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Ontario
In 2007, the Company began seeking solar energy projects in Ontario, Canada. Under the Ontario Power Authority's Standard Offer Program, renewable energy projects that are 10 MW or less can interconnect with the local distribution system, provided there is sufficient distribution capacity. Such eligible projects are then paid a standard price of $443 per MWh, often known as a "feed-in" tariff.
On May 26, 2010 the Company executed an option to lease agreement in Huntley, Ontario, for 72 acres for the potential development of a 10MW solar energy facility. Under this agreement, the Company paid a deposit of $1,000 and will pay a further $10,000 when the Company is awarded a feed-in tariff contract and another $10,000 when all permits and required financing are obtained. The option to lease expires on May 26, 2012.
On August 3, 2010 the Company filed one feed-in tariff ("FIT") application with the Ontario Power Authority ("OPA") in relation to the aforementioned option to lease agreement, and deposited a refundable $200,000 financial security deposit in accordance with the FIT application requirements. The OPA will review our application based on various issues including transmission availability, zoning, and the feasibility of the various third party applications they receive. The Company has received confirmation from OPA indicating receipt of the application and that the application is currently being reviewed. Due to the large volume of applications received by the OPA, the Company asserts that this has likely lead to delays in the review process but is uncertain as to the exact reason for the delay. The Company will continue to dialogue with the OPA regarding the probability of obtaining a FIT contact.
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