wpd CEO says cancellation unfair and costly for company
Administrator | Jul 12, 2018 | Comments 86
Open letter to Ontario Premier Doug Ford
wpd AG is a German developer, owner and operator of wind farm projects, which has, through its Mississauga based office, been developing the White Pines project for years and is now realizing it as an investor.
We employ over 600 people in 20 different countries. As a medium business, we are dependent on external project financing from banks and, in the case of larger projects, also on other investors. In the White Pines project, the public utility of the city of Munich is the co-investor.
If you now withdraw the economic basis for the White Pines project – as obviously planned – our company will incur a serious loss of over CAD 100 million. This is a difficult situation for a company of our size to cope with.
We have been active in Ontario since 2007 in full trust and confidence in a state where investors can rely on applicable law, protection of trust and investment security. In all the years, we have complied with all the applicable regulatory framework, created new jobs and paid taxes. Therefore, we have done everything as required by the legal and political framework.
It comes without saying that there are both supporters and critics to every major infrastructure project. Particularly in the energy sector, the discussions have often been very emotional. We have acceptedthe dialogue in Ontario in many events and have received a great deal of support on the ground alongside individual critics among the population.
A new elected government has any right to pursue a different energy policy. That is a fundamental principle of democracy. But do you think, dear Premier, that it is fair and equitable that a project right before completion is now being ruined retroactively and that our company is suffering serious damage through no fault of its own? Your reconsideration would be greatly appreciated.
Dr. Harmut Brösamle
CEO wpd AG
Filed Under: Letters and Opinion • News from Everywhere Else
According to Chris Keen’s morning post of July 19, the federal government has the power to charge people who threaten endangered species. Chris is concerned that Helmut B. cannot be extradited from Germany.
However, K. Wynne is in Ontario, presumably. It was her government, through Min. of Natural Resources that issued permits “to kill” endangered species. Let the feds convict K. Wynne.
And why do we need those people at MNR who would issue such a permit? Either criminally charge, replace personnel, or even disband MNR if that is how that ministry protects endangered species.
I sent an email to Todd the editor at renews letting him know the real status of the wind turbines. See if he follows up on fake news!
Looks like WPD is getting fake news lessons from Trump
Gary, maybe they’re including all of the costs for the original 27, although their number would still be outrageous.
Oops, the numbers on the website mentioned in your post total $82M, same as Windpower Monthly.
No indication of where another $18M (to total $100M) was spent.
Thanks Chris, that’s what I thought.
Another wpd media ploy for sympathy ??
Sue3, no the nine turbines are not up, only 3 or 4 of them so far. And none are generating electricity — the distribution line to connect to the Hydro One grid is not yet built.
Wpd claims an investment of $100M, but the numbers on the website in your post account for “only” $77M. A trade publication called Windpower Monthly says that Wpd has invested $82M.
A rule of thumb for the all-in cost of wind turbines is $2M per MW, so White Pines should cost $37M. How Wpd could spend more than double that amount is beyond me.
Just went along Cty Rd 10 – they are NOT all erected, and none of the blades are turning.
Is this true?
http://renews.biz/111893/wpd-tallies-white-pines-costs/
“All nine turbines have been installed, with several already generating electricity.”
Actually “whatever” you’re wrong. Federal Court Justice René LeBlanc ruled in a recent decision that under the Species at Risk Act Ottawa has the power to criminalize threats posed to an endangered species, and other species deemed to be at risk, anywhere in the country – including private property.
The only reason that solar and wind supplied even 2 percent of the power on the grid is that these projects have a right to first usage. Their power must be accepted onto the grid even if it displaces other forms of renewable power like hydroelectric. Since Ontario has an overall surplus of power, solar and wind never make any necessary contribution to meeting Ontario’s energy needs.
http://www.intelligencer.ca/2018/07/18/another-court-loss
Robert; I imagine what we are paying for that 2% solar/wind power would be absolutely astounding.
And this isn’t about windmills it is about industrial wind turbines. Quite a difference,just to clarify.
The biggest reason that the GEA was foolish (beyond stupidly generous payments per KWH) was that the power is not needed. The current grid can EASILY provide the needed power, and the last thing it needs is unreliable power, i.e. solar and wind. That was purely a cynical vote grabbing initiative to try to glean votes from the well intentioned but mis-informed. If you aren’t looking at the turbines in your own area it is a great idea. It is well known that urban residents predominantly support the GEA initiatives and rural not so much. By the way, the 2003 blackout was caused in Ohio, had nothing to do with Ontario. Their problems cascaded all through NE North America causing more problems. Since that time many systems have been upgraded to prevent cascading failures. All done by OPA/IESO, exactly none by any colour of government despite their will to take credit, and exactly zero is due to the GEA. Download the app called “gridwatch” it tells you in more or less real time what proportion of power is coming from what source, i.e. nuclear, hydroelectric, solar, wind and biomass. At 3:45pm of this writing, and 23 degrees in most of Ontario, 68.8% Nuclear, 20.4% hydro, 8.8% Natural gas, 1.3% Solar, 0.7% Wind and 0.2% biomass. That is precisely why the GEA is utterly not viable, a whopping 2.0% from solar and wind combined, and that is with a huge amount of installs. Look up the Tedtalk by David Mackay about the intensity of power, another eye opener about solar and wind not being truly viable. Using Great Britain as an example, half of the island would need to be covered with panels to use solar exclusively. To get power a relatively small amount of the time. Brilliant!
