Clean Energy Credit

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.

Ontario’s Ministry of Energy (the Ministry) this week announced its intention to develop a new voluntary clean energy credit registry (CEC) registry. The Ministry has directed Ontario’s Independent Electricity System Operator (IESO) to research and report on the design of a provincial CEC registry by July 4, 2022. The Ministry also indicated that it intends to consider the IESO report and stakeholder feedback before implementing the CEC registry by January 2023. The Ministry stated that the CEC Registry will assist businesses operating in Ontario to meet corporate environmental and sustainability goals. The voluntary CECs would represent 1 MWh of clean electricity generated from one or multiple non-emitting sources such as solar, wind, bioenergy, hydroelectric and nuclear. Purchasers will be allowed to purchase and retire the voluntary CECs to meet corporate and individual goals and demonstrate that their electricity is generated from non-emitting sources. Revenue from the sale of CECs could (i) be returned to Ontario ratepayers to lower the cost of electricity and/or (ii) support future clean energy generation projects. The proposed CEC registry is intended to assist businesses to reduce emissions and meet the climate targets of the Made-in-Ontario Environment Plan, Ontario’s climate and environment plan. The CEC registry would match similar voluntary registries in Ohio, Pennsylvania, Illinois, Indiana, Wisconsin, and New England For further information or to discuss the contents of this bulletin, please contact Lisa DeMarco at lisa@resilientllp.com.

Ontario Launches Clean Energy Credit Registry

Ontario Pursuing Clean Energy Credit Registry