January 27, 2010

Renewable energy

Ontario’s new wind deal to bring certainty to economics

VINCE VERSACE

staff writer

Ontario construction needs to look beyond the initial 7,800 industry jobs the province’s new $7-billion renewable power deal with a Korean consortium will create, says an offshore wind stakeholder.

“The more certainty there is in manufacturing and the price of components, the more certainty then on the cost of turbines and then projects can go forward,” said John Kourtoff, president and chief executive officer of Trillium Power Wind Corporation.

“This certainty assists on the cost side and that is good for the construction industry.”

The freshly-minted agreement struck between Ontario and a consortium led by Samsung C&T Corporation and the Korea Electric Power Corporation will generate 2,500 megawatts of wind and solar power in Ontario.

The agreement is expected to deliver an estimated 16,000 jobs over six years during the construction, installation and operation of renewable energy projects and in direct manufacturing employment.

The International Brotherhood of Electrical Workers (IBEW) recently developed a new photovoltaic training curriculum in order to ensure electricians are appropriately trained and certified to work on solar energy projects.

IBEW believes the Ontario-Samsung deal gives its members job opportunities not just in new construction but in maintenance and production work.

“We also look at this deal like a good way to diversify Ontario’s economy and we have invested and prepared for the explosive growth of solar photovoltaic production,” explained Alex Lolua, director of government and public relations at IBEW. “Wind energy will be a big proponent as well. The economy is changing and we want to be a part of it.”

Tied into the deal is an economic development adder (EDA) for the Korean consortium which is expected to negotiate with renewable manufacturers to locate their manufacturing plants in Ontario. The cost of this EDA, which is contingent on the consortium bringing manufacturing facilities to the province, is $437 million over a 25-year contract and has drawn heavy criticism from opponents of the deal.

Kourtoff said this incentive needs to be kept in perspective with the almost $25 billion spent on nuclear plants in the province to subsidize both their debt recovery and operations.

“For years and years we have had massive government subsidies of the nuclear industry and we do not have export possibilities or new sustainable jobs coming from that,” said Kourtoff. “The more critical mass created for wind manufacturing results in more expertise and momentum in supply chain partners. Anyone who is against this deal does not understand it, has a nuclear or fossil fuel agenda or are trying to score political points.”

Lolua said though the deal can help address long-term employment needs, Ontario can do a lot right now to help short to medium term needs in areas such as Southwestern Ontario.

“We know of a number of proponents in the Windsor area who have (renewable energy) shovel-ready projects that could put a dent in unemployment numbers,” said Lolua. “If government can find a way to accommodate those shovel-ready projects then this deal could be even more of a good news announcement.”

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