July 17, 2018
The decision by the Ontario government to cancel renewable energy contracts will have a widespread impact on project owners, according to an article in The Globe and Mail. In his article, author Shawn McCarthy explores the decision by the incoming PC government to cancel 758 renewable projects that had not yet received final approval — either larger-scale renewable generation projects, or smaller solar and bio-energy contracts — and the overall implications. Osler partner Jake Sadikman, an energy expert, explains what this means for project owners, who aim to invoke compensation clauses in the contracts to recuperate their money that’s been spent already.
“Contracts for the projects cancelled last Friday have clauses that allowed the Independent Electricity System Operator to terminate them prior to final regulatory approvals,” Jake tells The Globe and Mail.
Jake also says that “there was some relief in the industry” that Ontario Premier Doug Ford “did not go after the contracts of existing renewable energy providers.
If you subscribe to The Globe and Mail online, read Shawn McCarthy’s article “Municipalities, school boards, others hit by Ontario cancellation of renewable energy contracts.”