Calls to cancel wind energy contracts risk undermining investor confidence in Ontario
October 4, 2018
CanWEA responds to targeting of renewable energy in Fraser Institute report on lowering electricity bills in Ontario
Ottawa, Ontario, October 4, 2018
“The Canadian Wind Energy Association (CanWEA) is concerned that a study on electricity reform in Ontario released today by the Fraser Institute risks undermining investor confidence in the Ontario energy marketplace by calling for the cancellation of existing renewable electricity generation contracts. Maintaining investor confidence is important for both Ontario’s short- and long-term economic prosperity. A decline in investor confidence in Ontario will add costs to Ontario’s electricity system in the future as new investors incorporate increased risk in their investments.
While the Fraser Institute report is focused on addressing electricity costs in Ontario, it targets renewable energy in spite of the fact that Ontario’s electricity costs have increased for multiple reasons including investment in infrastructure and other forms of electricity generation. The report focuses on increases in Ontario’s Global Adjustment on electricity bills due to renewable electricity, despite the fact that other sources of generation have been responsible for more of the increase over the last several years. Furthermore, the report provides no consideration for the value returned by the province’s strategic investment in renewable energy, most notably its role in eliminating smog days, providing long-term stable pricing for Ontario ratepayers, delivering sustained revenue for municipal and Indigenous partners, and enabling the development of an industry that is producing today’s most inexpensive new electricity.
Ontario will have a need for new electricity generation in the 2020s and recent procurements have demonstrated that wind energy is the lowest-priced, non-greenhouse gas emitting generation option. CanWEA remains committed to supporting Ontario in its pursuit of a power supply system that is reliable and cost-competitive while also promoting economic development and protecting the environment. No other source of potential new electricity generation in Ontario can better meet these multiple priorities than wind energy.”
– Robert Hornung, President of the Canadian Wind Energy Association (CanWEA)
About the Canadian Wind Energy Association
CanWEA is the voice of Canada’s wind energy industry, actively promoting the responsible and sustainable growth of wind energy. A national non-profit association, CanWEA serves as Canada’s leading source of credible information about wind energy and its social, economic and environmental benefits. Join us on Facebook, follow us on Twitter and LinkedIn. Learn more at canwea.ca.
For more information please contact:
Tracy Walden, Director of Communications and Marketing
Canadian Wind Energy Association