OSEA: Renewable Energy Standard Offer Program (RESOP)

In response to the exclusion of small, locally owned renewable energy projects from the province’s call for proposals for new renewable electricity generation, OSEA launched a campaign for advanced renewable energy tariffs in 2004.

The advanced tariffs that OSEA is advocating offer different prices depending on the technology used, the size of the generation project, how the technology is applied and the intensity of the resource. They are based on the best practice in European countries such as Germany, France and Spain where renewable energy generation has been highly successful. However, in March 2006 the Premier announced the Renewable Energy Standard Offer Program (RESOP), which, instead of differentiating prices, offers a base price for electricity from renewables regardless of the the technology used. By November 2006, contracts with the Ontario Power Authority were available.

The Renewable Energy Standard Offer Program:

Provides a guaranteed price for the electricity for 20 years; Wind, water and biomass projects receive 11¢/kWh and solar photovoltaic (PV) projects receive 42¢/kWh

Is available to projects under 10MW in size

Is available to applicants who have been granted access to the grid by Hydro One or their local distribution company

Is administered by the Ontario Power Authority

Will undergo a review every two years

Currently, contracts have been signed for projects to generate 1,466,338 MW but as of September 2008 only 55 MW of renewable energy are being generated under the RESOP, falling short of the target of 1350 MW set for the end of 2007. In May 2008, the RESOP was frozen by the Ministry of Energy and is now under review.