Wind Concerns Ontario is a province-wide advocacy organization whose mission is to provide information on the potential impact of industrial-scale wind power generation on the economy, human health, and the natural environment.
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.
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.
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The Green Energy Act superseded 21 pieces of legislation in Ontario, and removed local land-use planning for “renewable” power projects.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.
We learned today from Sauvons La Nation/Save The Nation (one of the 30 community groups in our coalition) that the wind power developer responsible for the Eastern Fields power project, RES Canada, has refused to provide documentation on the project in French.
La Nation, according to Statistics Canada, is about 70% francophone; the Township of Champlain’s francophone population is about 62%.
According to a spokesperson for Sauvons La Nation, RES Canada told community members it would cost too much to translate all the documentation.
RES Canada stands to make about $7 million a year from the 32-negawatt power project.
The MOECC translated a small portion of the documentation in the introduction but is alleged to have told the community, the documents aren’t really for the general public anyway.
Right now, Eastern Fields is currently posted on the Environmental Registry for comment. Residents have been asking for French documentation prior to the June 2nd deadline but to no avail. The result is, francophone residents who will be affected by the Eastern Fields project, for which there are significant environmental concerns, have been excluded from participating in the legislated public consultation process. The community has made its concern over this power project known in many ways, from presentations, public meetings that attracted hundreds, and hundreds of signatures on a petition taken to Queen’s Park.
Of all the ways the Ministry of Environment and Climate Change (MOECC) has excluded the people of Ontario and abused rights to due process, this has surely got to be one of the most egregious.
Wind Concerns Ontario contacted the Senior Project Evaluator for Eastern Fields — she’s away.
We contacted an official in the Minister’s Office whose name was given to us — he’s away until after the election.
We also contacted the Office of the Human Rights Commission for Ontario: no response.
What the MOECC should do:
-require RES Canada to provide documentation in French
-provide it to the residents in the areas affected by Eastern Fields
-embark on a new 45-day comment period.
It was interesting the Ontario’s premier was in Glengarry-Prescott-Russell today, the riding in which Easter Fields would be built, if approved, and spoke about the importance of francophones in Ontario.
When it comes to wind power projects, apparently, francophone Ontarians can be ignored and discriminated against like everyone else in Ontario’s rural communities.
On June 8, after the Ontario election, Ontario’s new premier – whoever that is – will be thinking of selecting a new Minister of Energy. With the challenges in that portfolio, the immediate question for anyone considering accepting the job would be, how can one fix the electricity side of the portfolio after the damage done over the previous 15 years by my predecessors?
Here are a few “fixes” I would take that to try to undo some of the bad decisions of the past, if I were the new energy minister.
Green Energy Act
Immediately start work on cancelling the Green Energy Act
Knowing Ontario has a large surplus of generation we export for 10/15 per cent of its cost I would immediately cancel planned conservation spending. This would save ratepayers over $433 million annually.
Wind and solar contracts
I would immediately cancel any contracts that are outstanding, but haven’t been started and may be in the process of a challenge via either the Environmental Review Tribunal) or in the courts. This would save ratepayers an estimated $200 million annually.
Wind turbine noise and environmental non-compliance
Work with the (new) MOECC Minister to insure they effect compliance by industrial wind developers both for exceeding noise level standards and operations during bird and bat migration periods. Failure to comply would elicit large fines. This would save ratepayers an estimated $200/400 million annually.
Change the “baseload” designation of generation for wind and solar developments
Both wind and solar generation is unreliable and intermittent, dependent on weather, and as such should not be granted “first to the grid rights”. They are backed up by gas or hydro generation with both paid for either spilling water or idling when the wind blows or the sun shines.
The cost is phenomenal.
As an example, wind turbines annually generate at approximately 30 per cent of rated capacity but 65 per cent of the time power generation comes at the wrong time of day and not needed. The estimated annual ratepayer savings if wind generation was replaced by hydro would be $400 million and if replaced by gas, in excess of $600 million.
