The "Green Energy Act": Green Energy Unbounded

Ontario's proposed Green Energy and Green Economy Act (Green Energy Act) signals a profound shift in the role of renewable energy in the province. The Act, which received First Reading on February 23, 2009, and received Royal Assent on May 14, 2009, is attracting international attention for its aggressive promotion of renewable energy (i.e., wind, water, biomass, biogas, biofuel, solar energy, geothermal energy and tidal forces). The new Act amends 15 pieces of legislation, including the Electricity Act, the Ontario Energy Board Act, and the Planning Act.

Empowering The Green Economy

The Green Energy Act transforms the approach for evaluating options for electricity generation, a task handled by the Ontario Energy Board (OEB). Consider an example where the OEB must choose between natural gas-fired generation, hydroelectric, and wind. The conventional approach is to use a model, known as the Levelized Unit Energy Cost (LUEC), to derive a cost per unit of energy