https://www.nationalobserver.com/2018/07/17/news/clean-power-advocates-disappointed-defiant-face-fords-sweeping-cuts
[For a government which campaigned on finding efficiencies, lowering
taxes and reducing electricity prices, the lack of numbers to back up
assertions that this move will save money is troubling. Given that wind
and solar installations are delivering electricity to the grid for 4 to
7 cents a kWh in jurisdictions like Alberta, while Ontario's plan to
refurbish nuclear reactors is estimated (by the proponent which
historically massively underestimates costs and time to carry out
projects) to be over 16 cents a kWh, the math is suspect. If Doug Ford
is serious about treating Ontario taxpayers as being intelligent, he
should at least give us the data so we can check the math.]
Clean power advocates disappointed, but defiant in the face of Ford’s
sweeping cuts
By Elizabeth McSheffrey in News, Energy, Politics | July 17th 2018
Renewable energy supporters in Ontario are countering claims by a senior
member of Premier Doug Ford's cabinet that their wind, solar and hydro
projects are "unnecessary and wasteful."
Last week, Minister of Energy, Northern Development and Mines Greg
Rickford slapped the label on 758 renewable energy contracts across the
province, in a sweeping announcement that each of those contracts would
be cancelled to save money on residents' hydro bills.
A variety of clean energy initiatives were put on the chopping block,
including solar rooftops on schools, libraries, community and municipal
buildings, biogas and wind power installations for farms, and
hydroelectric dams. The complete list was released late last Friday.
According to Janice Ashworth, general manager of the Ottawa Renewable
Energy Co-operative (OREC), the clean energy cuts are disappointing, but
unsurprising. The co-operative lost two solar farm contracts in the
cancellations, along with two solar rooftop projects for schools in
Ottawa it had co-financed with Conseil des écoles catholiques du
Centre-Est, Ontario's largest French-language school board.
"An important message is that renewable energy, over the past decade —
especially solar — has become very cost effective," she told National
Observer in an interview. "And it’s very shortsighted for the province
to cancel these projects because the rates that are being paid under the
last round of contracts, the ones that were all cancelled, were actually
very competitive with grid rates."
A government representative could not be reached for comment on this
story, after several days of repeated requests by phone and email.
Critics question government claim on savings
The new cancellations apply to renewable energy contracts between
Ontario's Independent Electricity System Operator and a variety of
suppliers across the province, under the 2009 Feed-in Tariff program and
the 2014 Large Renewable Procurement initiative. Both initiatives were
created by successive Liberal governments in Ontario in an attempt to
encourage greater use of the province's renewable energy sources and
build a more sustainable, diversified energy system.
According to the cancellation orders, signed by Rickford, the clean
energy contracts have "contributed to cost pressures facing electricity
consumers across all sectors of the economy." In a news statement last
Friday, he said shuttering all the contracts that have not yet reached
critical development milestones will help save $790 million for hydro
ratepayers.
"We clearly promised we would cancel these unnecessary and wasteful
energy projects as part of our plan to cut hydro rates by 12 per cent
for families, farmers and small businesses," said Rickford. "In the past
few weeks, we have taken significant steps toward keeping that promise."
Queen's Park has yet to confirm how much the cancellations will cost
Ontario taxpayers, but Rickford vowed to propose a legislative amendment
that, if approved, would protect residents from any costs incurred as a
result of terminating the contracts. The $790 million in savings is an
accurate figure, he added, even with those costs.
But without a detailed breakdown of the numbers from the Ontario
government, renewable energy supporters are questioning Rickford's math,
along with the claim that the renewable energy contracts are an undue
burden on taxpayers.
Ashworth of OREC said each renewable energy project can claim up to
$250,000 in termination fees or reimbursements under a special clause in
their contracts, while Sarah Petrevan, senior policy advisor for Clean
Energy Canada, said the cuts could result in a loss of jobs.
"You have to remember that renewable energy companies are businesses,"
she explained. "They employ people and create jobs, much like any other
business, and when you take away stability and predictability in the
things that they need to have a successful businesses, then they will
migrate to the jurisdictions where they can do business successfully."
In the long run, Ashworth added, solar energy also has the cost
advantage of being able to offer fixed, long-term rates — as opposed to
sourcing power from fossil fuels, whose rates vary with the market.
Solar supporters undeterred
"I think it’s a lot of political jockeying, it’s always one party pitted
against the other party’s sort of platform mainstays, I suppose," said
Ashworth. "It’s unfortunate that renewable energy has become one of
those lightening bolt items, or pillar items for the political debate
we’ve been having."
She said it's disappointing Ontario has given up leadership on the
renewable energy file, but OREC is not discouraged:
"(The cuts) will certainly make the focus, for the next four years, I
would say on net metering. The good news there is that there's lots of
opportunity within the net metering spectrum."
Net metering is the process of sending electricity generated from
renewable energy sources — through the installation of solar panels on a
home, for example — to the local utility in exchange for a credit
towards one's monthly electricity costs.
Robert Maxwell, manager of corporate energy initiatives for the City of
Toronto, agreed that the cancellations will speed up the transition to
net metering. The City of Toronto lost six contracts to the latest
announcement, for solar rooftops on a library, a garage, a paramedic
station, and three sports facilities.
The municipality, he added, has a portfolio of about 100 solar
installations that "we will go ahead with in any event." He said he
"respectfully disagree(s)" with the Ontario government's claim that the
cancelled contracts are wasteful.
"I think that in a short amount of time, the Feed-in Tariff program
succeeded in spurring the development of a very large and productive
industry creating thousands of jobs," Maxwell explained in a phone
interview.
"For the City of Toronto, the impact is not enormous. We had six
projects cancelled — three of those we had already determined we were
not going to proceed with (because) there were technical issues... but
again, we’re civil servants, we soldier on."
Ford campaigned on an promise to cut Ontario hydro bills by 12 per cent
if he won the June election, using a variety of measures that would
scrape $173 off the top of the annual average hydro bill.
Last week's announcement follows other cuts to Ontario's
climate-friendly agenda, including a plan to withdraw from a cap and
trade program with Quebec and California, and to resist the federal
government's carbon tax scheme.
The Trudeau government has said these actions indicate Ontario's
departure from a national climate change strategy. In response, Ottawa
said it would review nearly $420 million in transfer payments meant for
projects that reduce pollution. Prime Minister Justin Trudeau has also
said he would take steps to impose a price on carbon pollution in
Ontario, while returning revenues directly to the province's population
—with or without Ford’s support.