Tuesday, February 22, 2011

OPA To Cancel All Offshore FIT Applications / Contracts

I wanted to post about this because I don't think that this particular piece of information is something that is going to make the news, or for that matter I don't even know if it is a piece of information that the OPA is going to publicly announce. If you take a look at the OPA's website you'll see the following:

Offshore wind applications no longer accepted

The Ministry of the Environment announced on February 11, 2011, that Ontario will not proceed with proposed offshore wind projects while further scientific research is conducted. To comply with this policy direction, the OPA will no longer accept FIT applications for offshore wind projects.

I can see the reasoning for the OPA not accepting any future offshore applications. However, at the same time the OPA is planning on taking another step that I personally do not agree with.
A friend of a friend works for a particular company involved in the development of one of the proposed offshore wind turbine projects in Ontario. Last week, that company received a letter from the Ontario Power Authority telling them not only that the OPA will no longer be accepting applications for offshore wind projects but that the OPA will also be canceling any existing contracts and applications for offshore wind projects. To me this does not seem to be in line with the Government's statements that offshore wind projects would be put on hold until further "scientific research" is gathered. To me this looks like the government is taking the carpet out from under the developers of offshore wind projects. Add to this the fact that the MNR is also in the midst of taking away applicant of record status and you get a complete elimination of the offshore wind energy industry in Ontario.

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