highest, with the whole process overseen by an independent fairness commissioner.
This is the government's second RFP for renewable power. In November 2004, the Minister of Energy announced the results of a first Request for Proposals (RFP) for 300 megawatts of renewable energy projects from sources such as wind, water, and landfill gas.
The province signed 10 contracts totalling 395 megawatts of electricity capacity, enough power for over 100,000 homes. This includes 355 megawatts from five windpower projects, 31 megawatts from two small hydro projects, and 9 megawatts of capacity from three landfill gas projects. The economic benefits from these projects are estimated at over $700 million, and the weighted average price for power from these contracts was 7.97 cents/KWh.
In June, the government will be issuing a third RFP for up to 200 megawatts of power from small and medium-sized renewable energy projects under 20 megawatts. This RFP will be coordinated with the Ministry of Natural Resources' efforts to make Crown sites available for waterpower development.
The government is also exploring a strategy to encourage very small community and agriculture-based renewable energy projects. The Ministry of Energy is consulting widely on the options available and expects to make an announcement later this year.
Prior to the McGuinty government's commitment to increase its share of renewable sources of energy, less than 0.2 percent of Ontario electricity supply came from non-hydro renewable energy sources. To date, for example, Canadian wind power production has been concentrated in Quebec, with a capacity of 113 megawatts, and Alberta at 275 megawatts. But recent steps by the McGuinty government will put the Province of Ontario well on track to meet and even exceed its five per cent target for 2007, making the province a leader in new renewable energy.
The government expects to release this RFP on Friday, April 22. Details on the RFP timetable, requirements and process will be available on a dedicated website intended to ensure all possible proponents have equal access to required information. That information will be posted at www.ontarioelectricityrfp.ca.
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