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.
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.”
Companies without a Notice To Proceed or who have not reached key milestones “have reason to be concerned”
July 6, 2018
In a just released review of the energy landscape in Ontario under the new Ford government, Mike Richmond, wind power contract specialist with law firm McMillan LLP, says the contracts between government and wind power developers can be cancelled in certain situations.
Wind Concerns Ontario has long maintained this to be true, even recommending to the Wynne government that an effective way to reduce electricity bills for Ontario consumers — or at least, not have them go higher — was to cancel the $1.3B of new wind power contracts and to cancel any others where significant milestones have not been met.
The government will be directing IESO to exercise termination rights
Developers, lenders, construction firms, installers, landlords and other clients with interests in contracts for projects which have not yet been granted Notice to Proceed (NTP) by the Independent Electricity System Operator (IESO) (or acceptance of Key Development Milestones for Large Renewable Procurement (LRP I) projects) have reason to be concerned.
While the [PC election] platform was not long on detail, it was absolutely clear that where pre-construction contracts contain provisions allowing the IESO to terminate at or prior to NTP or other equivalent milestones, before expensive capital equipment has been delivered and installed, the Government will be directing the IESO to exercise those termination rights.
Anticipating such a directive, the IESO had already begun holding back on the issuance of NTP approvals for Feed-In Tariff (FIT) projects prior to the June 29 swearing-in, instead electing to issue NTP Deferral Notices. By doing so, the IESO is able to limit its liability for the eventual termination of those projects to the “Pre-Construction Liability Limit”, which is set at:
$400,000 plus $2.00/kW for wind, biogas or biomass facilities;
$250,000 plus $10.00/kW for solar facilities; or
$500,000 plus $20.00/kW for waterpower facilities.
These figures only represent liability caps. To be eligible even for these amounts, developers will have to be able to demonstrate that they incurred, after being awarded a FIT Contract, “soft” costs up to these amount for items such as environmental approvals, EPC and financing contract negotiations, land rights, resource assessments, connection cost deposits, equipment deposits and permitting. Costs spent on generating equipment (other than reasonable non-refundable deposits), and amounts representing lost profits, are not eligible.
Some questions remain:
Given the stated election platform, and the fact these contracts were a key campaign issue, why then did the Wynne government issue a Renewable Energy Approval to Portugal-based EDPR for its unneeded 100-MW “Nation Rise” wind project just days before the writ was drawn up for the June election, and why did the IESO toss its termination rights overboard on the WPD “White Pines” project, during the active election campaign?
What pressures were brought to bear on the former government by the power developers?
And why are taxpayers now being forced to pay for the new government’s defence of a bad decision made by the Wynne government, in the Nation Rise appeal?
Community members in Prince Edward County were shocked to learn this past weekend that Ontario’s Independent Electricity System Operator (IESO) had granted the final approval required for the “White Pines” wind power project.
The IESO apparently gave the project final Notice To Proceed. Projects without a Notice To Proceed or NTP can still be cancelled.
Worse, the NTP was given apparently on May 11, which was four days after the writ for the 2018 election was drawn up.
It is accepted practice that in the immediate election period, certainly after the writ has been released, the sitting government does not make major announcements or take important decisions.
Especially on a subject like the White Pines power project which is involved in two separate legal actions currently, and was certainly a major issue in the local election campaign.
It is also arguable whether the Renewable Energy Approval for the 100-megawatt “Nation Rise” wind power project, announced days before the writ, is acceptable.
Certainly, there are questions to be asked about influence on the IESO and the Ministry of the Environment and Climate Change to take these actions when they must have known they were outside accepted practice.
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.
The Ontario government announced late in the day last Friday it had given Renewable Energy Approval (REA) to the 100-megawatt “Nation Rise” wind power project, proposed by Portugal-based EDP Renewables.
The project is proposed for North Stormont, between Ottawa and Cornwall.
Many comments were received by the government during the comment period for the power project, many of which related to the unusual geology of the area.
In fact, according to a map of the project, almost every single wind turbine will be located over what is designated as “vulnerable aquifer.”
Ontario has already seen the results of wind turbine construction over fragile hydrogeology (though denied by the government), in Chatham-Kent where water wells have been disturbed such that at least 20 families do not now have water from their own wells. Several parties are now calling for a public health investigation.
