What is happening?
The Ontario Government has indicated that they are suspending the second round of the Large Renewable Procurement (LRP) process.
This month’s report from the Independent Electricity System Operator (IESO) advised that Ontario has a robust supply of electricity for the coming decade. Based on this projection, and tasked with ways to cut costs for Ontarians, the Energy Minister decided to forego adding large-scale renewable energy to the grid through the LRP. This has halted over 1,000 megawatts of solar, wind, hydroelectric, bioenergy, and energy from waste projects.
What does this mean for CED Co-op?
Nothing will change here at CED Co-op. CED Co-op’s projects are part of the Feed-In Tariff (FIT) program. They are not part of the LRP. Our solar projects will go ahead as planned. FIT projects will continue to generate clean, green energy for Ontario, and our portfolio will generate profits for our members who invested in CED Co-op.
The government poorly communicated the suspension of the LRP. Through language like “save up to $3.8 billion” the government has reinforced the negative “renewables cost us” view some people still have. This decision may be harmful when looking for support for future renewable energy projects.
What’s next?
We will see what this means for the future of energy in Ontario. This fall, development begins on a new Long-Term Energy Plan to be released in 2017. The government has indicated that this plan will include Ontario’s continued commitment to an affordable, clean and reliable electricity system.
CED Co-op will be there, whatever the future holds for energy in Ontario. We have a strong portfolio of successful projects, and remain committed to finding new ways to support renewable energy.
