To boost renewable energy production by small developers, the Ontario Minister of Energy plans to set standard prices for the Ontario Power Authority's purchases of renewable energy from smaller generators. According to the plan, the provincially-owned Power Authority would purchase the electric generation of eligible wind, biomass or small hydropower generators at a base price of Canadian $0.11/kWh. A higher price, Canadian $ 0.42/kWh, would apply to electricity from solar power. The program is expected to be implemented in the fall of 2006.
Promoting power generation from renewable and clean sources in an efficient fashion has proven a vexatious issue for governments in many countries. North American and European governments have resorted to tax incentives, various kinds of subsidies, renewable portfolio standards (requiring utilities to procure a certain amount of renewable energy), feed-in tariffs (requiring utilities to pay producers set rates for renewable energy), voluntary retail green power programs, and end-use purchases by government entities. In the