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Bloomberg
Renewable-power contracts fr-om Boralex Inc and Invenergy LLC are among those targeted for cancellation by Ontario Premier Doug Ford, who’s working to terminate or wind down more than 750 contracts in a revamp of the province’s energy policies.
The list of contracts in Ford’s crosshairs includes one with the 50-megawatt Otter Creek Wind Farm in western Ontario, which is being developed in a partnership between Montreal-based Boralex and RES Canada. Also targeted is the proposed Strong Breeze Wind Project near Lake Erie, a 57.5-megawatt wind farm being developed by Invenergy, a closely held firm in Chicago.
Ford’s move to make good on a campaign promise to terminate the projects — which his energy minister says will save customers in the Canadian province C$790 million ($600 million) — sent shares of clean-energy companies tumbling. Some analysts and executives, however, have raised doubts about whether courts would allow the government to break the contracts, signalling the possibility of a protracted conflict over the issue.
“There’s not a case for them to unilaterally abrogate the contracts,†said Northland Power Inc Chief Financial Officer Paul Bradley, whose Toronto-based company owns solar and wind farms in the province.