Starting January 1 2021, Ontario will be funding ~85% of wind, solar, and bioenergy contracts saving medium and larger industrial and commercial businesses ~14-16% on their electricity bills.
Businesses can expect to see savings in their Global Adjustment (GA) and Transmission costs illustrated in the example below:
How this could affect you
By taking on a portion of the cost of GA, energy intensive businesses that traditionally could not take advantage of the Industrial Conservative Initiative (ICI) will see even more savings.
By investing $1.3 billion into existing renewable energy contracts, the province hopes for this to make their electricity prices more competitive, attracting more businesses. These contracts will start expiring in 2026 with the last one ending in 2040, reducing the cost shifted to them over time.