Contracts Offered for FIT 4 - June 29, 2016
The FIT 4.0 procurement has concluded as the Independent Electricity System Operator (IESO) prepares to offer 936 new Feed-in Tariff (FIT) renewable energy contracts. These contracts represent 241.430 megawatts (MW) of power. The procurement target for FIT 4 was 241.438 MW.
The breakdown of contract offers is as follows:
- 907 solar photovoltaic (PV) projects
- 9 waterpower projects
- 6 on-shore wind projects
- 14 bioenergy projects
The projects announced today include projects with Aboriginal, community and municipal or public sector participation as follows:
- 96 projects (41.45 MW) with Aboriginal participation
- 186 projects (60.24 MW) with community participation
- 413 projects (67.26 MW) with municipal or public sector participation
More than 92% of successful applications received municipal council support resolutions. The minimum number of priority points obtained by projects receiving contract offers was 2.
Priority points for price reduction were introduced in FIT 4, giving applicants the opportunity to receive priority points for their project if they elected to reduce their base price corresponding to one of three price reduction tiers. The three optional tiers were as follows:
- Tier one 4% price reduction; 1 priority point
- Tier two 8% price reduction; 2 priority points
- Tier three 12% price reduction; 3 priority points
Of the successful applications, 52% chose to apply for price reduction priority points. These price reduction selections will be considered during the upcoming annual FIT and microFIT price review. A complete list of FIT 4 procurement contract offers and related documentation can be found here.
Pursuant to directions issued by the Minister of Energy on August 29, 2014 and June 24, 2015, the OPA (now IESO) was directed to award a minimum of 200 MW of FIT contracts, which included the 150 MW initial FIT 2015 procurement target and the 50 MW rollover from the 2014 FIT procurement target, as well as any remaining unallocated capacity from the 2014 microFIT procurement target.