Charge a fee (tax) for out of phase/need generation for wind and solar
Should the foregoing “baseload” re-designation be impossible based on legal issues I would direct the IESO to institute a fee that would apply to wind and solar generation delivered during mid-peak and off-peak times. A higher fee would also apply when wind is curtailed and would suggest a fee of $10/per MWh delivered during off-peak and mid-peak hours and a $20/per MWh for curtailed generation. The estimated annual revenue generated would be a minimum of $150 million
Increase LEAP contributions from LDCs to 1 per cent of distribution revenues
The OEB would be instructed to institute an increase in the LDC (local distribution companies) LEAP (low-income assistance program) from .12 per cent to 1 per cent and reduce the allowed ROI (return on investment) by the difference. This would deliver an estimated $60/80 million annually reducing the revenue requirement for the OESP (Ontario electricity support program) currently funded by taxpayers.
Close unused OPG generation plants
OPG currently has two power plants that are only very, very, occasionally called on to generate electricity yet ratepayers pick up the costs for OMA (operations, maintenance and administration). One of these is the Thunder Bay, the former coal plant converted to high-end biomass with a capacity of 165 MW. It would produce power at a reported cost of $1.50/kWh (Auditor General’s report). The other unused plant is the Lennox oil/gas plant in Napanee/Bath with a capacity of 2,200 MW that is never used. The estimated annual savings from the closing of these two plants would be in the $200 million range.
Rejig time-of-use (TOU) pricing to allow opt-in or opt-out
TOU pricing is focused on flattening demand by reducing usage during “peak hours” without any consideration of households or businesses. Allow households and small businesses a choice to either agree to TOU pricing or the average price (currently 8.21 cents/kWh after the 17% Fair Hydro Act reduction) over a week. This would benefit households with shift workers, seniors, people with disabilities utilizing equipment drawing power and small businesses and would likely increase demand and reduce surplus exports thereby reducing our costs associated with those exports. The estimated annual savings could easily be in the range of $200/400 million annually.
Niagara water rights
I would conduct an investigation into why our Niagara Beck plants have not increased generation since the $1.5 billion spent on “Big Becky” (150 MW capacity) which was touted to produce enough additional power to provide electricity to 160,000 homes or over 1.4 million MWh. Are we constrained by water rights with the U.S., or is it a lack of transmission capabilities to get the power to where demand resides?
MPAC’s wind turbine assessments
One of the previous Minister’s of Finance instructed MPAC (Municipal Property Assessment Corp,) to assess industrial wind turbines (IWT) at a maximum of $40,000 per MW of capacity despite their value of $1.5/2 million each. I would request whomever is appointed by the new Premier to the Finance Ministry portfolio to recall those instructions and allow MPAC to reassess IWT at their current values over the terms of their contracts. This would immediately benefit municipalities (via higher realty taxes) that originally had no ability to accept or reject IWT.
Do a quick addition of the numbers and you will see the benefit to the ratepayers of the province would amount to in excess of $2 billion dollars.
Coincidentally, that is approximately even more than the previous government provided via the Fair Hydro Act. Perhaps we didn’t need to push those costs off to the future for our children and grandchildren to pay!
Now that I have formulated a plan to reduce electricity costs by over $2 billion per annum I can relax, confident that I could indeed handle the portfolio handed to me by the new Premier of the province.
Well-water protection, noise are issues of concern
For immediate release
Ottawa, May 29, 2018 – A community group has filed a formal appeal of the Renewable Energy Approval given by the Ministry of the Environment and Climate Change (MOECC) for the “Nation Rise” wind power project.
“People in our quiet rural communities are unhappy with the prospect of an industrial-scale wind power project, particularly due to concerns about noise emissions from the wind turbines,” says Margaret Benke, spokesperson for Concerned Citizens of North Stormont. “This 100-megawatt power project is very large in scope, spanning 12,000 acres. The plans are for 33 industrial wind turbines, equivalent to 60-storey office buildings. It will have a huge impact on our communities.”
Of prime concern is the potential to damage well water supply, as a result of the drilling and pile-driving necessary to anchor the top-heavy turbines. “Of the 33 proposed turbines, 31 are slated to be directly on top of what the MOECC has designated as ‘highly vulnerable aquifers’,” says Benke. “Up to 10,000 wells for villages, homes, farms and businesses between North Stormont and almost to the Ottawa River to the northeast, depend on this fragile source of water.”
Water wells in the Chatham-Kent area have been contaminated with black sediment following turbine construction last year, and there are calls for a public health investigation as a result.
