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An Inconvenient Truth About Green Energy Jobs

Posted: 09/20/11 04:16 PM ET

Supporters of wind energy subsidies have historically done a fantastic job of tying the merits of wind energy to the contemporary problems of the day. During the latest worldwide economic crisis, wind energy proponents have heavily touted the number of jobs created by wind energy production as a reason to push these projects forward.

At a time of punishingly high unemployment in North America and Europe that is further compounding the impact increased global competition is having on traditional manufacturing sectors, wind energy backers are heavily trading on the claim that 'green collar' manufacturing is the future.

In 2009, Ontario Premier Dalton McGuinty decided to take Ontario boldly where no North American government had gone before. He introduced a wide ranging piece of legislation called the 'Green Energy and Green Economy Act' and promised at the first press conference to create 50,000 jobs in three years.

While no independent verification for these job figures have been offered, the premier of Ontario continues making new announcements of jobs, and promotes fear mongering that his political opponents would kill those jobs if elected. The reality is no matter who wins Ontario's Oct. 6 general election, those jobs won't be there to kill, because in most cases they aren't real.

In December 2010, the Government of Ontario issued a press release titled "New Wind Tower Plant Creates 700 Jobs in Windsor." Yet when McGuinty went to tour the facility in September 2011, CS Wind reports just 50 people are employed at the plant.

Fort Erie is home to Ontario's first wind turbine tower plant owned by DMI Industries. The day before McGuinty's visit to Windsor, word broke that DMI Industries was laying off "in excess of 50 workers." Local MPP Kim Craitor has said DMI Industries had sought his help in getting assistance through a federal work-sharing program "until orders pick up again." With insufficient demand to maintain employment at one wind turbine tower manufacturing plant, it is hard to imagine how Windsor's fate will be any better or why their order book as a start-up would be more robust than an established international producer.

A lack of demand for products made by 'green collar' workers created another embarrassing situation for Dalton McGuinty, who was accused last week of staging a campaign photo opportunity at a solar panel manufacturer Eclipsall Energy that has idled its plant due to a shortage of orders as well, confirmed by plant management.

In Tillsonburg where a wind turbine blade manufacturing plant was credited with creating 900 jobs in a December 2010 government press release, nearly 20 months later, the plant owners report a staff closer to 30 employees.

During an election where spiking energy bills, smart meters, and the government's handling of opposition to industrial wind turbine development are all playing major roles, two things are becoming clear. Maybe it is a good thing McGuinty's green energy jobs plan is in shambles. It means plans to give Ontario families and businesses a break by ending the feed-in-tariff program and controversial Samsung deal can help real, private sector employers stay cost competitive through reasonable electricity prices. Cancelling these deals won't result in thousands of layoffs because they haven't resulted in anywhere near the employment the government claims.

Jan Carr, the former President of the Ontario Power Authority completed a study of the economic impacts of Ontario's Green Energy Act and found that each so-called 'green job' would result in a taxpayer subsidy of $179,000 per job, per year. Employees at Eclipsall Energy, who recalled their workforce for McGuinty's photo op, are paid a poverty rate just 20 per cent higher than minimum wage. That subsidy is seven times their pre-tax take home pay. To provide those subsidies, all Ontarians will need to pay an additional $310 per year in electricity costs by 2015 according to Carr.

Spain's expensive green energy failure can serve as a lesson to Ontario. A recent study shows for every 'green job' created 2.2 real jobs were lost elsewhere in the economy due to the impacts on electricity pricing.

During this election, Ontario voters will need decide whether to consider our energy policy as an economic policy. Voters have the opportunity to determine whether our government puts more economic stress on the automotive, natural resources and manufacturing sectors which employ hundreds of thousands of Ontarians to chase a green dream that has so far proven fruitless.

 

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Supporters of wind energy subsidies have historically done a fantastic job of tying the merits of wind energy to the contemporary problems of the day. During the latest worldwide economic crisis, wind...
Supporters of wind energy subsidies have historically done a fantastic job of tying the merits of wind energy to the contemporary problems of the day. During the latest worldwide economic crisis, wind...
 
