Investing in Renewable Energy – The Incredible Bumbling of the Liberal Government of Ontario, Canada

Renewable Energy
A recent phenomenon of political correctness and social responsibility of the Liberal Government of Ontario, Canada points out just how ridiculously inefficient the actions of government can be.

In their rush to be environmentally correct, the Liberal government of Ontario brought in a number of the most ridiculous rules and regulations.

One of those regulations was to give incentive to the private sector to build wind farms in order to replace traditional sources of electrical power supply. The taxpayers of Ontario generally pay $0.05 to $0.09 per KWH. The rate used to be much lower, but government IDIOTIC energy policies are costing a fortune and only the taxpayer pays the price. Incentives for solar and wind power gave long term contracts to builders of those facilities of up to $0.82 per KWH. No one seemed to care that you have to build backup coal generation to support these wind turbines.

In other words, if you build one of these horrendously inefficient facilities, you will get paid for the next twenty years as much as FIFTEEN times as much as you should get paid. If the bumbling of the government were not so transparent, this would have been considered one of the worst scandals of our age, but somehow, no-one seems to care. The effect is that every taxpayer is paying enormous hydro bills every month for no logical reason, except the doublespeak of government.

Wind Power
What the government ignored was that wind power is only generated when there is sufficient wind. For every KW of wind power created, it is mandatory to build one additional KW of conventional power as a back up. Otherwise, if the wind doesn’t blow, consumers and industry would have no hydro power. Pretty Basic isn’t it?

In recent months, there has been so much additional power available in Ontario – very substantially more than any government estimates of future need and availability – that the price of this excess power that hydro is forced to sell to other users outside of Ontario but attached to the Ontario grid, is approaching ZERO in certain periods.

This is not a typo. This is what is happening. Ontario is paying providers up to $0.82 per KWH, and selling that power to outsiders for close to zero. And all the while, the bills to taxpayers are constantly increasing.

Please tell me why the voters are so happy with the Liberals. IS THERE SOME SORT OF DOUBLESPEAK going on? Why aren’t the taxpayers trying to lynch the government?

Solar Power
A similar situation now exists with solar power. Germany, the world’s leader in solar power has cut subsidies to solar power manufacturers. Vast quantities of old solar panels that are available are not being sold. Why? Because mankind does what it always does. Technology moves on.

New solar panels are far more efficient than those of last year or two years ago. Manufacturing costs have dropped dramatically. The solar power world in just a few short years has changed dramatically, and it looks like it will change far more in the next few years.

Those installations that the government provided such lucrative incentives for, are all now outdated and outmoded. A COLOSSAL WASTE OF MONEY that only enriches a few select individuals at all of our expense, for the next 20 years.

Why aren’t the voters angry? Apathy and doublespeak. Strange world that we live in.

By Larry Cyna

Mr. Cyna is an accomplished investor in the Canadian public markets for over 20 years, and has managed significant portfolios. He is a financing specialist for private and public companies, and has expertise in real estate and debt obligations. He has assisted private companies accessing the public markets, has been a founding director of public companies and continues as a strategic consultant to selected clientele. He is and has been a director, a senior officer and on the Advisory Board of a number of TSX and TSXV public companies in the mining, resource, technology and telecommunications sectors, and the Founding Director of two CPC’s with qualifying transactions in mining and minerals. He was an honorary director of the Rotman School of Management MBA IMC program, has completed the Canadian Securities Institute Canadian Securities Course & Institute Conduct and Practices Handbook Course, was a former Manager under contract to an Investment Manager at BMO Nesbitt Burns, a roster mediator under the Ontario Mandatory Mediation Program, Toronto, a member of the Institute of Corporate Directors of Ontario, a member of the Upper Canada Dispute Resolution Group, and the Ontario Bar Association, Alternate Dispute Resolution section. He obtained his designation as a Chartered Accountant in Ontario in 1971 and was the recipient of the Founder’s Prize for academic achievement together with a cash reward. He became a CPA in the State of Illinois, USA in 1999 under IQEX with a grade of 92%. He is a Member of the Institute of Chartered Accountants of Ontario and the Canadian Institute of Chartered Accountants. He holds certificates in Advanced ADR & in Civil Justice in Ontario, Faculty of Law, University of Windsor, certificate in Dispute Resolution from the Ontario Institute of Chartered Accountants. Previous accomplishments are Manager of Cymor Risk Consultants LP specializing in Risk Management Assessment; CEO of Cyna & Associates specializing in mediation and ADR; Founder & Senior Partner of Cyna & Co, Chartered Accountants, a fully licensed and accredited public accountancy firm with international affiliations; and was a partner in a large public accountancy firm. Mr. Cyna is well known in the Canadian Investing community. He is invited to, and attends presentations given by public companies usually 3 or 4 times each week. These presentations are intended by the various hosting companies to present their inside story to sophisticated parties and Investment Managers for the purpose of attracting funding, or of making parties more interested in acquiring shares of those companies. Being a part of this keeps Mr. Cyna deeply involved in the current market and leads to numerous investment opportunities.

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