Ontario to give incentives for clean, green energy
Date: 15-Nov-02
Country: CANADA
Ontario Energy Minister John Baird said new investments in qualifying energy-saving equipment would be eligible for a 100 percent writeoff.
The commissioner of alternative energy, Steve Gilchrist, also said the government will set an energy conservation example for the province to follow by reducing electricity consumed in its own operations by 10 percent.
Baird told a news conference: "Our government will make sound investments and offer strategic support to make clean energy cheaper and affordable for everyone."
The latest announcement is meant to heal wounds created by the government's much touted move toward energy deregulation, which has caused public outrage and high prices.
Since May 1, when the market opened, electricity prices have risen 25 percent. On Monday the government announced a freeze on electricity rates until 2006 to help hard-pressed consumers and small businesses.
The government is expected to pay nearly C$700 million this year to compensate consumers and small businesses. Analysts say the cost could exceed C$2 billion over the four years.
On Tuesday, Baird promised a tax holiday for firms producing clean energy from solar, wind, natural gas and hydro sources.
But as the government promises to alleviate the financial burden on consumers and businesses, critics said Ontario's power woes are only expected to grow worse, with the possibility of power shortages ahead.
Deregulation was meant to introduce competition into the market, with supporters saying that would mean lower prices as new entrants new generating capacity and competed against each other.
But six months later, with just one new power plant in the works, the government has reregulated the market, drawing criticism that it is scaring off potential investors.
Baird also said the government will try to target taking 20 percent of its electricity from renewable sources and challenged consumers to buy green power.
"Our goal is to convert 100,000 homes to solar power within five years," Baird said.
