Ontario’s renewable energy sector will grow despite suspension of new projects: energy minister

Ontario’s renewable energy businesses will keep growing despite decision to suspend new projects, Energy Minister Glenn Thibeault says

TheStar.com
Sept. 28, 2016
By Rob Ferguson

Ontario’s renewable energy industry will continue growing despite the suspension of plans for another round of wind, solar and hydroelectric projects, says Energy Minister Glenn Thibeault.

Companies that have been part of the green energy wave in Ontario since the Green Energy Act was passed seven years ago have been building customer bases outside the province, Thibeault said Wednesday.

“We’ve got Siemens in Tillsonburg that just signed a contract with the U.K. to export blades,” he told reporters a day after a $3.8-billion round of renewable energy procurement was axed to keep about $2.45 monthly off the average household hydro bill in the years to come.

“I think we’re going to continue to see jobs growing in this sector; we’re leaders in this.”

The procurement of 1,000 megawatts, equivalent to just under one-third the capacity of the 3,500-megawatt Darlington nuclear plant near Oshawa, was scrapped because the province’s electricity planning agency said it won’t be needed over the next decade.

While this means there will be fewer jobs created than expected in the sector, the Canadian Wind Energy Association noted 16 procurement contracts signed earlier this year for facilities producing 455 megawatts of renewable power will proceed across Ontario.

“We’re still building out projects that have been awarded contracts,” association president Robert Hornung said in an interview, adding that Tuesday’s decision has created “uncertainty” for renewable energy companies and disappointed the entire sector.

“It will cause people to diversify their operations outside the province.”

The renewable power industry is looking to the next iteration of Ontario’s long-term energy plan, due out next year.

It will set a roadmap for the electricity system over the next decade and more. Hearings to gather public input begin next month.

In the Legislature, Progressive Conservative Leader Patrick Brown accused the government of a exaggerating the importance of the $2.45-a-month that won’t be going on hydro bills, and that they were doing this to dampen public outrage over skyrocketing electricity bills.

“No one is saving anything. Did I save $25,000 this morning by not going out and buying a car?” he asked in an exchange with Premier Kathleen Wynne.

“We’re further moving to take costs out of the system,” replied Wynne, whose government is trailing in the polls and is up for re-election in the spring of 2018.

The decision not to award new wind farm contracts at this time could be seen as an “olive branch” to opponents of turbines on farmland, said Conservative MPP Vic Fedeli.

The Liberals have few seats in rural areas, where some residents complain about health effects of wind turbines. A 2014 Health Canada study found the turbines can be annoying but said there is no connection to medical problems.

Earlier this month, the premier promised to cut the 8-per-cent provincial tax on electricity bills starting in January, and a 20-per-cent cut to hydro bills for thousands of rural residents who pay high delivery charges for hydro, which they often use to heat their homes because natural gas is not available.

As well, another 1,000 companies will be allowed to join 300 large manufacturers in a program that provides lower hydro rates in return for dramatically reducing electricity use in peak periods.