ontariofit

Ontario’s photovoltaic market is expected to reach cumulative installations of 2,650 MW by 2015, according to a new report by ClearSky Advisors. The foremost concerns of market participants are political and regulatory uncertainty, the report said.

The capacity projection includes demand from the province's Feed in Tariff program, the Renewable Energy Standard Offer Program and the "Samsung agreement." In 2011, 455 MW of new PV installations are expected to be added. Delays during the permitting process will push most FIT utility-scale demand back into 2012 to 2013. An increasing number of suppliers, reduced global costs and delayed demand have combined to drive expected module prices down in Ontario. By the second half of 2011, module supply constraints will be eliminated, the report said.

With around 2,450 MW of existing solar contracts, Ontario’s PV market will "experience strong growth from 2011-2012," the report said. After 2013, the market will "shrink significantly in response to ratepayer concerns, transmission constraints and the limited size of Ontario’s electricity market."

Domestic content requirements restrict the amount of equipment that is available to developers in Ontario. Though there has been concern that development would be limited by supply shortages, it is now most likely sufficient supply will be available to meet demand from 2011 to 2015. Of the more than 30 module manufacturers ClearSky Advisors has been tracking, 17 to 24 are likely to produce DCR-compliant modules in 2011. Increasing volumes of module supply continue to become available.

Delayed utility-scale development will enable module supply to exceed demand by the third quarter of 2011. Large inverter manufacturers with flexible capacity will be able to fully serve Ontario’s FIT market from 2011-2015.

The report said the foremost concerns of Ontario PV market participants are political and regulatory uncertainty due to three main factors: continual changes and delays in Ontario’s FIT program,a FIT program review scheduled for 2011 and a provincial election slated for the fall of 2011.

"All of this uncertainty has combined to make Ontario a challenging market in which to operate," the report said. Long-term planning is "exceedingly difficult" for any business participating in Ontario’s FIT program. A number of manufacturers have delayed investment in the province either by entering the market cautiously and waiting for more stability before expanding or by avoiding the market altogether. "Uncertainty means risk," the report said. "This has made project financing more expensive and harder to come by."

Read more news and features on renewable energy.

Sponsored by FLSmidth

Related Articles

Cape Wind secures $400M more in financing for offshore project

Cape Wind said it has secured an additional $400 million dollars from several financial institutions for the offshore wind project slated to be built in Nantucket Sound.

Dragonfly Solar, SolarWorld to deliver solar power to utility co-ops

Commercial solar developer, Dragonfly Solar and SolarWorld, a solar manufacturer, will deliver solar arrays, totaling 517-kW to four electric utility cooperatives in the U.S. Midwest.

Follow Power Engineering on Twitter

Latest News

American wind power rebounds in 2014, but stable policy still needed

The fourth quarter 2014 wind energy industry report released yesterday by the American Wind E...

Weekly Coal Production Report

The Weekly Coal Production Report has been updated for the week ended January 24, 2015.

Hawaii energy executives tell lawmakers plans for takeover

An official at NextEra Energy told Hawaii lawmakers that his company does not plan to lay off...

Dominion seeks rate freeze against opposition on many fronts

Virginia's biggest electric utility wants to weaken state oversight of its rates, saying the ...

GE to supply turbines for wind power project in China

GE (NYSE: GE) will supply 55 units of its 2.75-120 brilliant wind turbines to Huaneng Corp.’s...
Renewable Roundtable Discussion

Power Engineering Photo of the Day

Company to supply doors to Chernobyl nuclear plant site

Groupe Gorge, through its subsidiary, Baumert, won a new order to supply technical doors to t...

Siemens to maintain California natural gas-fired power plant

Siemens (NYSE: SI) was awarded a long-term service agreement for the 507-MW Blythe Energy Cen...

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover

Products Showcase

Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

Forbes Magazine Ranks Precision Frac #4

Forbes Magazine Ranks Precision Frac #4

Vectren to Discuss 2014 Results and 2015 Outlook on Conference Call

Vectren to Discuss 2014 Results and 2015 Outlook on Conference Call

Vectren Declares Quarterly Dividend

Vectren Declares Quarterly Dividend

NV5 Appoints Francois Tardan to Board of Directors

NV5 Appoints Francois Tardan to Board of Directors

Enbridge Energy Partners, L.P. Confirms Distribution Increase for Fourth Quarter 2014

Enbridge Energy Partners, L.P. Confirms Distribution Increase for Fourth Quarter 2014

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>