“We are very worried about what could happen to our water,” says Benke.
Noise is a serious concern too, especially because the MOECC has received thousands of noise complaints in Ontario, but few have been resolved, says Wind Concerns Ontario president Jane Wilson.
“The reports we obtained from the MOECC under Freedom of Information show that the Ministry has not responded effectively to reports of excessive turbine noise, and instead relies on hypothetical, computer-generated noise models from the turbine manufacturers. Meanwhile, families can’t sleep at night—some have even abandoned their homes,” says Wilson. “That is not the protection of the environment and health Ontarians expect from their government.
“With so many reports of problems, the people in the North Stormont area are right to be concerned,” Wilson adds.
A preliminary hearing is scheduled for July 5th, tentatively in Finch, Ontario.
The Nation Rise power project will be located about 40 km southeast of Ottawa, and includes the communities surrounding Finch, Berwick and Crysler. It is being developed by Portuguese power developer EDP Renewables.
SOURCE: Wind Concerns Ontario, Concerned Citizens of North Stormont
CONTACT: Margaret Benke firstname.lastname@example.org Jane Wilson email@example.com
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
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.
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
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
Megawatts in operation/planned Ontario
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
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.
Noise abatement plan accepted, but what does it really mean?
March 19, 2018
Port Elgin residents forced to live near the single wind turbine operated by the union Unifor, which has resulted in hundreds of noise complaints since the moment it began operating, were “vindicated” recently when the Ontario Ministry of the Environment and Climate Change (MOECC) announced that noise testing revealed the turbine was not in compliance with regulations.
See a report from CTV London reporter Scott Miller, here.
The MOECC told Unifor that as the turbine operator, they would have to put a noise abatement plan in place by today.
Wind Concerns Ontario has learned that the plan was submitted and has been approved by the Ministry. Noise testing will now continue, said MOECC District Manager Rick Chappell, to confirm compliance with regulations. The Ministry expects the new Imissions Audit or I-audit by the end of June.
Port Elgin resident Greg Schmalz says the admission of non-compliance is vindication for residents who have been complaining for years, but the fight is not over. And many serious questions remain.
“If ongoing tests show non-compliance for a second time, does that result in the MOECC permanently revoking the operating certificate?” he asks. “Will resident complaints filed during the abatement period and ongoing testing be confirmed, or do they not count? And why did it take so long from report dates to release [of the information]?”
The engineering report was filed with the MOECC in January, and the MOECC did not announce the status of non-compliance until March … and then to the wrong municipality.
Documents received by Wind Concerns Ontario via Freedom of Information requests show that the MOECC received 236 reports of excessive noise up to the end of 2014, and more during the 2015-2016 time period. People complained of noise “like a helicopter” overhead, and of sleep disturbance at night, which in turn produced other health effects.
Read the report by engineering consultant firm HGC here.
There were so many people attending the hearing at the Ontario Superior Court in Belleville Monday that there was a half-hour delay in the proceedings so a larger courtroom could be found.
That was just the beginning of the changes that day, as the Alliance to Protect Prince Edward County (APPEC) took on the Independent Electricity System Operator (IESO) over its awarding a new contract to Germany-based wind power developer wpd Canada and the White Pines project. The power project was diminished from 29 to 27 then nine turbines in various citizens’ appeals, and it was thought since the power developer had not only missed all its milestones stipulated in the contract it also now failed to meet the 75% of power required, the contract might be null and void.
That’s where things changed.
The public has “no right” to know what’s in multi-billion-dollar contracts that are the result of public policy. Not in Ontario. Not where “wind is green, wind is good” and citizens’ voices don’t matter, nor do communities, or democracy. No: instead, the IESO simply cut the developer a new contract. And the public? You have “no right” to know anything.
Our favourite quote of the day came from APPEC lawyer Eric Gillespie who said, “The contract [for White Pines] was made public, but some pretty important changes weren’t.”
Here is a formal report by APPEC.
APPEC Report on
APPEC v. IESO and WPD
Belleville Superior Court
January 29, 2018
Mr. Justice Kershman presided over the hearing of final submissions at the Belleville Courthouse. The turn-out was excellent with Mayor Quaiff, Councillor Ferguson, Wind Concerns Ontario President Jane Wilson and about 75 County residents attending. In fact, the Court Clerk was forced to find a larger courtroom to accommodate the crowd.
