Ontario Agriculture

The network for agriculture in Ontario, Canada

The CFFO Commentary: A Cloud Forms on the Horizon of Ontario’s Green Energy Future

The CFFO Commentary: A Cloud Forms on the Horizon of Ontario’s Green Energy Future

By Nathan Stevens
September 10, 2010


Glenn Fox of the University of Guelph recently shared his critique on the implementation of Ontario’s Green Energy Policy. His thoughts on the subject point to a serious test of the Province’s commitment to the development of renewable energy over the coming year.

The rationale that has been used to support the development of the industry is three fold. The first is an environmental commitment to reduce greenhouse gas emissions. The second is to find new energy sources that supplement the elimination of coal as a source of electricity. The third is to create a business environment to help our province be the North American supplier of renewable energy technology to the rest of the continent.

Fox argues that the trouble with renewable energy policy began when we used Denmark and Germany as our guiding lights for how to implement this policy. His prime example is that while it is true that 20 percent of the power generated in Denmark is from renewable sources, the timing of production is poor. The result is that renewable energy is sold cheaply into Norway and Sweden when there is an excess, and coal-powered energy is bought back into Denmark when production falls short. Essentially, he points out that the details aren’t always as bright as they appear on the surface.

Fox also criticised the quota approach being taken by the province with its differentiated pricing for various technologies. The lack of market competition both between different renewable sources and between renewable and non-renewable sources dampens the drive to innovate and remove costs from the system. This means that there is a real danger of the system allowing inefficiencies to grow in the long-term and that the industry may never truly mature.

However, the real test for Ontarians will come in 2011, when there is the possibility of a double digit increase in residential electricity bills. Some argue Green Energy production and the infrastructure costs associated with it will constitute 50 percent of that increase. The question is - will the general commitment to renewable energy survive a direct hit to ratepayer’s pocketbooks?

Glenn Fox identified a serious test of Ontario’s Green Energy Policy on the horizon. Can the commitment to the renewable energy sector in Ontario survive a direct confrontation to Ontarians’ pocketbooks? With 2011 also being an election year, there is sure to be a lot of debate on the strengths and weaknesses of Green Energy in the months ahead.


Nathan Stevens is the Research and Policy Advisor for the Christian Farmers Federation of Ontario. The CFFO Commentary represents the opinions of the writer and does not necessarily represent CFFO policy. It can be heard weekly on CKNX Wingham and CFCO Chatham, Ontario and is archived on the CFFO website: www.christianfarmers.org. The CFFO is supported by 4,300 farm families across Ontario

Views: 40

Comment

You need to be a member of Ontario Agriculture to add comments!

Join Ontario Agriculture

Agriculture Headlines from Farms.com Canada East News - click on title for full story

Map: Prairie Dryness, Drought Little Changed in May

Abnormal dryness and drought across Western Canada were little changed in May compared to a month earlier. The latest monthly update of the Canadian drought monitor shows 19% of Prairie agricultural lands were being impacted by abnormally dry or drought conditions as of the end of May. That is 2 points higher than the end of April but slightly below 21% at the end of March and sharply below 47% in February. Much of the Prairie Region received below to well below normal precipitation in May, with the Peace Region, south-central Saskatchewan, and southern Manitoba recording less than 25% of normal. On the last day of the month, however, a large storm system in Alberta produced 40 to 80 mm of precipitation alone. In east-central Alberta up to 300% of normal monthly precipitation fell in the one day. Significant rainfall was also recorded in western regions of Saskatchewan but at lower levels than in eastern Alberta, the monitor said. Temperatures were generally below normal across

U.S. Soybean Ending Stocks Steady

U.S. soybean ending stocks – both old and new-crop - were left unchanged in USDA’s June supply-demand update on Thursday. For 2026-27, USDA made no changes to the U.S. soybean balance sheet this month. Estimated production remained at 4.435 billion bu, up 173 million from 2025-26, while the crush was held at 2.75 billion bu and exports at 1.63 billion. With no changes, forecasted 2026-27 U.S. soybean ending stocks were left steady from May at 310 million, modestly below the average trade guess of 314 million bu. The USDA also kept the 2026-27 season-average farm price unchanged at $11.40/bu, up from the 2025-26 estimate of $10.40. For old-crop 2025-26 soybeans, the USDA raised crush by 20 million bu, citing stronger soybean meal exports and domestic meal use, while soybean oil use for biofuel was also increased. However, exports were lowered by 20 million bushels based on available U.S. Census data, offsetting the increase in crush and leaving ending stocks unchanged at 340 mi

Only Modest Adjustments for Old-, New-Crop U.S. Corn

The USDA left its 2026-27 U.S. corn outlook virtually unchanged this month, with the only supply-side change a 3 million-bu increase tied to a higher import forecast carried in from the old-crop balance sheet. In its June supply-demand update on Thursday, USDA left 2026-27 U.S. corn production unchanged at 15.995 billion bu, while all major demand categories were also steady. Feed and residual use was held at 6.1 billion bu, food, seed and industrial use at 6.955 billion, including 5.6 billion for ethanol, and exports at 3.15 billion. With no change in use, the small increase in 2026-27 beginning supplies carried directly into ending stocks, which were raised 3 million bu from May to 1.96 billion, slightly above the average pre-report trade guess of 1.942 billion. The season-average farm price was unchanged at $4.40/bu. Corn futures were trading about 7-8 cents/bu lower this afternoon, following the report’s noon hour EST release. For old-crop 2025-26, USDA also made only mo

Don’t miss June 12 deadline: Share your feedback on the Beef Cattle Code of Practice

Public comment period nearing close on proposed updates to national beef cattle care standards.The Beef Code outlines expected and recommended animal care practices for beef cattle. The public comment period is an opportunity for anyone who has an interest in how beef cattle are raised in Canada, including consumers, veterinarians, food service professionals, and producers, to review the draft content and share feedback. Feedback gathered through the public comment period is critical and helps determine the content of the final document. Strong producer feedback from all regions of Canada is an important step in this process. The Beef Code is meant to drive continuous improvement in animal welfare and is built to be scientifically informed, practical, and reflect societal expectations for responsible farm animal care. The Code uses an outcome-based approach that focuses on achieving successful standards while allowing for flexibility in how these outcomes are met rather than dictati

From the Government Desk: ABP keeping up momentum

Spring is always one of the best times of year in this business. Calving is underway, seed is going into the ground, and there’s a sense of momentum heading into the grazing season. This year, that momentum also includes a few policy wins worth noting. Strychnine is back in 2026! After its approval was pulled in 2023, producers have been searching for a useful option to control infestations of Richardson’s ground squirrel. If you’re impacted, you’ll know why this is a meaningful development. The rollout is still underway, with initial access expected toward the end of May. For some, that timing will miss the most effective spring window, which is frustrating. There is expected to be another opportunity later in the summer, but it won’t fully replace what many producers were hoping for this spring. That said, getting this approval across the line was no small task. This was very much an Alberta-led effort, with strong collaboration between cropping groups and ABP to build the case. A

© 2026   Created by Darren Marsland.   Powered by

Badges  |  Report an Issue  |  Terms of Service