McGuinty Government Announces North America's First Clean Energy Standard Offer Program

    Clean Energy Programs Another Step Forward Towards A Greener,
    Healthier Ontario

    TORONTO, June 14 /CNW/ - Two new initiatives that help reduce barriers
for small energy generators and encourage larger co-generation projects will
increase Ontario's supply of cleaner energy, Minister of Energy Dwight Duncan
announced today.
    "These programs will move us forward in our efforts to strengthen our
electricity supply and help clean our air," said Duncan, speaking at the
Canadian District Energy Association Conference. "We're building a better
electricity system for Ontario, and there's much more to come."
    The Clean Energy Standard Offer Program is the first of its kind in North
America and will reduce barriers to small generators and distributed energy
projects that use natural gas or surplus energy streams. Small generators who
meet the program criteria will be offered 20-year contracts for the power they
produce by the Ontario Power Authority.
    "Promoting cleaner sources of energy and reducing our reliance on fossil
fuels is just one way the McGuinty government is fighting climate change and
making Ontario a greener and healthier place to live," said Minister of the
Environment Laurel Broten.
    The Clean Energy Standard Offer Program will be modeled on the Ontario
Power Authority's innovative Renewables Standard Offer Program for small
projects using renewable sources - solar, wind, bio-mass and water power. In
just six months, contracts have been executed for more than 75 projects in
communities across the province, providing some 400 megawatts of clean,
renewable power.
    "The government of Ontario is taking another bold step forward by
creating the first Clean Standard Offer Program in North America," said Ken
Ogilvie, Executive Director of Pollution Probe. "Pollution Probe believes that
co-generation can and must play a significant role in addressing Ontario's
future energy needs."
    The province is also moving ahead with the next phase of Ontario's
Combined Heat and Power initiative. The Ontario Power Authority will begin a
Request for Expressions of Interest, intended as the next step towards
combined heat and power procurements for larger co-generation projects.
    This follows a successful Combined Heat and Power procurement completed
last fall - the first of its kind in Canada. In October 2006, the Ontario
Power Authority awarded seven contracts with a total capacity of 414
megawatts. These projects represent a total capital investment of some
$800 million being invested in communities across the province that include
Windsor, Kingsville, London, Oshawa, Markham, Sault Ste. Marie and Thorold.
    "The district energy sector is very pleased with the Clean Energy
Standard Offer Program announced at today's conference," said Bruce Ander,
Chair of the Canadian District Energy Association. "This is continuing
evidence of the McGuinty government's support for Ontario's district energy
sector. The CDEA looks forward to working with the McGuinty government and
other stakeholders to finalize the program and begin building and expanding
clean energy projects across Ontario."
    The Ministry of Energy will work with the Ontario Energy Board and other
stakeholders to identify and assess regulatory and institutional barriers to
the implementation of clean energy technologies.
    All Ontarians have a role to play in making Ontario greener. The
government is taking action by protecting a greenbelt that stretches across
southern Ontario from development, introducing tough new laws that protect our
drinking water, producing more renewable energy and doing more to conserve

    Disponible en français.



                     Clean Energy Standard Offer Program

    North America's First Clean Energy Standard Offer Program
    The innovative Clean Energy Standard Offer Program is intended to support
greater use of clean sources of energy to generate electricity in Ontario. The
program removes obstacles for smaller clean-source generating projects (10
megawatts or less) by providing a simplified process and stable pricing over a
20-year contract.
    Clean energy is essentially power derived from burning natural gas or from
the capture and use of by-product fuels or surplus energy. Specifically, a
clean energy project is one of:

    -  A natural gas fuel-fired combined heat and power project, involving
       the concurrent production of both heat and electricity
    -  A by-product fuel-fired generation project
    -  A surplus energy generation project (for example one that captures
       excess heat from industrial processes).

    The program will further encourage distributed generation in Ontario,
resulting in reduced greenhouse gas emissions, increased reliability, reduced
peak demand and reduced transmission losses in our electricity system.
    For combined heat and power applications, typical generators will include
any industrial, commercial or institutional operation with a demand for heat.
Surplus energy applications include using heat from industrial ovens or
process gases to make steam to run generators.
    The program will compensate generators based on a regular operating
schedule and, when contributing power to the grid, rates will be incremental
to the Hourly Ontario Electricity Price.
    An Ontario Power Authority and energy industry working group will be
formed immediately; the program will launch in the fall and be in place by the
end of 2007.
    "Today's announcement is very gratifying moment. APPrO has been pushing
for a standard offer program for small natural gas, or under-utilized heat, or
under-utilized energy generation projects for some time, because it is good
for the environment, good for the electricity system, and a good value
proposition for participating generators and rate payers alike," said David
Butters, president of the Association of Power Producers of Ontario. "We
intend to work closely with the OPA over the next several months to make sure
that the CESOP is as big a success as it possibly can be."

    Disponible en français


For further information:

For further information: Steve Erwin, Minister's Office, (416) 327-3546;
Sylvia Kovesfalvi, Communications Branch, (416) 327-4334

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Ontario Ministry of Energy and Infrastructure

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