Tag Archives: wind power subsidies

Save Ontario $500 million (and save environment too): cancel Amherst Island wind power contract say citizens

29 Monday Aug 2016

Posted by in Renewable energy, Wind power

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August 29, 2016

The Windlectric wind power project on tiny Amherst Island has no hope of meeting its “drop-dead” Commercial Operation date, so Ontario’s Independent Electricity System Operator (IESO) can cancel the Feed In Tariff (FIT) contract right now, with no penalty, says the Association to Protect Amherst Island.

See the letter to IESO Chair Tim O’Neill here and below.

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Dear Dr. O’Neill,

In August 2015 The Association to Protect Amherst Island requested that the IESO exercise its ability to cancel the Fit Contract dated February 25, 2011 with Windlectric Inc. (Algonquin Power) without penalty because of the inability of the company to achieve its commercial operation date.

In its 2016 Q2 Quarterly Report, extract attached, Algonquin now advises that construction is expected to take 12 to 18 months and that the Commercial Operation Date will be in 2018. This timeline is contrary to what was submitted to the Environmental Review Tribunal and to the Ontario Energy Board. A COD of 2018 is seven years from the date of award of the contract.

Cancellation of the contract at this time would enable the IESO to achieve cost avoidance exceeding $500 million over the next 20 years based on the high cost of power generation at 13.5 cents per kilowatt-hour set out in the contract with Windlectric and based on the IESO’s commitment to pay Windlectric to not produce power when capacity exceeds demand. Cancellation of the Windlectric contract could be achieved without penalty due to noncompliance and would address in part the IESO’s budget challenges and energy poverty in Ontario.

Accordingly, the Association reiterates its request that IESO cancel the FIT Contract with Windlectric Inc.

Rick Conroy, in the attached article from the Wellington Times, explains the Kafkaesque and cruel nature of allowing the Amherst island project to continue especially in light of the unused power capacity of the nearby Lennox Generating Station and the Napanee Gas Plant under construction.

In summary:

• Windlectric cannot comply with the Commercial Operation Date in its FIT Contract.

• At a time of skyrocketing hydro rates and financial challenges the IESO could save $500 million over the next 20 years by cancelling the Windlectric Contract without penalty.

• Existing nearby generating capacity is almost never used and will increase when the Napanee Gas Plant comes online. Intermittent and expensive power from wind turbines on Amherst Island is not necessary

Finally, please provide the IESO’s understanding of the Commercial Operation Date for Windlectric, any extensions awarded by the IESO, and the number of days granted due to Force Majeure and judicial matters.

Thank you for your consideration.

Sincerely,

Michèle Le Lay

President

Association to Protect Amherst Island

CC Premier Kathleen Wynne

Honourable Glenn Thibeault, Minister

Big Wind’s “Big Bonanza” in Ontario: subsidies benefit a few corporations, not ratepayers

04 Wednesday Feb 2015

Posted by in Renewable energy, Wind power

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From the Financial Post Comment, February 4, by Brady Yauch, executive director the Consumer Policy Institute

When the Ontario government launched its Green Energy Act (GEA ) in 2009, it promised “new green economy jobs” and ” a wide range of economic opportunities.” Then Minister of Energy George Smitherman argued that the GEA would be a boon to Ontarians of all stripes: “We see opportunities in our rural communities for farmers, not just to lease their land for big companies that are the proponents of wind farms, but indeed for clusters of farmers to see themselves as investors in projects…. the emergence of thousands of smaller green energy projects—microgeneration—in urban as well as rural areas.”

Yes, everyone would need to pay a little more for renewable power, the public was told, but the benefits would be widely shared, for the ultimate benefit of all. As it turned out, power rates didn’t go up a little – they soared. And the subsidies weren’t widely shared among the folk – a handful of billion dollar companies pocketed most of them, most of them outside the province.

According to an analysis by the Consumer Policy Institute and Energy Probe, 90% of the wind subsidies went to just 11 companies, 80% of the subsidies went to nine companies with annual revenues over $1-billion, 60% of the subsidies went to six companies with more than $10-billion in annual revenue.

As for the province’s claim that it wants to create an Ontario-based “green economy,” less than 10% of subsidies to wind generators went to small-scale or local owners.

Since 2006, when the province first started subsidizing wind turbines, the province has provided more than $1.92 billion in subsidies. This act of corporate welfare is far from over.

According to the Ontario Power Authority (OPA) – the provincial agency in charge of energy planning and contracting – the province has signed deals for another 2,630 MW of wind energy to come on stream in the coming years, on top of the 3,065 MW already in commercial operation. All of that generation will receive above market rates courtesy of ratepayers for their output. In total, the amount of subsidies to wind producers could hit $8-billion over the next decade and $13-billion over the next 20 years.

