1	Advanced Renewable Tariffs Can Power Manitoba Renewable Energy Development
2	Renewable Tariffs The Philosophical Context
3	1. Do We Want Renewables? Peak Oil, Peak Gas Marginal Costs Higher Than Embedded Costs Nuclear Problematic Ontario, New Brunswick? Coal, Kyoto, Climate Catastrophe France & Italy, 2003; 25,000 Dead Public Support High Large Crowds of Farmers in Ontario Desire for New Manufacturing Jobs
4	2. If Yes, Then What Works Best? How To Get Contracts (PPAs) Negotiated Tendered Standard Offers (Open) Who Gets Contracts Elite Few, or All Who Want Them? How To Pay For Them RECs/ROCs/Green Tags Capital or Production Subsidies PTC or WPPI Renewable Tariffs
5	3. If We Use a Market Model, Then You Get What You Pay For If You Want It You Must Pay For It Difference Between Cost & Price The Margin Determines Rate of Growth High or “Premium” Prices Deliver More Generation More Quickly More Manufacturing . . . And Jobs
6	Why the European Success? #1 Public Involvement Germany & Denmark #2 Advanced Renewable Tariffs 16 EU Countries use Electricity Feed Laws
7	What Has Worked in Europe What Works Advanced Renewable Tariffs (ARTs) Also Known as Standard Offer Contracts Proof is in the Market ARTs Markets = Many Players Quota Markets = Few Players RFP Markets = No Manufacturers
8	Advanced Renewable Tariffs Creates Dynamic Markets Ensures Price Stability Encourages Manufacturing Offers Opportunity to Many Players Farmers (New Cash Crop) Communities Coops Wind Companies
9	Advanced Renewable Tariffs What Are They? Political Price, Not Political Quota Simple Contracts How Do They Work? Simple & Comprehensible Little or No Administration Where?
10	Renewable Tariffs or Standard Offer Contracts
11	Political Price-Political Amount Markets
12	Political Price (EEG) Political Amount (RPS) Fossil Fuel Plants Fuel is Commodity Priced on World Market Generation Costs Function of Fuel Price Efficiency of Operation
13	Political Price (EEG) Political Amount (RPS) Renewables Influenced by Installed Cost (80%) Influenced by Yield (Resource) Not Influenced by Operational Efficiency Energy Automatons
14	German Market Example
15	German Market Example Markets Work Best When Many Transactions Transactions Transparent Free Flow of Information Many Suppliers Many Buyers
16	German Market Example Thousands of Transaction per Year Many Magazines & Public Reports Turbine Prices Public Performance Public 4 Major Suppliers, 4+ Minor Suppliers Farmers, Co-ops, & Wind Cos
17	German Market Example: Many Suppliers Enercon (D) Vestas (DK) Bonus (DK) NEG-Micon (DK) GE Wind (D-US) Nordex (DK) DeWind (D) Suzlon (India) RePower (D) Fuhrländer (D) Gamesa (ES) Mitsubishi (JP)
18	German Market Example: Many Manufacturers Enercon (D) Vestas (DK) Bonus (DK) NEG-Micon (DK) GE Wind (D-US) Nordex (DK) DeWind (D) RePower (D) Fuhrländer (D)
19	Renewable Tariffs & Solar Energy in Germany
20	Wind Energy Prices Paid in Europe Highest Initial Prices Not Always from Renewable Tariffs Britain, Italy Spain’s Renewable Tariff Low Relative to Quota Markets Britain, Italy Sweden Can’t Decide Combination: Pool Price, Premium, & Subsidy
21	Renewable Tariffs or Standard Offer Contracts Early Stages of Trend in North America PEI (<1 MW, Draft) Ontario (<10 MW Draft) Minnesota C-BED (Introduced) Washington State (Passed Senate) Schwarzenegger’s California (Introduced) Major Push from China’s Renewables Law Desire for Manufacturing Jobs Critical More Acknowledgement that ARTs (SOCs) Deliver
22	Renewable Tariffs or Standard Offer Contracts Should Be Simple, Comprehensible, & Transparent Allow Simplified Interconnection Have Prices Sufficient to Drive Development Have Lengths Sufficient for Profitability Have Prices Differentiated by Technology Have Prices Differentiated by Resource (for Wind)
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24	Advanced Renewable Tariffs Endorsements Ontario Liberal Party National Farmers Union Ontario Canada Great Lakes United (NGO)
25	Standard Offer Contract Pilot Program (Draft) 5 Year Pilot Program (no MW cap, Time Limit Cap) Wind, Solar PV, Biomass, & Small Hydro Project Limit: ~10 MW (<44 kV), “Last Turbine In” 20-Year Contracts with Provision for Extension Inclusive: Open to All Contracts Must be Executed within 2 Years Review after 2 Years, Full Review after 5 Years
26	German Wind Tariffs Reference Yield Method
27	Ontario Pilot Program (Draft) OSEA’s Extensive Literature Library Acknowledged by Academics & Researchers OSEA Consulted with Stakeholders OSEA Sponsored Price-Setting Workshop ADEME’s Bernard Chabot (France) Profitabiltiy Index Method Wind, Biomass, Hydro, & Solar PV
28	French Wind Tariffs Profitability Index Method
29	Justification for Premium Prices European Court Ruling Under Market “Liberalization” Rules Offsets External Costs SO_x & NO_x CO₂ & Climate Change Very Expensive Country Specific Justification Dutch MEP, Spain’s Bonus, Germany’s EEG
30	Climate Change External Costs Avoided
31	Renewables Work! www.ontario-sea.org