SCHGI, based in St Catharines Ontario, produces 5.75MW of electricity from hydro power utilizing two DBS Escher Wyss turbines, within the 12 mile Creek. SCHGI will now receive a base rate of 6.9 cents per kWh. For ratepayers, the price is highly competitive for clean power generation, the company said.
Colin Andersen, CEO of OPA, said: “This contract is good for St Catharines Hydro Generation it’s good for the local community, and it’s good for Ontario electricity ratepayers. Through this and other similar contracts, we’re gaining generating flexibility and creating a set of complementary options for economically producing the electricity Ontarians need.
“Securing these hydro-electric sources also supports Ontario’s goal of eliminating coal-fired generation by the end of 2014 – the single biggest climate change initiative in Canada.”
The contract with SCHGI flows from a directive issued by the Ministry of Energy and Infrastructure in May 2009, which called for the power authority to negotiate contracts with existing hydro-electric generation facilities. In all, about 125 facilities ranging in size from 40kW to 239MW for a total potential of 1,200MW to 1,300MW can participate as their contracts comes due.
The contract with SCHGI is one of 11 small generating facilities that have been brought under the new compensation terms thus far. Hydro-electric facilities must be connected to the electricity grid managed by Ontario’s independent electricity system operator and not considered under a previous renewable energy program to be eligible for these enhanced contracts. Facilities owned by Ontario Power Generation are exempt as they’re covered by separate arrangements, the company said.
In all, Ontario has 7,700MW of waterpower-sourced electricity online. In addition to securing contracts with existing waterpower generating facilities, the power authority is also stimulating the development of new waterpower projects (and other forms of renewable energy) through Ontario’s feed-in tariff program (FIT for facilities generating more than 10kW and microFIT for those generating 10kW or less).
