Renewable energy on Crown land

Renewable energy developments on Crown land (also known as public land) need to be consistent with provincial energy plans, programs and goals.

You may also be granted access to Crown land for a renewable energy project if it supports:

  • provincial economic development priorities
  • off-grid Aboriginal commuity use
  • small-scale use for local resource management

In 2014, the ministry approved the Renewable Energy on Crown Land policy. It provides direction on where and how the ministry grants access for these projects.

If you are planning an activity on Crown land for waterpower or windpower pre-development, email MNRFrenewableenergysupport@ontario.ca to:

  • discuss your activity details
  • determine if there are permitting requirements

How to propose a grid-connected renewable energy project

The Crown land site access process for renewable energy projects is aligned with the Ontario Independent Electricity System Operator’s (IESO) energy procurement programs. The IESO’s procurement process determines which projects will be offered a contract to sell electricity onto the transmission grid.

Project specific renewable energy approval and permit requirements will need to be met. These requirements do not apply to a waterpower facility. These projects are subject to the Class Environmental Assessment for Waterpower Projects and other ministry permits and approvals.

If your renewable energy project is granted permits and approvals to conduct pre-development investigations, this does not guarantee:

  • regulatory approvals to develop the proposed project
  • any future occupational authority required for the project

You need to be familiar with the regulatory, approval, permitting and survey requirements (and applicable fees and rent) associated with your application, authorization and occupational authority.

Windpower projects

Windpower land use authorization

Once applicants complete the necessary requirements, we will issue or enter into the appropriate permits, instruments or agreements, referred to in Table 1: activity types, corresponding authorizations and related fees and rents. Permits or occupational authority documents issued, and associated fees, will comply with the appropriate ministry directives.

Occupational authority documents, such as easements for transmission lines associated with the lease letters patent for wind turbines, will run concurrent with (last as long as) the term of the lease letters patent.

Windpower survey requirements

We may direct the following survey options where:

  • there are large distances between the turbines: individual turbine locations may be surveyed as separate parts on the survey plan for inclusion in the lease
  • the turbines occupy a small area and/or are located in close proximity to each other: these areas may be surveyed as one part on the survey plan for inclusion in the lease
  • there are clusters of turbines occupying small areas and/or they are located in close proximity to each other: these areas may be surveyed as separate parts for inclusion in the lease

Survey instructions

Survey instructions should consider public safety and/or potential encroachment onto adjacent lands. The areas surveyed should not be larger than needed to meet these needs.

For example an area under occupational authority should ensure that if a turbine were to collapse, no part of the turbine, including the blades, would encroach onto adjacent lands. The ministry district office will consult with the Office of the Surveyor General before issuing survey instructions.

Easements required for electrical collector lines between the turbines must be surveyed as separate parts on the survey plan.

Applicants must get an approved Crown land survey consistent with PL 2.06.01 Survey Plan Approval and the Instructions Governing Ontario Crown Land Surveys and Plans (November 2020).

Applicants are responsible for:

  • the procurement and costs of a survey
  • Crown land plan preparation and registration by an Ontario Land Surveyor

The ministry district office must issue survey instructions before any surveying of Crown land.

Windpower fees and rents

In addition to fees and rents established in our Crown land management policies, there are several rents and fees associated with windpower testing and windpower development.

Section 3.1 of the PL 6.01.02 Crown Land Rental Policy states that the policy does not apply to energy generation agreements. However, some fees and rents in Table 1 on this page mirror the fees and rents set out in the policy.

Windpower activities, authorizations, fees and rents

All fees and rents are subject to tax, if applicable.

Definition of windpower fees and rents

Base land rent

A base land rent will be applied to the area under the land use permit (if applicable) and under the subsequent lease letters patent.

This rent is payable annually at the beginning of the calendar year. It will be replaced by both the wind land rental charge and administrative land rent once the wind power project is operational.

Wind land rental charge

An annual rental charge applies on operational wind farms. It is paid in quarterly instalments, based on the total installed kilowatt capacity (the manufacturer’s rated power capacity) of all turbines in the project.

