Billions wasted and jobs lost as Ontario's Green Energy Strategy continues to fail

By Nora Loreto - Rabble.Ca, July 19, 2017

On December 2, 2010, the Ontario government promised that a new wind turbine plant in Tillsonburg would deliver 900 jobs to the southwestern Ontario region. The government release said that the plant was part of a $7-billion investment made by Samsung to invest in clean energy. Siemens would build the plant.

Half a year later, and right before the 2011 election, then premier Dalton McGuinty toured the plant. In a release announcing his visit, the government said, "The Tillsonburg plant is one of four under Ontario's revised, enhanced agreement with Samsung that will provide 16,000 clean energy jobs across Ontario."

Part of the Samsung deal was that Siemens would supply 140 wind turbines for $850 million. That contract was signed in 2014.

Six years later, Siemens has announced that the plant is closing, and 340 workers are out of a job. More than 200 of those workers immediately received a termination notice. The remaining workers will be phased out between now and 2018.

The region already faces a combined loss of 1,000 jobs at the CAMI autoparts plant in Ingersoll and Maple Leaf Foods in Thamesford.

This is just another thread in a twisting saga of Liberal mismanagement and so-called clean energy promises.

Last September, Energy Minister Glenn Thibeault announced that the government would cancel several long-term energy contracts signed in 2013, to try and reduce cost to individual energy bills. This would save up to $3.8 billion, he argued.

The 20-year to 40-year contracts were intended to sweeten the deal for private companies who would participate in boosting Ontario's new green energy capacity. Rather than publicly build these facilities, private companies were promised stable profits, but would be expected to assume extra costs. The Globe and Mail explained it like this: "The private sector would be responsible for cost overruns and other construction problems in exchange for 20-year contracts from the province. The contracts essentially guaranteed that the companies would receive a certain amount of revenue -- no matter how much electricity their plants produced (though they would be paid more if the province used their electricity)."

The Samsung consortium deal, called "lucrative" in the same Globe and Mail article by the reporters, was sole-sourced. These 20-year contracts, handed out under the Ontario Green Energy Act, ended up pushing the extra costs onto customers. By 2014, Ontario's capacity to generate electricity was much higher than average usage. As demand fell, in part due to reductions within the manufacturing industry and household conservation mechanisms, Ontario was still paying for this over-supply, thanks to these 20-year contracts.

Part of the Green Energy Act removed most projects built under the act from being subject to processes defined by the Planning Act and, ironically, the Environmental Assessment Act.

By 2016, almost 60 per cent of Ontario's energy came from nuclear. Wind power made up 5.1 per cent.

Read the rest of the article, here.

Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author’s.