From Scientific American:
SHARELATEST
TECH
The 2003 Northeast Blackout–Five Years Later
Tougher regulatory measures are in place, but we’re still a long way from a “smart” power grid
By JR Minkel on August 13, 2008
The 2003 Northeast Blackout–Five Years Later
Credit: iStockPhoto
IN BRIEF
On August 14, 2003, shortly after 2 P.M. Eastern Daylight Time, a high-voltage power line in northern Ohio brushed against some overgrown trees and shut down—a fault, as it’s known in the power industry. The line had softened under the heat of the high current coursing through it. Normally, the problem would have tripped an alarm in the control room of FirstEnergy Corporation, an Ohio-based utility company, but the alarm system failed.
Over the next hour and a half, as system operators tried to understand what was happening, three other lines sagged into trees and switched off, forcing other power lines to shoulder an extra burden. Overtaxed, they cut out by 4:05 P.M., tripping a cascade of failures throughout southeastern Canada and eight northeastern states.
All told, 50 million people lost power for up to two days in the biggest blackout in North American history. The event contributed to at least 11 deaths and cost an estimated $6 billion.
If oil was found in the county you would see oil rigs sprout up everywhere including on the properties of those who are barking the loudest right now. And, by the way, their land their choice.
Why not look for way of alternative energy. The not-in-my-backyard argument is getting old.
“The needs of the many outweigh the needs of the few”
Spock in Wrath of Khan
Nope not joshing did you know if you live with in a 10 km radius of nuclear power facility the Government of Ontario sends you free iodine pills called Rad Block and if you live with in a 50kn radius you can request them free…
There may be a cost for terminating a business agreement but what is the cost of letting an arrogant, paternalistic government and its corporate enablers run rough shod over environmental and community rights. A government which ignores or denigrates those responsible for its oversight (eg. its financial accountability officer, environmental commissioner, auditor general, ombudsman and professional experts). Despite the manipulation of the government and its corporate and bureaucratic minions “We” as a County have spoken truth to power!
“It is the people who control the Government, not the Government the
people.”
Winston S. Churchill
“Big business is not dangerous because it is big, but because its bigness is an unwholesome inflation created by privileges and exemptions which it ought not to enjoy.”
Woodrow Wilson, 1912
“In our democracy officers of the government are the servants, and never the masters of the people.”
“Let us never forget that government is ourselves and not an alien power over us. The ultimate rulers of our democracy are not a President and senators and congressmen and government officials, but the voters of this country.”
Franklin D. Roosevelt
I have in no way defended nor promoted any political party in my comments. My point(s) was to bring some balance to the situation of what Ontario’s energy policies have been and how the public have been manipulated by all parties and levels of government – and have ended up paying for it all. I was also trying to point out that not everything was bad about what our past government did with the energy portfolio., when comparing it to the Harris electrical debacle of privatizing it.
If one or two of you would rather call that me stirring the pot, then it proves how easily lead some are. While I am pleased with the apparent decision re: IWTs, I am not pleased with what appears to be an abandonment of clean alternative energy for Ontario, by the Ford government. Their populist rhetoric lacks credibility. The cancellation of the carbon tax will help the environment about as much as Ford’s “buck a beer” will.
You are joshing right or are you aware of the carbon footprint and rare earth metals in a single turbine?
It takes spent nuclear fuel rods 10 years to cool down and then they have to be stored in concrete casks indefinitely because of radioactivity…Ya windmills are bad for the environment lol…
Dennis, if only this was just about the Lib government innocently screwing a few things up in some ways. But it’s a lot more than that. We’re looking at systemic mismanagement on a grand scale re the gas plant debacle, ORNGE, selling off of Hydro One being cases in point. You might look at these as just screwing up but that’s an understatement. “Cooking the books” is closer to it. Just consider their accounting dispute with Ontario’s Auditor General (who by the way says that this year’s shortfall is $11.7 billion, not $6.7 billion as the Lib gov’t claimed). You can bet the Libs knew exactly what the shortfall was and found some creative accounting tools to cover it up. But if it makes you feel better, go right ahead and thank the Libs for no brown-outs since 2003.
