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ARTICLE · 11 NOVEMBER 2024

Some Ontario FIT Contracts Can Be Repowered

Gowling WLG
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The Ontario Court of Appeal has released its highly anticipated decision interpreting the Independent Electricity System Operator's ("IESO") standard-form commercial "Feed-in Tariff" ("FIT") contract.

CanadaEnergy and Natural Resources
Mikail Osman
Mikail Osman
Adam Bazak
Adam Bazak
Sandra Barton
Sandra Barton
Thomas Timmins
Thomas Timmins
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The Ontario Court of Appeal has released its highly anticipated decision interpreting the Independent Electricity System Operator's ("IESO") standard-form commercial "Feed-in Tariff" ("FIT") contract. The main issue was whether suppliers holding certain FIT 1 Contracts can "optimize" their solar facilities—that is increase the number of solar panels used at their facilities and/or replace outdated panels with technologically-improved panels—without the IESO's consent.

This week, the Court of Appeal answered this question unequivocally in the suppliers' favour.

Background

Facing the 2008 global economic crisis, the Government of Ontario embarked on a fast-track initiative to stimulate the Provincial economy, reduce greenhouse gas emissions, and jump-start a domestic renewable energy industry. To advance its bold agenda, the Ontario Government directed the Ontario Power Authority—IESO's predecessor—to develop and administer a made-in-Ontario FIT program that

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