Ontario announces cancellation of renewable energy contracts

Citizens of Dutton Dunwich oppose the Invenergy wind power project

July 13, 2018

The Ontario government just announced cancellation of renewable energy contracts for which significant contractual milestones had not yet been met.

The move will save $790 million from being added to electricity generation costs, and passed on to consumers’ electricity or hydro bills.

The contracts to be cancelled likely include the five newest wind power projects, which were awarded contracts by the IESO in 2016, and which have not yet been given final approval. One, the “Nation Rise” project in North Stormont, did get a Renewable Energy Approval on May 4, just days before the write period for the recent election. That project is being appealed by a community group, The Concerned Citizens of North Stormont, a community group member of the Wind Concerns Ontario coalition.

“This was the right decision,” says Jane Wilson, president of Wind Concerns Ontario. “There were significant environmental and health concerns inherent in each of these projects, the communities did not want them but were being forced to have these industrial power projects, and the costs would be yet more burden on Ontario citizens.”

Health effects of the noise produced by the huge wind power generators is a concern especially, as Wilson says, “because there are literally thousands of reports of excessive wind turbine noise across Ontario that are to this day unresolved, and the ministry under the previous government was not even responding to complaints from Ontario families. Staff noted adverse health effects in documents released to us, but no action was taken.

Given this evidence and these serious concerns, it is a good decision not to add to the existing problems with how wind power was implemented in Ontario.”

Basic Feed-in-Tariff Contract Costs[1]

  Name Plate Capacity (MW) Annual Cost ($M) 20 Year Cost ($M) Annual Cost Per Household ($)
Operating Turbines 4,936 $1,693 $33,856 $352
Under Construction   393 $   128 $ 2,567 $ 27
LRP I Projects   (Pre-Construction)   299 $       65 $ 1,307 $ 14
Total 5,628 $1,886 $37,730 $393

[1] Estimated costs are based on FIT Contract rates of $135 per MW and average costs for the RFP projects of $89.5 per MW based estimated actual electricity production.

 

contact@windconcernsontario.ca

From protest to celebration: Ford government cancels wind power in Prince Edward County

An outrage: County residents protest behind-the-scenes final approval of hotly contested wind power project [APPEC photo-Michael LIndon]
July 11, 2018

The protest was kept under wraps until the late morning yesterday in quiet, beautiful Prince Edward County.

A group of residents planned to interrupt a convoy delivering huge wind turbine parts for the “White Pines” wind power project in a peaceful manner, as an expression again of the community’s disapproval of the power project being located in the historic Loyalist area.

The environmental risks of the power project were significant — so much so that the original 29-turbine project had been reduced to 27, then finally to 9, and the remaining approval came with conditions for the Germany-based power developer WPD in order to protect the environment and wildlife. Several wildlife and nature groups have supported the fight, emphasizing the immense danger to migratory birds from the turbines, close to the shore of Lake Ontario and on a major migratory bird pathway.

The company’s commitment to those conditions has been questioned as it worked through the halt period required to protect endangered Blandings turtles; the citizens’ group, Alliance to Protect Prince Edward County or APPEC filed numerous actions requesting a stay of construction. Earlier this week, WPD was charged with violating the Environmental Protection Act.

And then there is the power grid in Ontario: the electricity that could be produced (wind is notoriously intermittent and produced out of phase with demand) is not required in Ontario, which has a surplus of power and has been paying generators not to produce, as well as selling power on the electricity market for bargain-basement prices.

The community has been fighting the power project for 10 years, mostly in court, with a few peaceful demonstrations such as a march through Picton last fall.

Recently, it was learned that despite the fact Ontario’s soaring electricity bills were a major issue in the election campaign throughout the province, aided by the cost of wind power contracts, and the fact that this wind power project was a contentious issue in the riding, the Independent Electricity System Operator (IESO) actually issued the final approval or Notice To Proceed, during the writ period.

“The previous Liberal government was in ‘caretaker’ mode when the IESO on May 11 green-lighted the litigation mired project,” said community member Liz Driver. “The community knows that the IESO were fully aware that wind projects were an election issue and that the PCs pledged to cancel projects still in development. As local journalist Rick Conroy explained in his June 27 commentary in the local Wellington Times newspaper  the IESO decision trod upon centuries of parliamentary custom.

“The Notice to Proceed was kept under wraps by IESO, the wind company and the Liberals. The IESO only revealed the Notice to Proceed on its website just before the transfer of power to the PCs on June 29 to the astonishment of the community.”

The community members decided to make a point and actually interrupt the turbine delivery only to find out at the end that Ontario’s new government had announced cancelling the project was one of three priorities for its emergency call-back of the Legislature.

The issue was “time-sensitive,” said local MPP Todd Smith who is also Government House Leader, in making the announcement. The power developer was working at breakneck speed to complete the project in hopes it wouldn’t be — couldn’t be — cancelled, contrary to the PC Party promises during the election. Until the Notice To Proceed was issued in secret in May, the power developer had been working at its own risk incurring costs, and without significant permits from the municipality.

The developer has been working evenings and weekends to try to complete the project.

“If I hadn’t seen it myself, I wouldn’t have believed how fast they can put those things up,” said Paula Peel, a member of the executive of both APPEC and Wind Concerns Ontario.

The government will introduce legislation Thursday regarding the project.

contact@windconcernsontario.ca

 

 

North Stormont group asks Premier Ford to halt wind power project, legal action

Nation Rise project not needed; community group says cancel it now, save millions

Expensive legal action will cost taxpayers more for unnecessary power project, community group says

OTTAWA  July 3, 2018— The citizens’ group opposing the 100-megawatt “Nation Rise” wind power project asked Premier Doug Ford and his new government today to state its intention to cancel the project’s contract, and halt legal action related to its approval.

