Power project at Cambridge dam has been cancelled
It took the Grand River Conservation Authority decades to get the necessary approvals to build an electrical power plant on Cambridge’s Park Hill Road dam, but the recent change in provincial government has stopped those plans, at least for now.
“We came so close. I’m disappointed, obviously,” GRCA chair Helen Jowett said in an email.
On July 16, the conservation authority received notice of termination of its Feedin Tariff (FIT) contract for the proposed Park Hill Road dam hydro generating station from the Independent Electricity System Operator (IESO).
The GRCA board authorized staff in September 2016 to enter into an agreement with the IESO under the FIT Program for the sale of electricity from the proposed new hydro generating station.
Preliminary work had already started on the $5.2-million project, which was slated to take about five years to complete and begin electrical generation in 2021 and 2022.
In March 2017, the GRCA hired WSP Consultants for $360,000 to carry out an environmental assessment and to design the proposed power generating station.
The assessment and the design of the first stage of the project were almost complete when the new Progressive Conservative government took office.
“We were nearing the completion of the class environmental assessment, which began in June 2017, and have appreciated working with the community throughout the process,” GRCA communications co-ordinator Cam Linwood said in an email.
“We have stopped all work related to the project at this time; however, we will continue to explore avenues to develop renewable energy at the Parkhill Dam site if future opportunities arise.”
The Park Hill dam power project would have involved building a 500-kilowatt generating station into the existing dam, which would produce enough electricity to supply 560 homes.
Ontario’s new government under Premier Doug Ford has cancelled 758 renewable energy contracts in what it says is an effort to reduce electricity bills in the province.
The move is part of a pledge the party made during the recent election campaign to end the projects.
Energy Minister Greg Rickford said on July 13 that the move would save provincial ratepayers $790 million — a figure disputed by industry officials, who say the cancellations will just mean job losses for small business.
Rickford said new legislation would protect hydro consumers from any costs incurred from the contract cancellations.
“We clearly promised we would cancel these unnecessary and wasteful energy projects as part of our plan to cut hydro rates by 12 per cent for families, farmers and small businesses,” he said in a news release.
“In the past few weeks, we have taken significant steps toward keeping that promise.”
Critics have argued the government’s decision to cancel the existing contracts is rash, will likely lead to lawsuits and will not bring down hydro prices.