“While they screwed things up in some ways, they did a lot of good in others.”
Carbon tax is nothing but BS for Ontarion’s to pay for, especially with so many in need. As long as China, India etc spew carbon at will Ontario’s effort would resolve nothing and put more children homeless and hungry.
No ADJ, not stirring the pot at all, just reminding you and others that history does repeat itself and that the Conservatives too are very much responsible for where we are now. They invested NOTHING into improving our energy supply nor distribution system -they thought that privatizing it all would solve the problem – as we know it didn’t.
You can live like an ostrich and believe that all is well, but wakey, wakey, it isn’t. I too am happy about the IWTS being cancelled here in PEC, but that alone does not make for a sound energy policy – neither does withdrawing from the carbon tax. There is every good reason to remember governments’past mistakes, because we are the same taxpayers paying for it all! It is time that the public demand better than just lip service- even from your buddy Dougy Boy!
Like to stir the pot huh Dennis…. That was then this is now. No point in dragging up the past now is there? Welcome to 2018! Your Lieberils are DOA that’s a fact.. What will be will be…your crystal ball won’t work here. Be Happy
Do any of you remember the “brown-outs” we used to get? The last major one was in the summer of 2003 – that one lasted for over 3 days, province-wide! Can you imagine what it would be like to have another with the heat we have been experiencing lately? The Liberal GEA was poorly implemented no doubt, but once being elected we never had another loss of province wide power due to an inadequate supply or an out-dated system. The Conservatives then, as they are now ignored the energy needs of the province – and yes back then we had gas and nuclear too, plus the Liberals got rid of several coal generation plants. While they screwed things up in some ways, they did a lot of good in others. Now, I will be interested in seeing what Ford and his government can do, once the cheering in PEC has died down over a few IWTs. As history has shown to repeat itself – in 2003 the Harris/Eves government lost due to an energy situation, just as the Liberals have done now. At least the Liberal never closed schools, hospitals and jeopardize the public’s health like in Walkerton. So now we have Ford playing games with our environment and the carbon tax, or lack of.
Our planet still requires sound alternative energy to fossil fuels, to say otherwise is being totally irresponsible.
As long as our population never expands we can stick with what we have right now. And nuclear, well, nothing ever goes wrong with that. That’s some good planing right there!
The alternative to fossil fuels is what we are relying on now: nuclear and hydro, which together cover off close to 100% of provincial demand. Natural gas is useful for fine tuning.
Ontario is a model for the rest of the world in terms of clean electricity production.
So, what’s the alternative to fossil fuels? Thank God there’s no oil rigs around, eh? Now that would be an abomination!
What has happened on Wolfe & Amherst Islands is criminal. Kids will ask years from now, how this was ever allowed to occur.
Well said, Dave Nixon. We are cautiously euphoric about the termination act but realize the lawyers will be assembling with knives sharpened. I know that the citizens of south Marysburg have been keeping careful records and, contrary to Dalton Mcginty’s callous prediction, we WILL NOT forget. Hang tough Todd Smith and PCs. We were and are and will NEVER BE a willing host to industrial wind turbines in PEC. In their present form they are an abomination, a desecration. Just driving along Hwy 33 past Amherst Island makes my heart ache.
You got that right Barney! Yabaadabba Doo!And why are turbine blades heading south instead of North? Ask Germany or a Liberal MPP if you can find one.
I am sure Wevil and hockeynan are checking those lease agreements WPD put in front of their noses early on. If everyone is against and the $$ look too good, run.
What’s that to do with the turbine issue Dennis? The project is dead and we need to celebrate that. I don’t give a damn if it costs a payout but I doubt WPD will get much given their actions and contracting materials prior to an inappropriate approval . They were caught in bed with pigs!
You said it… it was a LIBERAL FIX…!! I hate to see greased palms at the expense of everyone else..!!
Here’s a bit more fuel and doubt to add to the fire…
https://www.thestar.com/opinion/star-columnists/2018/07/12/the-high-cost-of-lower-taxes-in-doug-fords-disrupted-ontario.html
They had an agreement with the Province to erect however many windmills they are honoring their end of the agreement much like The County is honoring the road user agreements to avoid litigation. That’s what happens when you fail to honor a contract you get sued…
Ontario to Cancel Energy Contracts to Bring Hydro Bills Down: Keeping election promise will save $790 million to help lower electricity bills
July 13, 2018 2:00 P.M.
Ministry of Energy, Northern Development and Mines
TORONTO — Ontario ratepayers will benefit from $790 million in savings thanks to the Government of Ontario’s decision to cancel and wind down 758 renewable energy contracts, Minister of Energy, Northern Development and Mines Greg Rickford announced today.
