The attached analysis surveys the renewable electricity supply projects proposed to the Ontario Power Authority (OPA) under the provincial government’s Feed-In Tariff program, the contracts offered by the OPA as of early May 2010, and the consumer impacts.
Posts Tagged ‘Samsung’
Renewable Energy Gold Rush Through the Roof
Sunday, May 16th, 2010Samsung Still Negotiating With McGuinty, Still Not on Lobbyists Registry
Friday, May 14th, 2010Samsung C&T Corporation, along with its partner Korea Electric Power Corporation, are still on track to rake in huge subsidies from Ontario electricity ratepayers. A new directive to the Ontario Power Authority further details negotiations between the Ontario government and the Korean consortium, although the members of the consortium continue to not appear on the official Ontario Lobbyists Registry. How can this not violate the Lobbyists Registration Act, 1998?
One of the key elements of discussions is how much of the new Bruce-to-Milton 500 kV power line will be reserved for the Korean consortium. Expect vigorous counter lobbying by other power developers seeking access to this limited transmission capacity so they too can claim a share of the consumer’s fast-rising power bill.
If any one has insights into the wonky dates on the document or kick backs to the Ontario Liberal Party, please share.
Spain is openly considering reneging on inflated contract prices with solar power producers. As I have argued on this web site and on many other public statements, I believe that contracts must be respected. However, if it can be determined that illegal actions were involved directly in obtaining government contracts, it seems reasonable to reconsider the underlying contracts.
Samsung Secret Deal with McGuinty Government: News Update
Saturday, November 7th, 2009Renewable energy developers who have been playing by the Ontario government’s irrational but at least codified Green Energy Act Feed-In Tariff rules have reacted vigorously to information first published on this web site about a secret deal initiated on the government side by Smitherman that would allow the international electronics giant Samsung rights of primus noctis. The revolt against Smitherman appears to be lead by Dwight Duncan and Sandra Pupatello. Smitherman was expected to appear at the prominent APPRO conference (November 17/18) but has withdrawn. The best case for the government is for Samsung to withdraw. Although the list of wind industry lobbyists is very long on the Ontario government’s Lobbyists Registration Act web site, there is still no trace of Samsung’s name on the list. Watch for this news showing up in the Toronto Star in the middle of next week.
Samsung Deal with McGuinty May Sting Ontario Ratepayers
Thursday, September 24th, 2009A special deal between the international electronics giant Samsung and the Ontario Premier’s Office may have been signed last week. The deal appears to contain elements that fundamentally undermine the Ontario Power Authority (OPA) and its Feed-In Tariff (FIT) process. Elements of the deal also appear to increase the degree of protectionism creeping into Ontario electricity policy.
Informal reports as of September 24 noon indicate that Samsung may have secured a substantial price premium (up to $30/MWh for solar and $10/MWh for wind, with payments indexed to domestic content) over the FIT price for large wind (500 MW immediately and 1.5 GW later) and solar developments (500 MW).
One estimate of the net present value of the extra cost to Ontario ratepayers above the FIT price is $500 million.
In addition, Samsung may also have secured preferred access to available transmission capacity. If true, this measure would bump other developers down in the priority list for grid connection. Samsung is not thought to have been active in developing a sufficiently large portfolio of development opportunities in Ontario to be able to capture all of the benefits of the alleged deal though internal projects. Any requirement that Samsung accelerate development to be able to cash in on the extra subsidies would appear to provide opportunities for wind fall profits for developers with sufficiently mature projects to be able to meet Samsung’s new contract-based opportunities.
The OPA Board was briefed on this deal last week and apparently considers that it would indicate to potential developers that the OPA is no longer the power system development administrator. There are questions as to whether Energy and Infrastructure Minister Smitherman has been reluctant to share details of the arrangements with cabinet colleagues.
Samsung may have made commitments with respect to manufacturing development in Ontario, but no details have yet emerged.
At a time when there are serious public concerns in Ontario with respect to untendered government contracts of $25,000, it is noteworthy that there is currently no public tendering process for renewable power development.