The sorry lessons of green-power subsidies

Gwyn Morgan, The Globe and Mail
A recent study, co-authored by Fraser Institute energy economist Gerry Angevine, found that Ontario residents will pay an average of $285-million more for electricity each year for the next 20 years as a result of subsidies to renewable energy companies.

By the end of 2013, Ontario household power rates will be the second-highest in North America (after PEI), and they will continue to accelerate while they level off in most other jurisdictions. Even more alarming for Ontario’s economic competitiveness, businesses and industrial customers will be hit by almost $12-billion in additional costs over the same period.

Such is the legacy of the provincial government’s 2009 decision to establish feed-in rates, ranging from 44.5 cents to 80.2 cents per kilowatt-hour (kWh) for solar power, and 13.5 cents/kWh for wind power. These solar feed-in rates average 11 times the 5.6 cents/kWh paid for nuclear-generated power, and 18 times the 3.5 cents/kWh for hydro-generated power. The wind-power rates are more than twice as high as nuclear, and four times those of hydro. Read article

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7 Responses to The sorry lessons of green-power subsidies

  1. jack says:

    The gravy train created by the GEA is flying down the tracks without any brakes and no other readily apparent way to stop it. It will eventually crash. The only things, which have not yet been fully determined, are who or what’s going to survive. McWindy and his gang of scammers and liars will eventually be gone but their legacy, the damage caused by their collective mismanagement, will be with Ontarians for many years to come. Although, we’re doing our best to inform people of the pitfalls of this dangerous and supposed green policy, like this article in the Globe and Mail, it seems that the gravy train will just keep on flying precariously along the track towards that inevitable…………………..

    • Al says:

      It is a well known political truth that what politicians fear most is having an article like this appear on the front page of the Globe and Mail instead of buried in the business section commentary. Having said that, at this point it has generated a huge number (448) comments mostly supporting the article, so perhaps the next article making the front page is not such a remote possibility after all!

  2. Pingback: Cost of Solar Energy Plummets - Alternative News London Ontario - News, sports, entertainment, business, travel, homes and auto sections containing features of interest in North America

  3. john brands says:

    When the study was done were the costs of the huge federal grants factored in? Also
    when the manufacturers’ warranties expire, is there any provision, when assessing costs,
    that these amounts are included to their full expense, should (when) the companies default.
    Costs to taxpayers speak volumes!

    • barbara says:

      Warranties provided by manufacturers can become void if the waranties are not backed up by insurance coverage provided by the manufacturer. When renewable energy companies go bankrupt their products have no warranties unless the company had purchased insurance to back up their guarantees on the products they sold.
      That is unless the government wants to provide the guarantees for renewable energy products. Otherwise the public is stuck with the costs.

  4. Martin says:

    If you don’t accept a study by the “odious” Fraser Institute, as some commentators do not, a similar conclusion was reached by Ont Engineers Society, and this was comissioned by the government. See the report on “The Agenda” in past 2 weeks.
    It is encouraging to read most comments, but the diehard enviro-nuts are still in denial, Sadly that group would include McGuinty and his cabinet.

  5. barbara says:

    The Globe And Mail, April 19,2012
    “What’s behind the dismal sales of electric vehicles?”
    EV prices are too high and even subsidies don’t help sales. So EVs will remain a tiny niche in the marketplace and dependent on subsidies.
    http://www.theglobeandmail.com/globe-drive/driving-it-home/whats-behind-the-dismal-sales-of-electric-vehicles/article2407714

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