Tag Archives: Energy Policy

News

Ontario government gives IKEA $685,000 per year in solar power subsidies

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Political Map of Canada

Story from the National Post. (H/T Small Dead Animals via ECM)

Excerpt:

The Swedish retail giant IKEA announced yesterday it will invest $4.6-million to install 3,790 solar panels on three Toronto area stores, giving IKEA the electric-power-producing capacity of 960,000 kilowatt hours (kWh) per year. According to IKEA, that’s enough electricity to power 100 homes. Amazing development. Even more amazing is the economics of this project. Under the Ontario government’s feed-in-tariff solar power scheme, IKEA will receive 71.3¢ for each kilowatt of power produced, which works out to about $6,800 a year for each of the 100 hypothetical homes. Since the average Toronto home currently pays about $1,200 for the same quantity of electricity, that implies that IKEA is being overpaid by $5,400 per home equivalent.

Welcome to the wonderful world of green economics and the magical business of carbon emission reduction. Each year, IKEA will receive $684,408 under Premier Dalton McGuinty’s green energy monster — for power that today retails for about $115,000. At that rate, IKEA will recoup $4.6-million in less than seven years — not bad for an investment that can be amortized over 20.

No wonder solar power is such a hot industry. No wonder, too, that the province of Ontario is in a headlong rush into a likely economic crisis brought on by skyrocketing electricity prices. To make up the money paid to IKEA to promote itself as a carbon-free zone, Ontario consumers and industries are on their way to experiencing the highest electricity rates in North America, if not most of the world.
The government’s regulator, the Ontario Energy Board, has prepared secret forecasts of how much Ontario consumers are going to have to pay for electricity over the next five years. The government won’t allow the report to be released. The next best estimate comes from Aegent Energy Advisors Inc., in a study it did for the Canadian Manufactures and Exporters group. Residential rates are expected to jump by 60% between 2010 and 2015. Industrial customers will be looking at a 55% increase.

Going back to 2003, based on numbers dug up by consultant Tom Adams, the price of residential electricity in Ontario hovered around 8.5¢ a kWh in 2003 — the first year of the McGuinty Liberal regime. By 2015, Aegent Energy estimates the price will be up to 21¢, an increase of 135%. Doubling the price of electricity in a decade is no way to spur growth and investment. In this age of global economic competition IKEA may end up with fewer sales of its Billy bookshelves in Toronto because its customers will be bogged down with soaring power bills and a sliding economy.

I wonder how the taxpayers of Ontario, who have just been whacked with the HST, feel about this government waste. By the way, the Ontario Liberal Party is basically analogous the Democrat Party. So this is is going to happen to us, too, if they get their way.

News

Offshore drilling moratorium would cost 175,000 jobs per year

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From Big Government. (H/T ECM)

Excerpt:

During a 45-minute conference call with journalists from 40 major media outlets this morning, Jack Gerard shared some startling predictions about the future health of the nation’s oil and natural gas industry if the Obama Administration gets its way in adding more regulation and increasing taxes on offshore drilling in the Gulf of Mexico. The biggest one of all is enough to cause anyone to take pause:

“The administration’s moratorium, if continued indefinitely — or similar legislative proposals which would make the deep water unavailable or uneconomic — would cost this country 175,000 jobs every year between now and 2035, according to our latest analysis,” said Gerard, president of the American Petroleum Institute, a group representing some 400 oil and natural gas companies.

The story has more scary effects of a complete shutdown of deepwater drilling. One of my friends who I am staying with during my vacation says that the real number is closer to 200,000 jobs per year.

News

MUST-READ: How reliable are the “independent” reviews of Climategate?

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From the Wall Street Journal. (H/T ECM)

Excerpt:

Last November there was a world-wide outcry when a trove of emails were released suggesting some of the world’s leading climate scientists engaged in professional misconduct, data manipulation and jiggering of both the scientific literature and climatic data to paint what scientist Keith Briffa called “a nice, tidy story” of climate history. The scandal became known as Climategate.

Now a supposedly independent review of the evidence says, in effect, “nothing to see here.” Last week “The Independent Climate Change E-mails Review,” commissioned and paid for by the University of East Anglia, exonerated the University of East Anglia.

[…]One of the panel’s four members, Prof. Geoffrey Boulton, was on the faculty of East Anglia’s School of Environmental Sciences for 18 years. At the beginning of his tenure, the Climatic Research Unit (CRU)—the source of the Climategate emails—was established in Mr. Boulton’s school at East Anglia. Last December, Mr. Boulton signed a petition declaring that the scientists who established the global climate records at East Anglia “adhere to the highest levels of professional integrity.”

Let’s assess the reliability of the “independent” reviews.

The Russell report states that “On the allegation of withholding temperature data, we find that the CRU was not in a position to withhold access to such data.” Really? Here’s what CRU director Jones wrote to Australian scientist Warrick Hughes in February 2005: “We have 25 years or so invested in the work. Why should I make the data available to you, when your aim is to try and find something wrong with it[?]”

Then there’s the problem of interference with peer review in the scientific literature. Here too Mr. Russell could find no wrong: “On the allegations that there was subversion of the peer review or editorial process, we find no evidence to substantiate this.”

Really? Mr. Mann claims that temperatures roughly 800 years ago, in what has been referred to as the Medieval Warm Period, were not as warm as those measured recently. This is important because if modern temperatures are not unusual, it casts doubt on the fear that global warming is a serious threat. In 2003, Willie Soon of the Smithsonian Institution and Sallie Baliunas of Harvard published a paper in the journal Climate Research that took exception to Mr. Mann’s work, work which also was at variance with a large number of independent studies of paleoclimate. So it would seem the Soon-Baliunas paper was just part of the normal to-and-fro of science.

But Mr. Jones wrote Mr. Mann on March 11, 2003, that “I’ll be emailing the journal to tell them I’m having nothing more to do with it until they rid themselves of this troublesome editor,” Chris de Freitas of the University of Auckland. Mr. Mann responded to Mr. Jones on the same day: “I think we should stop considering ‘Climate Research’ as a legitimate peer-reviewed journal. Perhaps we should encourage our colleagues . . . to no longer submit to, or cite papers in, this journal. We would also need to consider what we tell or request our more reasonable colleagues who currently sit on the editorial board.”

Mr. Mann ultimately wrote to Mr. Jones on July 11, 2003, that “I think the community should . . . terminate its involvement with this journal at all levels . . . and leave it to wither away into oblivion and disrepute.”

There’s billions of dollars of funding at stake in global warming alarmism – your money and mine. They’re not going to just give that up.

Read the whole thing. And thanks to ECM for finding it.

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