Library filed under Impact on Economy from Canada
"There's a reduction in coal use from 2010, but it's not being replaced primarily by green-powered wind energy," Fedeli said. "That hole is being filled mostly by power from other sources. For example, the output increase from natural gas plants was 36% greater than that of wind."
A recent study by respected energy economist Gerry Angevine for the Fraser Institute found that Ontario residents will pay an average of $285 million more for electricity each year for the next 20 years as a result of subsidies to renewable energy companies. ...Even more alarming for the province's economic competitiveness, businesses and industrial customers will be hit by almost $12 billion in additional costs over the same period.
Consumers in Ontario could face up to C$18.2bn ($18.28bn) in additional power costs over a 20-year period due to the province’s policy of subsidizing renewable energy, according to a new study from the Fraser Institute, a leading Canadian public policy think-tank.
Last year the North Bay manufacturer of polyethylene fabrics paid $1 million on its hydro bill for global adjustment costs - money that is used to pay the 20 year guaranteed contracts for alternative energy sources such as solar panels and wind generation entering the provincial power grid. The cost of supporting alternative power "was 42 percent of my hydro bill last year."
There's a line on corporate energy bills called the "Global Adjustment." It's that line that pays for renewable energy projects. Spencer's seen the GA soar over the past few years -- from 5% of his bill to 42%. In his most recent report, provincial Auditor-General Jim McCarter warned that by 2014, the Global Adjustment is expected to be six cents per kilowatt hour -- nearly two-thirds of the total electricity charge.
Ontario Auditor General Jim McCarter found billions of dollars in solar and wind projects were approved without appropriate oversight, including and regulatory and planning procedures. ...The controversial Samsung deal, which will pay $110 million over 20 years over and above the already hefty FIT premium in exchange for $7 billion in investment, was done with "no formal economic analysis ... to determine whether the deal was prudent."
CBC News has learned that already one bank in the Melancthon area is not allowing lines of credit to be secured by houses situated near wind turbines. In a letter to one family situated close to the turbines, the bank wrote, "we find your property a high risk and its future marketability may be jeopardized."
This residential property located near the Melancthon I and II wind energy facilities (2 hours NW of Toronto) was denied a bank line of credit due to the health risks caused by proximity to the transformer substations.
From smart meters, to the Green Energy Act, to the Samsung subsidy, electricity bills are skyrocketing. When you add in the impact of the HST and other rate increases, the annual cost of electricity bills for Ontario families is set to increase by another $732 per year by 2015, according to the Canadian Manufacturers and Exporters. Premier McGuinty is running Ontario's hydro system in a way that is unsustainable.
As many as 1,700 green energy jobs in southwestern Ontario are to be announced this week, according to Queen's Park sources. The announcements are part of an energy policy blitz as the provincial Liberal government tries to take the offensive on the energy file.
Ontario unveiled a sweeping long-term power plan on Tuesday that throws the province's support squarely behind renewable energy, but also brought bad news for consumers who will see their electricity bills double by 2030.
Going back to 2003, based on numbers dug up by consultant Tom Adams, the price of residential electricity in Ontario hovered around 8.5¢ a kWh in 2003 - the first year of the McGuinty Liberal regime. By 2015, Aegent Energy estimates the price will be up to 21¢, an increase of 135%. Doubling the price of electricity in a decade is no way to spur growth and investment.
"We believe it would be economically detrimental to the whole entire area," said Betts, who lives in the scenic Gulf Shore area just outside Pugwash, on Tuesday. "This is a destination (for) tourism (and a) recreational and retirement area. People deliberately come here for the peace and quiet. If we have any net loss of people coming in, we have a huge loss in the whole area."
"You are going to get screwed, and it's going to be painful," said Tom Adams, a Toronto-based consultant and a former executive director of Energy Probe. "We're talking about hundreds of dollars a year out of your pocketbook that didn't need to happen." Much of the blame for the rise in electricity rates is due to Ontario's Green Energy Act, which promotes the use of solar, wind and other alternative power sources.
The Ontario Power Authority has proposed dropping the rate to 58.8 cents per kilowatt-hour from the current 80.2 cents. Ontario Energy Minister Brad Duguid said "There was an exorbitant rate of return on this and it brought on an onslaught of applications because there was huge money to be made."
The Ontario government has taken the highly unusual step of ordering the province's Crown-owned electricity utilities to cancel their requests for hydro rate increases, amid worries of a consumer backlash over soaring power costs. The government's 11th-hour intervention in a rate-setting process that is designed to take the politics out of electricity pricing follows revelations that residential customers in Ontario are already facing increases of $300 more a year on average to keep the lights on by the end of 2011.
An 8 per cent increase in domestic electricity costs announced yesterday is the latest in a series of fees that will drive up costs, and that's before the subsidies, the Opposition said. "People in this province are seeing increases that are putting them at the point where they can no longer cope with the prices of energy, and we haven't seen them all," said Progressive Conservative energy critic John Yakabuski.
The world is littered with cautionary tales about subsidized renewables and overblown promises. Spain went wild on solar, and set off a speculative boom. Inefficient, poorly designed plants popped up everywhere. The lavish subsidies inflated costs. When Spain plunged into recession, the subsidies were ratcheted back, and the industry collapsed. Wind economics are shaky, too.
Landlord Bill Sioulas thought he'd be paying less for hydro after cutting his consumption by almost 20 per cent. ...Expecting big savings, Mr. Sioulas says he was shocked to open his hydro bill and find a skyrocketing provincial fee had eroded the payoff of his conservation efforts.
The Ontario government's rush into renewable energy, and industrial wind turbine-generated electricity in particular, is likely to reveal the law of unintended consequences. The government needs to rigorously re-evaluate this precipitous policy before committing billions more in subsidies to it. First, as to the cost of wind-generated electricity, the feed-in tariff for on-shore wind turbines in Ontario provided for under the Green Energy Act is 13.5¢ per kWh (and higher for smaller projects).