Find the calculation for the wind land rental charge under Chart 1

The wind land rental charge does not apply to off-grid communities.

Administrative land rent

Once the wind power project is operational, an annual administrative land rent for the Crown land occupied to facilitate the generation of windpower will apply. The rent that will replace the base land rent is in addition to the wind land rental charge.

Administrative land rent does not apply to off-grid communities.

Table 1 — Activity types, corresponding authorizations and related fees and rents

Activity and improvement typeAuthorization or Public Lands Act (PLA) authorityDetailsAnnual rents, fees and one-time fees associated with issuing authorizations
Construction activities associated with windpower testing facilities or a windpower development projectWork permit (O. Reg. 239/13: Activities on public lands and shore lands – Work permits and exemptions made under the PLA)
  • For those construction activities that are prescribed in the O. Reg. 239/13: Activities on public lands and shore lands – Work permits and exemptions, including road.
  • Detailed sketch required.
  • Work permits are not a land use occupational authority. They do not authorize the occupation of Crown land but authorize the construction activities as described above.
Not applicable
Construction activities associated with windpower testing facilities or a windpower development projectLetters of authority –(Subsection 27(1) of PLA)
  • For those construction activities that are not prescribed in the O. Reg. 239/13: Activities on public lands and shore lands – Work permits and exemptions.
  • Detailed sketch is required.
  • In this scenario, letters of authority are not a land use occupational authority. They do not authorize the occupation of Crown land but authorize the construction activities as described above.
Not applicable
Testing equipment (such as a meteorological testing tower)Land use permit (O. Reg. 973 made under the PLA)For the footprint of the meteorological testing towerInitial (one-time) fee based on then public land administrative fee schedule and annual fees based on Policy PL 6.01.02 Crown Land Rental Policy
Wind turbinesLand use permit (O. Reg. 973 made under the PLA)
  • During construction, at the request of the applicant, as interim authority to occupy Crown land where the survey requirements for a lease have not yet been completed.
  • Detailed sketch is required.
  • The term will generally be for 2 years or less.
Initial (one-time) based on the public land administrative fee schedule and base land rent based on zonal values
Wind turbinesLand use permit (O. Reg. 973 made under the PLA)
  • During operation (for off-grid community projects only).
  • Detailed sketch is required.
  • 10 year term. Will be re-issued for the life of the project.
Initial (one-time) based on the public land administrative fee schedule and base land rent based on zonal values
Wind turbinesLease letters patent (section 16 of the PLA)
  • During development or construction phase if survey requirements have been completed and during operation phase (except for off- grid community projects).
  • Crown Land plan of survey (reference plan) required as prerequisite.
  • 25 year term with extension option for an additional 15 years.
  • Lease will be registered on title.
  • Initial (one-time) fee based on the public land administrative fee schedule
  • If issued during development or construction, annual base land rent, based on zonal values
  • Once the facility is operational, the base land rent is replaced by an annual administrative land rent of $1,000, and wind land rental charge, paid quarterly (Refer to Chart 1 — Calculation of the wind land rental)
Electrical distribution and/or transmission linesLand use permit (LUP) (O. Reg. 973 made under the PLA)
  • Detailed sketch required.
  • 10 year term. Will be re-issued for life of project.
  • If, at the request of the proponent, an easement is required instead of a LUP and the survey requirements for the easement are not yet completed, a LUP will be issued as interim authority for a term of 2 years or less.
Electrical distribution and/or transmission linesGrant of easement (Section 21 of PLA)
  • If, at the request of the proponent and if acceptable to the ministry, an easement may be issued instead of a LUP.
  • Crown plan of survey (reference plan) required as prerequisite.
  • The term will be coterminous with the lease.
  • Easement will be registered on title.
RoadsRoad use management strategy and agreement (Crown land roads manual)
  • Provides a clear outline of how roads will be used, their life expectancy and specifies the responsibility for maintenance and ultimate closure.
  • Detailed sketch required.
  • Required for the life of the project.
Not applicable
RoadsLand use permit (O. Reg. 973 made under the PLA)
  • Occupational authority that grants exclusive use of roads on Crown land is generally not granted.
  • However, where the ministry directs that the road is to be available only for the exclusive use of the proponent, a lease could be issued.
  • Detailed sketch required.
Initial (one-time) and annual fee based on the public land administrative fee schedule
RoadsGrant of easement (Section 21 of PLA)
  • A long term authority, where the developer has requested registered occupational authority for the road, where the Crown desires the lands to be available for other uses and where it is compatible with ministry resource management objectives.
  • Easement will be registered on title.
  • Crown plan of survey (reference plan) required.
  • The term will be coterminous with the lease.
Initial (one-time) fee based on the public-land administrative fee schedule and annual rent based on Policy PL 4.11.04 Easements (Grants of) Policy
Transformer stationLetters patent (Section 16 of PLA)
  • Grants fee simple interest in land.
  • Crown plan of survey (reference plan) required as a prerequisite.
  • Patent will be registered on title.
Market value as per Policy PL 6.01.01 Public land sale price policy
Transformer stationLease letters patent (Section 16 of PLA)
  • At the discretion of the ministry, may be included in the lease issued for the wind turbines instead of issuance of fee simple letters patent.
  • Crown plan of survey (reference plan) required.
Refer to the fees and rents associated with the lease

