In his latest
Herald column, the normally estimable Ralph Surette drinks the
feed-in tariff Kool-Aid. Moneyquote:
Check out how they’re doing it in Ontario and other out-front jurisdictions, where "feed-in" laws or "standard offer contracts" are in effect — in which the utility is required to take power produced by entrepreneurs at a fixed rate, no haggling. Wherever it’s been tried, there’s been an explosion of energy entrepreneurship and new jobs.
The [Nova Scotia Power] system of calling tenders one project at a time didn’t work elsewhere, and it hasn’t worked here.
Ralph makes a few good points in the column, but these two paragraphs contain more foolishness than enough.
Ontario passed a bill authorizing the Minister of Energy to
permit the use of feed-in tariffs just six weeks ago, and the regulations haven't been written yet. So it hasn't produced "an explosion" of anything yet, except perhaps hyped expectations among the uncompetitive producers who have been pushing for such a law here. As for other jurisdictions, in North America, Ontario is it: the first state, province, or country to pass a feed-in tariff law.
As for tendered contracts not working, that will come as news to generations of good governance experts. Elsewhere in the same column, Ralph rightly criticizes NSP's attempt to win Utility and Review Board approval for an untendered biomass project.
29 June, 2009