APPEC Final Submissions
Eric Gillespie began by pointing out that this case raises broader public policy issues of access of information from the IESO. On June 12, 2017 APPEC contacted the IESO for information about the status of WPD’s FIT contract. The IESO indicated in its reply that it could not disclose this information, citing confidentiality. Mr. Gillespie argued that this information should have been disclosed for the following reasons: (1) the IESO describes the FIT program as a standardized, open and fair process; (2) APPEC and Ontario communities are affected by the FIT Program; and (3) the information APPEC was seeking, and the IESO withheld, could not have been confidential at all as it was ultimately disclosed to the Court in November 2017.
Mr. Gillespie clarified that contrary to what the IESO contends, this is not about how to interpret clauses in the FIT contract. The clauses are negligent misrepresentation, in that APPEC was led to believe that the generation capacity of the White Pines project could not go below 75% of the generation contracted for in 2010, when the FIT contract was signed. The central issue for APPEC is that information that became known to the IESO was not made publicly available. The IESO had a choice, when it became clear that WPD could not meet the 75% condition in the contract. It could have said that things had changed, that WPD’s FIT contract would need to be amended, that WPD was in default of contractual milestone dates, etc. Mr. Gillespie noted that it’s what the IESO and WPD did with their choices that has brought us here today. WPD’s first public announcement that it was proceeding with the 9-turbine project was September 21, 2017. The IESO informed Councillor Ferguson that it had agreed to amend the FIT contract on October 12, 2017. APPEC only obtained the information it had sought in June when the IESO disclosed it to the Court on November 30.
IESO and WPD Closing Submissions and APPEC’s Reply
Alan Mark, IESO’s legal counsel, criticized APPEC’s “assumption” that it has some right to insert itself into the contractual relationship between the IESO and WPD. Mr. Mark stated that any rights are owed exclusively to WPD, the IESO’s contractual partner; there’s nothing in the statutory framework that gives APPEC “the right to anything”. Mr. Mark went on to suggest that a contract is just a statement at a point in time with no guarantee that it won’t change in the future and members of the public don’t need to know about that either. Mr. Mark added that “with all respect to APPEC, APPEC is just made up of members of the public that feel strongly about wind power projects.”
Mr. Mark indicated that the IESO has made no representations to APPEC at any time, so it could not have made a negligent representation. When Judge Kershman asked whether APPEC’s allegation is that the IESO made a representation in 2010 that the Project would not be able to proceed if the project’s generation capacity fell below 75%, Mr. Mark responded that this isn’t the case APPEC is making.
Mr. Mark noted a statement in the Skypower Decision that the FIT contract is a bilateral commercial contract between two parties. Mr. Gillespie noted that in the same Skypower Decision, Judge Nordheimer rejects this characterization of the FIT program, and says that the suggestion that this is a commercial nature entirely and not a matter of public policy is fictional.
Mr. Mark said that APPEC had all the information it needed and ignored this information at its peril. In reply, Mr. Gillespie asked why APPEC would base its ERT appeal rights on a complete unknown, i.e., would the IESO amend the FIT contract, or not?
Patrick Duffy, legal counsel for WPD, also took up the argument that APPEC had no right to insert itself into the contract between the IESO and WPD. Mr. Gillespie replied that if that was so, then why did the IESO make FIT contracts available on its website for public viewing in the first place? Mr. Duffy stated that the terms “open” and “transparent” only apply to FIT Program Applicants, not to members of the public to which Mr. Gillespie replied that we still have not been told what there was about the information APPEC sought that was privileged. Mr. Duffy noted that FIPPA (Freedom of Information and Privacy Act) is the law that applies to disclosure. However, Judge Kershnan reminded Mr. Duffy that Mr. Gillespie had already noted in his submissions how long the FIPPA process takes. Mr. Gillespie also noted that there was nothing in any of the other Party’s materials about FIPPA.
Mr. Gillespie concluded by noting the right of County residents to natural justice and procedural fairness. The IESO has not told the whole story to the community that will be affected by the White Pines wind project.
Justice Kershnan thanked the Parties and stated that he would reserve his decision. The hearing was adjourned at about 5:30 p.m.