Other administrative fees-related transactions such as consent to transfer, assign, renew or extend, mortgage are based on Policy PL 6.02.01 Administrative Fees for Public Lands Transactions Policy.

Calculation of the base land rent for the occupational authority period, based on the total number of hectares authorized

Base land rent for the area occupied by wind turbines = land value (land locked zonal rate per hectare) × area × 100% (impact on fee simple) × 10% rate of return + CPI

Chart 1 – Windpower zonal values

ZoneLand values
Northwest Zone$454 per hectare ($184 per acre)
Northeast Zone$294 per hectare ($119 per acre)
South Central Zone$1,030 per hectare ($417 per acre)
Southeast Zone$986 per hectare ($399 per acre)
Southwest Zone$8,798 per hectare ($3,562 per acre)

Note: The zonal values are subject to adjustment based on updated zonal value reports

Calculation of the wind land rental charge

Annual wind land rental charge = (total installed capacity in kilowatts × (8760 hours per year) × (30% capacity factor) × (3% rate of return) × (average price per kilowatt hour based on the price of electricity as detailed in the supply contract for the site).

Example for 1 megawatt (1,000 kW) of anticipated total installed capacity:

Annual wind land rental charge = (1,000 kW) × (8760 hours) × (0.30 capacity) × (0.03 rate of return) × ($0.09 per kWh) (example rate only — actual rate to be based on the price of electricity as set by the appropriate power purchase agreement at the time of lease issuance).

= $7095.60 per megawatt of total installed capacity annually.

Note: The wind land rental charge will not be applied as a portion of the rent for an off-grid community.

Wind zonal land value map — Southern Ontario

Zonal Land Value Map – Southern Ontario

Enlarge Zonal Land Value Map - Southern Ontario

Wind zonal land value map — Northwestern Ontario

Zonal Land Value Map – Northwestern Ontario

Enlarge Zonal Land Value Map- Northwestern Ontario

Wind zonal land value map — Northeastern Ontario

Zonal Land Value Map – Northeastern Ontario

Enlarge Zonal Land Value Map- Northeastern Ontario

Waterpower projects

Predevelopment activities for waterpower projects

Waterpower project proponents may need access to Crown land for early pre-development activities to collect information:

  • that can help assess potential waterpower development site feasibility
  • about resource potential, site constraints and other data affecting potential project viability to inform next steps and decisions about the site

We may authorize activities and occupation of Crown land for these purposes in ways that reflect the scale, complexity and potential impacts of the activities.

Proponents are responsible for securing all other necessary municipal, provincial or federal approvals.

Desktop studies do not require consultation with us or our approval.

