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Ontario's energy regulator has granted the province's largest utility more time to deal with a backlog of solar-power proposals despite concerns from the fledgling industry that further delays could threaten green jobs and cripple investments.

In a ruling issued on Tuesday, the Ontario Energy Board agreed to give Hydro One a limited six-month exemption from meeting deadlines for assessing and connecting some small renewable-energy projects.

But the provincially owned utility faces numerous conditions, including monthly monitoring and an order to develop a comprehensive plan for dealing with the steady surge of solar applications. Hydro One declined to comment until it has reviewed the ruling.

The energy regulator's decision stems from a two-day hearing in August that pitted the utility giant against the province's young solar sector. The industry was born two years ago from the Liberal government's desire to turn Ontario into a green-energy leader.

Solar and wind power producers have been guaranteed long-term, above-market payments for their energy. However, bureaucratic delays and grid-connection obstacles have stalled thousands of projects.

The Liberals, which won a minority government in last week's election, will have to address these challenges as it also faces stronger opposition in the legislature. The Conservatives say green-power incentives are too costly and should be scrapped.

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