A Kincardine area couple has filed hundreds of formal reports of excessive noise and vibration from nearby wind turbines with the Ontario Ministry of the Environment and Climate Change (MOECC), but has never had any resolution of the problem.
CTV’s Scott Miller interviewed the Walpole family and learned of their plight. The vibrations in the home are so strong, they said, light bulbs come loose in their sockets.
The Walpoles have filed more than 200 reports with the government and are told testing is ongoing, but somehow, the tests are never completed, and the problem continues.
The Municipality of Kincardine is frustrated by the MOECC’s apparent inaction and failure to resolve residents’ problems, says the Mayor in the CTV interview.
Last week, a representative of the MOECC appeared before Kincardine Council to answer questions on the situation. Rick Chappell, manager in the Owen Sound District Office, claimed there was a backlog in the Ministry’s processing of reports.
The wind power project in Kincardine has been operating for more than eight years.
Earlier this year, Wind Concerns Ontario received documents from the MOECC with records and staff notes on wind turbine noise reports to the Ministry, which showed that there was no response to more than half the complaints made and in fat, only one percent received a “priority response.” The Ministry was aware of hundreds of complaints even before the Green Energy Act was passed in 2009, which facilitated the development of even more utility-scale or industrial-scale wind power projects in Ontario.
At present, with thousands of unresolved reports of noise and vibration, and questions of interference with water supply, the MOECC is in the process of considering Renewable Energy Approvals for five more projects.
The recording of Mr Chappell’s appearance before Kincardine Council is now available here, after minute 11.
The final part of the ICI Radio-Canada series on wind power in Ontario aired December 8.
This is a translation of the E-zine version of the story.
[Photo: Nic Pham, ICI Radio-Canada]
Unserviceable wells, contaminated water, noise, citizens concerned about their health, wind farm issues are increasingly being blamed in southwestern Ontario, and many communities are mobilizing to oppose the development of their homes. New projects. Yet, for two decades, the number of wind farms has been increasing. So why do we need so many wind turbines?
Reportage and photos: Nicolas Pham Text: Marine Lefevre Edim and infographics: Vincent Wallon
Experts say that wind energy is not absolutely necessary in Ontario. The province has been experiencing energy surpluses for several years and the intermittent electricity produced by wind turbines is, at the present time, mainly an extra energy source.
A SATURATED MARKET
“We do not need these turbines for the moment,” says Jean-Thomas Bernard, visiting professor at the Department of Economics at the University of Ottawa. A message relayed by Pierre-Olivier Pineau, holder of the HEC Montréal Energy Sector Management Chair.
According to both researchers, demand in Ontario has declined significantly in recent years. The economic crisis of 2008-2009 brought down demand in the industrial sector, and rising prices at the residential level encouraged the public to save energy.
On the supply side, the province relies primarily on nuclear energy and hydroelectricity. The combination of these factors results in the production of wind farms being added to other energy production.
“With a low demand, we have surpluses. ” – Pierre-Olivier Pineau, who holds the Chair sector management Energy HEC Montreal
In addition to this, wind generation does not adequately meet the energy needs of consumers. In any case, this is indicated in a study published in June 2017 by the Council for Clean and Reliable Energy, which deals, among other things, with the effect of installing wind turbines on the province’s electricity grid.
“The analysis shows that the intermittency of the wind makes it an unproductive and expensive choice that does not meet the needs of customers and also compromises the price of electricity exports”, reads the introduction to the report by Marc Brouillette , Senior Consultant at Strategic Policy Economics (Strapolec)
Based on data from the Independent Electricity System Operator (IESO), the author indicates that in 2015 Ontario’s wind farms operated at less than one third of their capacity, approximately 60% of the time.
In addition, the report states that wind turbines are usually in operation when the province’s grid is least in need of electricity.
“Ontarians’ energy consumption is highest in winter and summer, and lowest in spring and late fall, which is almost a mirror image of wind generation models because the wind is the highest in spring and autumn, “says the author.
In conclusion, wind energy does not meet the needs and forces the use of other forms of energy to fill the gaps, but in addition this irregular production contributes to the average surplus of the energy production, which also has a cost.