Nation Rise map: the fine pink striped area is all “vulnerable”
In the case of the Nation Rise project, the ministry responded in the notice (emphasis is ours):
Impacts to groundwater
Concerns were raised that ground-borne vibration generated during construction (pile-driving) and operation of turbines (blade rotation) may impact well water quality. These concerns were based on allegations and complaints that ground-borne vibration generated during pile driving and blade rotation of wind turbines in another area of the province has impacted well water quality. Concerns were also raised regarding the potential for other project-related activities to contaminate groundwater.
Upon review of the groundwater aspects of the application, the Ministry of the Environment and Climate Change (MOECC) has decided to include a series of conditions in the Renewable Energy Approval (REA) related to groundwater and ground-borne vibration monitoring. Among these conditions is the requirement for the proponent to: not commence pile driving or blasting activities until groundwater monitoring and ground-borne vibration monitoring plans are submitted to and approved by the MOECC; implement groundwater monitoring and ground-borne vibration monitoring during various project phases; and implement a well water complaint response plan/protocol and contingency plan, as necessary.
Geological/geotechnical concerns and impacts as a result of natural hazards
Concerns were received regarding the viability of installing the project within leda clays and the potential impacts of the project as a result of natural hazards, such as landslides and earthquakes. Concerns were also received regarding the potential for the project to facilitate the development of a landslide.
To ensure that the project will be safely constructed in this geological setting, as a condition of the REA the proponent will not be permitted to commence construction of turbine foundations and access roads until a detailed geotechnical report has been submitted to and approved in writing by the MOECC.
One would think that, given the seriousness of these concerns, and irreversibility of any damage to the aquifer, the Ministry would have required these reports before issuing an approval.
Residents have other concerns including effects of being exposed from the noise emissions from that many wind turbines which will also be among the most powerful in the province. That concern is magnified by the fact that this new wind power project did not have to abide by Ontario’s newest set of rules for wind power generators, but was able to opt for the less strict, older guidelines. It is possible that many turbines will be out of compliance with new regulations the minute they begin operation.
If the project goes ahead.
The community is now pondering next steps, which could include an appeal of the approval.
For more information, contact Concerned Citizens of North Stormont : http://concernedcitizensofnorthstormont.ca/
“We had no choice” : Wind Concerns Ontario on taking legal action regarding wind turbine noise reports
Citizens’ group charges Environment Minister with violation of Environmental Protection Act
May 1, 2018, Toronto, 10:00 EDT – The president of Wind Concerns Ontario (WCO), a volunteer-led coalition of 30 community groups and many Ontario families, has filed a private prosecution against the Honourable Chris Ballard, Minister of the Environment and Climate Change (MOECC), for violating Ontario’s Environmental Protection Act (EPA).
Private prosecutions are important tools in empowering private citizens to hold those persons in power to account.
The EPA prohibits anyone from permitting the “discharge of a contaminant into the natural environment, if the discharge causes or may cause an adverse effect.” Adverse effects listed in the EPA include “an adverse effect on the health of any person,” “harm or material discomfort to any person” and “loss of enjoyment of normal use of property.” (Section 14 subsections 1 and 2)
“We don’t take this step lightly,” says Jane Wilson, WCO President and a Registered Nurse, “but with the MOECC not responding to thousands of reports of excessive noise from wind turbines, which is affecting sleep and health for Ontario families, we had no choice. These are examples of adverse effects that Minister Ballard should not be permitting to continue.”
WCO recently received MOECC documents under a Freedom of Information request that showed thousands of unresolved reports of noise, many with staff notes about sleep disturbance and health impacts. Between 2006 and 2016, there were more than 4,500 recorded reports, 35% of which contained staff notes about adverse health effects; between 2015-2016, the MOECC response rate to the reports of excessive noise was less than 7%.
“Citizens report going without sleep for days, weeks, even months,” said Wilson. “Sleep disturbance is linked to other health problems such as high blood pressure and diabetes. Mr. Ballard, as steward of environmental protection in Ontario, is responsible for allowing this environmental noise pollution to continue.”
On April 30, 2018, Mr. Ballard was served with a summons to appear before the court on May 17, 2018.
A recent letter from the Minister contains troubling language
April 24, 2018
The Ontario Ministry of the Environment and Climate Change (MOECC) recently responded to a citizen of Prince Edward County, who wrote with concerns about German-based power developer WPD’s published construction schedule. The schedule appears to ignore stipulations put in place by the quasi-judicial Environmental Review Tribunal to protect the endangered Blandings Turtle, which is resident in the County, and the area where nine industrial-scale wind turbines are under construction.
