McGuinty Signs $ 7 Billion Green Energy Deal
Samsung-led Consortium Given Preferential Treatment
The plan is the latest step in the implementation of Dalton McGuinty’s Green Energy Act. The legislation passed in February 2009 is part of the province’s plan to introduce alternate forms of energy such as solar, and wind to Ontario’s power grid.
First Phase: Wind Energy for Southwestern Ontario
The total cost for the project is estimated to be between $5-7 billion. The first phase is to focus on wind power, with its implementation slated for Chatham-Kent as well as Haldimand County. The project is said to include a 500 megawatt cluster for the area.
Manufacturing is a big sector in this part of the province, and this recent project is expected to create 1,500 jobs for the area. Chatham-Kent’s Member of Provincial Parliament (MPP) Pat Hoy stated her riding’s determination to get the jobs in comments published by the Chatham Daily News: “With our local, municipal governments we will fight hard to get a good portion of the multibillion dollar investments that will create thousands of highly skilled manufacturing jobs.”
According to the McGuinty government, the project will make Ontario a continent-leader in green electricity. In remarks published by theNational Post, Minister of Energy & Infrastructure Brad Duguid applauded the deal saying: “By executing this project the Ontario Government will be one-step closer to taking the lead in the North American green energy industry by securing the infrastructure for low-carbon growth, creating new jobs and a renewable energy cluster.”
In addition to the energy projects, the deal will also give the group led by Samsung priority access to the electricity grid, and as part of a feed-in-tariff program higher than market rates for the energy produced.
Ontario wants to close its coal-fired energy plants by 2014. It includes plans for solar, as well as wind farms.
Progressive Conservatives Raise Questions About Samsung Deal
Ontario’s Progressive Conservatives (P.C) are raising questions about the deal. They believe the consortium, led by Samsung is being given preferential treatment. While negotiating the deal, former Energy and Infrastructure Minister George Smitherman asked Ontario Power Generation (OPG) to set aside a minimum 500 megawatts of power especially for Samsung’s use, and agreed to pay them more. His decision moved the consortium ahead of domestic green energy firms.
The deal faced opposition from within McGuinty’s own cabinet, and according to the Toronto Star was nearly stopped by interim energy minister Gerry Phillips.
And according to the Progressive Conservatives it may even break provincial law. PC Leader Tim Hudak is calling for Auditor General Jim McCarter to look into the matter; in remarks published by theToronto Star, he wants a review similar to the examination of the eHealth scandal: “Ontario’s auditor-general has already smoked out the $1 billion McGuinty eHealth boondoggle... Only a similar full review can protect the public interest and make sure the secret Samsung deal represents a fair deal to Ontario ratepayers.”
New Democratic Party (NDP) critic Peter Taubins raised similar concerns in the same article: “Ontarians deserve assurances their interests are protected, and that provisions to create local jobs and source from local suppliers are ironclad.” The Samsung green energy deal is expected to create 15,000 new jobs.
Energy& Infrastructure Minister Brad Duguid
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