1. October 16, 2013 Feed In Tariff (FIT) and Renewables Procurement in Ontario Dirk van de Waal – Business Analyst, Renewables Procurement

2. Ontario Power Authority 2 Long-Term Power System Planning Procuring New Supply Enabling Conservation Across the Province Key Activities Ensure reliable, cost-effective, sustainable electricity supply for Ontario.

3. A cleaner electricity system Phasing out coal by the end of 2014 –75 percent reduction in electricity sector’s carbon footprint Replacing coal with clean, renewable energy resources –FIT Program is helping to bring on more renewable generation 3 System Capacity Wind Gas Nuclear Hydro Nuclear Gas Coal Hydro 2009 2013 (est.)

4. 4 Feed-in Tariff (FIT) Program Launched in 2009 First comprehensive FIT program in North America Open to various renewable energy supply technologies –Solar Photovoltaic (PV) –Wind power –Waterpower –Bioenergy technologies (biogas, biomass, landfill gas) Different prices for different technologies and project sizes Long-term contracts (e.g. 20 years)

5. FIT Program Impact Has encouraged billions of dollars of investment More than 30 companies have already invested in Ontario – manufacturers/generators/related services Created thousands of direct and indirect clean energy jobs 5

6. Procurement to date 6 Non-Hydro Renewables – Executed Contract Capacity FIT Launched

7. MicroFIT Program 7 * Data as of Oct 1, 2013

8. FIT 3 and Beyond June 12, 2013 Minister’s direction further clarifies policy goals Support long-term sustainability of FIT program by setting annual procurement targets for next 4 years: –150 MW/yr for Small FIT –50 MW/yr for microFIT Replace Large FIT program with new competitive procurement process –Work with municipalities and Aboriginal communities to identify appropriate locations and siting requirements Strengthen participation of municipalities and public sector entities in Small FIT –Schools, colleges, universities, hospitals, long-term care homes, public transit services and Metrolinx Measures to bring program into compliance with May 24, 2013 WTO rulings 8

9. Fall 2013 Procurement Targets FIT 3 application window to open on November 4, 2013 targeting 123.5 MW –Encourage participation by municipalities and public sector entities (revised points system, CCSAs, price adders) –Rules and application process have been improved 15 MW pilot program for rooftop solar projects on unconstructed buildings to run concurrently 30 MW Fall 2013 microFIT procurement target 9

10. Unconstructed Rooftop Solar Pilot Program Pilot stream for applicants with unconstructed buildings Small FIT rooftop solar projects –10 kW – 500 kW Up to 15 MW in 2013 Considerable industry stakeholdering Goal is to synchronize successful pilot framework into regular FIT program in 2014 10

11. August 26, 2013 Price Schedule 11 Renewable FuelProject Size Tranche* August 26, 2013 Price (¢/kWh) April 5, 2012 Price (¢/kWh) % Change Solar (PV) (Rooftop) ≤ 10 kW39.654.9-27.9% > 10 ≤ 100 kW34.554.8-37.0% > 100 kW32.953.9-39.0% Solar (PV) (Non-Rooftop) ≤ 10 kW29.144.5-34.6% > 10 kW28.838.8-25.8% On-Shore WindAll sizes11.5 0% WaterpowerAll sizes14.813.113.0% Renewable BiomassAll sizes15.613.813.0% On-Farm Biogas ≤ 100 kW26.519.535.9% > 100 kW ≤ 250 kW21.018.513.5% BiogasAll sizes16.416.02.5% Landfill gasAll sizes7.711.1-31% * The FIT 3 program is available to projects generally ≤ 500 kW

12. 2013 Procurement Schedule This is an anticipated schedule and is subject to change 12

13. 2014 Procurement Schedule This is an anticipated schedule and is subject to change 13

14. FIT Application and Contracting Process 14 *Timelines are targets Application Review *60 DAYS Application Review *60 DAYS Connection Screen *60 DAYS Connection Screen *60 DAYS Contract Execution, Approvals, NTP, COD

15. Large Renewable Projects Engage stakeholders and provide interim report –Through August 2013, OPA facilitated various engagement activities for municipalities, Aboriginal communities, industry associations, general public and other stakeholders. OPA submitted interim recommendations report to Minister of Energy on August 30, 2013 Interim recommendations report publicly available 15 No more procurement under Large FIT program (generally > 500 kW) Large FIT program to be replaced by competitive procurement process

16. Hydroelectric Standard Offer Program (HESOP) Municipal Stream –Eligible municipal waterpower projects –New-build –10 MW for projects 500 kW – 5MW –50 MW for projects > 5 MW –Pre-existing FIT applicants prior to June 5, 2010 Expansion Stream –NUG or HCI contracted facilities –Procurement for expansion potential at existing facility 16

17. 17 Questions and Resources Questions regarding FIT or microFIT, including application questions: FIT@powerauthority.on.ca microFIT@powerauthority.on.ca Questions regarding your existing FIT or microFIT contract: FIT.contract@powerauthority.on.ca microFIT.contract@powerauthority.on.ca Where to find additional information: fit.powerauthority.on.ca microfit.powerauthority.on.ca ontario.ca/refo