The power project, to be located just south of Ottawa, received Renewable Energy Approval just days before the writ for Ontario’s June election was drawn up.

The community filed an appeal of the approval, based on environment and health concerns, which is set to begin Thursday July 5 with a hearing in Finch, Ontario.

Given the new government’s campaign pledge to end contracts for projects which do not have final approval, however, the legal action is a waste of time and taxpayer money, says Margarent Benke, spokesperson for  the Concerned Citizens of North Stormont.

Ministry of the Environment employees and lawyers must travel from Toronto and mount a defence of the approval, Benke says, which makes no sense if the government plans to cancel the unnecessary power project.

“We made an urgent request today for action on the Nation Rise project. It will cost the people of Ontario a base price of $500 million over 20 years, and add to our electricity bills,” says Benke. “The Environmental Review Tribunal Hearing will represent even more cost to the government and to the people of Ontario, and more financial and emotional strain to the people of North Stormont.”
 
The power project would expose citizens near Finch, Crysler and Berwick to environmental noise from huge, 3.2-megawatt wind turbines; most of the turbines would also be located on an area designated as a “highly vulnerable aquifer.”
Ontario currently has a surplus of electrical power; wind power projects produce power out-of-phase with demand, and Ontario’s Auditor General has criticized the contracts for their above market rates. Auditor General Bonnie Lysyk has said Ontario electricity customers overpaid for renewable power by $9.2 billion.
Contact: info@concernedcitizensofnorthstormont.ca
contact@windconcernsontario.ca 
 

Renewable power a factor in Ontario’s election upset

The people were right: no demonstrated environmental benefit, and plenty of economic hardship.

June 13, 2018

Now that Ontario’s election is over, and there is a majority government in place, plenty of political watchers are commenting on what happened to create such a dramatic change in Ontario government.

One factor that comes up is Ontario’s disaster plan for renewable energy — and by that, we mean WIND — and the effect it had on Ontario consumers’ electricity bills.

Two Auditors General told the government it was paying too much for renewable power, as much as twice the rate in other jurisdictions. Auditor General Bonnie Lysyk (who has had many problems with accountability and governance with the Wynne Liberal government) said Ontario consumers overpaid by more than $9 billion.

That’s not just a few dollars extra on the electricity bills — that’s multiples of previous bills, so much so that “energy poverty” became a new expression in Ontario. The Association of Food Banks of Ontario put a photo of a light bulb on their 2016 hunger report.

Here are a few articles popping up that look back at the damage done to a province that was once Canada’s “economic engine”, all for an unproven ideology.

Fraser Institute: https://www.fraserinstitute.org/blogs/ontario-s-new-government-should-genuinely-reform-province-s-electricity-system

TVOntario Current Affairs https://tvo.org/article/current-affairs/one-overlooked-issue-that-cost-the-liberals-the-election

Economist Jack Mintz/Financial Post http://business.financialpost.com/opinion/jack-mintz-how-a-doug-ford-government-can-make-ontario-rich-again?utm_term=Autofeed&utm_campaign=Echobox&utm_medium=Social&utm_source=Twitter#Echobox=1528890290

Undoing the damage of the Green Energy Act won’t be easy, writes economist and public policy professor Jack Mintz, but it has to be done if Ontario is to save itself.

Worst of all for Ontario’s rural residents, are the comments and analysis of the wind power program: in terms of environmental benefits, it was all for nothing. Industrial-scale wind power has never demonstrated a benefit in cutting CO2 emissions. In fact, the way wind power was done in Ontario is now a “black eye” for green energy all over the world, says a journal in the renewables industry.

That’s quite a legacy for one political party.

Now, we pick up the pieces.

 

Rural hopes for a new Ontario government: peace, justice

Sunrise at Belle River power project: new hope for justice and resolution

June 8, 2018

Yesterday saw a dramatic change in governance in Ontario. Fifteen years of Liberal rule were over, and the Progressive Conservative Party of Ontario — which has its base in rural Ontario — will form the new government.

For Ontario citizens who have been forced, through the previous government’s Draconian Green Energy Act, to live inside noisy, disruptive wind power projects, there is new hope for justice.

The Green Energy Act superseded 21 pieces of legislation in Ontario, and removed local land-use planning for “renewable” power projects. That meant that people living in small communities could see their municipal government seek consultation on other forms of development, but be without influence when multi-million-dollar industrial-scale wind turbines were put forward by the government and (mostly foreign-owned) wind power developers.

The government promised that if there were problems, they would pay attention to them: they didn’t. They promised they wouldn’t force the highly invasive, high-impact power projects on communities that didn’t want them: they did. And to this very day, to this minute, the Ontario Ministry of the Environment and Climate Change is ignoring the thousands upon thousands of reports of excessive noise and other impacts of the wind turbines. The government went so far as to instruct employees not to respond, event o close files without resolution, and to appoint certain employees to preach the gospel of non-harmful wind power while ignoring current research and even denigrating resident reports of health effects and harm (Rick Chappell in Owen Sound, we mean you).

The PC Party was the only one that actually developed a plan to do something about the misguided wind power plan in Ontario. They promised, months ago, to:

  • cancel the newest wind power projects
  • examine possibilities for renegotiating other contracts
  • enforce the noise regulations for wind turbines
  • revise the Green Energy Act

The new Premier, Doug Ford, also promised a public health investigation into the well water problems in Chatham-Kent, a situation for which the previous government dodged responsibility.

