|October 29, 2009|
Green Energy Act could create $4.5 billion in value
|A detailed analysis of the business case for power generators, transmitters and local distribution companies following the introduction and enactment of Ontario’s Green Energy Act, finds the act has the potential to create significant value. |
Mississauga, Canada - The report on the Green Energy Act’s short and long-term impact is the outcome of an independent study conducted over the last year, while the Act was working its way through the legislature, say the study authors, Hatch Management Consulting.
The study, using technically viable and conservative parameters, scenarios and assumptions, simulates the returns, the value created, the productivity impact and the financial cash-flow-at-risk flowing directly from the Act, and subsequently, from the provincial government’s active support of the Act’s objectives.
Some of the barriers identified and analysed included:
The study concludes that the Act can create tremendous value for renewable generators and delivery entities, while reshaping the energy landscape in Ontario, provided the uncertainties around the sustainability of the program, and barriers to project development are addressed.
In addition to the above central conclusion, five observations will be relevant to a provincial debate about how best to unlock the value from the Act and sustain the momentum for Ontario to become a leader in renewable generation. Specifically, an overarching strategy would need to consider:
Hatch Management Consulting is a global consulting firm with principal offices in Beijing, Johannesburg, Santiago, Pittsburgh, Sao Paulo, New Delhi, Mississauga, Brisbane and London (UK).Hatch