Standard Offer Contracts for Renewable Energy

The Ontario Government funded the Ontario Sustainable Energy Association (OSEA) to review the impacts and benefits of adopting a Standard Offer Contract (SOC) system similar to many countries in the European Union. Germany, Denmark and Spain have phenomenal sucess with this system, as evident by these countries high percentage of electricity from renewable energy sources and growth in renewable energy investment.

Currently Ontario uses a very complex and very competative tender system that discourages any but the larger corporations, scaring away many potential investors. Furthermore, the government has to fairly weigh and analyze all submission, at significant cost.

The OSEA report demonstrates that SOC’s eliminate these difficulties by granting approval to any project from any investor (go farmers!) while gauranting a higher than market price for the energy from these renewable energy projects. The application process is significantly streamlined and there are not limits on the number of renewable energy projects, giving renewable energy technologies one advantage over their fossil fuel counterparts.

About Cam Proctor

Cameron works diligently in this academic and personal live to build capacity within communities and people towards the mutually inclusive goals of environmental sustainability and rewarding lifestyles. An avid supporter of education, Cameron believes in as the “missing link” between alternative news and community involvement. Integrating his knowledge into writing, he pails in comparison to other writers in the humour dimension.

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