Duty to consult Indigenous communities

We have a duty to consult Indigenous communities if the Crown:

  • has knowledge, real or constructive, of credibly asserted or established Aboriginal or treaty rights
  • is contemplating actions that have the potential to adversely impact those rights

We assess the duty to consult and the depth of consultation required on a case-by-case basis.

We encourage waterpower proponents to engage with local Indigenous communities early in the pre-development stage where activities are being considered.

Table 2 — Examples of pre-development activities for waterpower projects and authorizations required for access to Crown land

The following table shows:

  • examples of pre-development activities for waterpower projects
  • the types of authorizations that are normally required to access Crown land under our regulations

The table does not provide all waterpower pre-development activities that could occur on Crown land. We may also need to consider other activities for potential impacts.

Example of pre-development activityWork permit required under the Public Lands Act, 1990Occupational authority (such as a land use permit) required under the Public Lands Act, 1990Other authorizations or requirements under the Public Lands Act, 1990 or other laws administered by the ministry
Site visits - observational activitiesNot applicableNot applicableNot applicable
LiDAR (air based), aerial photographyNot applicableNot applicableNot applicable
Flagging (meaning use of flag tape) sites of interestNot applicableNot applicableNot applicable
Installation of trail cameras or acoustic monitorsNot applicableNot applicableConsent to deposit authorization under the Public Lands Act, 1990
Fish surveys (for example electrofishing, netting)Not applicableNot applicableLicence to collect fish for scientific purposes under the Fish and Wildlife Conservation Act, 1997
Installation of water flow and level gauges (may include tethering or anchoring but no dredging or filling)NoYes, if there is occupation of public landIf dredging or filling is required, an approval under the Lakes and Rivers Improvement Act, 1990 may be required
Minor brush clearing (no merchantable trees)NoNoNot applicable
Overnight accommodation (including camping)NoYesCampsite clearing may require an authorization under the Crown Forest Sustainability Act, 1994, if trees are removed
Tree clearing (meaning merchantable trees)NoNoA forest resource licence or permit to remove Crown forest resources may be required under the Crown Forest Sustainability Act, 1994
Privy or similarly sized structureYesYesNot applicable
Trail, water crossing, road constructionYesYes, unless otherwise permitted. Read Ontario Regulation 161/17If a water crossing holds back, forwards, or diverts water, an approval under the Lakes and Rivers Improvement Act, 1990 may be required
Surveying including installation of survey postsNot applicableNot applicableThe ministry issues survey instructions prior to survey
Geotechnical drillingContact usContact usContact us

If your renewable energy project is granted permits and approvals as outlined above to conduct pre-development investigations, this does not guarantee regulatory approvals to develop the proposed project.

It also does not guarantee any future occupational authority required for the project.

You need to be familiar with the regulatory, approval, permitting and survey requirements (and applicable fees and rents) associated with your application, authorization and occupational authority.

New waterpower development – tenure

Tenure during construction

Sites with an energy capacity over 75kW

Sites on Crown land with an energy capacity of over 75kW will be authorized with a Crown lease during construction of the facility.

Once the Crown survey is complete, proponents can request a Crown lease to authorize the area that will encompass the footprint of the facility being constructed. Legal survey instructions are issued by the ministry district office.

A land use permit may be issued as interim tenure while survey requirements are being met.

For sites with an energy capacity over 75kW, a Crown lease will serve as an interim form of tenure. It will be replaced with a waterpower lease agreement once the facility is constructed. We developed a modified version of a Crown lease specifically for authorization of a waterpower site in these circumstances. Insurance and other financial sureties required during construction will be similar for both types of tenure documents.

Sites with an energy capacity of 75kW or less

For sites on Crown land with an energy capacity of 75kW or less, the site will be authorized with a land use permit during and after construction.

No survey is required.

Tenure for flooding

In general, Crown land required for flooding will be surveyed and authorized with an easement. Legal survey instructions are issued by the ministry district office.

If there is any flooding of private lands, appropriate documents demonstrating the proponent’s right to flood these lands must be provided to the ministry district office before an easement for the Crown land will be issued.

