IESO Discusses Enhancements To The Feed-In-Tariff Program

Yesterday, the Independent Electricity System Operator (IESO) held an 'industry dialogue' meeting in Toronto, during which it discussed and sought feedback on the upcoming enhancements to the Feed-in-Tariff (FIT) program that were proposed in the discussion paper posted in early December.

At the meeting, the IESO gave a brief overview of its proposals and discussed industry comments, including:

• Priority points for price bid-down – IESO quelled criticism of the bid-down option by explaining that the prices published in the price schedules are not necessarily correct for each possible project, and that a bid-down allows projects with lower development costs to take advantage and bid the lower price that their project can accommodate. Commenters expressed concern about the negative effects of a 'race to the bottom' that pricing would have on the industry; the IESO is considering having a floor, or a limited number of price down 'buckets' (e.g. 0-5%, 5-10%, etc.)