March 31, 2023
Ontario has launched a clean energy credit (CEC) registry and is establishing the Future Clean Electricity Fund (FCEF), which will help keep costs down for ratepayers by supporting the future development of new clean energy projects in Ontario.
Clean Energy Credit Registry
The CEC registry is an online tool that allows for the recognition, display of certification, and tracking (including transfers and retirements) of CECs generated in Ontario. Eligible Ontario-based non-fossil fuel generation facilities can be registered online and the generation from the facilities verified and tracked. Registered customers can search for CECs that meet their needs. The registry allows for transfers and retirements of an individual CEC so that it cannot be claimed by any other party.
The CEC registry will allow Ontario businesses to meet these goals by purchasing any combination of clean energy credits from nuclear, wind, solar, hydro and bioenergy, generation in Ontario.
Ontario Power Generation (OPG) will begin offering its CECs for sale immediately. The Independent Electricity System Operator (IESO) expects to begin selling IESO-held CECs in the summer of 2023.
Businesses in the province can voluntarily purchase and retire CECs to meet their corporate environmental and sustainability goals and demonstrate that their electricity has been sourced from a non-fossil fuel resource. Financial arrangements regarding the purchase of CECs are made outside of the registry between the seller and purchaser.
In January 2022, the government asked the IESO to report back with detailed design options and recommendations, as well as potential benefits and projected costs of building and operating a CEC registry. In November 2022, the government asked the IESO to commence the commercial work required to launch the CEC registry, develop rules for the sale of CECs, and administer the registry.
Future Clean Electricity Fund
Proceeds from the sale of CECs held by the IESO and OPG will be directed to the government’s newly established Future Clean Electricity Fund. The government will request the IESO to report back on the proposed design for the FCEF, including how revenue will be directed to new clean energy projects.
For more information on the CEC registry, visit the IESO’s CEC registry website.