 
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HUFFPOST SUPER USER
Jesse Wright
09:17 AM on 09/22/2011
While I'm not the number one proponent of McGuinty - I know he's lied many times, but many of the facts make me want to ask more questions if you will. When Spain lost these 2.2 jobs/1 of green energy. What were the other factors involved?? Was this during the time of economic global recession where jobs were lost everywhere around the world?? If not for green energy, how would you replace the energy loss from the destruction of the Green Energy Plan?? How many people are sent to hospitals daily suffering from asthma caused by air pollution from dirty energy (and don't those industries also still receive government subsidies of some sort?). My main problem with anti-green energy people is that they spout facts but come up with nothing of a replacement. The jobs haven't been created!! (this is because, many governments are sliding back into another recession and austerity measures around the world are preventing them from spending the money to purchase green energy). And how come no one ever considers the offset of jobs created by green energy. When someone gets a green energy job, do you count the server who kept his job because he bought lunch, or can pay for groceries - what about the money saved by Employment Insurance because that person is working again. I find that people opposed to green energy have nothing to back up.
08:40 AM on 09/22/2011
Statistics Canada unemployment figures for ONTARIO have NOT changed in 8 years inspite of the McGu PROPAGANDA, the beating of his drum repeating his mantra of jobs, jobs, jobs. It looks as though just as many jobs have been LOST as may have been created. And, not all the jobs created over the last 8 years can be credited to the massive subsidies to green energy installations.

Unfortunately, the voting public is being mesmerized into thinking that JUST BECAUSE the Liberals SAY something, that it is true. And doubley unfortunate is that the main stream media have lost the drive, the mission first propounded by the fourth estate more than 200 years ago to do the investigative journalism to uncover the TRUTH or FALSEHOOD of statements made by our political representatives. We are thrown crumbs and told "let them eat cake".
03:14 AM on 09/22/2011
This post totally TWISTS FACTS around to make it look as though there are lies but there is no real poof. Did anyone bother to investigate further like perhaps contacting the government, Ontario Power Generation or CS Wind to see how many trading partners they have?? So what if CS Wind reports only 50 employees. This doesn't mean that other jobs don't exist because of this plant and weren't created at the time when the media release was made. There are probably many more jobs in sales, recruiting, government and contracts??

Why not compare to the reality of the current situation with oil and coal?? Oil and coal are resources that will soon be scarce and the price is going to keep going up. Although "green" energy is more expensive now, it's common knowledge that new technology prices go down after efficiencies are made. "Green" energy WILL become less expensive and there is no denying that.

Funny too how you only reference Spain in your post. What about the success that Germany has had with "green" energy??

This is a one sided argument and not journalism. Why the Huff would choose to feature this is beyond me and makes no sense.
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HeevenSteven
20 Minutes into the future.
05:12 PM on 09/21/2011
"The Society for Wind Vigilance" which the wind concerns web site links to. They study health effects of wind turbines. Some of it is real knee slapper stuff.

Annoyance and Wind Turbines
Stress and Wind Turbines
Sleep Disturbanc­e and Wind Turbines
Physiologi­cal Health and Wind Turbines
Mental Health and Wind Turbines
Noise and Wind Turbines
Low Frequency Noise, Infrasound and Wind Turbines
Visual Health Effects and Wind Turbines

The last one is great: "The health impact of visual burdens cannot be underestim­ated. An epidemiolo­gy study conducted by World Health Organizati­on determined a “bad view out of window” increased the risk for depression by 40%"...lol­.. and of course I guess 4 out of 5 doctors wouldn't recommend looking at wind-turbi­nes..

I have a nuke plant out my window..
12:45 PM on 09/21/2011
Sadly, too many posters seem focused on whether green energy is of value, rather than the point of the article, which is that in the specific context of Ontario the Premier had falsified economic indicators around his green scheme.