This new government will be facing a great deal of work now, with so many things mishandled in Ontario, but it is our hope that they soon fulfill these promises, which will benefit all people of Ontario by reducing electricity costs, and reducing harm to our fellow citizens.

Wind Concerns Ontario

Ontario Environment ministry under fire over Chatham-Kent water wells

Ontario Groundwater Association warned about the effects of wind farm development over sensitive hydrogeology — but was ignored

 

Experts are lined up against the MOECC in their views on what’s happening in Chatham-Kent [Photo: Council of Canadians]

In the current edition of Ontario Farmer is a report on the status of Chatham-Kent wells which residents say have been contaminated by sediment; they link the failure of the wells to wind turbine construction.

Here are excerpts from the article in Farmers Forum  by Jeffrey Carter.

With opposition parties and others calling for an official health hazard investigation, the Ontario government finds itself under increasing scrutiny over groundwater complaints in the Municipality of Chatham-Kent.

According to [community group] Water Wells First, upwards of 20 wells in the former townships of Dover and Camden have been impacted. The group blames wind farm development in the area for the problem and feel they have the evidence to prove it — before and after measurements of turbidity specific to the North Kent Wind project led by Samsung Renewable Energy and Pattern Development.

It’s the type of approach supported by University of Waterloo geological engineer Maurice Dusseault who questions the parameters used by Golder and Associates, a consulting firm hired by Samsung and Pattern, to conclude turbine construction an operation could not possibly have impacted groundwater in the area.

Low-frequency vibration created by piledriving during wind turbine construction and operation may have led to turbidity issues, Dusseault said, something it appears Golder and Associates did not measure.

Under scrutiny as well is the Ministry of the Environment and Climate Change (MOECC), which approved the wind farm developments. The MOECC has repeatedly cited the opinion of Dr. David Colby*, the Chatham-Kent Medical Officer of Health over concerns wells may have been compromised.

{Colby] has not seen any of the results from water tests conducted by Water Wells First that show exponentially higher levels of turbidity following the construction and operation of North Kent Wind turbines.

“I don’t want to come across as unsympathetic but really there’s no connection to wind turbines,” Colby said.

The executive director of the Ontario Groundwater Association Craig Stainton gives little weight to Dr. Colby’s opinions on the matter and said the MOECC response to the well water complaints has been sorely lacking. Had the MOECC heeded warnings that wind farm development posed a threat to the groundwater of the area, the current controversy would likely have been avoided, he said.

Third-world conditions

“If the MOECC were doing what they should be doing, what they’re supposed to be doing, they would have known what these developments would do. When you get into the science, and there’s reams of it, this has been going on in Europe for years and they are years ahead of us.”

“It’s despicable. They have created third-world conditions for those homeowners.”

The aquifer in the north part of Chatham-Kent is well known to well drillers operating in the area. It is both shallow, roughly 50 to 70 feet below the soil surface, and fragile, and is located just about the Kettle Point Black Shale formation common to the area.

Stainton is concerned that even if the operation of the turbines is ended, the aquifer may have been permanently damaged.

 

TEST RESULTS

Tests paid for by Water Wells First and conducted by an independent lab showed elevated levels of particulates and heavy metals including:

  • lead
  • arsenic
  • mercury
  • uranium

 

*WCO note: Dr Colby has acted as a paid advocate for the wind power industry, and has published a paper for both the Canadian and US wind power lobby groups

 

Wind power profits don’t stay in Ontario

April 15, 2018

Follow the money … out of Ontario

A profile of who’s who in Ontario wind power development

Tax benefits and subsidies were important incentives to foreign companies

By Wind Concerns Ontario

 

The rainbow didn’t end in Ontario after all

 

April 15, 2018

With the recent announcement that the Canada Pension Plan decided to purchase some of U.S. energy giant NextEra’s wind and solar portfolio (a $741M CAD deal that also involves assuming $800M in debt), many people are suddenly noticing ownership of Canada’s renewable power sector.

A popular view of the wind industry in Ontario is that it is composed predominantly of Canadian companies in an “infant industry” that needs government subsidies to survive. The reality only becomes clear when one looks behind the scenes at the actual participants in the industry.

Ontario’s industrial wind generators enjoy the benefits of many federal and provincial programs, all of which were intended to ease their access to financing and improve investors’ returns. The list of special incentives is a long one, but here are the five most important:

 

  • The implementation of special feed-in-tariff (FIT) rates far above the market rates received by conventional energy producers; these rates started at $135 per megawatt hour (MWh) and have only recently declined to $125 per MWh;
  • The guarantee of these rates for the twenty-year life of the contracts;
  • Granting wind and other renewable energy sources priority access, or “first-to-the-grid” rights, requiring the Independent Electricity System Operator to take their production whenever it was available, even when that meant curtailing the purchase of other generation or dumping surplus energy at distressed prices on export markets;
  • Special tax benefits, including the federal government’s accelerated capital cost allowances and the Canadian Renewable and Conservation Expenses allowance and the Ontario government’s cap on the property taxes that industrial wind turbines pay to local municipalities;
  • Other subsidies, including the federal government ECOenergy for Renewable Power Program, $1.4 billion over five years in Budget 2017, and continuing large research and development assistance.

 

As a result, the Ontario wind industry, in general, has found the “pot of gold”, a level of income and wealth that far exceeds its general image. To illustrate this, let us examine some of the most prominent firms in the industry.

Here is a summary of the companies active in Ontario both as developers and operators, with financial statistics gleaned to the best of our knowledge and ability.

 

Non-Canadian developers/operators

Acciona: With headquarters in Madrid, Spain, Acciona develops and builds power projects for itself and third-party companies in 20 countries worldwide. In Ontario Acciona operates the 76-MW Ripley wind power project. As part of its “wind power value chain” the company also manufactures some turbine components. Revenue in 2017 was €7.2B and net income was €220M or $350M CAD. Chairman is José Manuel Entrecanales; no compensation data is available.

