Power Purchase Agreements Ontario

Lawrence Solomon, executive director of Energy Probe, recently argued in national Post that the Ontario government should tackle the high costs of hydro by «tearing up» renewable energy contracts («Yes, the Ontario Liberals can terminate their terrible renewable energy contracts – and they should do it now,» Sept. 15). This would require the adoption of legislation to cancel these contracts. Contracts between electricity producers and central authorities are under attack in Alberta and Ontario, and potential investors in the electricity sector are watching closely. After all, what is called a «power purchase agreement» is the instrument that gives the certainty that someone is buying the electricity produced by a generator over a period of 20 years, say.