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ARTICLE · 21 SEPTEMBER 2010

Japan Challenges Ontario's Renewable Energy "FIT" Program

This week, Japan launched a World Trade Organization ("WTO") dispute against the domestic-content requirements in Ontario's landmark Feed-in Tariff ("FIT") program, which is North America's first comprehensive guaranteed pricing structure for renewable electricity production.

CanadaEnergy and Natural Resources

This week, Japan launched a World Trade Organization ("WTO") dispute against the domestic-content requirements in Ontario's landmark Feed-in Tariff ("FIT") program, which is North America's first comprehensive guaranteed pricing structure for renewable electricity production.

FIT Program

Ontario's ambitious FIT program is intended to help Ontario eliminate coal-fired power by 2014 - one of the single largest climate change initiatives in Canada. The FIT program provides standard program rules, contracts and pricing over a 20-year contract period (40 years for hydroelectric). The prices vary according to energy source and the size of the project, ranging from 10.3 ¢/kWh for landfill gas projects up to 80.2 ¢/kWh for small roof-top solar projects. The FIT payments are designed to cover typical capital and operating costs and to provide a reasonable return on equity to the developer - roughly an 11 percent return over the term. The FIT program also has

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