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Doug Ford changes his direction on wind energy in Ontario

Doug Ford changes his direction on wind energy in Ontario

By Mounira Magdy

Published: August 19, 2024

One of Doug Ford's first acts as Premier of Ontario, just days after taking office in 2018, was to cancel more than 750 renewable energy projects, including a large wind farm that was already partially built.

Now, Ford's Progressive Conservative government is preparing to oversee the largest expansion of green energy the province has seen in nearly a decade.

Ontario has plans to purchase an additional 5000 megawatts of renewable energy by 2034. By comparison: the total capacity of all currently installed wind projects across the province is about 4900 megawatts.

This move represents one of the most dramatic political shifts from a government that has had its fair share of setbacks.

The expansion is driven by an expected increase in electricity demand in Ontario—as well as demands from many businesses for the electricity supply to be as emission-free as possible—along with declining costs for producing wind and solar energy.

But it is almost certain that the plan will face some opposition, especially when it comes to wind energy.

The government has promised to greenlight projects only with the approval of local councils, and more than 150 municipalities have passed resolutions saying no to wind farms.

CBC News requested an interview with Stephen Lecce, whom Ford recently appointed as Ontario's Minister of Energy and Electricity, but he was not available.

A Global Boom in Renewable Energy

Keith Brooks, program director at an environmental advocacy group, said the apparent change in the Ford government's stance on renewable energy is good news.

Brooks explained in an interview, "The fact that the government has now made this decision regarding wind and solar energy speaks to how great this technology is, how quickly it is growing in other parts of the world, and how low the costs are."

"Globally— in China, Minnesota, California, and the Netherlands—renewable energy is having a big boom. For Ontario to sit on the sidelines would be a real shame."

Ontario is set to take the first step in its green energy expansion plan this year by issuing a call for proposals to produce 2000 megawatts of energy, roughly equivalent to the output of the refurbishment of the Pickering nuclear station that Ontario has proposed.

The current timeline calls for the first phase of projects to be operational by 2030, with another 1500 megawatts to follow by 2032 and another 1500 megawatts by 2034.

While the province does not predefine any detail regarding how much of this energy will come from wind versus other forms of renewable energy such as solar or biomass, industry officials say they expect wind to make up the largest portion of it.

Wind energy provided about nine percent of Ontario's electricity in 2023, nearly four times that of solar energy.

Where Wind Energy Started in Ontario

It can be argued that there is no better place to assess Ontario's experience with wind energy than the township of Melancthon, located about 100 kilometers northwest of Toronto.

The rural community in Dufferin County has about 3200 residents and 167 wind turbines. It is also the site of Ontario's first large-scale wind farm, which has been operating since 2006.

Mayor Darren White said many concerns raised in the early 2000s about the impact of wind farms on people's lives never materialized.

However, White said the way the previous Liberal government handled wind energy in Ontario—approving projects regardless of the wishes of local councils—was unfair.

He added in an interview, "There is a lot to be said for more consultations. We are not dissatisfied with the way the wind turbines were rolled out in Melancthon, but that doesn’t mean there haven’t been problems along the way."

The Melancthon council is currently recording its unwillingness to host any more wind projects. White said this could change if a company came forward with a proposal that would benefit the community.

White said, "We won’t pass a resolution [in support of a wind project] just based on a sketch on the back of a napkin. We want to see your plan. We want to see the locations, we want to see the infrastructure. We want to see what the benefits will be for the community. So don't come to me asking for a resolution before you do your homework."

The requirement for companies to get municipal approval is just one major difference between the approaches of the Conservative and Liberal parties toward wind energy. There is also a significant financial difference.

Under the Green Energy Act that the Liberals have since repealed, the province issued contracts paying wind and solar producers lucrative premiums for generating electricity, which was justified at the time as a way to kick-start an emerging industry.

This time, the bidding process will be competitive, as the province seeks to find out how cheap it can produce energy.

Lecce’s press secretary Isha Chaudhry said in an email, "While the Liberals paid up to eight times the going rate for wind projects that were foisted onto unwilling communities, we are determined not to force families and seniors into energy poverty again."

Chaudhry said, "Our priority is to deliver reasonable energy prices for families while expanding reliable energy to power homes and businesses across the province."

Much Interest from Companies

Although the specifics of the bidding process have not yet been revealed, there is a lot of interest from companies, according to Leonard Kula, vice president of the Canadian Renewable Energy Association, which represents the industry.

Kula said in an interview, "Over the past decade or so, the costs of wind and solar have come down significantly in Canada and around the world."

He says companies are already having discussions with municipalities about what their projects could look like, and notes that Ontario's nearly two-decade experience with wind energy has raised people's awareness of the industry.

And communities know what these projects are. "They recognize the benefits to their communities and understand the returns for landowners," Kula said.

Wind energy companies in Ontario typically pay an annual rent to property owners where each turbine is located, and negotiate what are called "community benefit agreements" with the local municipality.

For example, Melancthon receives about $600,000 annually from its agreements with wind energy producers, which represents about ten percent of the township's annual operating budget.

A Surprising Advocacy Group

Jane Wilson, president of Wind Concerns Ontario, a volunteer-led advocacy group, says she was surprised by the Ford government's shift in direction.

Wilson said in an interview, "We would like to see more of the existing issues addressed and resolved before we move forward and contract for more wind energy sites."

However, Wilson says the government's commitment not to impose projects on unwilling communities represents a "huge difference" from how things played out under the Liberals led by McGuinty.

Brooks, from Environmental Defence, noted that evidence from around the world shows wind energy is safe.

He added, "I think the problem is that some people are trying to stoke those fears again or reignite that opposition. These projects are good, and communities should embrace them."

The Ford government spent $231 million to cancel green energy contracts that it inherited upon taking office, but it said this move would save taxpayers about $790 million by not paying for energy the province doesn't need.

The government currently spends about $6 billion of taxpayer money each year to support electricity prices in Ontario. About half of the province's electricity supply comes from nuclear power plants, about a quarter from hydroelectric dams, and the rest from a mix of gas, wind, and solar power plants.

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