{"id":62719,"date":"2024-03-28T10:07:34","date_gmt":"2024-03-28T17:07:34","guid":{"rendered":"https:\/\/energi.media\/?p=62719"},"modified":"2024-03-28T10:07:34","modified_gmt":"2024-03-28T17:07:34","slug":"new-ontario-program-could-accelerate-energy-transition-while-advancing-indigenous-reconciliation","status":"publish","type":"post","link":"https:\/\/energi.media\/news\/new-ontario-program-could-accelerate-energy-transition-while-advancing-indigenous-reconciliation\/","title":{"rendered":"New Ontario program could accelerate energy transition while advancing Indigenous reconciliation"},"content":{"rendered":"

This article was published by the Canadian Climate Institute<\/a> on March 28, 2024.<\/em><\/p>\n

By <\/strong><\/em>James Jenkins<\/a>, Jason Dion<\/a><\/p>\n

The Government of Ontario is developing a new program to enable corporations to purchase power from new clean electricity generators. If designed properly, the program can build on a strong foundation of successful similar programs implemented in dozens of states and provinces. And\u2014again, if designed properly\u2014it offers a chance that\u2019s simply too good to miss to support meaningful opportunities for Indigenous-led economic self-determination.<\/p>\n

Learning from others\u2019 success<\/strong><\/h3>\n

Harnessing businesses\u2019 desire for renewable energy has emerged as a key driver of clean electricity across North America. Two key factors have strengthened over recent decades to make the private sector hungry for renewables: the\u00a0dramatically reduced cost of wind and solar<\/a>, offering substantial savings against the default grid electricity; and the growing focus of global finance on\u00a0environmental, social, and governance (ESG)<\/a>\u00a0performance. The invisible hands of efficiency and capital markets have increasingly chosen wind, solar, and battery storage to\u00a0lead energy production expansion<\/a>\u00a0in recent years.<\/p>\n

Private-sector demand for renewables has made Alberta and Texas\u2014whose liberalized power markets are open to corporate renewable energy purchasing\u2014the national leaders in wind and solar growth. Both jurisdictions have\u00a0benefited in three main ways<\/a>: new lowest-cost energy supply for consumers; rural economic development (including jobs, land lease payments, and municipal tax revenue); and heightened competitiveness for home-grown businesses.<\/p>\n

Onlooking states and provinces, including Ontario, took note. Prodded on by local industries demanding their own opportunity to purchase renewable energy, they introduced enabling programs, collectively called\u00a0green tariffs<\/a>, to satisfy these demands.<\/p>\n

The promise (and risks) of corporate power-purchase agreements<\/strong><\/h3>\n

In November, the Ontario Ministry of Energy\u00a0asked for input<\/a>\u00a0from stakeholders around policy changes that would allow industrial and commercial consumers to procure new clean energy underwritten by long-term power purchase agreements. Having received feedback, Ontario plans to roll the program out this spring. Properly designed, the program will allow businesses to access new clean power while still paying their fair share for the grid services they\u2019ll continue to rely on the rest of the time.<\/p>\n

This forthcoming program follows on Ontario\u2019s development, in 2022, of a new \u201cclean energy credit\u201d system. The eligibility parameters for the credit system were too loose,\u00a0undermining its credibility<\/a>, and enabling corporate greenwashing claims of \u201cbuying clean energy\u201d that failed to actually reduce emissions.<\/p>\n

This new, parallel program must be more discerning. Most importantly, to ensure that the purchases are genuinely supporting a cleaner grid, they must be limited to generation that is new and emissions-free. Other stakeholders have advanced additional design parameters\u00a0deserving consideration<\/a>. With those in place, the Government of Ontario can help drive the growth of clean power by harnessing businesses\u2019 growing demand for it.<\/p>\n

An opportunity for Ontario and Indigenous Peoples<\/strong><\/h3>\n

The province also has a chance to show leadership by embedding Indigenous participation.<\/p>\n

A key, and too often missing, component of Canada\u2019s national commitment to reconciliation is the need to accelerate economic development opportunities for Indigenous communities. It\u2019s an imperative embedded in the Truth and Reconciliation Commissions\u2019s\u00a0Call to Action 92<\/a>. Ontario\u2019s Electrification and Energy Transition Panel\u00a0recently concluded<\/a>\u00a0\u201cbuilding meaningful partnerships with Indigenous communities [is] the only way Ontario will be successful in making energy infrastructure investments at the pace and scale necessary to build a clean energy economy.\u201d<\/p>\n

Though not the only measure necessary, facilitating Indigenous equity participation for new energy investments is fundamental to advance economic reconciliation. Moreover, many First Nations and M\u00e9tis organizations are already major asset holders of clean energy generation in Ontario, and they have the capacity to enter into partnerships in a way that can contribute to project success. Their experience with project review, for example, can be an asset to the approval stage of the project.<\/p>\n

With the private sector seeking social outcomes\u2014the\u00a0S<\/em>\u00a0in ESG\u2014through its operations and purchases, embedding an Indigenous equity stake requirement in Ontario\u2019s new corporate renewable energy purchasing program will only increase the attractiveness of the new program. It amps up a nationwide trend seen in\u00a0wind\u00a0<\/a>and\u00a0solar<\/a>\u00a0procurements in Alberta, calls for power in\u00a0Saskatchewan<\/a>, new\u00a0energy storage<\/a>\u00a0projects in Nova Scotia, and\u00a0B.C.\u2019s forthcoming call<\/a>\u00a0for renewable power. It\u2019s an essential step Ontario can take to accelerate the energy transition and advance reconciliation at the same time.<\/p>\n

James Jenkins is Executive Director of\u00a0<\/em>Indigenous Clean Energy<\/em><\/a>. Jason Dion is the Senior Research Director at the\u00a0<\/em>Canadian Climate Institute<\/em><\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

This article was published by the Canadian Climate Institute on March 28, 2024. By James Jenkins, Jason Dion The Government of Ontario is developing a new program to enable corporations to purchase power from new [Read more]<\/a><\/p>\n<\/div>","protected":false},"author":6,"featured_media":62720,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"give_campaign_id":0,"footnotes":""},"categories":[1],"tags":[13,120,528,80,14,425,96],"class_list":{"0":"post-62719","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-news","8":"tag-canada","9":"tag-clean-energy","10":"tag-electrification","11":"tag-environment","12":"tag-featured","13":"tag-indigenous-people","14":"tag-renewable-energy"},"acf":[],"yoast_head":"\nenergy transition - Thoughtful Journalism About Energy's Future<\/title>\n<meta name=\"description\" content=\"It\u2019s an essential step Ontario can take to accelerate the energy transition and advance reconciliation at the same time.\u00a0\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/energi.media\/news\/new-ontario-program-could-accelerate-energy-transition-while-advancing-indigenous-reconciliation\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"energy transition - 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