A quarter of a trillion dollar opportunity.
Like most of The Great Lakes region, Ontario has faced one of the toughest recessions in recent memory. In its adoption of the Green Energy and Green Economy Act in May 2009, the Government of Ontario has been explicit in its contention that environmental gains and economic recovery can not only successfully coincide, but reinforce one another.
As part of its focus on far-offshore wind development in The Great Lakes, Trillium Power has calculated the economic benefit of the potential capacity currently applied for by Ontario developers - 20,790 MW - over a period of 15 years. Trillium Power's calculations are based on a recent cost and investment model for Ontario-based FIT projects by Haywood Securities.
Over a 15-year period, and assuming a conservative average development cost of C$4,000,000/MW, Ontario's Reserved Offshore Potential of 20,790 MW of offshore wind would generate:
- C$256.3 billion in gross economic activity;
- C$11.4.1 billion in provincial tax revenues;
- C$126.8 billion for Ontario (with a 50% Domestic Content requirement);
- C$190 billion for Ontario (with a 75% Domestic Content requirement);
- C$84.9 billion for the U.S. Great Lake states and Quebec (with a 50% Domestic Content requirement).
To put one year of gross economic benefit - C$16.9 billion - from Great Lakes offshore wind development into perspective, it is equivalent to roughly 3% of Ontario's and 1% of Canada's entire Gross Domestic Product according to Statistics Canada figures for 2008.
The socio-economic benefit of Trillium Power Wind 1 (TPW1)
Trillium Power Wind Corporation will privately invest approximately C$1.6 billion into the TPW1 project and help generate many economic opportunities. According to a recent Conference Board of Canada (CBoC) report on the Employment and Economic Impacts of Ontario's Future Offshore Wind Power Industry, just 2,000 MW of Offshore Wind development in Ontario over a 15 year period (just 18.6% of the 10,700 MW of renewable energy that Ontario is committed to producing by 2018) would create:
- Approximately 6,500 new jobs in manufacturing, services, O&M and RDD&D;
- Between 55,000 and 62,000 new person-years of employment in construction;
- $10.44 Billion in real capital investment and operations spending;
- An increase in Ontario's gross domestic product of $5.5 Billion;
- Generate taxes for the Ontario and Canadian governments of between $1.03 and $1.13 Billion (not including corporate taxes);
- A strong new era of green-collar manufacturing in Ontario;
- Substantial new demand for local products and services; and,
- Contributions to the municipal tax base and infrastructure.
Ontario's recent actions to cancel offshore wind development in The Great Lakes while US States continue to accelerate their offshore wind activities has substantially harmed Ontario's opportunity to become a leader in the global offshore wind sector. Trillium Power continues to try and work with the new Ontario government to develop a path to benefit all Ontarians.
The only beneficiaries of Ontario's action against offshore wind developers are highly-risky and expensive nuclear power and coal generators in the province.
Ontario voters, taxpayers and ratepayers are strongly in favour of offshore wind development so it was a shock to all Ontarians that Ontario's former Minister's of Energy, Natural Resources and the Environment made a 180 degree change against the Ontario Green Energy and Green Economy Act, 2009, and changed previous government commitments on offshore wind. In addition, while characterizing their actions as a "moratorium" they have actually confiscated legally acquired rights to develop sites between 17 km and 70 km from the mainland.
Ontario needs the sustainable economic development, long-term jobs and revenues from developing it unique Offshore Wind potential and other renewable energy opportunities.