Category Archives: Solar Policy

The Canadian Innovation Commercialization Program – and intelligent blends of public-private investment to cross the ‘Valley of Death’

Last Friday, we were thrilled to be selected as 1 of 5 pre-qualified innovations in Toronto that the Federal Government may buy and test via its Canadian Innovation Commercialization Program.  In total, 36 innovations qualified across Canada, in what is the program’s second round. The full press release is available here.

As an added bonus, Public Works and Government Services Canada, who administer the CICP program, organized an event at 30 Ordnance to announce the  Toronto innovations. We had the great honour of hosting the Honourable Ed Fast, Minister of International Trade and Minister of the Asia-Pacific Gateway, as well as his PWGSC colleagues, representatives from the Ontario Ministry of Economic Development and Innovation (MEDI), and other companies who either were selected for the program, or who are interested in applying for the next round.

Here are some photos I took from the morning, starting with John Paul explaining the Sun Simba™  technology to Minister Fast, as his father Eric Morgan (left), also the Strategic Advisor to our Board, and Manny Agiropoulos from PWGSC, look on.

Canadian Innovation Commercialization Program Media Event

John Paul Morgan, CTO of Morgan Solar, explains the Sun Simba™ technology to Minister Fast.

CICP Media Event - the Honourable Ed Fast's Speech

Minister Fast announces the Toronto-based innovations that qualified for the CICP Program, and speaks of the importance of innovation to the Canadian economy. Nic Morgan spoke after on the value of Canada's R&D support to companies like Morgan Solar.

Mantech, Morgan Solar, and Minister Fast announcing CICP pre-qualified companies
From left to right: Robert Menegotto, President of Mantech Inc.; the Honourable Ed Fast, Minister of International Trade and Minister for the Asia-Pacific Gateway; Nicolas Morgan, VP Biz Dev of Morgan Solar; John Paul Morgan; CTO of Morgan Solar; and Manny Agiropoulos, Chief of SME Stakeholder Engagement at Public Works and Government Services Canada. 

My initial impression from mentioning CICP to others in the industry is that it’s a little lesser known than other Federal and Provincial commercialization programs, perhaps because it’s relatively new. It fills a much-needed gap though, which is the space between the R&D support programs that have a hard stop at your first sale – e.g. Ontario’s Innovation Demonstration Fund and the Federal Sustainable Development Technology Fund Canada – and the incentives that governments offer more established companies to locate R&D and/ or manufacturing, and their associated jobs, in a given place – e.g. Ontario’s Strategic Jobs and Investment Fund.

That’s why programs like CICP, which encourage early adopters to purchase a new technology for demonstration, are so valuable. They represent  “intelligent blends of public and private investment”, as a 2005 Forbes article on new technology commercialization put it, that help start-ups traverse that affectionately called ‘Valley of Death’ – the gulf between R&D completion stage, and successful commercialization.

Ontario’s Feed-in Tariff 2011 Program Review

It’s been a WHILE since posting and for that I apologize. There’s been a lot of cool (and time-consuming) stuff going on here. Like this, and this. We’re also in the process of setting up our largest internal test site to date, in Southern California. Info to be posted once it’s available.

What I wanted to talk about: today’s the last day that the OPA is accepting feedback on its Feed-in Tariff Program, and even though it’s late in the game, I thought I’d share one of our recommendations.

It’s definitely not the most pressing program change that’s needed. Sitting in on CanSIA’s Small, Large, and Manufacturer Working Groups, I can appreciate that  it probably doesn’t even fit on the top 30 of the pressing issues that the Program Review is set up to address. Even for us, a Domestic Content grid for CPV is something we want to see posted before this.

But, if you’re thinking long term, and for policies that could work beyond the Ontario border, here’s a modest suggestion:

Disclaimer: all credit for this idea comes from Glen Schrader, of Bright Ray Solar, our distributor in Ontario. Glen’s a smart guy, and he’s based in Guelph – being removed from the everyday-running-around that happens at 30 Ordnance probably also helps to see the big picture.

Recommendation: Allocate a portion of FIT contracts for new, innovative renewable technologies.

  1. Along with timely decisions on Domestic Content rules, allocating a portion of FIT contracts for new technologies lowers the barriers to entry that exist for them. Local markets are easiest to develop and new technology companies can use them to establish credibility.
  2. There is considerable value to new technology companies locating in the province, including IP, high-tech jobs, and the potential for export. New technologies should in principle also offer increased efficiencies, lower costs, higher peak-use generation, or added capabilities such as energy storage.
  3. These new technologies don’t necessarily have to be invented here, but they should be primarily developed here – and this itself could attract companies to start up here (like us, who chose to locate here for a number of different reasons).
  4. A carve-out for new technologies ensures that grid capacity will exist for these technologies, which take more time to reach high market penetration.
  5. Other incentives could also be considered to encourage project developers and/ or customers to deploy new technologies. The Province may be best suited to determine the correct policy response, but these could include rate adders (for generation whose key feature is not lower costs, i.e. energy storage, peak-use generation), or accelerated approvals.

Ontario will find it tough (not saying  impossible) to compete with China on the cost of manufacturing traditional silicon solar panels. Policymakers already realize the need to play to the province’s strength for innovation – be it in efficiencies, costs, energy storage or time of day generation. In the way it was set up, the FIT program essentially guaranteed rates for generation projects using technology developed in 2009 – what we need is rates, and other policies, for 2015 technology.

As always, your thoughts welcome.