Ontario's renewable energy program needs competition
Ontario Premier Dalton McGuinty's program to buy electricity from small renewable generators, which was announced March 21 in Cambridge, will sock Ontario consumers with such excessive costs it will make even nuclear power appear cost-effective.
April 3, 2006
by Tom Adams
in The Record
Consumers will be forced to pay 11 cents per kilowatt hour for renewable power that's identical to the renewable power bought by the government last fall for 8.6 cents -- a 28-per-cent premium.
The reason for the price gap is competition, or a lack of it. The government's previous procurement processes, which produced a lower cost, reflected competitive bidding. Its new Standard Offer Contract program, on the other hand, provides for no competition among power generators. Without the protection of competition, consumers are exposed.
McGuinty is hitting consumers even harder by extending the procurement contracts for 20 years.... [continue via Web link]