Who pays for wind turbine teardown? Not clear, says lawyer
“No pocket you can go to in 20 years”: Environmental lawyer says taxpayers and landowners could be responsible for costs
Farmersforum.com , January 2016
By Brandy Harrison
Toronto- With more wind turbines coming to Eastern Ontario, there has been a lot of talk about what happens when it comes time to take down the towers. While the provincial government may put the onus on wind project developers to pay for teardown, it’s far from certain they’ll be able to collect if a company goes bankrupt — which could mean taxpayers are on the hook, says a Toronto-based environment and municipal lawyer.
“Many of these companies are relatively small, or based outside of Canada, and that creates what appears to be a real risk as there will be no pocket you can go to 20 years from now when a cleanup is actually required,” says Eric Gillespie, who has represented landowners and municipalities with wind turbine concerns.
It’s anybody’s guess who would end up paying for decommissioning — the landowner, the municipality, or provincial taxpayers, he says.
Farmers shouldn’t underestimate what it takes to remove a single turbine, Gillespie warns. The nacelle — the central hub containing the generator — is 80 to 100 metres in the air and weighs as much as 70 tonnes. “It’s not something where you just call your neighbor and ask him to bring his tractor over.”
While Ontario costs are yet unknown, world-wide decommissioning has ranged from $30,000 to $80,000 per turbine.
But the worst case scenario can be avoided if funds are set aside as part of the approval process, suggests Gillespie.
Decommissioning plans are required to get renewable energy approval but they don’t have financial strings attached.
There is already a good model in place, says Gillespie. Under the Environmental Protection Act, the government will ask for financial assurance if there is a risk of adverse effects that could require remedial work. A letter of credit or security is required up front.
“Anything other than that might keep lawyers busy for a long time but won’t help communities. It’s about addressing the issue now rather than waiting for the end and crossing your fingers. It should be the companies that are earning the profits that have to pay the bill.”