On January 21, 2010, The McGuinty Liberal government signed a sweetheart deal with a South Korean consortium that plans to invest $7 billion in wind and solar energy projects in Ontario. This deal was untendered and sole-sourced to the consortium led by Samsung.
This deal is bad for Ontario because it guarantees the consortium juicy rates of 13.5 cents per KWH for wind power and 44.3 cents per KWH for solar power regardless of market conditions.
This deal also gives an unfair advantage over local wind and solar producers. It is structured with priority access to the grid and incentives of $437 million to be paid to the Consortium over the 25 year life of the deal.
To add insult to injury, on Februray 11, 2011, McGuinty decided to cancel offshore wind farms after he contracted for turbines to be built. Clearly another sign that the McGuinty Liberals do not know what they are doing.
This is another blunder by the McGuinty government that is not in the best interest of the province.
CD Howe Institute Green Energy Cost Study