A little over three years ago, Ontario signed a “landmark agreement” with Samsung to produce power and jobs:
Premier Dalton McGuinty has signed a landmark agreement with a South Korean consortium that will see $7 billion invested in Ontario to create 16,000 new jobs over six years.
The terms of the deal were secret:
As you probably know, the province of Ontario has signed a $7B deal with Samsung. Although the contract and its precise details are secret, Samsung has reportedly agreed to build 2500 MW of renewable energy generation and to try to arrange to have renewable energy equipment manufactured in Ontario.
So nobody knows exactly what the deal included, but companies don’t like to do work that doesn’t generate profit, so somebody was going to have pay for this. Tom Adams suggests that would be consumers:
The deal is apparently for 2000 MW of wind and 500 MW of solar with preferred access to transmission and “economic development” incentive payments topping up standard 20 year guaranteed Feed-In Tariff prices. All of this is to be paid for by consumers, not taxpayers.
Assuming capacity factors of 30% and 17% for wind and solar power respectively, if all the Samsung megawatts were installed today, consumers would be forking over about $1.11 billion per year to Samsung. Of this amount, approximately $75 million is for “economic development” incentive payments. If fully implemented today, the Samsung deal would jack up your rates by approximately 7%.
So the landmark agreement basically funnels money from your pocket to Samsung.
Fast forward to today. That deal doesn’t seem so good anymore:
Ontario’s signature green energy deal with Samsung was a “colossal failure,” the opposition parties charged Thursday after the Liberal government slashed the $9.7-billion agreement by more than one-third.
The province will now buy $6-billion worth of electricity produced by Samsung’s wind farms and solar projects over the next 20 years, which is $3.7-billion less than the original 2010 agreement, said Energy Minister Bob Chiarelli.
Odd since as noted above the original agreement was for $7B, not $9.7, unless of course they lied about that.
Maybe it’s time to look at the email trail to determine what really happened here. Oh that’s right. There’s 99 reasons why the government of Ontario deletes their emails.
It’s ok. They know that people are dumb, and their memories won’t last until the next election. So who cares, right? It would be funny if it weren’t so sad.