The upcoming Ontario provincial election has caused a lot of inaction, months before any of the campaign promises can possibly be delivered on. I’ve seen it and am experiencing it on a couple of fronts right now.
It was a very positive step earlier this month when the Ontario Power Authority (OPA) issued waivers for holders of feed-in tariff (FIT) contracts who had not yet reached Notice to Proceed. However, anyone who applied for a contract after December 8, 2010 is still waiting to hear if they will get a contract at all before the upcoming election and FIT program review (the following month).
The cynic in me looks at the OPA right now and wonders how hard people could be working with the looming potential that they won’t have jobs in the near future, if Tim Hudak shuts down the agency as he’s said on the campaign trail. I don’t see it actually happening, but by making the statement, many of the people who are supposed to be reading through and approving strong applications are distracted by worry. All applicants are left to wait and see when or if they will get a contract offer.
A further ripple effect of the PC party’s promise to end the FIT program is that when you talk to farmers and individuals who would benefit greatly from being able to produce renewable energy locally (and own it), they almost immediately bring up the uncertainty with the government (among other things). Sure, they’re interested in putting a biogas plant on their dairy operation. They understand that it adds nutrient value to the manure, produces renewable energy and makes money. But no one knows what’s going to happen to the power contracts – so it only makes sense to wait and see what happens before doing anything at all.
It’s unfortunate, because many of the companies creating jobs in Ontario right now are starting to look at other jurisdictions to invest their time and money (and jobs). Even worse, some of them are having to shut their doors and move on to something else. Uncertainty is an investor’s least favourite thing to worry about – and so we wait.
The weather has been great for the wait and see game, but part of me wishes it was October 7 so we could all get back to focusing on what matters. Even that seems naive to say… I know that after the election, we’ll still have to wait a few months before the first real announcement is made on any proposed changes. Such is the nature of the beast, but it’s got me looking to empower communities outside of Ontario to develop biogas plants, instead of focusing on my home province.
photo credit: bw14
