Non-utility generation

Ontario Hydro's non-utility generation division has the goal of promoting and establishing maximum economic non-utility generation for the benefit of Ontario. In determining the power purchase rate for non-utility generation projects up to 5 MW, three components of project-specific avoided costs are considered: basic avoided cost; an adder component of up to 10% for projects based on renewable energy resources, waste-product fuels, waste heat, or high efficiency energy conversion; and a risk off-loading adder. For a renewable or high efficiency project, these rates range from a high (winter on-peak rate) of 8.1 cents/kWh to a low (summer off-peak) of 2.93 cents/kWh. For projects over 5 MW, rates are determined individually for each project. Illustrative rates are shown for a generic 100 MW project. 2 tabs