Green energy isn’t viable without subsidies:

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Green energy isn’t viable without subsidies: Audit

Author of the article:Postmedia NewsPublishing date:Mar 31, 2021  •  6 hours ago  •  1 minute read  •   Join the conversation

Toronto Sun files
Toronto Sun files PHOTO BY (MIKE HENSEN/POSTMEDIA NEWS) /Toronto Sun

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Federal auditors are calling the Renewable Energy Deployment Program a “market failure.”

An internal report at the Department of Natural Resources that looked at the program from 2002-19 says without subsidies, few green energy projects like solar panels, wind farms, and geothermal projects can survive financially, according to Blacklock’s Reporter.

“The program clearly addresses a market failure,” said the report, and “most projects would not have been financially viable” without aid from a program already costing $1.4 billion.

The program paid subsidies of a cent per kilowatt hour for green energy projects.

“None of the projects generated sufficient market revenues to be profitable without the Renewable Energy Deployment funding,” the audit found. “The majority of the supported projects generated sufficient revenues to attain ll surpluses with which they could pay off some of their capital costs.”

The green energy projects also qualified for provincial subsidies.

The auditors also said renewable energy like solar power was unreliable in some harsh Canadian conditions.

“The energy outputs of the projects were in many cases different than what was anticipated,” said the report.

“In most projects, natural conditions — such as intensify of wind, solar and water sources — were different than anticipated, in some cases higher, others lower.”

Hydro dams account for most of Canada’s electricity production — 60% — while nuclear plants in Ontario and New Brunswick contribute 15% of the nation’s total. Wind farms generate 5% and solar power accounts for only 0.6% of Canada’s power production.

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