Press Release-Terminate the Damaging Green Energy Agreement on Schedule

PRESS RELEASE Dec 19 2017

Bob Yaciuk, leader of the Trillium Party of Ontario, has formally called for a full and open public discussion of the role of solar and wind energy in Ontario – before the Ontario government extends or replaces the Green Energy Investment Agreement.

Mr. Yaciuk said: “Ontario’s citizens and businesses must be protected against the damaging increases in electricity prices that have been caused by this agreement that the Liberal government signed with the Korea Electric Power Corporation (KEPCO) and Samsung, not to mention the effects of the rural communities that are suffering under the effects of these renewable projects. The contract must not be extended beyond its scheduled end on December 31, 2017.”

The Agreement, as modified in 2013, called on KEPCO and Samsung (Korea Consortium) to design, construct and operate 1000 megawatts (Mw.) of wind-powered plants and 300 Mw. of solar generating facilities in three phases before December 31, 2016 and to manage those facilities until the Agreement formally ends on December 31, 2017.

These agreements, imposed by the Liberal government, force consumers to use solar and wind-generated electricity and requires us to pay suppliers of wind and solar electricity up to 60+ cents per kilowatt hour as a wholesale price.

Even the final phase of the major contract with the Korea Consortium guarantees the suppliers an absolute minimum of 10.5 ¢/kWh for wind-generated power and 29.5 ¢/kWh for solar-generated power, and the agreement with the Korea Consortium explicitly allows the price to be increased to a higher level at a later time.

By way of comparison, normal wholesale prices for clean and reliable water electricity and nuclear power are in the range of about 6¢/kWh for wholesale electricity.

“Mexico and Chile have recently secured long-term contracts for wind-powered electricity at a wholesale cost that is as low as 1.77¢/kWh” said Mr. Yaciuk. “It would be just one more breach of the duty of government if the Liberal government was to insist that Ontario’s citizens and businesses must continue to pay 29.5¢/kWh or more to foreign suppliers that have a monopoly on solar power.”

Trillium Party MPP Jack MacLaren, said: “Extending the agreement with the Korea Consortium would force households and businesses in Ontario to pay those suppliers at a rate that is far in excess of world prices, and that would cause further serious harm to many households and businesses in Ontario and would cost Ontarians even more jobs.”

“We need to follow the approach that is currently being pursued by Alberta for new electricity supplies – of purchasing electricity from suppliers who bid for the right to provide electricity to the grid on the basis of ensuring the lowest possible price. By doing that, we can hope to purchase wholesale electricity for close to, or below, the current world price of less than 2¢/kWh.”

Mr. Yaciuk said: “The Liberal Party has done irreparable harm to the people of Ontario by locking us into excessive and non-competitive electricity supplies.”

“Unlike the PCs and the NDP, which for some inexplicable reason has not even mentioned the need to ensure that the contract with KEPCO and Samsung (the Korea Consortium) is terminated on the scheduled expiry date, the Trillium Party insists that that contract must end now. The Trillium Party continues to work to ensure that all new contracts for electricity supplies in Ontario are based on a truly-open bidding process that will allow all potential suppliers to compete on the basis of price.”

For Further Information Contact:
Media:
Media@trilliumPartyOntario.ca
647-456-6210
TPO Main Tel:
289-319-1220
Bob Yaciuk cell:
905–252-1059
Jack MacLaren cell:
613-250-0706
Liz Marshall Research / Candidate
519-377-6129
www.trilliumontario.ca

Backgrounder
The agreement that the Liberal government entered into with the Korea Electric Power Corporation (KEPCO) and Samsung in 2010, as amended in 2013, called upon the Korean consortium:
“to facilitate Electricity generation through three Phases of development, construction, implementation, installation, and operation of wind and solar Generation Facilities and to create Manufacturing and jobs in Ontario.”
Under the agreement, the Korean Consortium was required:

in the first Phase, to: “develop, construct, implement, install and operate wind Generation Facilities and solar Generation Facilities in Southern Ontario with Targeted Generation Capacity of 400 MW and 100 MW, respectively, and with a Targeted Commercial Operation Date by March 31, 2014 …” and
“For the remaining two Phases of the Project … [to] develop, construct, implement, install and operate wind Generation Facilities and solar Generation Facilities … as follows:

KEPCO and Samsung were guaranteed a minimum price for the electricity that they produced.

While the price that would be paid for the power produced by the last 300 Mw. of generating capacity was lower than for that produced by the earlier 1000 Mw., even that price for the solar and wind-generated electricity that would be supplied only when the wind and sun were available was much higher than is paid for clean and reliable water and nuclear-generated power.

As is spelled out in Article 9.1 of the 2013 agreement:
“a) for wind, the price as specified in the then current Price Schedule; provided that for Phase 3 wind, the price will be the greater of: (i) 10.5 cents per kWh; and (ii) the price as specified in the then current Price Schedule; and
“b) for solar, the price as specified in the then current Price Schedule; provided that for Phase 3 solar, the price will be great of: (i) 29.5 cents per kWh; and (ii) the price as specified in the then current Price Schedule.”
The Agreement clearly spelled out that it was to end at the end of December, 2017, unless the government agreed to extend it:
“This Agreement shall become effective as of the date of its execution and shall remain in full force and effect until earlier of: (a) the Commercial Operation Date of the last of the three Phases of the Project to be completed; and (b) December 31, 2017, unless earlier terminated pursuant to Article 14.2 or extended by mutual agreement in writing by the Parties.”

Reference to a report on the world price of electricity can be found in an article by Don Pittis of the CBC:
http://www.cbc.ca/news/business/electricity-prices-markets-auction-alberta-1.4417616
https://electrek.co/2017/11/16/cheapest-electricity-on-the-planet-mexican-solar-power/amp/

It is important that the damaging agreement with KEPCO and Samsung ends at its scheduled termination date.

For Further Information Contact:
Media:
Media@trilliumPartyOntario.ca
647-456-6210
TPO Main Tel:
289-319-1220
Bob Yaciuk cell:
905–252-1059
Jack MacLaren cell:
613-250-0706
Liz Marshall Research / Candidate
519-377-6129
www.trilliumontario.ca