Brookfield Renewable Energy Partners: Headquartered in Bermuda with an office in Toronto, Brookfield is “multi-technology, globally diversified, owner and operator of renewable power assets” which includes more than 70 wind power projects around the world. In Ontario the company operates the 189-MW Prince project, Comber (165 MW) and Gosfield (50.6 MW) Brookfield also owns 51% of US-based Terraform Power, which operates the Raleigh Wind Farm. North American revenue in 2017 was $1B USD. CEO is Sachin Shah; 2016 compensation was $3.8M USD. 

Capstone Infrastructure: Capstone Infrastructure is a subsidiary of U.K.-based Irving Infrastructure, and owns and operates thermal and renewable power facilities. Headquarters for Canada are in Toronto. In Ontario, projects are: Erie Shores-Port Burwell-Malahide (99 MW), Skyway 8 (9.5 MW), Goulais (12.8 MW), Grey Highlands (18.5 MW), Grey Highlands ZEP (10 MW), Ganaraska (8.8 MW), Snowy Ridge (5 MW) and Settlers Landing (4 MW). Revenues for 2017 were $154M CAD. CEO is David A. Ave, whose 2016 compensation was $500K CAD.

EDF Renewables: This company is associated with EDF or Electricité du France, the Power utility in France. Headquarters for EDF Renewables is in San Diego, California; the company operates in Canada as EDF EN Canada (EDF Energie Nouvelles). EDF EN Canada currently has a contract for the 60-MW Romney Wind power project, which was the first of the LRP I projects to receive Renewable Energy Approval on April 16, 2018. CEO is Tristan Grimbert. No further financial data is available.

EDP Renewables : EDPR is a division of EDP or Energias du Portugal. The company’s headquarters are in Oviedo, Spain. EDPR claims to be the world’s fourth largest wind power developer. In 2017, the company states, it produced 27,600 GWh of power from wind. In Ontario, it operates the 30-MW South Branch project between Ottawa and Cornwall, and currently has a contract for the 100-MW Nation Rise project in North Stormont, south of Ottawa. Revenues in 2017 worldwide were €1.6B or $2.5B CAD. CEO of EDPR is Joᾶo Manso Neta; there is no compensation data available for the CEO. In June 2017 it was announced that the CEO of parent company EDP was being investigated on corruption charges related to power contracts; the CEO of EDPR was also being investigated, but there has been no news since of any charges.

Engie: Based in France, with North American Headquarters in Houston, Texas, and an Ontario office in Markham. This company bought AIM Power Gen (operated by Mike Crawley who is known to many Ontarians, and is now VP at Northland) which had become GDF Suez; it now operates the wind power projects at Cultus-Clear Creek Frogmore (30-MW), Harrow (40 MW), Erieau (99 MW), East St. Clair (99MW), Plateau (27 MW), and Point Aux Roches (49 MW). Revenues company-wide for 2017 were €65B or $101B CAD. CEO is Isabelle Kocher, whose 2016 compensation was €2.8M or $4.4M CAD.

Horizon Wind: See EDPR. The Horizon “Legacy” company operates the 10-MW Ernestown Wind project near Kingston.

Invenergy: This U.S.-based company has its headquarters in Chicago, and offices in Toronto, Denver and Mexico City plus a European office in Warsaw. It currently manages or has developed 82 wind power projects. Net worth is approximately $1B USD. Current Ontario project: Strong Breezes Dutton Dunwich (57.5 MW). Invenergy also developed the 78-MW Raleigh Wind project, which it sold to TerraForm and Sun Edison. Invenergy had proposed a project in North Perth, but the contract with IESO was terminated when it became impossible for the company to meet the contracted amount of power generation, due in part to citizen action and community opposition.

Longyuan Canada Renewables/China Longyuan Power Group: With 10,000 wind turbines worldwide in its portfolio producing 17,000 MW of power, the China Longyuan Group is the world’s largest wind power developer. The company also produces power from coal, and has minor interests in thermal, biomass and solar. Wholly owned subsidiary Longyuan Canada Renewables is headquartered in Toronto with nine employees, and operates the 91.4-MW Dufferin Wind power project (Melancthon). President is Zhu Dong; no compensation data is available. The company recently applied for an amendment to its renewable energy approval, to install optimization software which will increase power output but not exceed its nameplate capacity of 99MW. Operating profits for China Longyuan in 2017 were CNY 8.3B ($1.7B CAD), up from 2016 due to higher prices for coal. The President/General Manager is Li Enyi whose 2016 compensation is reported by Bloomberg as CNY 1,074,00 ($219,000 CAD)

NextEra Energy: NextEra Energy Canada is a division of NextEra Energy Inc. The company’s headquarters are in Juno Beach, Florida FL with a Canadian office on Bay Street in Toronto. NextEra operates the following Ontario wind power projects under contract to the provincial government: Conestogo (22.9 MW), Jericho (149 MW), Adelaide (60 MW), Bluewater (60 MW), Summerhaven (124.4 MW), Goshen (102 MW), Cedar Point II (100 MW), Bornish (73.5MW), and East Durham (22 MW). Income of the parent company was $5.3B USD; president and CEO James Robo earned a base salary in 2016 of $1.3 M USD but topped it up with incentives, bonuses and stock options for a total compensation package of $16M USD. On April 2, 2018, it was announced that the Canada Pension Plan had agreed to purchase four NextEra wind facilities, plus two solar projects, in Ontario; the deal is subject to Canadian regulatory approval and if approved, may close in the second quarter of 2018.

