Unwinding the wind story

Re: Keep your hydro promise, Premier Ford, Lawrence Solomon, Oct. 30 Renewable energy can be one of the most affordable sources of new electricity when competitively procured. In December 2017, a competitive electricitysupply auction in Alberta yielded the lowest-ever rate paid for wind energy in the country, a weighted average of $3.7 cents/kWh among the four winning projects. That’s 72 per cent less than the on-peak power price of electricity in Ontario today, and almost half of the off-peak power price of 6.5 cents/kWh. In fact, last month, Saskatchewan announced the results of its most recent wind energy procurement and indicated that the average bid price for all 29 projects participating in the procurement was 3.7 cents/kWh and that the winning project was well below the average.

To suggest renewables are the source of dysfunction to the power sector, with the inclusion of false subsidy and consumer cost percentages, demonstrates a fundamental lack of understanding of how our electricity system works.

The Ontario government’s “Plan for the People” proposes to cut hydro rates by 12 per cent for families, farmers and small business through various measures, including “cancelling energy contracts that are in the pre-construction phase and re-negotiate other energy contracts.” At no point has Ford’s government committed to cancelling existing and operational renewable energy contracts as a means of achieving ratepayer savings.

This is undoubtedly because while Premier Ford has promised rate relief, he has also promised that Ontario will be open for business. Undermining fundamental tenets of a developed, stable economy, including rule of law, property rights and contract rights, will erode investor confidence and make Ontario a less desirable place to do business. Larry Richard, board member, Renewable Energy Alliance of Ontario, Hagersville, Ont.