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If Ontario is ever to see economic recovery, we can’t let this continue – Vic Fedeli MPP

Written by: NNL Staff on February 3, 2012.

Vic Fedeli MPPNORTH BAY – “If Ontario is ever to see economic recovery, we can’t let this continue,” charges Vic Fedeli, the Progressive Conservative MPP for Nipissing. Fedeli says it’s time Ontario started paying attention to a growing global trend in green energy. “While Dalton McGuinty continues to drag us down his ideological green garden path – siphoning more and more money out of your wallet with each monthly hydro bill in the process — the rest of the world is doing a complete rethink on green energy,” Fedeli commented.

“This week, it was reported Spain is halting subsidies for renewable energy projects to help curb its budget deficit. (BusinessWeek, Jan 30, 2012) There, state-backed energy system borrowings reached $31 billion US at the end of 2011. That country’s Industry Minister said “what is today an energy problem could become a financial problem.”

“Well, it already IS a financial problem in Ontario!” Fedeli exclaimed, pointing to the recent report from the province’s Auditor General which stated Ontario lost $1.8 billion over the past six years exporting power to Quebec and the United States. “We force intermittent wind power onto the grid creating a surplus at time we don’t need it, and have to sell that power at a loss. In the first 10 months of 2011 alone, we lost $420 million doing this,” said Fedeli, who noted the trend away from these subsidies is spreading around the world.

“Various recent media reports show Germany is moving to make quicker cuts to subsidized rates for solar power and phase out support for the industry by 2017,” continued the MPP. “Their Economic Minister said spiraling costs linked to solar subsidies are a threat to the economy. It doesn’t stop there. Italy is also planning new cuts to renewable energy production incentives. The Dutch have deemed offshore wind turbines too expensive. And Great Britain is going before its Supreme Court to challenge a ruling that its plan to axe solar subsidies was illegal. Losing the court battle could cost British taxpayers the equivalent of nearly $270 million”.

“So what are we doing in Ontario? We’re continuing to pay up to 80 cents a kilowatt hour for solar contracts through the Feed-In-Tariff program for power that can be sold for five cents – or less,” Fedeli argued. “The FIT program is currently undergoing a review, but we have to ask whether simply reducing the overbloated subsidies is enough. I contend it isn’t and believe the program should be scrapped, period.”

Fedeli stressed the PC caucus believes green energy is an important part of Ontario’s energy supply mix now and in the future. However, it must be affordable and it isn’t right now. “The cost of power in Ontario went up 9.8 per cent last year alone!” said Fedeli. “Under the current system, it’s forecast to go higher. That means even more industries leaving Ontario, and neighbouring provinces and states competing even harder against us.”

The Auditor General reported that for every green job Ontario has created, another two to four jobs have been lost in other industries.

  • Bwark

    First of all all that money is taxed as revenue.
    Second you have to look at all the solar at different tariffs and over a number of years.Solar is the only energy source that gets cheaper the more you install.If you can’t figure out or see all the benefits you should not be in government.Businesses could take advantage of the subsidies and locate their factories here know ing they can save on over electricity bill.Third only a couple hundred MW’s have been installed in Ontario. Germany installed 7GW’s last year. The price increases last year where not from solar.All the European countries are being short sighted having installed at higher solar PV costs they are not now taking advantage of the cheaper solar costs. Foolish.Money is coming into the province in project financing. How much economic activity is created when one household puts up a $50k system on their roof. The problem with the solar industry is they do not have a consumable fuel they can control after the system is installed. This leaves them with little leverage for future pressure on governing bodies.How cheap will natural gas be in 10 years if most of North America moves to more Nat Gas electricity production. Solar is the only source of energy that gets cheaper the more you install.
    The program needs fixing, not cancelling.
    By the way you guys lost the election why do continue to act like you won, on this issue.
    I think the strategy of Tim Hudak keep saying Dalton Mcguinty over and over in every speech.
    You PC guys put a nail in this industry…so many people have lost jobs. Why do you believe you should have on.

  • James

    When he was Mayor of North Bay, Fedeli was happy to put solar panels on the roof of city hall, at a cost of  $120,000 to the taxpayer. The power is still being sold to the grid at 42 cents a kilowatt hour.
    At the time, Fedeli said that the project is more about exploring and learning about
    alternative energy sources, rather than generating a profit. So, if he liked it then, what’s wrong with it now? 

  • Derek

     He is a partisan politician now. He has to act a certain way to please the people at the top.

  • Pingback: PC Party of Ontario 2012 AGM Policy Sessions | Trillium Energy Alliance

  • Joe

    If solar and wind were such great energy sources why are governments not private industry supporting the costs?  Here is part of the answer’
    Solar and wind power efficiency is 14% and 17% efficient with current technology. Wind farms are ugly, want one next door to you? By the time wind farms pay for themselves you are rebuilding them so now your costs go up not down. Farmers who allowed them on their land now find their property value has declined by 40% or more.
    Solar panels also need repairs and upkeep. They do work  for cottage owners who are in remote locals and I would see a market there.
      

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