RES Group, operating in Canada as RES Canada: Headquarters are in the UK with a Canadian office in Montreal. RES’ slogan is “Power for Good.” The company boasts a portfolio of more than 7,000 wind turbines and asset management of 2 GW of wind power generating facilities. RES Group was the subject of a BBC documentary called “Blown Apart” which featured an RES employee “Rachel” who infiltrated a village community with dreams of a green future for her community, only to be revealed eventually as a corporate operative trying to get people to sign wind turbine leases. In Ontario, RES was involved in construction of South Kent Wind, Brooke-Alvinston, Grand Valley 3, and Gunn’s Hill, and as a developer, has a contract for the 32-MW Eastern Fields in The Nation, near Ottawa. RES bills itself as a full-service provider, offering asset management and project design services. No data found on earnings, and no information on compensation for CEO Ivor Catta.

Pattern/Pattern Energy Group: The company’s slogan is “Transitioning the world to Renewable Energy.” Headquarters are in San Francisco; the company operates the Belle River (see Samsung), and North Kent projects in Ontario, is a partner in K2 Wind, and is constructing the Henvey Inlet 300-megawatt project. 2017 revenues were $411.3 million USD. CEO/President is Michael Garland, whose 2016 compensation was $2.7 MM ($430.7K salary, $456K bonuses, and $1.8MM stock).

Prowind: Prowind is a very small player but managed to attract attention for its 18-MW Gunn’s Hill project near Woodstock, which it claims is a totally community endeavour. In fact, the lone community member in the investment leadership group went on to be president of Prowind Canada, and other “community” members were Toronto-based environmental organizations. The community launched an appeal of the REA, but was not successful. Prowind is a subsidiary of Prowind GmBH of Germany; president and CEO in North America is Frank Mascia and chair is Johannes Busmann. No financial data is available.

Samsung Renewable Energy: The company is a division of Samsung C&T Investment Trading Group. Samsung C&T is headquartered in Korea; there is an office in Canada located in Mississauga. Samsung developed the huge K2 Wind project (with Pattern and Capital Power, 270 MW) but has since sold its interest to a consortium which includes insurance giant ManuLife, the Alberta Teachers’ Retirement Fund and Toronto-based equity fund manager Axium. Samsung operates Belle River (100 MW) , Armow (180 MW), and South and North Kent (270 and 100 MW respectively). Samsung, also known as “the Korean consortium,” was given an extraordinary contract by the Ontario government in 2010 to buy $9.7B CAD worth of electricity. The contract amount was slashed by a third in 2013; the government claimed Samsung had missed some deadlines, but the fact is, that much power was not (is not) needed. Canadian vice-president is Steve Cho; Samsung C&T president and CEO is Chi H. Choi; no compensation data is available. Samsung C&T operating profits in 2017 were 881.3B won or $1.05B CAD.

Saturn Power: Saturn operates the 10-megawatt Gesner project. It is a private company so no financials are available; headquarters are in Baden, Germany.

Terraform Power: Headquartered in Bethesda, MD, Terraform is the “owner and operator of a 2,600 MW diversified portfolio of high-quality solar and wind assets, primarily in the U.S., underpinned by long-term contracts” which includes the 78-MW Raleigh Wind project, which it purchased from Invenergy. Revenue for 2017 according to the company pro forma was estimated to be $585 M USD. CEO is John Stinebaugh; no compensation data available.

Veresen Inc.: Veresen was the owner and operator of the 20-MW Grand Valley 1 wind power project; the company was recently acquired by Pembina in 2017 for $6.4B CAD.

WPD Canada: This is a wholly owned subsidiary of WPD Europe/WPD AG, a private company headquartered in Bremen, Germany. The Canadian office is in Mississauga. The company is active in 18 countries and says it has installed 1,700 wind turbines. In Ontario, WPD operates the Springwood (8.2 MW), Whittington (6 MW), Napier (4 MW) and Sumac Ridge (10.25 MW) projects, and has a contract (currently being disputed in the courts by a citizens’ group) for the 18-MW White Pines project in Prince Edward County. WPD Power’s CEO is Dr. Gernot Blanke; no compensation data is available

 

Canadian companies

Algonquin Power & Utilities Corp.: Algonquin is described as a Canadian utility involved in the generation, transmission and distribution of power. The headquarters are in Oakville, Ontario. At present in Ontario, the company’s wholly owned subsidiary Windlectric Inc. sold half its lone wind project to Newfoundland-based construction company Pennecon to build a 75-MW wind power project on Amherst Island. Algonquin Power is estimated to have $10B CAD in assets. With a five-year return of 73% the company has been the darling of Canadian investors but has tumbled with a more recent 1-year return of 2.06%. CEO of Algonquin is Ian Robertson, whose 2016 compensation was $3.5M according to Reuters; Pennecon’s president is David Mitchell for whom no compensation data is available.

BluEarth Renewables: With headquarters in Calgary, Alberta, BluEarth is described as a “private independent” company whose major shareholder is in fact the Ontario Teachers Pension Plan. It operates two wind power projects in Ontario: Bow Lake Wind (60-MW), and St Columban (33 MW). In February 2018, BluEarth announced a deal with Veresen in which it would acquire an interest in three Ontario wind power projects, with a view to own and operate, in the long term.   Net worth is estimated at $10B CAD. President and CEO is Grant Arnold; no compensation data is available.

