Clean Electricity

Ontario’s Ministry of Energy (the Ministry) today announced the launch of the clean energy credit (CEC) registry (see our earlier bulletin on the CEC registry here). Ontario’s Independent Electricity System Operator (IESO) will administer the CEC registry. It is intended to assist businesses to meet environmental and sustainability goals by demonstrating that their electricity has been sourced from clean resources, such as nuclear power, hydroelectric, wind, solar, and bioenergy. The Ministry also announced that proceeds from the sale of CECs held by the IESO and Ontario Power Generation (OPG) will be directed to Ontario’s newly established Future Clean Electricity Fund (the Fund). The Ministry noted that the sale of CECs will be used to reduce costs for electricity ratepayers and fund the construction of clean electricity projects in Ontario through the Fund. OPG is expected to immediately begin offering its CECs for sale, whereas IESO is expected to begin selling its CECs this summer. CECs are electronic certificates used to demonstrate that clean energy has been acquired to meet a voluntary target. Each credit represents 1 MWh of clean energy that has been generated and is intended to be exclusively purchased and claimed (or retired) by a load customer within Ontario. The IESO indicated that eligible generators and loads participating in the sale and purchase of CECs must register for the Ontario Program with Midwest Renewable Energy Tracking System (M-RETS). The M-RETS registry platform enables the creation, transfer and retirement of CECs. The IESO today launched a Request for Proposals to provide brokerage services for the sale of IESO-owned CECs and noted that it intends to make available 2.5 million CECs for sale throughout Ontario in each calendar year, starting in 2023. For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com.

Deputy Prime Minister and Minister of Finance Chrystia Freeland today released Budget 2023: A Made-in-Canada Plan (Budget 2023). Resilient’s bulletin outlines key climate, energy, and Indigenous highlights from Budget 2023. Clean Electricity, Clean Economy Budget 2023 introduces “Canada’s Plan for a Clean Economy” (the Clean Economy Plan) with the following priorities: electrification; clean energy; clean manufacturing; emissions reduction; critical minerals; infrastructure; electric vehicles and batteries; and major projects. The Clean Economy Plan is centred on three tiers of federal financial incentives: (i) an anchor regime of clear and predictable investment tax credits; (ii) low-cost strategic financing; and (iii) targeted investments and programming to respond to the unique needs of sectors or projects of national economic significance. Clean Electricity. Budget 2023 notes that Canada’s electricity demand is expected to double by 2050 and will require electricity capacity to increase by 2.2 to 3.4 times compared to current levels and proposes the following new funding and investments to support clean electricity in Canada: Canada Infrastructure Bank (CIB) will invest at least $10B through its Clean Power priority area, and at least $10B through its Green Infrastructure priority area, at least $20B to support the building of major clean electricity and clean growth infrastructure projects; $3B over 13 years to Natural Resources Canada to: Recapitalize funding for the Smart Renewables and Electrification Pathways Program to support critical regional priorities and Indigenous-led projects, and add transmission projects to the program’s eligibility; Renew the Smart Grid program to continue to support electricity grid innovation; and Create new investments in science-based activities to help capitalize on Canada’s offshore wind potential, particularly off the coasts of Nova Scotia and Newfoundland and Labrador. funding to advance the Atlantic Loop and support ongoing negotiations with provinces and utilities to identify a clear path to deliver the project by 2030. Clean Economy. Budget 2023 proposes the following new funding and support for…

Ontario Launches Clean Energy Credit Registry

Federal Government Releases 2023 Budget Long on Clean Economy Investment