Proposed Amendment of Ontario Regulation 541/05: Net Metering, or a new Regulation (To Be Determined), to be made under the Ontario Energy Board Act, 1998
Bill or Act:
Ontario Energy Board Act, 1998
Summary of Decision:
Amendments were made to enable third party ownership of net-metered renewable energy facilities, and to allow for virtual net metering demonstration projects selected by the Independent Electricity System Operator (IESO) to participate in an initiative designed for such projects. Standard disclosures for eligible generators have also been added.
November 28, 2017
Summary of Proposal:
The Province's 2017 Long-Term Energy Plan (LTEP) commits to enhance Ontario's net metering framework to give customers new ways to participate in clean, renewable electricity generation. In accordance with this commitment, the Ministry of Energy intends to expand net metering eligibility to include new ownership models and to ensure appropriate consumer protection provisions and siting restrictions are in place.
Legislative amendments to the Ontario Energy Board Act, 1998, required to expand the scope of eligible net metering ownership models, were tabled on November 14, 2017 through Bill 177, Stronger, Fairer Ontario Act (Budget Measures), 2017. Pending the passing of the proposed legislative amendments, the Ministry of Energy intends to propose regulatory changes to enable these new ownership models, as well as other regulatory measures in support of an expanded and enhanced net metering framework, as follows:
• Enable third-party ownership of net-metered generation facilities and virtual net metering demonstration projects;
• Adapt and enhance the existing energy consumer protection framework to support the introduction of third-party ownership arrangements; and
• Ensure that prescribed types of renewable energy generation facilities are sited appropriately.
The Ministry of Energy invites input on this regulatory proposal and corresponding regulatory proposals (posted separately and linked in the Additional Information section of this posting) to inform changes to Ontario's net metering framework.
A plain language description of the proposed regulation follows:
Enabling Third-Party Ownership of Net-Metered Generation Facilities and Virtual Net Metering Demonstration Projects
In accordance with commitments made in the Province's 2017 Long-Term Energy Plan (LTEP), ENERGY is proposing to amend Ontario's Net Metering Regulation (O. Reg. 541/05) or to provide for a new Regulation, if approved, contingent on the passage of certain legislative amendments to the Ontario Energy Board Act, 1998, to:
• Enable third-party ownership of net-metered renewable generation facilities; and
• Provide flexibility for distributors to enable virtual net metering demonstration projects through participation in a targeted Independent Electricity System Operator (IESO) administered program.
May 8, 2018