Boralex: Boralex was created in 1990 as a joint venture between the leaders of three companies; the name Boralex is derived from the names of these companies: LaduBOR, ALbany Oil (U.S.) and EXar (U.S.).  Headquarters are in Kingsey Falls, QC. Boralex is active in Canada, France and the U.S. Ontario Projects are Port Ryerse (10 MW) and the proposed/contracted Otter Creek (50 MW). The company was involved in the development of the Niagara Region Wind Farm (230 MW) and acquired at least part of the project from Enercon in 2017. Revenue from energy sales in 2017 to September 30 were $285M CAD. Total equity: $2.7B USD. Compensation for CEO Patrick Lemaire was $1.2M CAD in 2016.

Capital Power: Based in Edmonton, Capital is involved in a variety of power generating enterprises, including wind; Capital is a partner in K2 Wind, and operates the 40-MW Kingsbridge project in Ontario, and the 104-MW Port Dover and Nanticoke facility. Revenues in 2017 were $1B and net income was $144M. CEO is Brian Vaasjo whose 2016 compensation was $2.9M.

Enbridge: The company is best known as a producer of fossil fuels in Canada. Headquartered in Calgary, Alberta the company says it transports, generates and distributes energy, in that order. It operates 16 wind power projects in North America, including the Talbot (98.9 MW) and Underwood (181.5 MW) power facilities in Ontario. Adjusted earnings for 2017 were $3.2B CAD of which “green power” earnings were $101MM. CEO until recently was Al Monaco who is listed as one of Canada’s 100 highest paid executives with a base salary of $1.377MM and total compensation of $11.391MM.

Kruger Energy: Kruger is a family-owned company headquartered in Montreal that is involved in paper, paperboard recycling, and energy. Kruger Energy was founded in 2004 to develop power projects in Canada, and currently operates the 101.2-megawatt facility at Port Alma, and the 99.4-MW Kruger Chatham Wind Farm in Ontario. The company also put forward a proposal in 2015 for another Chatham-Kent facility. The company is privately held by the Kruger family. CEO is Jean Roy; no compensation data is available.

Northland: Northland is a rare bird in wind power development in Ontario, with headquarters in Toronto. The company operates two wind power projects at present: McLean’s Mountain on Manitoulin Island (60 MW), and the Grand Bend facility in Zurich (100 MW). Profits for 2017 were up 37% to $1.2B CAD, with net income up 45% to $276 MM. Northland is involved in two offshore wind projects in Europe and owns 100% of the Nordsee wind power project. Northland is also involved in solar projects in Ontario. CEO is John Brace whose 2016 compensations was $1.9MM CAD ($473K salary, $1MM stock, and $9,000 “other”). Also on Northland’s executive team is Mike Crawley, former CEO of AIM PowerGen and also famously chair of a McGuinty government panel that looked at a mix of energy resources for Ontario, and he was later president of the Ontario Liberal Party, and subsequently, the Liberal Party of Canada. Mr. Crawley’s 2016 compensation was $923K.

Suncor: The company describes itself as an “integrated energy company.” With headquarters in Calgary, Alberta, Suncor currently operates four wind power projects in Canada, one of which is the Adelaide power project. But the company used to own more: in 2015, however, Suncor announced it was divesting almost all its wind assets, particularly in Ontario, and so sold off Ripley and Cedar Point as well as its share in the Kent Breeze project. Funds from operations in 2017 were $3B CAD. CEO is Steven Williams who is also listed by Canadian Business as one of Canada’s 100 highest paid executives. His base salary in 2017 was $1.375M, and total compensation was $11.482M.

TransAlta: Based in Calgary, TransAlta owns and operates the wind power project on Wolfe Island (famous for being one of the wind power projects with the highest number of bird kills in North America) and phases 1 and 2 of the Melancthon project in Shelburne (199 MW). The company claims production of 2,300 megawatts of power, of which 54% is from wind, in 18 facilities around the world. Wolfe Island and Melancthon 2 receive payments not only from their power purchase agreements with Ontario but also federal ECOenergy payments. Revenues for 2017 were $2.3B with operating income of $138M. The President and CEO is Dawn Farrell whose compensation came under fire in 2017 at the shareholders’ meeting; they objected to the 60% rise in compensation. Ms Farrell was paid $7.4M, which included a base salary of $960,000 plus stock options and bonuses.

 

Ownership at a glance

Developer ownership Megawatts in operation/planned Ontario
Non-Canadian 4,130.95
Canadian 1,212

More than 75 percent of Ontario’s wind power projects are owned by non-Canadian companies

 

Wind power development suppliers:

Enercon Canada:  Enercon Canada is a subsidiary of Enercon GmbH of Germany, which is the fourth largest turbine manufacturer in the world. Its Canadian offices are in Montreal. Enercon Canada developed and had the majority interest in the 230-MW Niagara Region Wind Farm until selling at least a 25% stake to Boralex in 2017. CEO is John D. Richardson; no compensation data is available.

Senvion Canada: Senvion Canada is a division of Germany-based Senvion S.A., one of the world’s leading turbine manufacturers. The company began operating in Canada in 2009 and now has more than 660 turbines installed. Senvion Canada is headquartered in Montreal, Quebec, with offices in Toronto, Ontario and Vancouver, British Columbia. Senvion’s 2017 revenue was €1.8M ($2.8 CAD), sales or “order book” were €5B ($8B CAD). Senvion is owned by Centerbridge Partners, a New York-based private equity firm. CEO is Jurgen Geissinger; no compensation data is available.

GE Renewable Power is a division of GE or General Electric, which is aiming to profit from the renewables sector by manufacturing equipment including turbines. GE headquarters are is Boston, Massachusetts. In Canada, GE manufactures wind turbine blades at a plant in Gaspé. Profits have been down lately for the company, with a 1-year return on investment of -54%. In 2017, operating cash flow was $10B USD. CEO of GE Renewables is Jérôme Pécresse; no compensation data is available.

