The Green Energy Act – Unveiled

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What is the Green energy Act (GEA) and why will it cause our energy prices to soar?

The Province of Ontario has a problem with energy supply and distribution. We have not built a new generation facility in years and our distribution grid (the wires that distribute the power throughout the province) is severely undersized for our growing needs. Additionally, the province does not want to rely on electricity generated by burning fossil fuels such as coal and natural gas as it is not “Environmentally Friendly”. Instead they want to encourage the generation of electricity using renewable resources such as solar and wind. Unfortunately, these technologies are not sufficiently developed to be financially viable. Therefore, they are offering to pay as much as 80 cents/kwh (yes that is 80 cents and not a typo) for small generation facilities all around the province. This is being paid for by the FIT (Feed In Tariff) program which passes these costs on to consumers by increasing the electricity rates across the province. The advantage of many micro generation facilities spread across the province is that much of the electricity will be generated close to the point of consumption. This reduces the load on our grid since electricity will not have to be transmitted long distances through the wires. However, this comes at a great expense. The FIT program mandates that the utility must connect any micro generation plant to the grid. This means that if a farmer in a remote field wants to build a small “solar farm”, the utility must incur the expense of connecting even a long distance to the solar farm. Of course this cost will also be passed on to consumers in our utility bills on the “Delivery” line. You can expect this line to increase dramatically in the short term future as many people take advantage of the FIT program.

In short, we all must get used to paying much more for our energy and get prepared for these huge increases. Now is the time to make the necessary equipment changes to protect our selves from unmanageable cost of living increases.

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