Presentation to Minister Bob Chiarelli

April 2, 2013

The Ottawa Renewable Energy Co-operative (OREC) was one of the first to be incorporated in Ontario under the Co-operative Corporations Act and is an active participant in the Ontario Feed-in Tariff Program under the Green Energy Act. We have 150 members and growing. During our first shareholder offering in 2012, we raised nearly $1 million in capital from our members in under three months. We are investing this capital locally in solar power systems, three of which are already feeding power into the grid and producing revenue for the Co-ops members. We have also submitted four new projects under the FIT 2.1 program for projects under 500 kW, which will be financed by our member-investors through our second series of preference shares to be offered this summer. OREC has strongly supported the FIT Program since its inception, raising community capital in Ottawa for community owned power systems. We are proud to be part of Ontarios new clean energy economy in which $27 million of community, First Nations and private sector capital has been invested, creating over 4000 new jobs across the Province. We would like to propose that the Ontario Government remove the constraints that are preventing renewable energy co-ops and the renewable energy from building on the successes achieved to date by: 1. Keeping the FIT program window open continuously for smaller projects and projects owned by community organizations, municipalities, and First Nations; 2. Raising the Provincial Targets for Renewable Power, aiming for a target such as 20,000 MW of installed capacity by 2020 with 25% generation from new renewable sources by the same date; 3. Amending the Co-operative Corporations Act so that community-based renewable energy co-ops can sell renewable power directly to members and raise social capital to invest in energy efficiency and renewable gas projects.

1. Continuation of the FIT Program

It is crucial that we not lose the momentum that has built a renewable energy industry in Ontario, created much-needed jobs in Ottawa and across the province, and encouraged community ownership and support of renewable power sources by co-ops like OREC, among others. While new to Ontario, raising community capital through renewable energy co-operatives has been successful in Europe. Unfortunately, the stop/start nature of Ontarios FIT Program has been disruptive and creates a lot of uncertainty for community investors and the industry. We recommend that the FIT Program be re-started as a continuously open program for small projects and projects owned by community organizations, municipalities, and First Nations. 1 of 3

2. Raising the Targets for Renewable Power

Due to the overwhelming success of the FIT Program, the current provincial targets set by Ministerial Directive in 2011 to have 10,700 MW of new renewable power in place by 2018, and produce 10-15% of the provinces power from these sources, will be met 5 years ahead of schedule. If these targets are not raised significantly when the Ontario Long Range Energy Plan is reviewed later in 2013 the Ontario Power Authority will cap renewable power at its current levels. This would not only be a tremendous lost opportunity, but would have detrimental effects on Ontarios new clean energy economy through eliminating newly created jobs and destabilizing the nascent community power sector, potentially reversing many of the programs benefits to date. There are no technical reasons that prevent these targets being raised given that Ontario has fully embraced the transition to a Smart Grid. We recommend a new target of 20,000 MW capacity installed and 25% of power generated from new renewable sources by 2020. Ontario Renewable Energy (RE) Targets Reached 5 Years Ahead of Schedule
% of Total kWh Generated From All Sources

MW of RE Installed

2009

Commercial Operation Ministerial Directive (2018 Target) Commercial Operation

1,600

2.5%

2011

10,700

10-15%

4200 13%

2012

Contracted under development

5,000 9,200 825

TOTAL 2013 FIT 2.1 Submissions TOTAL

14% 10,025

3. Expanding the Role of Community Ownership

The attached charts show how energy co-ops in Germany have driven the energy transition there. But renewable energy co-ops can do more. ORECs success to date illustrates the huge potential that exists for raising social capital for investment in clean community energy sources. But we are limited under the Co-operative Corporations Act to the generation and sale of electricity to the grid. We would like to see the Co-operative Corporations Act amended so that renewable energy co-ops can sell renewable power directly to our members, but also be able to invest in renewable sources of gas and energy efficiency projects. Financing both energy efficiency and clean energy with local capital could be a game changer and help Ontario achieve the higher levels of clean energy and efficiency promised in the recent Throne Speech. For further information, please contact: Roger Peters, President 613.748.3001 x. 240 info@ottawarenewableenergycoop.ca Janice Ashworth, Operations Manager 613.748.3001 x. 240 janice.ashworth@ottawarenewableenergycoop.ca 2 of 3

3 of 3