Ontario ponders wind turbine future without local content

bladeWind Power Monthly
The termination of domestic content requirements in Ontario, following a failed appeal against a World Trade Organisation ruling, will simplify things for developers and their financiers, but questions remain about how manufacturers drawn to the province by the promise of a captive market will fare as the government revamps its green-energy policies.

“A number of companies have come into Ontario and invested in the belief that it would allow them a market share,” says Valerie Kuhns, a representative of the Ontario Clean Technology Alliance, a group of local development agencies that joined forces to attract renewable-energy manufacturing investment to their communities. “With the changes in the regulations, that is not necessarily going to be the case now. I’m sure they are looking at their business plans and wondering what the market opportunity is in the long term.”

Ontario launched a groundbreaking feed-in tariff (FIT) programme in 2009. It was the first North American jurisdiction to adopt the policy framework that had helped drive wind deployment in Europe and elsewhere. But coming as it did on the heels of a global financial crisis that hit the province’s traditional manufacturing base hard, the programme was as much about job creation as green energy. Read article

4 thoughts on “Ontario ponders wind turbine future without local content

  1. As found in the following white paper: “White Paper, Procurement of Large Renewable Energy Projects Presented to the Honorable Bob Chiarelli, Minister of Energy By IPC Energy July 15, 2013” and downloadable at

    http://www.ipcenergy.ca/dat/files/16.pdf

    “Across all categories of FIT procurement, the following useful incentives should also be considered as they would resonate in a positive manner with communities. A price incentive should be applied to projects that have a significant component of Ontario content. This includes the contribution derived from manufacturing of components and implementation activities associated with a renewable generation contract. Such an incentive would help to maintain and grow the number of clean technology jobs in Ontario and should remain a government priority. This non-mandatory incentive would avoid the recent issues with the WTO ruling since it would be an optional choice and not a mandatory rule. Such an incentive should vary by generation technology and be capped at an upper limit which reflects the percentage difference between domestic and foreign sourced costs primarily related to manufacturing of components.”

    I believe that the Province already has been advised how to get around the WTO ruling through the white paper.

    There are many more details in this white paper that could be implemented. I hope not!

  2. Ways to get around the rules……wind weasels would know all about that. They are not to be trusted, any more than the Liberals they have been in collusion with.

  3. Chiarelli said, “Since becoming minister I have visited and met with a number of manufacturers, and many have both strong local and international connections.” At least he got the connections part right!

    “Kickstart” is another name for creating an artifical demand for somthing.

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