Province Expected to Cut Renewable Power Premiums

March 22, 2012 Updated: March 22, 2012

The Liberal government will be releasing a review of the feed-in-tariff (FIT) program, revealing expected cuts in what the province pays for renewable energy projects.

The review considers an adjustment to the FIT pricing with expected lowered premiums for future contracts, and an assessment of current government policies, according to the province’s Ministry of Energy website. Other changes include a possible inclusion of new technology types into the program, among other considerations.

As part of the revisions, Premier Dalton McGuinity is also allowing local councils a say in where wind turbine projects are situated in rural Ontario. This would enable power producers some decision-making authority.

The scheduled two-year review of the FIT program considered 2,900 online surveys, 150 written submissions, and meetings with over 80 stakeholders, between October 31 and December 14 of last year.

Tim Hudak, leader of Ontario’s PC Party, has long opposed the FIT program, stating that the rates are unsustainable and are driving up electricity bills.

The Liberals launched the Green Energy Act and FIT program in 2009 to promote clean energy in the province and to create jobs in the green energy sector.