Hatch analyses impact of Ontario’s Green Energy Act on power sector

Hatch Management Consulting has published a detailed analysis of the business opportunities for power companies in Ontario following the passing of the province’s Green Energy Act.

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 assessed the business potential for companies involved in power generation, power transmission and distribution. It was the result of studies conducted over the past year while the Act was working its way through the legislature.

It identified a number of barriers and financial risks to companies who invest in the sector. Some of these were as follows:

    –   environmental permit delays,

    –   uncertainty of technology choices,

    –   the unknowns of Ontario’s manufacturing sector,

    –   significant grid integration challenges,

    –   construction challenges if several new renewable projects rush to

        pools of specialists at the same time,

    –   locating appropriate project sites,

    –   ensuring adherence to codes and standards still under development,

        and

    –   probable responses to the changing roles and mandates of government

        agencies that regulate the electricity sector.

However, the study concludes: “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.”

The research will be presented on January 19, 2010 at the University of Toronto Rotman School of Management’s “Business of Green” speaker series.