The list of companies receiving the lion’s share of subsidies reads like a “who’s who” in Canada’s energy sector and corporate heavyweights. Brookfield Renewable Energy (a subsidiary of Brookfield Asset Management), Enbridge and Transalta alone accounted for about 38 percent of all subsidies handed out to wind generators. Those companies combined brought in $54-billion in total revenue in 2013.

Samsung, which posted $217-billion in revenue last year, is expected to triple its wind capacity in Ontario – and the subsidies that go along with it – in the next couple of years.

The damage to ratepayers for such policies has been significant. Since 2009 – when the GEA was introduced – ratepayers in Ontario have seen the commodity cost on their energy bills climb dramatically, with the regulated price of power over that time having increased on average by 56%, or just over 9% annually – more than five times the rate of inflation, making electricity price increases worse in Ontario than elsewhere in Canada.

To make matters worse, the high rates being pushed onto ratepayers has lowered demand for electricity across the province in recent years. That means Ontario now has a significant surplus of power, which it then exports to neighbouring jurisdictions at a loss. Ontario ratepayers are now subsidizing the energy consumption of households in America and other provinces.

Nearly everyone is losing when it comes to renewable energy in Ontario – except for those few companies that planted industrial wind turbines across the province and are receiving billions in subsidies for their effort.

Brady Yauch is an economist and the executive director of Consumer Policy Institute. bradyyauch@consumerpolicyinstitute.org

NOTE from Ottawa Wind Concerns: The Library of Parliament, on request from MP Pierre Poilievre, estimated that IF the wind power project proposed for the North Gower-Richmond area of Ottawa by Germany-based Prowind had gone ahead (it almost reached approval), the 20-MW project would have cost Ontario ratepayers $4.8 million per year.

Brinston not a test case, community not lab rats

08 Saturday Mar 2014

Posted by in Ottawa, Renewable energy, Wind power

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You may recall that in last month’s edition of Farmers Forum, North Gower-Richmond farm owner Ed Schouten (the proponent in the North Gower wind power project) said he looked forward to the start-up on the project at Brinston, as it would serve as a “test case” for people who had doubts about how great wind power is.

Lots of letters flew in to the Editor, and we will reproduce them all. First though, the letter from Brinston resident Leslie Disheau who wants to put Mr Schouten straight on a few issues.

Brinston divided on wind turbines

Letter, Farmers Forum March 2014

I am going to begin with setting the record straight on the use of the term “wind farm.” This term is a skewed way of making the industrialization of farming practices more palatable to the general public by international wind development companies.

Farming practices and the farming industry have quietly moved into industrial practices while still enjoying the government subsidy/benefit programs to help sustain their bottom line, and keep their competitive edge with fluctuating world markets.

These healthy government subsidy/benefit programs are not available to any other sector of industry in Ontario. If you are going to industrialize then you should have to play by the same industry standards and requirements which currently govern all industry in Ontario.

Farm lands are now being used to host electricity producing machines, not growing food to feed cities. So let us term these industrial electricity projects correctly and allow this industry to be taxed accordingly, and without lucrative FIT contracts for 20 years.

We, the people in Brinston, Dixon’s Corners and Hulbert, directly affected by the siting of 10 30-megawatt industrial wind turbines, have every right to be upset and speak out. The Green Energy Act has stripped us of our rights to say “no” and our right to protect the well-being of our families; allowed for the devaluation of our homes; permits wildlife to be killed, harmed and harrassed; and takes top qality farmland out of food production. The rural community of Brinston is very much living with and feeling divided by this South Branch wind project.

“I am not a test animal, and my community is not a ‘test case,’ Mr Schouten”

I personally take great offence to Mr. Schouten’s comment that the “Brinston turbines will be a good test case for the rest of the area.” I am not a test animal. I am a person and my community should not be referred to as a “test case,” like a lab study.

As for Mr. Winslow’s statement about “negative publicity” and “far too much emotion,” I speak up with passion because I value my family’s health and well-being, take pride in my home and property, and understand what stewardship of the land and animals really means. I get emotional when someone makes a decision, without my consent, which directly changes life for my family and the community.

I have spent three years reading and looking at the research for both sides of this issue, from around the world, and can say I sit on the negative side of the fence–I made an educated decision to do so.

Leslie Disheau

Brinston, Ontario

The writer has one 3-MW turbine 836 meters from the front of her family home, and another 900 meters from the rear.The South Branch project, initiated by Germany-based Prowind,and purchased by US-based EDP, began operations March 4.

BrinstonTurbine BaseAerial shot of base for one of the Brinston turbines, prior to construction last year. Brinston is 30 minutes south of Ottawa, Ontario