Feb 26 2010
The Ontario Power Authority (OPA) has awarded Renfrew Power Generation a 20-year contract under which Renfrew will be paid 6.9 cents per kW-h to give the area's ratepayers a source of clean and renewable energy.
The Ontario-based company produces 2 MW of power from all five generators installed on the Bonnechere River and gets a base rate of 6.9 cents per kW-h, which is a competitive price for the generation of clean and renewable power for ratepayers.
The Chief Executive Officer of Ontario Power Authority Colin Andersen said that this partnership is good for Renfrew Power Generation, the local community, and Ontario electricity ratepayers as well. He also added that the authority is achieving flexibility in providing electricity and creating a group of complementary options for the production of power that Ontarians need, through contracts such as these. Gaining access to such hydroelectric sources backs Ontario's goal of doing away with coal-fired generation by 2014-end—Canada’s largest climate change initiative.
Brad Duguid, Minister of Energy and Infrastructure, said that for more than a century hydroelectric power has helped Ontarians, and contracts such as this, which come at a competitive price, support the goal of increasing the generation of renewable energy and aid in drawing energy from greener sources in the years ahead.
This contract comes from the Ministry of Energy and Infrastructure’s May 2009 directive, which requested the Power Authority to negotiate new contracts with existing facilities. Totally, 125 facilities in a size range of 40 kW-239 MW with an overall potential of 1,200–1,300 MW can participate, once their contracts become due. This contract is one of the 11 small generating facilities that come under the new terms of compensation so far.
To qualify for these contracts, hydro-electric facilities should be linked to the electricity grid headed by the Independent Electricity System Operator (IESO) of Ontario and not regarded as part of an earlier renewable energy program. Ontario Power Generation’s facilities are exempt as they come under separate arrangements.
Overall, there is 7,700 MW of electricity sourced from water in Ontario. The Power Authority, apart from securing new contracts, is also boosting the development of new projects as part of the Feed-in tariff program of Ontario.
The Ontario Power Authority supplies power to Ontario in a sustainable and reliable way. It focuses mainly on long-term planning of the power system, managing conservation initiatives across Ontario, ensuring resource development, and supporting the power sector’s ongoing evolution.
Source: www.powerauthority.on.ca