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For immediate release: July 3, 2003

The Ontario government today announced that it is proceeding with plans to implement a Green Power Standard mandating the use of 1% more renewable energy in the provincial grid each year for eight years, starting in 2006. The government has also committed to purchasing 20 per cent of the electricity used in government buildings from renewable sources.

“IPPSO is pleased that the government has accepted the thrust of our key recommendation to establish steadily increasingly standards for green power production in Ontario. This is a very satisfying culmination to an initiative that began more than five years ago in the Market Design Committee,” said IPPSO Director Steve Probyn who represented the organization on the Market Design Committee, a multi-stakeholder group which developed the initial rules for Ontario’s competitive electricity market in 1998.

“We hope that this will act as a signal to investors and entrepreneurs from around the world to come to Ontario and start setting up businesses to supply the market for green energy.”

Brace cautioned however that many details remain to be worked out, and it’s hard to say precisely what the benefits of this initiative will be until a more complete plan is in place. He stresses that building a competitive market is a long-term process. “We look forward to using today’s announcement as a solid basis for working with the government and with other stakeholders on market evolution in order to create the conditions necessary for investment in all environmentally-acceptable forms of generation in Ontario.”

Besides having advocated a green power standard for many years, IPPSO has also recommended the development of a market-based mechanism to ensure that there is enough generating capacity to meet the expected energy needs of Ontario consumers. “It is critically important that the long term balance between renewable and conventional power supplies be studied closely to make sure there is an appropriate mix of options and a place for all forms of power generation with an acceptable impact on the consumer.” A Resource Adequacy system, designed to be competitively-based and compatible with an open market for power, is particularly needed to ensure that capacity can be financed and built to meet Ontario’s needs.

“We look forward to working with the government to implement this important initiative, being mindful of the practical challenges involved,” Brace concluded.

IPPSO's proposals for a Renewable Portfolio Standard were contained in its submission to the Alternative Fuels Committee of the legislature last year, and are available online at http://www.newenergy.org/whats_new.html Details of the Ontario government's announcement are available on the internet at: http://www.energy.gov.on.ca/index.cfm?fuseaction=english.news&body=yes&news_id=37

IPPSO is a non-profit organization representing more than 100 companies involved in the generation of electricity in Ontario, including generators and suppliers of services, equipment and consulting services. IPPSO members produce power from co-generation, hydro-electric, gas, coal, nuclear, wind energy, waste wood and other sources. IPPSO's members currently produce over 90% of the electricity consumed in Ontario.

For more information, contact:
Stephen Probyn, Director 416-777-2800
John Brace, President, 416-962-6262
Jake Brooks, Executive Director, 416-322-6549
Rob McLeese, Past President 416-366-4820

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Last update: July 3, 2003
URL: http://www.newenergy.org