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Solar power heats up with new Ontario projects

Globe and Mail Update

Ontario is on its way to becoming a major centre for solar power, and will soon see thousands of solar panels spread out over acres of land, feeding clean power into the power grid.

Year-end numbers show an explosion of interest in building solar generating systems, from individuals who want to put a few panels on their roof, to businesses investing in huge solar farms.

In 2007 the Ontario Power Authority signed 145 contracts for the future construction of more than 250 megawatts (MW) of solar power systems, far more than the agency initially projected. Each megawatt can power about 350 homes.

If all those who have promised to install panels follow through with their plans, Ontario will have some of the biggest solar farms on the planet, and an important "green" industry will be kick-started in the province.

Still, the solar-power generation business is essentially starting from scratch. At year-end only an infinitesimal 0.3 MW of sun-generated energy was being sold to Ontario's power grid. The biggest completed project so far is a series of panels on the roof of the horse barn at the Canadian National Exhibition in Toronto.

Even if all the current projects come to completion there will be far less solar power generated in the province than wind power. And Ontario won't even come close to the world's biggest solar player - Germany - which has more than 3,000 MW of solar power projects already in place.

The spate of solar contracts in Ontario is a result of efforts to boost the industry by paying a steep premium for power generated by the sun.

The deals fall under Ontario's "standard offer" program - the only one of its kind in Canada - which guarantees a set price over 20 years for alternative energy the province buys.

Ontario pays 42 cents a kilowatt-hour for solar-generated electricity, roughly seven times the price for conventional power, and almost four times what it pays for electricity generated by wind or biomass projects

The response to the offer has been "pleasing," said Ontario Power Authority spokesman Tim Taylor, especially since the OPA initially projected that only 40 MW of solar power would be in place in the coming 20 years.

However, Mr. Taylor noted that the contracts are just that - contracts - and they may not all come to fruition. If a project has not been built within three years of a contract being signed, the deal is dead.

Many contracts have been signed with individuals and community groups who plan to sell the province small amounts of power from tiny rooftop installations. But the vast majority of the solar power on the drawing board comes from three large developers that are planning substantial ground-level solar farms.

The three key developers are:

OptiSolar Farms Canada Inc., which has signed contracts to build 150 MW worth of solar farms in Southwestern Ontario, and has plans to add about 50 MW more to its portfolio. The company, a subsidiary of California-based OptiSolar Inc., plans to break ground this spring on its first 20 MW project on about 500 acres of land just outside Sarnia.

Pod Generating Group of Sault Ste. Marie, is planning to install 60 MW of solar panels near Sault Ste. Marie in Northern Ontario, an investment worth about $360-million. The company was founded by aerospace engineer Glen Martin, who once worked on building the power modules for the International Space Station. Pod also hopes to begin building this year.

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