The renewable energy industry is praising Ontario's ambitious new initiative to develop alternative sources of generation.

Some voices in the industry, however, also warn that more needs to be done to build public support, especially as power prices inevitably rise.

Some say Ontario could become a continental leader in renewable energy technology development. (City of Toronto)

"We are at the forefront, not just in North America, but in the entire continent of the Americas," Jose Etcheverry, president of the Canadian Renewable Energy Alliance, told CBC News. The alliance represents renewable energy businesses, environmental organizations and other non-profit societies.

"There is not a single program that is comparable to what we have in Ontario right now, anywhere from Patagonia all the way to Alaska," he said.

Ontario brought in its Feed-in Tariff (FIT) program in October 2009. The province will offer subsidized rates for 20 years to projects generating electricity from solar, wind, microhydroelectric facilities and biomass sources.

The initiative is part of a bigger plan to shut down Ontario's coal-fired generation by 2014 and expand its transmission system.

The Ontario government wants to foster renewable energy equipment manufacturing. (Schletter Inc.)

Jon Arnold, a consultant who advises companies focused on the sector, told CBC News Ontario is well ahead of what many American utilities are doing in renewable energy.

"I think this is a really great opportunity for Ontario to take a leadership role," he said.

"Ontario in particular (among the provinces) because of its population size — it's comparable to a lot of mid-size and larger American states — so the critical mass is here to demonstrate the economics of renewable energy."

The province announced on April 8 that 184 projects have been approved (see table) and that eventually as many as 694 could be given the go-ahead, ultimately producing up to 9,625 megawatts and — it says — creating 20,000 jobs.

There's also a made-in-Ontario requirement for the equipment that companies will use to produce that power, an attempt to rebuild the province's manufacturing sector, which has been hard hit by the contraction in the auto industry and by competition from low-cost overseas rivals.

No other province is making as big a commitment to changing its power system so radically.

"This is a truly, truly, revolutionary program," said Etcheverry. "It has taken all the lessons that were learned in other leading countries like Germany, Spain and Denmark."

But the changes also create a minefield of possible threats to public support for the program.

The government has removed the option of municipalities and townships to object to projects. Wind farms, for example, generate not only power but also controversy over bird kills and noise.

Taxpayers will be on the hook for the $8 billion the province will use to subsidize producers. And then there's the bill for upgrading to the transmission system.

Prices will rise

That will mean high prices for power. The government has already warned that each household will pay $300 more per year.

"The government's already making us aware that prices are going up and will continue to go up," said Arnold. "We've had a free ride. Subsidized energy doesn't reflect the real cost of producing it, and we're getting to the point now where the government is trying to catch up on that."

Ontario's move to renewables will increase the price of power, cutting into the lower energy costs that have historically given Ontario companies a competitive advantage over their U.S. competitors. (CBC)

Arnold worries that those higher costs will also eat into the historic competitive advantage Ontario companies have enjoyed over their U.S. rivals in the form of lower energy costs.

And, he said, public support may also be undermined if the strong Canadian dollar cuts into the export opportunities for renewable energy manufacturers and much of the promised job creation doesn't materialize.

That's one reason why Etcheverry has been telling renewable energy producers across the province to invest in their communities and to budget that as a regular cost of doing business. And goes beyond job creation.

Depending on the size of the project, he said, that spending could range from buying books for the local library or providing renewable energy job training in the local school system, to opening up wind turbines to educational tours and visits by tourists.

"What I encourage renewable energy developers to do is to think a little bit more broadly," said Etcheverry. "Once you're able to have tangible local benefits, support will only increase."

Failure to build public support could derail the FIT program, Etcheverry said, and destroy the opportunity for Ontario to become a continental leader in alternative energy.

Denmark took 20 years to develop 3,200 megawatts of wind generation, he said, and the FIT program could more than double that in much less time.

"I think it's safe to say, (that) we've shown everybody on the continent what can be done if you are serious about climate protection, energy security, reducing air pollution, and creating the industries that will power the 21st century," he said.