August 14, 2012
After a thorough review of the Feed-in Tariff (FIT) program and a period of consultation with industry stakeholders, the Ontario Power Authority (OPA) released the final FIT 2.0 Contract and Program Rules, as well as all ancillary documents and schedules (available here). The final version reflects changes based on the feedback received from the industry on the draft Program Rules and related documents which were published on April 6, 2012.
The application window for Small FIT Projects (projects with proposed capacity of 500kW or less) is expected to open on October 1, 2012 and close on November 30, 2012. The OPA anticipates it will award a total of 200MW worth of Small FIT Project contracts for this application period. The timing of the application window for larger FIT Projects will be announced once details are finalized.
The following is a summary of some of the key changes to the FIT Program from version 1.0:
Note: All terms and abbreviations below have meanings as defined in version 2.0 of the FIT Program definitions available on the FIT Program website.
The following is a broad overview of the FIT 2.0 Application process:
1. Application Requirements
Each FIT application must include:
2. Application Evaluation Stages
Once it has been submitted, an Application will be evaluated by the OPA in four stages:
1) Application Completeness Requirements – Each Application will pass or fail depending on whether it meets the completeness requirements set out in the FIT 2.0 Rules
2) Eligibility Requirements – Each Application will pass or fail depending on whether it meets the eligibility requirements set out in the FIT 2.0 Rules
3) Ranking by Prioritization and Time Stamp – Each Application which passes Stage 2 will be evaluated to determine whether it qualifies as a Capacity Set-Aside Project as defined in Section 6 of the FIT 2.0 Rules and awarded a point score in accordance with the prioritization process described in Section 6 (Read our blog post regarding the priority points system here). Applications will then be ranked by their Capacity Set-Aside Project status, Priority Points and Time Stamp.
4) Connection Availability and Procurement Targets – Applications will, in order of the rank determined at Stage 3, be assessed under the TAT and DAT, as applicable, and an Offer Notice will be issued.
3. Pre-Existing Applications and Re-Submission Requirement
Applications dated prior to April 5, 2012 for which no Offer Notice has been issued (Pre-Existing Application) will be subject to the FIT 2.0 Rules. Unless such a Pre-Existing Application is re-submitted during the first available Application Period for either Small or Large FIT Projects, as applicable, the Pre-Existing Application will be terminated.
Re-Submitted Applications will be deemed to have the Time Stamp of the original Pre-Existing Application for the purpose of ranking.
4. Application Ranking
A Project described in an Application will be eligible to be designated as a Contract Capacity Set-Aside Project (if applied for). In addition, Applications may be eligible for priority points in accordance with the priority points ranking system.
Applications will be ranked according to the following factors:
1) Contract Capacity Set-Aside Projects
(A) Applications for Projects designated as Contract Capacity Set-Aside Projects will be ranked higher than all other Applications
(B) Contract Capacity Set-Aside Projects with more priority points will be ranked higher than ones with fewer priority points
(C) If Contract Capacity Set-Aside Project Applications have the same number of priority points, the Application with the earlier Time Stamp will be ranked higher than the Application with the later Time Stamp
2) Other Projects
(A) Applications with more priority points will be ranked higher than Applications with fewer priority points
(B) If two or more Applications have the same number of priority points, the Application(s) with the earlier Time Stamp will be ranked higher than the Application(s) with the later Time Stamp
5. Contract Pricing
The price applicable with respect to a FIT Contract will be the price as posted on the date of publication of the Offer List which contains the Application corresponding to the FIT Contract in question.
Where the Contract Price and Price Adder (if applicable) set out in the Offer Notice is less than the Contract Price and Price Adder (if applicable) in effect as of the date of the Application, the Applicant may, with notice to the OPA, choose not to enter into a FIT Contract, in which case the OPA will return the Application Security.
Tags: Renewable Energy