Eliminating Renewable Energy…

Eliminating Renewable Energy Requirements Regulation
ERO number 019-3471

I am writing with regard to the Ontario government’s proposal to repeal provisions in the Electricity Act and the Ontario Energy Board Act that promote and prioritize renewable energy.

This is the wrong direction for the government to take. At a time when most jurisdictions around the world are moving forward with plans to reduce greenhouse gas emissions and develop clean renewable energy sources, this repeal will send Ontario backwards.

The Intergovernmental Panel on Climate Change has made it clear that all jurisdictions must reduce greenhouse gas emissions by at least 45% from 2010 levels by 2030 and reach net-zero by 2050 in order to keep global warming to 1.5 C and avoid catastrophic climate change. And in their just released
report, Net Zero by 2050: A Roadmap for the Global Energy Sector, researchers with the International
Energy Agency (IEA) write that “Renewable energy technologies like solar and wind are the key to
reducing emissions in the electricity sector, which is today the single largest source of CO2 emissions.” (1)

Instead of de-prioritizing renewable energy, the Ontario should be increasing its investment in renewable energy sources. The benefits:

• Reduce Ontarians’ electricity bills. According to the International Energy Agency, onshore wind
and solar are now the lowest cost sources of new electricity supply in most countries and these
costs are projected to continue falling. Quebec Hydro power at the offered cost of 5c per kwh is
also significantly cheaper than the 9.6c per kwh for nuclear energy, a cost that is projected to
rise to pay for the refurbishment of nuclear power plants. (2)

• Provide employment and educational opportunities. Renewable energy sources are the energy systems of the future. Young people in Ontario should have the same opportunity as their global peers to learn about renewable energy and train for the jobs they will provide.

• Attract investors and research talent. By prioritizing renewable energy, Ontario could position
itself as a clean energy leader. Failing to do will so, while other jurisdictions including the US invest trillions in renewable energy, will put us farther and farther behind.

• Provide health benefits. Investment in renewable energy will reduce air pollution thereby improving the health of communities across Ontario and reducing public health expenditure.

• Enable Ontario to play its part in ensuring that Canada reaches its new climate target of 45% emission reductions by 2030 and net-zero by 2050. Failing to prioritize renewable energy will make meeting this crucial target extremely difficult.

By contrast, it does not make environmental or economic sense to erode the progress Ontario has made in greening its energy sources. Here are just a few examples:

• In 2018-2019, $230 million was spent by the provincial government to cancel renewable energy contracts and more recently, almost $3 billion was spent to purchase gas power plants. This is at the cost of Ontario startups and industries who invested in innovation and technology that is recognized around the world but still needs support here at home. Taking the direction proposed in this regulation would continue this negative impact on local businesses. Investing in and giving priority to renewable energy-focused solutions made in Ontario and Canada would result in jobs, local tax revenue, and improved health and well-being for Ontarians.

• The health impacts of air pollution are serious, both on the individuals and families affected and on our health system, which COVID-19 revealed clearly to be overtaxed. De-prioritizing green energy and moving instead to gas-powered plants will increase loss of life and quality of life, while costing more in terms of healthcare and absentee rates in schools and workplaces.

• Lazard, in its annual report on the levelized cost of energy for 2020, shows that energy generated by renewable sources, particularly wind and solar, both of which are well-suited for Ontario, is more economical than conventional power sources. This report is considered a benchmark for governments, utilities and infrastructure investors around the world. If Ontario is serious about lowering and stabilizing energy rates, it is clear that we need to increase the use of renewables.

Given all these benefits, I urge the provincial government to reconsider its proposal to eliminate provisions to prioritize renewable energy. For the sake of all Ontarians and particularly the children of Ontario, it is crucial that this province prioritize a clean energy future.

(1) IEA (2021), Net Zero by 2050, IEA, Paris https://www.iea.org/reports/net-zero-by-2050
(2) Ontario Clean Air Alliance, Phasing Out Ontario’s Gas-Fired Power Plants: A Road Map (April 2020, updated Jan 2021)