Ontario awards $3-billion in green-energy contracts
The Ontario government is awarding roughly $3-billion in renewable-energy projects to dozens of companies, ranking it one of the province’s biggest investments of its kind.
The wind, solar and hydroelectric projects will provide enough electricity for about 200,000 households, enough to power a city the size of Burlington, Ont.
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Energy Minister Brad Duguid announced the province’s second round of large-scale renewable-energy projects on Thursday at a news conference at the provincial legislature.
The projects will produce more than 872 megawatts of electricity from solar, wind and hydroelectric sources and create about 7,000 direct and indirect jobs. Last year, the government inked more than $8-billion in renewable-energy projects capable of producing 2,400 megawatts of power.
Mr. Duguid said the McGuinty government’s push to replace the province’s aging, pollution-spewing coal-fired electricity plants with clean energy is consistent with initiatives in the United States under the leadership of President Barack Obama.
“There’s no doubt Ontario has stepped up to Obama’s challenge, and together we’ve become a global clean-energy powerhouse,” Mr. Duguid said.
The McGuinty government is counting on clean-energy projects to create jobs in the province’s battered manufacturing heartland. Mr. McGuinty is vowing to create 50,000 new jobs through his Green Energy Act by luring investors with the promise of generous long-term contracts that include a guaranteed revenue stream.
The companies will receive a fixed price over 20 years for the electricity they produce – 13.5 cents a kilowatt hour for onshore wind farms and up to 80.2 cents for solar power. These contracts with green energy producers are well above the market price of 3.5 cents a kilowatt hour for electricity in Ontario and are one reason consumers’ hydro bills are climbing.
The latest announcement comes amid criticism by opposition members over the government’s recent policy reversals and snafus that have led to uncertainty in the green-energy sector.
The government halted development of offshore wind turbines earlier this month for further study. The government was caught off guard by the vehemence of opposition in lakeside communities. In the hopes of making the issue go away in an election year, it ruled out offshore entirely.
As well, companies seeking contracts for small solar projects recently had their plans stalled because there is not enough capacity on the electricity grid. Roughly 20,000 farmers were awarded contracts to place solar panels on their property. But this month, about 1,000 of them were informed that the province currently lacks the transmission capacity to move forward with their projects.
Mr. Duguid said the government has made some changes on how it communicates with small solar providers. But it was not clear whether he thought the onus was on the government to ensure these players could get access to the grid or the companies themselves.
On the large-scale projects unveiled on Thursday, there is enough capacity on the grid, he said, adding that unlike small projects they connect directly to the transmission system.
“These contracts are not awarded until the capacity is identified in the system,” he said.
Progressive Conservative MPP Peter Shurman said there is uncertainty surrounding all of the government’s energy announcements.
“This is characteristic Brad Duguid,” he told reporters. “They make announcements like this and then they move away from them, leaving people in the lurch.”