Other ancillary uses

Transmission lines, roads and land required for other approved uses will be authorized with the appropriate tenure or approval, such as a work permit or land use permit.

If the proponent requests it, an easement can generally be issued for transmission lines and roads. A Crown survey will be required. Legal survey instructions are issued by the ministry district office.

Tenure post construction — issuing a waterpower lease agreement

Once the facility is constructed, a waterpower lease agreement (WPLA) under the authority of Section 42 of the Public Lands Act, 1990 will be used to authorize the footprint of the facility occupying Crown land.

Waterpower survey requirements and forms

Once we decide to proceed with the necessary permits and approvals, the ministry district office will instruct proponents to submit an application for Crown land and a current corporate profile from the jurisdiction in which they were incorporated.

We will also provide survey instructions to the proponent.

Applicants will be required to obtain an approved Crown land survey in accordance with PL 2.06.01 Survey Plan Approval.

Waterpower lease agreement

The WPLA has a rolling term which can continue in perpetuity with ministry approval.

The WPLA is issued for an initial term that coincides with the applicants power purchase agreement, not to exceed a maximum term of 40 years.

For new (green-field) facilities, the initial term will be a minimum of 30 years or 20 years for an existing dam retrofit.

When no more than 10 years and no less than 48 months remain on the term, the lessee may apply for an extension of the term for a period of 10 years. This extension will be granted provided that:

  • all terms and conditions in the lease agreement have been complied with
  • the ministry has no objections or concerns after conducting a review of the current situation.

The leaseholder becomes eligible to request another 10 year extension when only 10 years remain on the term.

Waterpower fees and rents — taxes and charges on gross revenue and land rents

Gross revenue charge

The Electricity Act, 1998 sets out taxes and charges which owners of waterpower facilities must pay to the Ontario Government.

Each owner must pay a graduated property tax, calculated on each station’s gross revenue, derived from each station’s annual generation of electricity.

Each owner who is also the holder of a waterpower lease is also required to remit a water rental charge, which is calculated using the station’s gross revenue.

The taxes and charges together are known as the gross revenue charge (GRC). The GRC is remitted to the Ministry of Finance (MOF). Owners of waterpower facilities must register with MOF to report and remit the GRC.

Read Gross revenue charges for hydroelectric generating stations for more information about:

  • GRC tax rates
  • filing returns
  • paying the tax

Gross revenue charge deduction

The Electricity Act, 1998 sets out taxes and charges which owners of waterpower facilities are liable to pay to the Ontario Government.

Each owner shall pay a graduated property tax, calculated on each station’s gross revenue, derived from each station’s annual generation of electricity. Each owner who also is the holder of a waterpower lease is also required to remit a water rental charge, which is calculated using the station’s gross revenue. The taxes and charges, which together are referred to as the Gross Revenue Charge (GRC), are remitted to the Ministry of Finance (MOF). From the date the operation commences, owners of waterpower facilities shall register with MOF for the purposes of reporting and remitting GRC.

For more information regarding GRC tax rates, filing return and paying the tax, please visit Gross revenue charges for hydroelectric generating stations.

As a financial incentive to encourage the construction of new waterpower facilities and to modify existing stations, the Act permits deductions to be made in determining the gross revenues of a waterpower facility based upon eligible capacity, for 120 months from the date when the eligible capacity came into service.

  • Reg. 124/02 (Taxes and Charges on Hydro-electric Generating Stations) specifies that for a new or redeveloped station, all of a waterpower facility’s annual electricity generation is eligible for the tax and charges deduction. For an upgrade, the electricity generated by the facility attributable to the upgrade, is eligible for deduction. To be eligible, the upgrade must be projected to increase the average annual electricity generated by the station by at least 2%.

Persons proposing to develop waterpower facilities, or to redevelop or upgrade existing facilities, may apply to the ministry to obtain an “interim determination” of eligible capacity, as a basis for assessing the level of relief the project would provide from liability to pay the GRC. Once a project is constructed, is in service and has registered with the MOF as noted above, owners may apply to the ministry to obtain a final determination (Section 7 Statement) – a statement issued by the ministry which determines the project capacity eligible for relief from the liability to pay the GRC. This statement must be provided to the MOF to commence permitted deductions to the calculation of the waterpower facility’s gross revenues.