Vestas Wind Systems: Based in Aarhus, Denmark, publicly owned Vestas is perhaps the best known among wind turbine suppliers. According to one 2015 industry article, Vestas is the number one company in the world for turbine installations. Annual revenues for 2017 were €9.9B or $15.5B CAD, and operating profit was €1.6B or $2.5B CAD. CEO is Anders Runevad, who came on board in 2013 to help shift the company back to good fortune. Mr. Runevad maintains a low public profile and there is no compensation data available.

Siemens Canada is a division of worldwide engineering firm, Siemens AG, headquartered in Munich, Germany. Siemens Canada claims expertise in the fields of electrification, automation and digitalization and is involved in sustainable energy, “intelligent infrastructure,” healthcare and manufacturing. One of the world’s largest producers of energy-efficient, resource-saving technologies, Siemens is a foremost supplier of power generation and power transmission solutions. The company is also a leading provider of medical imaging equipment and laboratory diagnostics as well as clinical IT. With Headquarters in Canada in Oakville, Siemens Canada has approximately 5,000 employees, 44 offices and 15 production facilities from coast-to-coast. Siemens AG assets as of 2017 were €134B or $214.6B CAD; revenue was €83B ($9.61B CAD); operating cash flow was €6B ($132B CAD). Siemens Canada President and CEO is Faisil Kazi; no compensation data is available.

Aecon: This Canadian construction company is engaged in infrastructure and energy projects throughout Canada. The company is currently in negotiations to be sold to Chinese company CCCC International, but the sale is under review by the federal government on the grounds of national security interests. Aecon has headquarters for various regions but the Canada East office is in Toronto. Financial results were presented under Infrastructure and Energy—we’re not sure where the company’s work for wind power developers fits. Results for 2017 are: Infrastructure revenues $685M CAD and operating profit was $32.5 M CAD; Energy revenues were $395.7 M, and operating profits were $23.1M. Total assets for Aecon were $2.5B. President and CEO is John M. Beck whose 2016 compensation was $3.6M.

 

 ***

 

WIND CONCERNS ONTARIO

contact@windconcernsontario.ca

 

The information is complied from publicly available information. It is not an exhaustive list of Ontario wind power projects but we have elected to include developers of power projects 10-megawatts and more. Sources: company financial reports, Bloomberg, Reuters, Canadian Business

Thanks to energy economist Robert Lyman and energy commentator Parker Gallant for their input.

WCO expresses concern over CPP purchase of Ontario wind farms

Are wind farms the problem-free “green” investment the CPP should buy for Canadians’ future?

Why buy wind power projects when Ontario has a surplus of power and when wind power is a factor in higher electricity bills leading to energy poverty, Wind Concerns Ontario asked in a letter. And why is Canada’s public pension fund investing in projects that are producing environmental noise?

 

April 4, 2018

Wind Concerns Ontario, the coalition of more than 30 community groups and hundreds of families and individuals concerned about the impacts of industrial-scale wind power development, has written a letter to the Canada Pension Plan Investment Board, expressing concern about an announcement to buy four Ontario wind power projects from US-based NextEra Energy.

The CPPIB announced it was buying for wind power projects and two solar facilities in Ontario for $741M CAD, and further assuming NextEra’s debt of over $800M.

In a letter to President and CEO of the CPPIB Mark Machin, sent to the Board’s office in Toronto, Wind Concerns noted that Ontario is in a situation of surplus power, which is costing Ontario citizens millions.

“The surplus power is either sold at below-cost rates or given away to neighbouring jurisdictions,” WCO said,  “a practice that has caused Ontario’s electricity costs to balloon and is contributing to the energy poverty situation now being faced by many of the pensioners that your plan supports.”

There is also the troubling fact that the four NextEra wind power projects (Summerhaven, Jericho, Bluewater and Conestogo) have been the source of more than 120 official reports of excessive noise and vibration, some including staff notes on health impacts, made to the Ministry of the Environment and Climate Change. WCO obtained the Master Incident files under the Freedom of Information request process.

Citing one Master report from the Conestogo project in which MOECC staff noted that the mandated emissions and imissions audit were “incomplete at the time of submission” and also, that the Ministry had not provided resources for Provincial Officers to visit sites after hours and confirm or deny compliance, staff had no choice but to close the Incident Report file.

” Th[at] excerpt is typical of how noise reports are managed: there is no resolution, and the project is not compliant with key terms of its approval,” Wind Concerns Ontario told Mr. Machin.

WCO also referred to the Investment Board’s stated commitment to “Environmental, Social and Governance (ESG) factors” in investment choices, and said, “We would think you would share local residents’ concerns about the operation of these projects. In short, there are other factors in this investment decision beyond the financial.”

“A critical factor will be resolution of these [noise] reports,” Wind Concerns’ president Jane Wilson concluded in the letter, “management and resolution of citizen health impacts, and liability for property value loss and other negative effects.”

 

Contact@windconcernsontario.ca

 

 

Canada Pension Plan buys wind power projects

U.S.-based NextEra reaps cash for valuable “guaranteed price” Ontario wind contracts as the CPP pays millions and even assumes almost $1B in debt

April 3, 2018

Florida-based NextEra Energy has sold off a significant portion of its Ontario renewable power portfolio to the Canada Pension Plan in a deal that nets the company over $700 million CAD in cash, and also sees the Canadian public pension plan assume debt of almost $900 million.

Here is a report from wind industry publication, Windpower Engineering and Development. The Canadian Pension Plan also released the information here.

