What is Community Power?
Community Power refers to community-owned renewable energy projects developed and controlled, in part or in full, by local residents.
The growth of the Community Power sector across Ontario, and the opportunity for residents to develop and own green energy infrastructure, represents a fundamental shift away from the conventional energy system characterized by centralized planning, polluting supply resources and corporate ownership.
Key characteristics of community power include:
- Ownership by residents of Ontario
- Open and accessible investment options
- Priority ownership for local landowners
- Democratic governance
- Community economic development in the form of local jobs and investment
Community Power Defined Under Ontario’s Feed-in-Tariff Policy
Community Power Defined Under FIT 1.0 (October 2009-October 2011)
Ontario’s initial feed-in-tariff program, FIT 1.0, defined community in very broad terms: E ssentially, any individual or corporate entity, whose primary business is not electricity generation, are considered community power. Under FIT 1.0 community power proponents could apply for grants from the Community Energy Partnerships Program and a feed-in-tariff contract price adder (a premium on top of the FIT rate proportionate to the amount of community ownership in the project).
Community Power Defined Under FIT 2.1 (August 2012 – August 2013)
Ontario’s second generation feed-in-tariff, FIT 2.1, defines community in more narrow terms: Only co-operative corporations with a direct equity interest in the project (minimum is 15%), with at least 35 local landowners who are co-op members and investors in the project are considered community power proponents. Under FIT 2.1 these community power projects can apply for grants from the Community Energy Partnerships Program and a Feed-In Tariff contract price adder (a premium on top of the FIT rate proportionate to the amount of community ownership in the project). Co-operatives with >50% equity interest in a project also qualify for the new Community Contract Capacity Set-Aside which gives them priority in the queue for awarding FIT contracts.
Community Power Co-operatives
A co-operative corporation (co-op) is incorporated in Ontario under the
Co-operative Corporations Act
.
A co-op is a democratic organization owned and controlled by its members for their mutual benefit. Given the complexity and high upfront costs of renewable energy generation facilities, co-ops are an ideal model for individuals and groups to jointly develop, own and control them in their communities.
Co-operatives, which can be for-profit or not-for-profit, embody seven key principles:
- Voluntary and Open Membership
- Democratic Member Control
- Member Economic Participation
- Autonomy and Independence
- Education, Training and Information
- Cooperation among Co-operatives
- Concern for Community
For-profit co-ops raise funds for renewable energy projects through the issuance of community offerings in the form of shares .
Not-for-profit co-ops raise money principally through the sale of bonds .
Resources:
- International Co‑operative Alliance
- Canadian Co‑operative Association
- Ontario Co‑operative Association