Ontario hoping to eliminate domestic content requirements

Ontario is introducing legislation to eliminate domestic content requirements for the construction of future renewable energy projects. The government says that, combined with other measures, this would save ratepayers $1.9 billion on clean, reliable and affordable power over the next 25 years.

The requirements had been put in place as a temporary measure to help spur the growth of Ontario manufacturers and service firms in the renewable energy industry. But, according to the government, strong growth in the sector means the measure is no longer required.

If passed, the amendment to Ontario’s Electricity Act would remove the need for the Minister of Energy to require domestic content requirements be met under the province’s Feed-in Tariff (FIT) Program. Eliminating these requirements began earlier this year, and legislation is required to complete the process. The changes would help ensure Ontario is in line with decisions made by the World Trade Organization, the government says, adding that reduced domestic content requirements, coupled with a reduction in technology prices, would continue to be reflected in lower FIT prices, which would result in lower rates for consumers.