Ontario’s Upcoming 'Local Generation Program' Matters. A Lot.
- John Kirkwood
- May 8
- 1 min read
Updated: 4 days ago
OREC just submitted feedback to the Independent Electricity System Operator (IESO) on their proposed Local Generation Program (LGP)—a long-awaited initiative that could mark a turning point for community power in Ontario.
The LGP is designed to support small-scale energy generation through a streamlined process, and it comes with two critical streams:
Recontracting existing FIT (Feed-In Tariff) projects
Enabling new generation.
Both are essential for OREC. Recontracting would extend the life of our current solar and wind sites and continue their revenue generation for years to come. (Side note: once solar panels are installed and paid for, they basically just sit there, quietly collecting free sunshine. They don’t degrade much, and they cost little to maintain. So why shouldn’t Ontario keep benefiting from that clean electricity?)
Meanwhile, the new generation stream opens the door for something even more exciting: building new, community-owned renewable energy projects—systems that generate more electricity than a single building or customer can consume. Today, that are paid according to the clean energy they produce.
This is the kind of policy we’ve been waiting for. It not only keeps our current projects viable, but also gives us the opportunity to grow and develop new, meaningful infrastructure in collaboration with our members and communities.
You can read our full submission to the IESO here:
The reason the recontracting is important is because solar and wind installations across the province are generating revenue through Feed-in-Tariff (FIT) contracts, mostly with 20 year terms. Those contracts start expiring in 2029. Up until now, renewable energy coops like OREC have had their fingers crossed that Ontario would value these clean energy sources and offer new contracts so that they can continue to help Ontario meets its ever-increasing demand for electricity. The province will need every kW it can get - especially lower-cost, renewables like OREC's.
The plan being carried out by the IESO is recognition finally that there's a future for community-scale renewable energy generation in Ontario beyond the current and restrictive Net Metering contracts.