NextEra selling Ontario wind & solar assets

NextEra Energy Partners, LP announced that it has entered into a definitive agreement with Canada Pension Plan Investment Board (CPPIB) for the sale of its portfolio of wind and solar generation assets in Ontario, Canada, for a total consideration of about $582.3 million. This includes the net present value of the O&M origination fee, subject to customary working capital and other adjustments, plus the assumption by the purchaser of approximately $689 million USD in existing debt.

Wind turbines

The transaction includes the sale of six fully contracted wind and solar assets with an average contract life of about 16 years.

“We are pleased to reach this agreement with CPPIB for the sale of our Canadian portfolio, which we expect will be accretive to NextEra Energy Partners’ long-term growth,” said Jim Robo, chairman and chief executive officer. “The sale of these assets, at a very attractive 10-year average CAFD yield of 6.6%, including the present value of the O&M origination fee, highlights the underlying strength of the partnership’s renewable portfolio.”

 

 

An affiliate of NextEra Energy Resources will continue to operate all of the facilities included in the transaction under a 10-year services agreement with CPPIB.

“As discussed during our earnings call in January, we expect the sale of the Canadian portfolio to enable us to recycle capital back into U.S. assets, which benefit from a longer federal income tax shield and a lower effective corporate tax rate, allowing NextEra Energy Partners to retain more CAFD in the future for every $1 invested. We expect to accretively redeploy the proceeds from this transaction to acquire higher-yielding U.S. assets from either third parties or NextEra Energy Resources,” added Robo.

The transaction includes the sale of six fully contracted wind and solar assets, with an average contract life of approximately 16 years and 10-year average CAFD of $38.4 million. Located in Ontario, the portfolio has a combined total generating capacity of approximately 396 MW and consists of:

  • Bluewater, a 59.9-MW wind generating facility;
  • Conestogo, a 22.9-MW wind generating facility;
  • Jericho, a 149-MW wind generating facility;
  • Summerhaven, a 124.4-MW wind generating facility;
  • Moore, a 20-MW solar energy generating facility; and
  • Sombra, a 20-MW solar energy generating facility.

NextEra Energy Partners expects the sale to close during the second quarter of 2018. The transaction is subject to receipt of regulatory approvals and satisfaction of customary closing conditions.

Wind turbine construction destruction: “the rules are just made to be broken”

March 5, 2018

Roads blocked without notice on Amherst Island: breaking all the rules and getting away with it (Photo: Brian Little)

“All the rules are made to be broken”

Representatives of three community groups where wind turbine projects are currently under construction, addressed the Wind Concerns Ontario conference in Kingston this past weekend, and told hair-raising stories of violations of Renewable Energy Approvals, disobedience of municipal orders, ignoring conditions of road use agreements, and more.

Anne Dumbrille, chair of the County Coalition for Safe Appropriate Green Energy (CCSAGE-Naturally Green) and Orville Walsh of the Alliance to Protect Prince Edward County (APPEC), both based in Prince Edward County, detailed the abuses of the Renewable Energy Approval and IESO contract by Germany-based wind power developer wpd in construction of the contentious White Pines wind power project.

The White Pines project was originally planned to produce electricity for Ontario’s surplus-laden power grid via 29 huge wind turbines. A successful appeal based on heritage aspects of The County reduced the turbine number to 27; another appeal (Hirsch v. MOECC) was partially successful and saw the project reduced from 27 to 9 turbines, based on harm to endangered species.

“We had been operating under the belief that having to meet the 75 percent of power requirement in the contract with the IESO [Independent Electricity System Operator] actually meant something,” said Walsh. “It turns out, it doesn’t. Contracts don’t mean anything — they can do whatever they want.”

Dumbrille echoed that with a litany of abuses. The White Pines project is way past its specified commercial operation date, she said, which should mean the IESO could terminate the contract, but it hasn’t. “The Long Stop Date has no meaning or relevance, despite being in the regulations,” she said. “The decision appears to be political.”

The public also expected that while the power project was being appealed, construction work would not be allowed, particularly in the areas presented as habitat for the endangered Blandings turtle, but in fact, both the MOECC and the Ministry of Natural Resources and Forestry allowed it. Only when citizens took action in court was a stop work order achieved.

“Why must citizen groups rather than government protect habitat destruction?” Dumbrille asked.

The land clearing in turtle habitat continued after the appeal for the nine remaining turbines outside the limits imposed by the Environmental Review Tribunal. Again, citizens went to court, and again a stop order was issued, but not before habitat was destroyed. A transmission station is planned to be built in a stream bed which is against regulations and will require the taking of water. Again, the MOECC appears to side with the power developer on all issues.

“All the rules are made to be broken,” said Dumbrille, “to benefit the wind power developer. And the public has no right to information, apparently.”

Janet Grace, past chair of the Association to Protect Amherst Island (APAI), described numerous violations of the Renewable Energy Approval, road use agreements, and provincial safety regulations by “Windlectric” a shell company developing a power project on the island for Algonquin Power. Construction staff and vehicles are supposed to be using a barge to get to the island, she said, but they’re not: instead, they use the passenger ferry which is resulting in delays for Island residents, many of whom work across the water in KIngston, and concerns about safety.

Roads are blocked without notice, and construction throughout the winter has virtually destroyed roads, so much so that the municipality Loyalist Township issued a stop work order. Resident photographs indicate however, that the order was ignored, with the power developer construction firm continuing work. In addition, Grace said, the company is supposed to stop work at 7 PM, but in reality is working until 11 PM.

“The sad thing is, Grace said, “we know this is just the beginning of what is being done to our Island. There are rules being broken, and violations … the MOECC gives them exemptions. They’re just getting away with it all.”