In 2015, wind energy accounted for one-third of excess core production outside of peak periods in Ontario. That year, the only wind surplus cost consumers $ 370 million on a total bill of about $ 550 million.
In addition, these surpluses have an effect on the price of this energy, especially for exports, where this energy is sold at a loss because it is difficult to store. According to the author, this report puts into question the entire past, present and future deployment of wind resources in the province.
WHY INVEST IN WIND?
One of the reasons for this is the intention of Dalton McGuinty’s government (2003-2013) to make an industrial transformation in Ontario.
In a context where the province’s traditional industries such as pulp and paper, metal refining and even the automobile sector were losing their wings, the Liberal government of the day wanted to convert the province to renewable energy. solar and wind, to create a new industrial sector in Ontario.
At the same time, as the fight against climate change intensified, investments in this green energy sector became natural.
“It was done to encourage renewable energies when we were aiming for the closure of coal plants. ” – Jean-Thomas Bernard, a visiting professor in the Department of Economics at the University of Ottawa
For the government, massive investment in the sector also reflects a desire to diversify energy sources and protect Ontarians from unforeseen events, especially over the long term.
A reasonable approach even if it means having surpluses for several years, says Pierre-Olivier Pineau, particularly in a context where the objective is to have an electricity sector that no longer emits greenhouse gases.
“It may seem like a long time, but in electricity you invest for periods of 20 to 30 years. It is difficult to predict economic conditions and we always keep an extra capacity to be able to meet the demand, “he says.
According to him, the government announcements [were] a bit premature in the wind industry in Ontario, and elsewhere in Canada, a response to the positive perception of the electorate towards this [form of] energy.
“For politicians, we still have image gains to make by announcing green policies, focused on sustainable development. And pictures of wind turbines, and green energy contracts, these are beautiful images,” says the researcher.
THE FAILURE OF A POLICY
The wind shift did not happen as planned, however, explains Jean-Thomas Bernard. Ontario has been unable to create a new industrial sector.
“It did not work because Ontario produces little wind equipment. Major turbine manufacturers are Denmark, Germany, the United States and China. The Ontario market is not big enough to provide a foundation for development, “he says.
“We have invested in wind power, but the bill comes later, so it creates a political problem to announce an increase in the price of electricity. » – Pierre-Olivier Pineau
Wind power not justified by the market
The Ontario government put a halt to new project grants in 2016,* but it remains contractually bound to buy electricity from existing wind farms at fixed prices.
“There is no jurisdiction where the market price justifies wind energy investment. Once the government decides to have wind generation capacity, it is obliged to guarantee prices. » – Pierre-Olivier Pineau
This guarantee forces Ontario to purchase electricity at a fixed price, regardless of the demand and lower production costs associated with the technological evolution of the sector.
A difficult situation for the province, which has invested millions of dollars in a sector that looked promising as it faces an economic situation where electricity demand is lower.
“Electricity rates are increasing by 5% per year as a result of this firm price policy for renewable energy. If we had not developed them, today there would be a drop of 5% per year. “Adds Jean-Thomas Bernard.
Ontario is not unique, Quebec and Alberta have also had to guarantee prices to energy companies.
On the other hand, the manner of proceeding, by call for tenders in particular, made it possible to establish lower fixed prices. In addition, the importance of hydroelectricity in Quebec and oil in Alberta makes the wind industry very secondary in these provinces.
A COMPLEX SITUATION
For these experts, the energy sector in Ontario is generally in an unenviable position. Prices are high and the energy policies put in place for several years have not yielded the expected results.
“The current government has chosen to have both nuclear and wind power with the problems we know in terms of price. And these problems will not disappear in the future because the rehabilitation of nuclear power and wind will be very expensive in the years to come, “says Pierre-Olivier Pineau.
And even though over the last year the government has lowered rates twice, including reducing the sales tax, the real question remains: are we able to produce electricity at a lower cost? “Not today,” concludes Jean-Thomas Bernard.
WCO note: it is not correct to state the the Ontario government has halted its wind power procurement program. The Large Renewable Procurement program has been put on hold due to a surplus of power, but it is not gone. Meanwhile the Ontario Ministry of the Environment and Climate Change (MOECC) is currently processing five more applications for large-scale projects, for 300 megawatts of intermittent, unnecessary power.