“We clearly promised we would cancel these unnecessary and wasteful energy projects as part of our plan to cut hydro rates by 12 per cent for families, farmers and small businesses,” said Rickford in making the announcement. “In the past few weeks, we have taken significant steps toward keeping that promise.”
All of the cancelled projects have not reached project development milestones. Terminating the projects at this early stage will maximize benefits for ratepayers.
Rickford also confirmed that the government intends to introduce a legislative amendment that, if passed, will protect hydro consumers from any costs incurred from the cancellation. Even after all costs are accounted for, ratepayers can expect to benefit from $790 million in savings from this one decision.
“For 15 years, Ontario families and businesses have been forced to pay inflated hydro prices, so the government could spend on unnecessary and expensive energy schemes,” said Rickford. “Those days are over.”
https://news.ontario.ca/mndmf/en/2018/07/ontario-to-cancel-energy-contracts-to-bring-hydro-bills-down.html?utm_source=ondemand&utm_medium=email&utm_campaign=p
I would think the wpd project has failed to meet its project milestones.
And why would they ever do that without approval. Unless they knew the Liberal fix was in. They gambled and lost!
Dennis – it does make you wonder. Why keep putting more money into a project that is supposedly dead?
Will they keep working through the weekend?
The bases of the turbines were installed in March.If that isn’t a major expense what is
They would appear to be hastily erecting as much as possible prior to legislation being passed. They are scheming!
It says the projects that will be canceled have not met project development milestones. I believe WPD have passed that point
Where was WPD’s concerns for the economic welfare of the local business, farms and employment in the county. What financial loses would they have endured by WPD. They ask for everything to be considered in their letter to Doug Ford what was their concerns when the County asked for those same considerations. Property values in 100 millions,people’s hopes and dreams and possible their way of living effected. May have wanted to look at the shoe on the other foot before you took action against other businesses that you would be effecting.
It will be over soon, I guess we just have to be patient https://news.ontario.ca/mndmf/en/2018/07/ontario-to-cancel-energy-contracts-to-bring-hydro-bills-down.html
I don’t know what to make of this – – at about 2:30 pm Friday afternoon I witnessed a huge truck carrying an even larger wind turbine blade down Hwy 49 and turning onto Cty. Rd. 6 – obviously on its way to the construction site. I wonder what their game plan is?
Looks good on them ! WPD knew that this development was not wanted here, yet they and their Liberal cronies proceeded building the turbines. Now the table has turned. Congratulations Todd Smith and the Ontario PC’s for stopping this fiasco. No sympathy from here Mr. CEO !
“[T]he economic basis for the White Pines project” collapsed when the project was reduced to nine turbines. Instead of packing it in, wpd decided to proceed leading many to think they must have known the IESO would treat them favourably. Whether that was thanks to their financial support of the Liberal Party we’ll never know. Now their strategy appears to be to finish erecting the turbines in the next few days, before legislation is introduced, hoping if they’re built Ford will back down. We’ll see in these interesting times. I for one won’t believe it’s dead until the last turbine blade leaves the County and its fields, ditches and roads are restored to their original condition.
Why, I wonder, is Peter Gregg still president and CEO of the IESO?
W.P.D.was fully aware of major opposition to this project for many years but ignored to accept the facts that people did not want to live in a major turbine farm .The company rushed construction since last fall speeding through South Marysburgh hundreds of trucks a day trying to get it under way before the June election hoping for a government pay out if the project was cancelled.I have no sympathy for poor management when you are aware of the risk.
I take exception to your use of the words “fair and equitable” and “through no fault of it’s own.” It’s been obvious to anyone who was paying attention that the White Pines debacle is unnecessary and unwelcome in PE County (we are an unwelcome host). It’s been obvious to anyone who was paying attention that hundreds of thousands of dollars in legal fees have been spent fighting this project. It’s obvious to anyone who was paying attention that this project is smack dab in the middle of Blanding’s turtle (an endangered species) habitat and a major flyway for birds, bats and butterflies. It’s been obvious to anyone who’s been paying attention that the pristine character of South Marysburgh is being destroyed by a company whose modus operandi is blitzkrieg. Kathleen Wynne’s political career died a horrible death at least partly because she underestimated the anger that has been generated by her government’s green energy policy. You made the mistake of entering into an agreement with a government that obviously doesn’t represent many of the citizens of Ontario. You turned a blind eye to political reality. No one forced you to get into bed with the provincial Liberals: You did this of your own volition. You smelled the money and you couldn’t resist. Your assertion that you are victims is absurd (Ihre Glaubwürdigkeit ist null) . If I had my way, you and all your local subcontractors would be tossed out of Prince Edward County on your collective derrières. Bring on the lawsuits Herr Brösamle. Even if we lose the lawsuit it’s still the cheapest out for all the victims of the Liberal’s ill-fated green energy policy and wpd’s arrogance and lack of sensitivity.