I attended the event, on behalf of ReNew Canada, and was on hand to see a number of presentations related to the FIT review and specific technologies. The first day of the event was focused on examining the potential impacts of the review on the viability of the renewable energy industry in Ontario. Jan Carr, Strategic Adviser, Gowling Lafleur Henderson LLP, and former president of the Ontario Power Authority, delivered the keynote speech. Carr discussed how the renewable energy strategy in Ontario was developed and the impact that the current renewable energy framework is having on investment decision making.

Carr highlighted several key indicators that investors look for when considering whether to back a renewable energy project. Carr used the example of wind energy to highlight some of the issues he has found to be particularly salient. According to Carr’s presentation, the top three positive attributes that investors see in Ontario include: Length of the Power Purchase Agreements (PPA), the transparency of the PPA process, and the availability of construction and engineering expertise. Carr also highlighted what he perceived to be the most widely held concerns of investor, including: The ease at which companies can obtain municipal permits, stability of the political environment, and the level of coordination between government related bodies.

The remainder of the day consisted of a number of panels that examined issues such as FIT project connection, financing FIT projects, FIT contract management, and the project approvals process. While each of these panels had a number of specific questions that they examined, one reoccurring issue was highlighted. Throughout all of the discussions, the excess bureaucracy of the FIT program was highlighted as one of the most challenging obstacles to overcome when developing a project. Some participants noted that retaining investors and convincing banks to provide debt or equity to your project becomes increasingly difficult the longer the project languishes in the approvals process.

Ontario’s Ministry of Energy released a directive on Tuesday that will make it more difficult for Ontario Power Authority (OPA) to cancel contracts signed under the Feed in Tariff (FIT) program. This reaction from the Ontario government seems to be in response to industry uncertainty prompted by Ontario Progressive Conservative Leader Tim Hudak’s election platform to cancel the FIT program as well as comments he has made about cancelling existing contracts. The directive allows renewable energy companies which have completed a Domestic Content Plan to request a waiver of project termination rights from the OPA. The purpose of the directive is to promote industry stability in both the manufacturing and generation sectors. Since Hudak’s pledge to cancel the FIT program, some manufacturers have reported a drop in sales with one solar panel company apparently laying off employees.