Friday, January 22, 2010
Yesterday, the Canadian province of Ontario announced a deal with a Korean consortium led by Samsung to produce renewable electricity and manufacture the equipment. The idea is to create new generating capacity and build an industrial infrastructure for the production of renewable energy equipment. Sounds like a good idea but only time will tell if the investment materializes and the power is produced. According to the reports 16,000 jobswill be created. Also a positive goal but I am always skeptical of these job creation announcements because you never really know how they calculate that number. It could be a positive development for a North American renewable energy industry as we may see the establishment of a major industrial hub for the production of the equipment. I'm sure the government is hoping to create something akin to what Detroit is (was) for the automotive industry. On the surface it is a positive but the true costs of the job subsidies that always come with these large projects and the cost of renewable electricity subsidies will determine if this works.