Is Ontario’s Green Energy Plan Reasonable?
Recently the United States, Japan and the EU have submitted a complaint to the WTO about local content rules being used by Dolton McGuinty’s government. The rules state that half the goods and services used for FIT projects (that are paid premiums for generating renewable energy) must be from Canada. The project is aimed at trying to create “thousands of green jobs” while the province phases out coal generation in the province, a long term election promise of the liberal government.
From a household’s perspective the local content rules present significant problems. By forcing suppliers to use less efficient and more expensive Canadian sources for wind and solar power this is discouraging households from investing in renewable power generation. However, a main goal of Mr. McGuinty’s plan is to create jobs, as illustrated by Samsung being convinced to build “four manufacturing plants in the province”. The rules aid energy installers who can provide some of the required local content, but it also harms firms selling renewable energy projects as they become more expensive. The key for other large suppliers is to follow Samsung’s example and take advantage of government support while they can.
http://www.theglobeandmail.com/news/politics/us-eu-join-fight-over-ontarios-green-energy-plan/article1736573/?cmpid=nl-news1