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The Center for Local, State, and Urban Policy The RPS, though, is not the only way to compel utilities to adopt more renewable energy. The standard in Europe, which has significantly influenced energy policy in Ontario, is the feed-in tariff (FIT). This policy approach mandates that utilities buy the electricity produced by eligible privately-owned renewable energy generation facilities, and further sets the per kilowatt-hour price that utilities must pay for that electricity, thereby guaranteeing renewable energy developers a price for projects added to the grid. Again, the specifics vary from place to place, both in eligible technologies and the specific rates. Within the Great Lakes Region, seven US states have pursued an RPS and Ontario has a FIT system. Indiana is the only state without a compulsory renewable energy policy, although it does have a voluntary clean energy portfolio standard and also offers tax incentives to wind developers. Each state/province has a unique energy and policy configuration relating to wind, detailed here and summarized in Appendix A. Ontario Ontario leads Canada in installed wind energy, and is a comfortable third (behind Illinois and Minnesota) among the states/provinces in the Great Lakes Region. Currently, 3% of all energy produced in Ontario comes from wind energy, though this number is expected to rise to 11% by 2025.3 Unlike states in the Great Lakes Region, Ontario’s installed wind capacity is not the result of a RPS but, instead, due to incremental changes in its renewable energy policy over the past decade.4 Since 2003, Ontario has sought to phase out coal-fired power plants, a strategy aimed at addressing both climate change and air pollution. To date, 17 of Ontario’s 19 coal plants have been closed, and the last two are expected to be offline by the end of 2014. To fill the supply gap left by the closing of these coal plants, the provincial government has turned to renewable energy sources, and increased its reliance on nuclear energy and natural gas. While an RPS was originally announced in 2003, it never materialized, as provincial elections put a new government in place before it could be enacted.5 Instead, the new government launched a bidding system in which developers proposed renewables projects, and those with the least cost would be funded and built. This program, which led to roughly 150MW of new wind capacity each year, continued until 2006 when it was replaced with a feed-in-tariff (FIT), the first of its kind in North America. Though the FIT originally funded only medium-scale community wind projects (<10MW), the Green Energy and Green Economy Act (GEGEA) of 2009 expanded the program to large-scale projects. At the same time that the FIT program was expanded, Ontario also changed the siting and approval process for windfarms. Prior to 2009, municipalities in Ontario had the authority for siting wind turbines, though some review also occurred at the provincial level. Wind developers complained that the system was too onerous and that municipalities frequently blocked proposals. Upon passing of the GEGEA, to this end Ontario also enacted the Renewable Energy Approvals legislation, which moved all regulatory authority to a single province-level agency, and set into law province-wide siting rules including minimum setbacks. As a result of these changes to the siting and approval process, as well as very generous tariffs for large-scale wind energy, the last five years have seen a rapid expansion of windfarms in Ontario, allowing for the successful phase-out of coal-fired power plants in the province. This boom in wind energy, though, also increased tension between citizens, municipal governments, wind developers, and the provincial government, and led to greater media attention to wind issues in the province. Much of this criticism has centered on the lack of authority given to local government to regulate wind energy. As a result, the provincial Ministry of Energy announced that municipal cooperation will be added to the criteria used to evaluate wind energy proposals, and further, that a competitive bidding system will replace the FIT program for large-scale wind projects.6 Illinois Illinois currently leads the Great Lakes Region in its amount of installed wind capacity with 3,568MW. It also ranks as the fourth largest producer of wind energy in the US.7 Most of the state’s large wind farms are in the northeast portion of the state, near Peoria, roughly 100 miles outside of Chicago. In 2012, 3.9% of Illinois’ electricity came from wind energy,8 though this percentage should increase greatly in the next decade as a result of the state’s Renewable Portfolio Standard (RPS). In Illinois, state law requires most 4 www.closup.umich.eduPDF Image | Wind Energy Development in the Great Lakes Region
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