The letter said:
“The REA restricts construction and maintenance activities within Blanding’s Turtle habitat to between October 15 and April 30where possible. If construction and maintenance activities between May 1 and October 14 are unavoidable, the company must ensure additional measures are in place to avoid the Blanding’s Turtle and that its actions do not cause an adverse effect to the natural environment, including the Blanding’s Turtle.
“Construction of the nine turbines began on September 18, 2017. On September 21st and, in reference to the REA, the MOECC requested that construction stop in areas of Blanding’s Turtle habitat until October 15th, unless wpd White Pines Wind Inc. was able to prove the work was unavoidable. Construction continued in areas not identified as Blanding’s Turtle habitat per the REA.
“Construction has proceeded throughout the site as permitted by the REA. The company has proposed a construction schedule that will complete all construction in Blanding’s Turtle habitat between October 15, 2017 and April 30, 2018 with the exception of erecting one turbine which is in Blanding’s Turtle habitat. The proponent has successfully demonstrated to the MOECC that erecting the one turbine is unavoidable.”
Not very clear language from the MOECC, whose job it is to protect the environment, not aid and abet power developers.
On Amherst Island, the same situation is playing out. There, the Environmental Review Tribunal dismissed the appeal of the approval of the “Windlectric” power project brought forward by citizens, but stipulated certain conditions to protect the endangered turtles there. (Never mind the birds, apparently they keep up with this via social media and will avoid the turbines, eventually.)
However, those conditions are being ignored, so the Protect Amherst Island community group has written to the Ministry demanding that their own rules be enforced.
Once again, Ontario citizens are fighting to protect the environment from the Ministry of the Environment.
To write the MOECC use the contact form here: https://www.ontario.ca/feedback/contact-us?id=26985&nid=72714
You may also use Twitter @ONenvironment and #MOECC
Wind Concerns Ontario wrote a letter recently to the Canada Pension Plan Investment Board, expressing concern about the planned investment in a portion of U.S.-based power developer NextEra portfolio in Ontario, namely four wind power projects and two solar power facilities.
“Our concern with this announcement stems from the fact that at present, there are dozens of unresolved official reports of excessive environmental noise emissions from the four wind power projects in the portfolio,” Wind Concerns Ontario president Jane Wilson wrote in the letter.
WCO also provided excerpts from documents received under the Freedom of Information request process, related to one of the wind power projects involved in the purchase.
“Many of the formal complaints involve staff records of health impacts from sleep disturbance or deprivation (a known factor in health problems such as cardiovascular disease, diabetes, stress, etc.) … we offer staff records (these are legal documents) pertaining to the NextEra Conestogo project.
“Staff notes in 2013: resident bothered, sleep disturbed for the family every day, headache, resident “had to stay out of the house all day due to operation of the [wind turbines”. (Master Incident Report 7145-93U9N3, which contains 30+ subordinate records and staff notes)
“And, Staff notes November 2015, noise from this project is an ‘ongoing issue.’ With regard to one specific complaint, the MOECC Provincial Officer wrote, “Subsequent to February of 2015 no resources have been made available for any additional after hour WTG [wind turbine] compliance monitoring/observation/measurements. Additionally, emission and imission audits required by the facility REA [Renewable Energy Approval] despite indicating compliance with the REA have been found to be incomplete at the time of submission. As no resources are available to confirm or deny an after hour WTG noise exceedance and EAB/EASIB have not rejected the above noted audit reports, Abatement Staff are left with no further options to address this complaint. As such: no further action on this IR.” (Source: Master Incident Report 6238-A3W75J)
WCO added that it was concerned the MOECC has not fulfilled its responsibilities as a regulator, as regards wind turbine noise.
Yesterday, Wind Concerns Ontario received a response from the CPP Investment Board Director of Industry and Stakeholder Affairs, Jeffrey Hodgson, who explained the Board’s decision.
“I do want to assure you that our singular objective is to achieve a maximum rate of return on our investments without undue risk of loss, securing the retirement of 20 million workers in Canada. CPPIB’s decisions are not influenced by government direction or any non-investment objectives.
When evaluating transactions such as this one, our organization engages professional advisors and undertakes thorough due diligence on elements including contracts and approvals. And as a long-term investor, we are committed to being a responsible steward of the assets in our portfolio in light of legal requirements, and environmental and safety guidelines.
Thank you again for sharing your perspective and providing us with an opportunity to respond.”
The purchase agreement must now go through a regulatory review by the federal government but if approved, the sale could close in the second quarter of 2018.
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.