For more information on how to apply for the GRC deduction for new, redeveloped and upgraded waterpower facilities, read Procedure WR 3.02.01 New, redeveloped and upgraded hydro-electric generating stationsMinistry of Natural Resources statements issued for the purpose of claiming deductions to the Gross Revenue Charge under the Electricity Act, 1998.

Land rent

The holder of a waterpower lease agreement and other occupational authority documents (such as easements for flooding, land use permits for roads and transmission lines) is required to pay land rent. This is set out in the Public Lands Act, 1990.

For a full list of fees and rents for waterpower projects, read Table 3 — Waterpower fees and rents.

Table 3 waterpower fees and rents

Occupational authority type<75kwMinistry water control structures - construction phaseGreenfield – construction phaseFacility footprint (include water control structure, parking and buildings in close proximity)Building, not in close proximity to facility footprintFlooding 
Land use permitCrown Land Rental Policy - Table B
  • Short-term while survey being completed if necessary
  • $1,000/annually
  • Short-term while survey being completed if necessary
  • $1,000/annually
Not applicableCrown Land Rental PolicyNot applicable 
Crown lease $1,000/annually$1,000/annuallyNot applicableCrown Land Rental PolicyNot applicable 
Easement Not applicableNot applicableNot applicableRoads (Crown Land Rental Policy) Transmission Lines (annual rent based on Utility Corridor on public land Policy PL 4.10.03)
  • *Flooding formula to a maximum of $1,000 for the first 1.000 .1
  • Apply same formula for each succeeding 1,000 ha.
 
Existing WPLA or LO Not applicableNot applicable
  • Land rent according to document provisions
  • Water rental charge of 9.5% of gross revenue paid to Minister of Finance. (Electricity Act, 1998 reg.)
Not applicable*Flooding formula – no max.1 
New WPLA Not applicableNot applicable
  • $1,000/ annually
  • water rental charge of 9.5% of gross revenue paid to Minister of Finance (Electricity Act, 1998 reg.)
Not applicableNot applicable 

All fees and rents are subject to change without notice.

Chart 2 — Waterpower zonal values

ZoneLand values
Northwestern Zone$454 per hectare ($184 per acre)
Northeastern Zone$294 per hectare ($119 per acre)
South Central Zone$1,030 per hectare ($417 per acre)
Southeastern Zone$986 per hectare ($399 per acre)
Southwestern Zone$8,798 per hectare ($3,562 per acre)

Note: The zonal values are subject to adjustment based on updated zonal value reports.

Notes:

  1. Property taxes are paid on all waterpower facilities (including private land) based on a percentage of gross revenue from generation defined under regulation of the Electricity Act, 1998.
  2. All fees and rents are subject to tax.
  3. The phase-in of large rent/fee increases is provided for in PL 6.01.02 Crown Land Rental Policy.
  4. Refer to PL 6.02.01 Administrative Fees for Public Land Transactions for applicable administrative fees.
  5. Cheques for application and rent fees are to be made payable to the Minister of Finance.
Waterpower zonal land value map— Southern Ontario

Zonal Land Value Map-Southern Ontario

Enlarge Zonal Land Value Map-Southern Ontario

Waterpower zonal land value map — Northwestern Ontario

Zonal Land Value Map–Northwestern Ontario

Enlarge Zonal Land Value Map – Northwestern Ontario

Waterpower zonal land value map — Northeastern Ontario

Zonal Land Value Map-Northeastern Ontario

Enlarge Zonal Land Value Map -Northeastern Ontario

1 * Flooding formula to determine annual rent:

  • waterpower zonal value × area × 25% (impact on fee simple) × 10% (rate of return)
  • annual rent to be adjusted in each subsequent year by CPI (if occupational authority document permits annual adjustments)
  • When the above formula results in a rental amount on a per document basis that is less than $200, a minimum rent of $200 will be charged

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