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ARTICLE · 12 AUGUST 2013

Renewable Energy Project Finance In A Post-FIT World

McCarthy Tétrault
McCarthy Tétrault
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Ontario’s feed-in-tariff program has attracted billions of dollars in private-sector investment and resulted in a significant amount of project financing activity since its introduction in 2009.

CanadaEnergy and Natural Resources
Kerri Lui
Kerri Lui
Adam Shedletzky
Adam Shedletzky
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Ontario's feed-in-tariff ("FIT") program has attracted billions of dollars in private-sector investment and resulted in a significant amount of project financing activity since its introduction in 2009. Yet with Ontario on track to procure 10,700 MW of non-hydro renewable energy by 2015, the Ontario government is now moving away from large FIT. In early 2012, the Ontario government reduced FIT rates due to potential overcapacity and nearly maxed-out transmission lines and, more recently, ended the FIT program for projects over 500 kW. The existing backlog of renewable energy projects will require an estimated $7 billion of debt to finance. Notwithstanding that this should keep project financiers busy for some time, it is never too early to start looking for new opportunities.

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