OEB completes majority of green energy initiatives

OEB Renewable Connection Cost Reforms reduce distribution connection charges for renewable generators, update DSC and TSC for transmission enablers, set pro-rata cost responsibility, and support integrated grid planning, capacity allocation, and Feed-in Tariff settlement.

The Ontario Energy Board (OEB) has, through amendments to the Distribution System Code (DSC) and the Transmission System Code (TSC), established new rules to allocate the cost of connecting renewable energy projects in a manner that promotes the connection of renewable resources while protecting the interests of ratepayers.

The amendments to the DSC reduce the level of costs through OEB cost revisions that renewable generators must pay to connect to distribution systems.

The amendments to the TSC facilitate the timely development of transmission "enabler" facilities designed to connect clusters of renewable projects and to improve renewable connections to the grid and provide for renewable generators to pay for their pro-rata share of the cost of those facilities as they connect.

The new cost responsibility rules preserve incentives to encourage economically efficient connections that help promote clean power across the province.

With the release of these Code amendments, the OEB has now completed a majority of its current green energy initiatives as Canada advances grid modernization programs nationwide.

Other initiatives that have been concluded relate to: (i) the allocation of capacity to connect renewable generation projects to distribution systems; (ii) the billing and settlement of renewable generation projects that have a contract issued under the Feed-in-Tariff program; (iii) initial guidance on distribution system planning in line with streamlined regulatory processes in other jurisdictions; and (iv) the accounting treatment of renewable generation facilities owned by electricity distributors.

Together, these initiatives contribute to an integrated approach to investment, planning, and cost allocation and lay the framework for appropriate and reliable electricity infrastructure development consistent with the OEB's objectives, including its new objectives under the Green Energy Act.

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