Ontario’s green energy vision for the future has come into sharper focus with the massive $7 billion agreement that the province has reached with Korean industrial giant the Samsung Group.
Under the agreement, which represents the single largest investment in
renewable energy in the history of the province, a consortium led by
Samsung C&T Corporation and the Korea Electric Power Corporation
(KEPCO) will invest $7 billion to generate 2,500 megawatts of wind and
solar power in Ontario.
As a result, the Korean consortium will build four manufacturing
plants which will lead to 16,000 new jobs over six years to build,
install, and operate the renewable generation projects. The facilities
will produce wind turbine towers, wind blades, solar inverters and
solar assemblies.
In making the announcement, Ontario Premier Dalton McGuinty said
that ‘Thanks to today's announcement, we will be delivering more green
energy for Ontarians to use-and more green energy products for North
America to buy. With this step, Ontario is becoming the place to be for
green energy manufacturing in North America.”
According to the government, these projects will triple Ontario's
output from renewable wind and solar sources and provide clean
electricity to more than 580,000 households.
McGuinty singled out Ontario’s Green Energy Act, which guarantees
stable rates for renewable energy, for playing a critical role in
Samsung’s decision to select Ontario for the project.
Sung-Ha Chi, president and chief executive officer with Samsung
C&T, also pointed to the positive business climate created by the
Ontario government for green energy manufacturing. “We commend Ontario
for creating a welcoming climate for green energy investment. Samsung
takes pride in its global efforts to support a more sustainable future
and looks forward to working with Ontario residents and businesses to
create clean, green power.”
However, the deal has sparked a firestorm of controversy. Under
the agreement, the Samsung consortium will be eligible for an economic
development adder (EDA). The EDA is essentially a subsidy which the
government says in a backgrounder document will amount to $437 million.
“The EDA is expected to add on average $1.60 annually to a
residential bill over the lifetime of the generation contracts. This
equates to an increase of about 0.1 per cent on a typical residential
electricity bill,” the backgrounder paper states.
Opposition parties, industry associations, and Ontario-based
renewable energy equipment manufacturers have decried the deal,
accusing the McGuinty government of showing preferential treatment to
Samsung.
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