CAN (ON): No more incentives for fossil fuel-based CHPs

Ontario's Climate Change Action Plan emphasized the need to increase the use of low-carbon technology, such as solar panels and heat pumps, in homes and businesses. Several programs to increase energy choices for Ontarians are being introduced, funded by the proceeds from auctions in the carbon market.

The Green Ontario Fund is helping Ontarians move to a low-carbon future by offering them incentives, financing and services to increase the use of technologies that reduce GHG emissions. The Green Ontario Fund website provides a coordinated, one-window approach where Ontarians can get help, information and access to its programs, as well as to other conservation and renewable energy programs in the province.

Green Ontario Fund programs are building on the success of the province's existing conservation and energy efficiency programs, providing Ontarians with more opportunities to reduce their energy costs and carbon footprint. The IESO is a partner in the delivery of certain Green Ontario Fund programs to help promote an efficient and customer-focused approach and minimize duplication with existing programs.

The government and its agencies will explore how to further integrate conservation and low-carbon technology programs for both electricity and fuels.

Under current conservation programs, combined heat and power projects that use supplied fossil fuels to generate electricity on-site are eligible for incentives because they can significantly reduce demand on the electricity grid. To help meet the Province's climate change goals, these projects will no longer be eligible to apply for incentives under the Conservation First Framework and the Industrial Accelerator Program (IAP), starting July 1, 2018.

Because of their energy efficiency and environmental benefits, behind-the-meter waste energy recovery projects and projects that use renewable energy, such as solar thermal water heating or biomass fuel for boilers, will continue to be eligible for funding under the Conservation First Framework and the Industrial Accelerator Program. Electricity distributors may also develop incentive programs for energy storage systems that are integrated with a customer's own renewable energy project. When added to on-site renewable generation, energy storage systems can provide reliability and help customers reduce their demand when prices are highest. This can help reduce peaks in demand on the local and provincial systems.

Source: Government of Ontario