Ontario Election 2011 - Energy Resources

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FACT: Subsidies to renewable energy are no greater than those for fossil fuel and nuclear power

The criticism of the price Ontario currently pays for renewable energy ignores twoimportant facts: renewable prices are still falling, while the costs of fossil fuels and nuclear are rising — and the government subsidizes fossil fuels and nuclear energy to a much greater extent than green energy.

The nuclear industry has been subsidized since day one. Nuclear has accumulated over $20 billion in subsidizes federally, including over $1.2 billion in the past five years — and it continues to collect federal subsidies now, even after being sold to SNC Lavelin.

Compare that to wind, solar and biomass industries that together have received about $1.7 billion from the federal government, which are being spread out from 2002 to 2021. In other words, 10 years from now, renewable energy will have received about 10 per cent of the subsidies nuclear has received — assuming no more nuclear subsidies are paid out in the next 10 years.

The California Energy Commission estimated new nuclear costs between 17-34 c/kWh in 2010. The low end of that estimate is still more expensive then Ontario’s prices for wind power under the feed-in tariff, and the high end approaches the feed-in tariff price for large-scale solar power projects at current costs, which have been dropping rapidly (down 50 per cent) in past five years.

Filed under nuclear fossil fuels subsidies green energy act fit feed-in tariff dropping price cost