Standard Offer Program (SOP)
In response to a request from the Ministry of Energy, a program was developed by the Ontario Energy Board (OEB) and the Ontario Power Authority (OPA) as a recommendation in a joint report issued in the spring of 2006: “Recommendations on a Standard Offer Program for Small Generators Connected to a Distribution System”
The Standard Offer Program was launched by the OPA on November 22nd, 2006 at the same time with publishing of the Final Program Rules. To enter this program, a generator has to engage into a 20-year contract with OPA. In addition, a Connection Agreement has to be signed with the local distributor (i.e., London Hydro Inc.).
According to the Final Rules, the program applies to Ontario-based generators up to and including 10MW, who utilize renewable resources (thermal electric solar, solar photo-voltaic, water power, agricultural bio-mass, biogas, biofuel, landfill gas, wind energy).
The generators will be allowed to sell their entire electricity measured at the output of the generator at an established electricity rate according to the different types of resources utilized. Payments to the generator under the SOP will be made by OPA through a settlement process between the generator and the distributor, according to the requirements of the Retail Settlement Code (RSC).
What are the generator’s responsibilities?
Certain requirements must be met before your application will be considered by the OPA:
- Completed Impact Assessment provided by the Local Distribution Company* – except for projects sized at 10 kW or less.
- Environmental Assessment conducted by the Ontario Ministry of Environment.
- Demonstrated Site Access (registered owner of the land or leasehold).
- ESA plan approval and authorization to connect.
- OEB has to be contacted to obtain a generator licence in order to sell electricity.
An on-line Application Form and a current version of the SOP Contract are available from OPA for interested potential new generators. More information and updates on the Standard Offer Program can be found on the official web site of the Renewable Energy Standard Offer Program.
City of London is presently outside the transmission constrains “orange zone” meaning, any generation applicant sized 10 MW or less can apply for connection to London Hydro’s electrical distribution system under the SOP. It is up to the applicant however to verify potential restrictions before considering to apply.
* A separate Impact Assessment may be required from the transmitter (Hydro One Networks Inc.) depending on the size of the project.
