How wind turbines are not generating green energy: An economic review of the Ontario Green Energy and Green Economy Act

Abstract

The Ontario Government passed the Ontario Green Energy and Green Economy Act in 2009. The Act promoted wind turbines and solar panels as a major component of the energy supply for the Province of Ontario as a replacement for coal-fired electricity generation plants. This article provides an economic assessment of the rationales that were offered for this policy, specifically, that the Act would help the Government of Ontario reduce the province’s reliance on fossil fuels, reduce carbon emissions, and stimulate the economy through the creation of jobs. The effects of the policy on the cost of electricity in the province are also considered. The analysis concludes that the Act will not reduce the Province of Ontario’s reliance on fossil fuels due to the inefficiency and unpredictability of wind turbines, ultimately leading to the need to use energy from more readily available sources of electricity such as gas. The need for fossil fuel backup also limits the potential to reduce the green house gas emissions.
 
 Keywords: Ontario Green Energy and Green Economy Act (2009); renewable energy; economic review