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Category:  Wind - Contract Pricing
Subject:  Capacity Factor Wind
ID:  10474
Date:  5/25/2009
Question:  The average Capacity Factor for wind of 29.9% is an average of the "elite" wind projects in Ontario. It will be a natural tendency for the Capacity Factor to drop as the projects that are considered "low hanging fruit" get developed. The long term capacity factor range for Ontario will be between 25% and 27%. Can the FIT pricing address the Capacity factors in a 5 - 10 year outlook going forward as apposed basing Capacity factors of 2 years ago?
Answer:  Thank you for your comment. By setting an aggressive capacity factor, and building the capacity factor into the model, the OPA is ensuring that the most efficient projects are able to proceed given the limited transmission and distribution system capacity.

When the OPA reviews the FIT program and price review post launch, we will reconsider the capacity factor.

We welcome further comments on this topic through the online submission tool.

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