There are probably a thousand good reasons to proceed cautiously and intelligently with numerous green energy options, even if the costs are presently high -- but to leverage a lie about immediate economic impact presents a great risk to the core economy, and an even greater risk to green energy ideas. When this lie is exposed broadly, and it will be, it will set back the options to explore these energy opportunities for decades. We will have the same backlash that all other falsified schemes suffer, which is the good opportunity is buried in the political baggage.
12:22 PM on 09/21/2011
PART 2 OF 2
Which by my agencies count comes to over 600 jobs by our clients only in the Windsor area alone? Keep in mind all my clients are new – never been operating within the region before and have been developing slowly with new hires planned for the future. (After they see what takes place in October) This is what younger business professionals call diversification and early planning. CS Wind has been contracted out by Samsung to build their wind turbines only. This is for the 1000 kw of power instillations scheduled for Ontario and represents only have of the 700 million dollar investment that Samsung will be making in the province. The rest is coming via Solar Modules. The real problem with the program is not with the subsidies but with Ontario Hydro limiting access to the grid. You see, the bulk of the connections they save are for hydro and nuclear power. The very power sources that anyone under 30 does not wish to see more of. The winning ticket for our region is in the development of power storage. BATTERIES! Get on board John it’s the future
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HUFFPOST BLOGGER
John Laforet
07:56 PM on 09/21/2011
Batteries huh? Where are we going to put the battery dump Kevin? Did you know people have been talking about storage for wind energy since before electricity was even harnessed? These pipe dreams go back to the 1860's. Scientific American was on this for six months back then. Sadly, on an industrial scale an answer has not been found in the last one hundred and forty years and isn't part of McGuinty's plan. Plus, this is about jobs, are the comparisons between McGuinty's government's announcements and reality real? If so, what's your argument? He is lying and spending our money to do it.
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john frodo
armchair expert
01:36 PM on 09/22/2011
There will never be a solution so burn more coal, thats your solution John. In Ontario for a generation Hydro has pumped water high and run turbines low, there are dozens of solutions used worldwide, huge rare metal batteries, flywheels, hydrogen production, and now that a way to make sewage gas into hydrogen has been found, all your argument disappear, like you will after the election.
12:22 PM on 09/21/2011
PART 1 OF 2
As a recruiter for the Renewable Energy sector for the last four years I have a need to inform the Ontario public about the facts. John, as the president of the “Wind Concerns Ontario” one might imagine you’re a member of the Flat Earth Society. Energy cost will rise regardless of the FIT program. It’s called high levels of demand. Your concerns and opinions are outdated, misinformed and have twisted the facts to suite your argument. Jobs created by the Green Energy Act and the Samsung deal are real and tangible. I myself have been making a living filling them, to date our agency has filled – 25 full-time positions with a variety of start up company in the Windsor/Essex region. These positions are upper management and engineering roles only and do not reflect the hiring done by these firms for line workers for the manufacturing of parts.
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HUFFPOST BLOGGER
John Laforet
07:53 PM on 09/21/2011
Twenty five full-time positions! Whoa Kevin! Thats like 50% of all jobs CS Wind has created at their Windsor plant! Congratulations.
12:12 PM on 09/21/2011
Consider the impact of FIT power purchase agreements for wind and solar installations on jobs. Investors in solar panels anticipate a rate of return of 12+%, unprecedented in today’s economy. Those high prices are passed on to consumers. For example a major expense for the food industry, is refrigeration. The community of Stoney Creek lost an ice cream maker, who moved to Quebec, citing the rising differential in energy prices between Ontario and Quebec. Similarly, mining giant Xstrada cited energy prices as the reason to close their Timmons smelter and to concentrate all operations in Quebec. When energy prices rise for hospitals and schools, boards must balance budgets often by reducing staff. High energy prices do ultimately matter to jobs.

The Premier speaks that his intent for Ontario to export “green” products to the US. However, the (few) jobs we are creating are to produce the large size, lower profit items such as wind turbine blades, and towers. Shipping these large items distances is problematic, particularly since the USA is also setting up factories to produce these items. Recent US job creation programs requires that material for infrastructure, needs to come from US factories – a subject about to be debated in the Canadian Parliament.

The Canadian Solar Panel manufacturing industry is an interesting study. For some manufacturers, adding Canadian content means buying panels in China, removing mounting screws, adding a bit of silicone sealant, then reinstalling the mounting screws and adding a label noting “final assembly in Canada.
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john frodo
armchair expert
03:44 PM on 09/21/2011
Ontario can never compete with Quebec on hydro, its geography not politics
11:37 AM on 09/21/2011
John Laforet has provided an excellent expose of the lies our former Premier continues to spout about green energy jobs. People of reason can easily see we, the taxpayer, cannot afford these grossly subsidized jobs nor can we as a province afford to lose existing jobs and industry due to unreasonable energy costs resulting from so called green energy. Did those of you who still think McGuinty may be right miss the fact that Spain has lost 2.2 jobs for every green energy job created ? At that pace it won't be long before there will be no jobs and the country will be in financial ruin, just like Spain.
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john frodo
armchair expert
03:44 PM on 09/21/2011
John has clouded a sustainable bonus with smoke and mirrors.
11:22 AM on 09/21/2011
“Truth” is something that Mr. McGuinty and the ON Liberal party do not like.

