Governments rip up renewable contracts

contractsBrady Yauch, Financial Post
Governments across Europe, regretting the over-generous deals doled out to the renewable energy sector, have begun reneging on them. To slow ruinous power bills hikes, governments are unilaterally rewriting contracts and clawing back unseemly profits.

In Italy, one of Europe’s largest economies and one that lavished billions in subsidies on the renewable sector, the government in 2013 applied its so-called “Robin Hood tax” to renewable energy producers. Under the new rule, renewable energy producers with more than €3 million in revenue and income greater than €300,000 must now pay a tax of 10.5%.

That follows a 2012 move to charge all solar producers a five cent tax per kilowatt hour on all self-consumed energy. The government also told solar producers that it would stop taking their power – and would offer no compensation – when their output overwhelms the system. Read article

4 thoughts on “Governments rip up renewable contracts


    “The Court of Appeal, in confirming the motions judge`s decision, made it clear that proponents who choose to participate in discretionary government programs, such as Ontario’s renewable energy program, do so primarily at their own risk. Governments may alter the policies that underlie a program, and may even alter or cancel such programs, in a manner that may be fully lawful and immune from civil suit even if individual participants suffer damage from such alteration or cancellation.”

  2. Municipal Election Year – 2014
    Sustainable Development – not wanted in Ontario;
    and, boot the whole cabal out!

    ‘[excerpt] Maurice Strong began Ontario Hydro’s problems when appointed Chairman by NDP Premier Bob Rae in 1992. A 1997 article title

    “Maurice Strong: The new guy in your future”


    “Maurice Strong has demonstrated an uncanny ability to manipulate people, institutions, governments, and events to achieve the outcome he desires.”

    It concludes,

    “The fox has been given the assignment, and all the tools necessary, to repair the henhouse to his liking.”

    This applied to his UN role, but also applied to his Ontario Hydro role.

    One report says,

    “Within no time of his arrival, he firmly redirected and re-structured Ontario Hydro. At the time, Ontario Hydro was hell-bent on building many more nuclear reactors, despite dropping demand and rising prices. Maurice Strong grabbed the Corporation by the scruff of the neck, reduced the workforce by one third, stopped the nuclear expansion plans, cut capital expenditures, froze the price of electricity, pushed for sustainable development, made business units more accountable.”

    Sounded good, but it was a path to inadequate supply.

    Key is the phrase he,

    “pushed for sustainable development”.’

    • how come you learned people did not get rid of the sob in a timley fashion when Mr Harris popped in eh? and end up with this mess???Didn’t see it coming…..Big RED FOX in your face and all of a sudden you knew and were colour blind?
      I think this is hindsight… deer!

  3. These stories appear to indicate that in other jurisdictions, the duly elected government has the authority to amend contracts entered into with wind companies. In a democracy, the ultimate authority rests with the government, not wind corporations.
    Yet in Ont, Liberals tell us something different, Chiarelli told the legislature recently:

    ‘There are 55 projects currently in the approval process. Mr Chiarelli told the media and the Legislature that he can’t get out of the contracts”

    It is time in Ont someone decides who is running this province, Wynne, Crawley and the wind development industry, or an elected government.

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