The Ontario Liberals in Opposition used to go on about corporate welfare (subsidies from government to corporations) to match the NDP rants on the same.
The Ontario Liberal Government in power created the Green Energy policies that are now regulated law in the province. They hand out tax subsidies in the billions to Green Energy development of wind turbines and solar panel arrays. The beneficiaries of these handouts are almost exclusively corporations in the business of building the euphemistic Alternate Energy Generation.
The Consumer Policy Institute has published a paper (by Brady Yauch) detailing the scope of the Greening of Corporate Welfare in Ontario:
While the province’s renewable energy policy was presented as a win-win for local communities and regular Ontarians, the benefits from that policy have accrued to a small group of companies. Nowhere is this more evident than in the subsidies going to companies that own the windmills now dotting the province’s countryside.
Some 82% of all subsidies to wind generators have gone to foreign, out-of-province, or
multinational companies with annual revenues of more than $1 billion. Nearly 60% of all
wind subsidies have gone to companies with more than $10 billion in annual revenues.
Less than 10% of all subsidies to wind generators have gone to small-scale or local
The multinational companies and other big businesses receiving the lion’s share of these
subsidies have little to lose in the current environment. They receive a fixed, abovemarket
rate for their power, while ratepayers are left footing the bill – whether or not
such output is needed. Rather than becoming an engine of a new green economy, green
power has become a drain on ratepayers’ pockets.
Green-Washing Corporate Welfare to the Tune of $1.7 Billion
The reality of the province’s support for the wind sector – both before and after the Green Energy Act – has been exclusive and not one that includes all Ontarians. Big business, international corporations and their subsidiaries have received billions of dollars in wind subsidies as part of Ontario’s push to replace coal with renewable power. Using data from the province’s electricity market operator, this joint study by Energy Probe and Consumer Policy Institute1 estimates that at least $1.7 billion in wind subsidies have been given to wind farm operators in Ontario since 2006, the earliest date for data. 2 Eleven companies have received 90% of those subsidies. Around 82% of all subsidies to wind generators have been handed out to nine companies (or subsidiaries of those companies) – seven of them based outside of either Ontario or Canada – with annual revenues in excess of $1 billion. Nearly 60% of all wind subsidies have been funnelled to six companies with more than $10 billion in annual revenue. Small-scale and local wind generator companies have received 10% of all subsidies.
To see how prices are set and subsidies spent, download Report (PDF)
The colour Green is GREED in Ontario.
FOLLOW UP on how when subsidies are cut Green Energy Investment declines or dries up.