Mr. McGuinty is working very diligently in this campaign to keep spreading his spin on the Green Energy Act and how woefully incorrect his claim of 50,000 jobs over three years is.

The increasing electricity costs are making it extremely difficult for small business owners and manufacturing businesses in ON to compete in a global market.

Consider the numbers of those jobs that ON is bleeding away every month...and then try to find some of these “50,000 green jobs” for recently unemployed workers.

Plain and simple...the numbers do not add up.

The "50,000 Green Energy Jobs" are yet another scheme some what along the lines of "The Emperors New Clothes".
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john frodo
armchair expert
03:45 PM on 09/21/2011
At least with Dalton we have energy, with conservative we would have been in the dark, and Tim will put us right back there.
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HUFFPOST BLOGGER
John Laforet
07:58 PM on 09/21/2011
What does this have to do with McGuinty lying about creating jobs? Also it was Ohio that caused the 2003 blackout. I know the facts aren't on your side, but attacks without facts don't move an argument along.
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john frodo
armchair expert
11:09 AM on 09/21/2011
Lack of demand is directly related to Conservative promises to use more coal and less wind. Front groups clouding the issue with phony health problems are also responsible. But thats democracy. The Liberals will win the election, the health concerns will be proven false and the province will move forward into the future.
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HUFFPOST BLOGGER
John Laforet
08:00 PM on 09/21/2011
Great story except it's not true. All parties will close coal plants by 2014, in fact the NDP would do it even sooner. Wind doesn't work, and is natural gas backed up. Medical doctors, citizens experiencing adverse health effects and companies buying out victims don't consider the health issues phoney, neither do seventy-seven municipal councils that have moved motions of moratorium calling for a proper study before this goes any further.
10:53 AM on 09/21/2011
Excellent...and there is more. As wind power generation projects multiply across Ontario, even in our most scenic areas, property values are declining. What will it mean when rural properties decline in value by 10-50, even 100 percent? What effect will that have on the economy, as young families' most important investment--their home--is suddenly worth less? And what effect will there be when seniors who were counting on the value of their home to support them in retirement, suddenly have less worth?
In our community, property value loss is estimated (conservatively) at $45 million if the proposed wind power project is built. That is expropriation without compensation.
And, what about tourism in Ontario, a $22-billion a year industry? As turbines multiply along Ontario's "West Coast", Erie's north shore, and near Collingwood, who's going to visit then?
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john frodo
armchair expert
03:46 PM on 09/21/2011
I will the turbines do not ruin the enviorment, smog from coal plants does
04:05 PM on 09/21/2011
You must be a city dweller and therefore not facing the threat of having 10-10 of these 50-storey structures which do produce noise, next to you. The smog you are talking about comes from cars, and over 90% of Ontario's pollution comes from south of the border. Building wind turbines will do nothing to stop that.
07:42 PM on 09/21/2011
Coal fired generating plants all along the Ohio valley have been spewing particulate matter for decades on my community and there's NOTHING McGU can or will do to stop that pollution.

Now the 56 IWTs strung along the north shore of Lake Erie in my home municipality of Norfolk are killing hundreds of bats [those wonderful creatures that eat mosquitos] as well as displacing the migratory routes of thousands of birds [killing many nocturnal migrators] tens of thousands of my favourites the Tundra Swans.

Perhaps getting out of an armchair and seeing the devastation of prime agricultural land into an industrial wasteland might give a clearer view.
04:11 PM on 09/21/2011
The reason for these so called prices drops are because people tout pseudo-science and scream at the top of their lungs that these wind turbines destroy society. When a buyer goes to an area and sees such chaos and hears these "health concerns" they get scared and go away. It is a self fulfilling prophecy.
10:40 AM on 09/21/2011
I understand your concern about wind turbines and but articles like this , highlighted by the title, seem to turn many people off to the green energy movement in general. Maybe a reference to wind turbines should have been put in the title.
HUFFPOST SUPER USER
spinnerator
12:19 AM on 09/21/2011
Odd, all the Pro Green energy posters failed to address/ignored the import parts to this blog. The McGuinty Gov.'t has lied repeatedly about the jobs created. Lied repeatedly about the viability of these industries and lied repeatedly about the true cost to the taxpayer. Can't refute the facts so either ignore them or cast aspersions on the author. News flash, in a recession it is about jobs, there is no long view if you're starving today. As far as what's going on in Japan and China? I don't live there, I live here in Ont.
yer
Stop the Alberta Taliban
02:20 AM on 09/21/2011
Solutions exist in other countries who have made the investment over a long period of time. To ignore success is to embrace failure. A tried and true attribute that is suddenly in our midst. Sure, new industries need tweaking. Nothing works 100% after the first few tries.

