Comparison

FIT pricing.

Jurisdictions in the United States, and the United Kingdom have higher Feed in Tariff rates than Ontario in spite of arguably having less risky and less costly regulatory environments. The conclusion is that Ontario rates must go up to match the more risky and more costly regulatory environment in Ontario or the regulatory environment in Ontario must change and become less risky and less costly in order to allow the lower rates relative to the foreign jurisdictions.

We have compared current FIT pricing in the three jurisdictions below.

1Current Ontario FIT and Micro-FIT pricing for Waterpower Projects

Project size tranche Price
(cents/kWh) CDN
Micro FIT
Less than or equal to 10kW
24.6
FIT
Less than or equal to 500kW
24.6

 

 

2Current Rhode Island “Renewable Energy Growth” (REG) program pricing for Waterpower Projects

Source: National Grid, Renewable Energy Growth Program

Renewable Energy Class (Nameplate kW) Ceiling Price w/ITC
(cents/kWh) USD
Ceiling Price w/o ITC/PTC
(cents/kWh) USD
Converted to CDN $
(cents/kWh)1
Small Scale hydropower
10-250kW
19.80 21.35 28.06
Small Scale hydropower
251-1000kW
18.55 20.10 26.42

Note 1: exchange rates effective as of Aug 9th, 2015

 

 

3Current United Kingdom FIT pricing for Waterpower Projects

Source: https://www.ofgem.gov.uk/sites/default/files/docs/2015/01/fit_non_pv_tariff_table_for_1_april_2015_0.pdf
And
http://www.fitariffs.co.uk/
(both web sites give the exact same pricing)

Note: The United Kingdom (UK) Tariffs give three financial benefits:

  1. A generation tariff payment, which is based on the total electricity generated and the energy type
  2. An export tariff payment, which is for any energy exports made when generating more than you use
  3. Lower bills from your supplier for the electricity you import from them

The total of these three benefits equals the total price paid / earned per kWh. My analysis below only quantifies the first of these two financial benefits based on the assumption that a qualified FIT program site in Ontario would have no electricity “bill” and therefore the third benefit would not be applicable.

Tariffs for Hydro – for 1 April 2015 to 31 March 2016
Description Generation Tariff
(p / kWh)
Export Tariff
(p / kWh)
Total Tariff
(p / kWh)
Converted to CDN$
(cents/kWh)
1
Hydro generating station with total installed capacity of 15kW or less 17.17 4.85 22.02 44.81
Hydro generating station with total installed capacity greater than 15kW but not exceeding 100kW 16.03 4.85 20.88 42.49
Hydro generating station with total installed capacity greater than 100kW but not exceeding 500kW 12.67 4.85 17.52 35.65
Hydro generating station with total installed capacity greater than 500kW but not exceeding 2MW 9.9 4.85 14.75 30.01
Hydro generating station with total installed capacity greater than 2MW 2.7 4.85 7.55 15.36

Note 1: exchange rates effective as of Aug 9th, 2015