Doug Ford ‘proud’ of decision to tear up hundreds of green energy contracts
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Ontario Renewable Energy Cancellations highlight Doug Ford's move to scrap wind turbine contracts, citing electricity rate relief and taxpayer savings, while critics, the NDP, and industry warn of job losses, termination fees, and auditor scrutiny.
The Important Points
Ontario's termination of renewable contracts, defended as cost and rate relief, faces disputes over savings and jobs.
750 contracts terminated; est. cost >$230M, savings disputed.
Government cited surplus supply and ratepayer relief.
Developers warned of job losses and cancellation liabilities.
Auditor General review sought amid energy policy reassessment.
Ontario Premier Doug Ford, whose new stance on wind power has drawn attention, said Thursday he is “proud” of his decision to tear up hundreds of renewable energy deals, a move that his government acknowledges could cost taxpayers more than $230 million.
Ford dismissed criticism that his Progressive Conservatives are wasting public money, telling a news conference that the cancellation of 750 contracts signed by the previous Liberal government will save cash, even as Ontario moves to reintroduce renewable energy projects in the coming years.
“I’m so proud of that,” Ford said of his decision. “I’m proud that we actually saved the taxpayers $790 million when we cancelled those terrible, terrible, terrible wind turbines that really for the last 15 years have destroyed our energy file.”
Later Thursday, Ford went further in defending the cancelled contracts, saying “if we had the chance to get rid of all the wind mills we would,” though a court ruling near Cornwall challenged such cancellations.
The NDP first reported the cost of the cancellations Tuesday, saying the $231 million figure was listed as “other transactions”, buried in government documents detailing spending in the 2018-2019 fiscal year.
The Progressive Conservatives have said the final cost of the cancellations, which include the decommissioning of a wind farm already under construction in Prince Edward County, Ont., has yet to be established, amid warnings about wind project cancellation costs from developers.
The government has said it tore up the deals because the province didn’t need the power and it was driving up electricity rates, and the decision will save millions over the life of the contracts. Industry officials have disputed those savings, saying the cancellations will just mean job losses for small business, and ignore wind power’s growing competitiveness in electricity markets.
NDP Leader Andrea Horwath has asked Ontario’s auditor general to investigate the contracts and their termination fees, amid debates over Ontario’s electricity future among leadership contenders. She called Ford’s remarks on Thursday “ridiculous.”
“Every jurisdiction around the world is trying to figure out how to bring more renewables onto their electricity grids,” she said. “This government is taking us backwards and costing us at the very least $231 million in tearing these energy contracts.”
At the federal level, a recent green electricity contract with an Edmonton company underscores that shift.
