Act
Advancing Innovation in Ontario's Energy Sector
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Ontario Energy Board Act, 1998
Summary of Decision:
Under the OEBA, one of the OEB's guiding objectives is "to facilitate innovation in the electricity sector." Through various forums, stakeholders have identified specific barriers to testing innovative pilot or demonstration projects that show clear potential to support cost reduction or decarbonization objectives. Under the current legislative framework, a license from the OEB was generally required to engage in activities such as electricity distribution, energy retailing and unit sub-metering. These legislative amendments will now enable the OEB to make orders granting exemptions from the requirement to hold one or more of the following enabling the proponents to run an innovative pilot or demonstration project:
• An electricity distribution licence
• A unit-sub metering licence
• An energy retailer licence
• A gas marketing licence, and
• An electricity wholesaler licence.
Since the passage of these amendments, ENERGY and the OEB have been working together to identify further barriers to innovation. As a result, ENERGY proposed further amendments to regulations under various legislations this Fall, including the OEBA, the Electricity Act, 1998 and the Energy Consumer Protection Act, 2010, which, if approved, would exempt those who have received a license exemption from other statutory requirements.
These amendments will assist the OEB to further facilitate innovation in the energy sector and help to ensure that Ontario's energy sector transforms into a digitalized, decentralized and decarbonized system, aligning with the global energy sector transformation taking place.
• An electricity distribution licence
• A unit-sub metering licence
• An energy retailer licence
• A gas marketing licence, and
• An electricity wholesaler licence.
Since the passage of these amendments, ENERGY and the OEB have been working together to identify further barriers to innovation. As a result, ENERGY proposed further amendments to regulations under various legislations this Fall, including the OEBA, the Electricity Act, 1998 and the Energy Consumer Protection Act, 2010, which, if approved, would exempt those who have received a license exemption from other statutory requirements.
These amendments will assist the OEB to further facilitate innovation in the energy sector and help to ensure that Ontario's energy sector transforms into a digitalized, decentralized and decarbonized system, aligning with the global energy sector transformation taking place.
Analysis of Regulatory Impact:
The Ministry has completed its final regulatory impact analysis. There are no direct compliance costs expected to arise from these amendments.
These changes will make it less burdensome for proponents to pilot innovative projects as they would not need to apply for a OEB licence or abide by the conditions set out in them. For a five-year term, one of the benefits a small business will see is a saving of $4,200 in licensing fees.
These amendments may encourage local projects that could provide non-traditional means of meeting energy demand while promoting entrepreneurship and employment. Such projects could also improve power quality and reliability in more remote/rural parts of the province. There is also the potential of projects from Indigenous communities, either wholly owned or in partnership with innovators/utilities, further promoting employment and economic development.
These changes will make it less burdensome for proponents to pilot innovative projects as they would not need to apply for a OEB licence or abide by the conditions set out in them. For a five-year term, one of the benefits a small business will see is a saving of $4,200 in licensing fees.
These amendments may encourage local projects that could provide non-traditional means of meeting energy demand while promoting entrepreneurship and employment. Such projects could also improve power quality and reliability in more remote/rural parts of the province. There is also the potential of projects from Indigenous communities, either wholly owned or in partnership with innovators/utilities, further promoting employment and economic development.
Further Information:
Bill 91, Less Red Tape, Stronger Economy Act, 2023 - Legislative Assembly of Ontario (ola.org)
Proposal Number:
23-ENDM014
Posting Date:
April 3, 2023
Summary of Proposal:
The Ministry of Energy (ENERGY) is proposing amendments to the Ontario Energy Board Act, 1998 (OEBA) that, if approved, would allow the Ontario Energy Board (OEB) to exempt proponents that wish to undertake innovative projects from various license requirements on a time-limited basis. These changes would facilitate proponents in running innovative pilots or demonstration projects. These projects can have the potential to benefit customers, the energy sector, and the broader economy and to support the province's energy transition to a more sustainable and renewable energy future.
Under the OEBA, one of the OEB's guiding objectives is "to facilitate innovation in the electricity sector." Through various forums, stakeholders have identified specific barriers to testing innovative pilot or demonstration projects that show clear potential to support cost reduction or decarbonization objectives. Under the existing legislative framework, a license from the OEB is generally required to engage in activities such as electricity distribution, energy retailing and unit sub-metering. ENERGY is proposing legislative amendments that would enable the OEB to make orders granting exemptions from the requirement to hold one or more of the following:
• An electricity distribution licence
• A unit-sub metering licence
• An energy retailer licence
• A gas marketing licence, and
• An electricity wholesaler licence.
These changes would enable proponents, if granted an exemption, to move forward in running innovative pilots or demonstration projects.
If these amendments are approved, ENERGY intends to propose further amendments to regulations under various legislation, including the OEBA and the Energy Consumer Protection Act, 2010, which, if approved, would exempt those who have received a license exemption from other statutory requirements.
These amendments would assist the OEB to facilitate innovation in the energy sector. These amendments would help to ensure that Ontario's energy sector transforms into a digitalized, decentralized and decarbonized system which would align with the global energy sector transformation taking place.
Under the OEBA, one of the OEB's guiding objectives is "to facilitate innovation in the electricity sector." Through various forums, stakeholders have identified specific barriers to testing innovative pilot or demonstration projects that show clear potential to support cost reduction or decarbonization objectives. Under the existing legislative framework, a license from the OEB is generally required to engage in activities such as electricity distribution, energy retailing and unit sub-metering. ENERGY is proposing legislative amendments that would enable the OEB to make orders granting exemptions from the requirement to hold one or more of the following:
• An electricity distribution licence
• A unit-sub metering licence
• An energy retailer licence
• A gas marketing licence, and
• An electricity wholesaler licence.
These changes would enable proponents, if granted an exemption, to move forward in running innovative pilots or demonstration projects.
If these amendments are approved, ENERGY intends to propose further amendments to regulations under various legislation, including the OEBA and the Energy Consumer Protection Act, 2010, which, if approved, would exempt those who have received a license exemption from other statutory requirements.
These amendments would assist the OEB to facilitate innovation in the energy sector. These amendments would help to ensure that Ontario's energy sector transforms into a digitalized, decentralized and decarbonized system which would align with the global energy sector transformation taking place.
Contact Address:
Ministry of Energy
77 Grenville Street, 6th Floor, Toronto ON M7A 2C1
77 Grenville Street, 6th Floor, Toronto ON M7A 2C1
Royal Assent Date:
June 8, 2023
Decision:
Approved