An Oshawa-based power supplier says the province turned its back on the local green energy industry and is giving a South Korean-based company special treatment in an energy deal announced Thursday.

Premier Dalton McGuinty announced that the province negotiated an agreement with the consortium of Samsung C&T Corp. and the state-owned Korean Power Electric Corp.

The consortium is building manufacturing facilities for wind turbine towers, wind blades, solar inverters and solar assemblies. The wind farms and solar fields will generate about 2,500 megawatts of renewable energy, starting in 2012.

If the consortium meets certain completion dates, it would get about $437 million in financial incentives from the province.

Greg Saunders, president of Saunders Power Inc., said his Oshawa-based company could have built something similar in half the time, with half the money.

"And it wouldn't have cost the taxpayer a dime," he said.

Saunders said his company makes some of the largest and most efficient wind turbines in the world.

He said he has contracts in the Caribbean, the United States and is hoping to expand into Vietnam, Cambodia and Laos.

Yet in Ontario, Saunders said bureaucratic red tape, which he refers to as "Dante's seven layers of hell," hinder his company from supplying power in its own province.

Saunders said he had a plan to build 15 wind farms, each supplying 10-megawatts to the power grid.

The multi-million-dollar cost of the farms, he said, would have come from the company's pocket. At least two of the farms would have been complete by the end of the summer, he said.

"We could have had two up by the end of the summer," Saunders said. "And we were going to pay for it."

All the company asked for, Saunders said, was a contract to supply energy to the grid at the cost of 13.5 cents per kilowatt-hour.

Saunders said the province just doesn't spend enough time looking inwards when doling out big contracts.

Even worse, he said, is that the consortium somehow managed to bypass the layers of bureaucracy that he has had to shift through for every project.

The company has circumvented the process, he said, and none of the checks and balances he has to go through will apply to them.

Saunders said the Green Act, and the Feed-in-Tariff program, was supposed to get rid of problems such as this and create a level playing field for everyone.

"It's about fairness."

Durham Progressive Conservative MPP John O'Toole said he has spoken to Saunders and his affiliates and is aware of their concerns.

It's upsetting that a deal was brokered without any form of public tendering, O'Toole said, considering the size of the investment.

"Why have they given carte blanche to one company?" O'Toole said.

The process should be more transparent, he said.

O'Toole said the $7-billion investment sounds promising, but he's skeptical about the long-term deal.

"I'm happy, but can I trust it?"

Ontario should be leading the way with renewable energy, he said, and should be doing it by making sure local companies have equal opportunities.

Peterborough Liberal MPP Jeff Leal disagreed.

There's ample room in the Samsung consortium contract for provincial companies, he said, and the Green Energy Act has content rules mandating that a portion of any manufacturing be done in Ontario.

Leal said there are provincially located companies, such as General Electric and Linamar, based in Guelph, that have already expressed interest in the project.

The process has been completely transparent, he said, and comments like O'Toole's are to be expected from the opposition.

The deal allows the province to become a major player in renewable energy, Leal said, and is a sign that global corporations are interested in investing in Ontario.

"They're popping up everywhere," he said.

On Thursday Leal said Peterborough is in a good position to compete for one of the four manufacturing facilities the consortium will open.

The multi-billion investment will lead to 16,000 green energy jobs over six years, the province states.