What an utter woe of regret this generation is just desperate to pile up on day after day. Can you do nothing for the future instead of mortgaging my present?

Care or don't care, but don't pretend.
08:17 AM on 09/21/2011
Success in other countries? No, you are sadly misled. Go back and do some more independent homework.

Mother nature cannot be "tweaked" which is the false hope you are clinging to. Wind is not reliable, efficient or viable for mass generation on an electrical grid. That won't change. You are cheering for medieval technology.
yer
Stop the Alberta Taliban
12:06 AM on 09/21/2011
He's the President of Wind Concerns Ontario, a group who hate windmills. Well, duh, of course he hates green jobs. Solar and wind orders being down does not mean that we should not be moving towards these technologies. While I agree that it may be inconvenient politically for the Premier, the author is thinking this means that the idea is not valid entirely. Not the case.

When Peak Oil raises it's ugly head some time later this decade we will need the infrastructure already in place having established itself during this timeframe. During an energy crisis you cannot simply instantly create industry to compensate. This is future proofing the province and I have confidence in their implementation even if the author does not.

Windmills however may be problematic in the future. Like solar panels, they are effectively an extension of the fossil fuel era, needing materials and processes of the oil industry to exist. Wind in particular needing machinery oils and diesel cranes just to install and continue to run. It turns out to be an effective use of that energy though to make electricity. Time will tell their effectiveness when those resources are fewer.

BTW, it's well known that OPG continually ignores thermal energy of all kinds and won't even entertain repeating the wildly successful Deep Lake Water Cooling project that Toronto has had since 2003. It interferes with their repayment plan for all that debt on nuclear. No reason that can't be repeated for all Great Lake cities
yer
Stop the Alberta Taliban
02:09 AM on 09/21/2011
Many types of renewable industries will be vital should we wish to keep working at all. An understanding of Peak Oil would probably be useful as without it and without the knowledge of just how insurmountable the energy deficit is compared to liquid fuels it would appear that these green initiatives to be frivilous. They are not. We will downscale at that time, and be more effective with our technologies. There's not going to be a lot of choice in the matter, so working on it now, while the lights are still on and while the markets are still intact is a good idea in order to shake out the flaws now, not later.

The only thing is to make political hay during an election. People want to get rid of this society and make a new one that's greener and more local. Our current design isn't going that way. (See d/t Toronto for evidence). The planet will no longer support gobbling up resources without limit on a planet with finite resources. Eventually the party ends.

I hope it works out certainly, but things take years to implement. To wish instant success for the green industry belittles the massive endeavour required. This doesn't mean the endeavour was wrong or didn't have a purpose in order to save society.

The author is missing the big picture.
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HUFFPOST BLOGGER
John Laforet
02:42 AM on 09/21/2011
It's fine to suggest I am missing the big picture if you'd like, but what is the big picture in the context of the argument I make? Is the Premier not incorrect in claiming he has created 1,600 jobs in December 2010 at sites that only employ a combined 80 people in September 2011? It's not about my views, or peak oil or anything else. It's about what Dalton McGuinty has said, and what's actually happened. We're being sold a bill of goods the facts just don't support - and no matter how well intentioned you think the big picture is, at what point do you object to a politician investing billions in something that isn't doing what he claimed it would?
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HUFFPOST BLOGGER
John Laforet
02:45 AM on 09/21/2011
I don't hate green jobs, you'd need to show me some first in Ontario before I could form an opinion. My being President of Wind Concerns Ontario doesn't change the facts relating to the argument I put forward that in fact Dalton McGuinty has been making statements about job creation that are not backed up by fact. This isn't about anything but that.

I agree with you in deep lake cooling and think Enwave is a great thing and am proud to live in a city that co-owns that project that is providing a sustainable form of renewable energy in downtown Toronto and lightening the load on Ontario's power grid.