Zapped: The High Cost of Ontario’s Renewable Electricity Subsidies
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by Jonathan Jenkins, Toronto Sun
TORONTO – The Ontario Liberals Green Energy Act will cost every household in the province $310 on their electricity bills and the estimated 50,000 jobs it would create will cost $179,000 (each) in subsidies, the C.D. Howe Institute said in a report released Tuesday.
“Ontario’s renewable electricity subsidy is a costly means of reducing domestic GHG emissions and creating jobs,” the report, co-written by former Ontario Power Authority boss Jan Carr, says.
“These costs will be borne by Ontario electricity consumers and amount to $310 annually per household, with additional costs due to the intermittency of power from renewables and the transmission infrastructure investment needed.”
Compared to building natural gas-fired generation, the reports says Ontario will pay $1.5 billion more for subsidized wind, solar and biomass electricity.
Ontario could reduce that total impact of the GEA if it stopped offering subsidized energy contracts through its Feed-In-Tariff (FIT) program, the report says.
“The authors have overstated their calculation of the FIT program,” Andrew Block, spokesman for Energy Minister Dwight Duguid said in an email. “We provided a fully costed long-term energy plan including what electricity prices would be over the next 20 years. Renewable power will compose 13% of our energy supply.”
The study also does not take into account the Clean Energy Benefit, the Liberal program that is cutting hydro electric bills by 10% over the next five years.