Struck by a Hockey Puck: Renewable Energy’s Big Canadian Black Eye
Renewable Energy World|June 8, 2018|By
Everybody loves renewable energy, right? That’s what surveys tell us with global support for renewable energy consistently polling above 80 percent.
But don’t tell that to the people of the Province of Ontario, Canada. On June 7, the electorate handed a stunning defeat to its Liberal Government after 15 years of reign. The election winner: Conservative Doug Ford, brother of Toronto’s infamous crack-cocaine smoking mayor, Rob Ford. The issue in the forefront of voters’ minds: sky high electricity prices.
Ever since the Ontario Government invoked its Green Energy Act in 2009 to transition away from coal power to wind and solar energy, electricity prices have risen a whopping 75 percent. In Ontario, electric bills have become as frequent a topic of water-cooler conversation as apartment rents are in Manhattan or San Francisco.
Without question, on every measure of ratepayer protection Ontario is an egregious case of how not to design a renewable energy program:
Most Feed-in-Tariff (FIT) rates set not by competitive bidding but instead by Government decree at levels as high as $C 80.2 cents ($US 62 cents) per kWh for 20 years
No mechanism to automatically adjust FIT rates downward as capacity deployment thresholds were reached
Domestic Content requirements that raised domestic equipment prices above global average selling prices
A rule that ratepayers still provide FIT payments for energy even when energy production is curtailed
An allowance of five years after FIT contract execution for facility construction, creating windfall gains for developers as equipment costs declined while preventing ratepayers from participating in any of those savings.
How did Ontario get their renewables policy so wrong?