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Green experiment. |
Ontario's Green Energy Act, passed this summer, aims at allowing businesses to sell energy to utility service providers at high rates of return comparable with European adopters of similar measures. The key operational programme under the Act is called the Feed In Tariff (FIT) and is the first such scheme offered by a Canadian province.
It's been hailed as North America's most progressive green legislative measure and guarantees a price paid to producers for energy generated from renewable sources based on technology used, the size of the project and 20-year ownership terms.
The Ontario government based the model on schemes adopted in Europe, China and India.
FIT's guidelines are currently being considered by Ontario's Ministry of Energy and Infrastructure but no date has been set for implementation.
Yet, Canadian businesses are already shaping to take advantage of the FIT scheme.
A new company, NowSolar, specialises in solar panel installation on land or roof space rented from corporations. The company profits from the energy produced by the solar panels and the lease holder receives 10% return on earnings. Its target market just got a lot bigger.
Similarly, XAG Energy, specialises in supply chain management for wind turbines and renewable technologies, so can reach manufacturers in Ontario and the rest of Canada to produce new technologies that are expected to increase in demand.
Due to the economic downturn, manufacturing companies have been hesitant in the supply chain process, but now they have greater incentive to look at green solutions.
The range of business operations that can take advantage of FIT includes plastic injection moulding, temperature and icing-sensing systems, education and training, metal stamping, and crane operation.
Amy Tang, Spokesperson for the Ontario Ministry of Energy and Infrastructure said the programme is designed to encourage investment in Ontario. There are more opportunities for partnerships and investment in manufacturing, the supply chain and services.
Energy sources envisaged include solar, wind, waterpower, biomass, biogas and landfill gas.
The new programme aims to boost the province's green sector in terms of employment, development, investment, revenue and environmental measures.
Yet the impact on trade in renewable energy technology, products and services remains to be seen. A percentage from the energy companies has to be sourced from Ontario, but the exact amount has not been determined.
This element of the government's announcement was not met with much optimism. The government announced only a modest local requirement for wind developments, the industry with the highest potential for Ontario jobs in manufacturing.
The 25% requirement is only expected to promote local construction jobs and transmission components, not the turbines themselves.
"We are disappointed that the domestic content requirement is only 25% until 2012," said Ken Delaney, Assistant to the National Director at the United Steelworkers Canada (USW). "If you want wind turbines manufactured in Ontario you need higher domestic content."
But by the end of the year, Ontario should see more green technologies in buildings, factories and in business operations.
There is no doubt that the sector will continue to grow in the years to come. How green that future will be depends on how well Ontario accepts the change and how the rest of Canada follows.
from Adrian Cheng, Toronto Office
