The Ontario government has announced the amendment of its green energy investment agreement with Samsung C&T Corporation and the Korea Electric Power Corporation (Samsung). The $7 billion dollar agreement is for the development of 2,500 megawatts worth of renewable energy generation (wind and solar) in addition to building four clean-technology manufacturing plants.
In February 2011, Ontario’s Feed-In Tariff contract-holders were granted a one year extension to their commercial operation date. In exchange for a similar extension, Samsung has agreed to a number of significant revisions to its original agreement signed in January 2010.
For instance, economic development payments to Samsung that were previously projected at $437 million have been reduced by 75% to $100 million. These payments will only become due upon commercial operation of manufacturing plants and renewable facilities. Additionally, the payments will be contingent on meeting job commitments made in the agreement.
Moreover, the revisions will have the four clean-technology manufacturing plants operating one year earlier than expected. Plants in Windsor, Tillsonburg and Toronto are expected to begin operation shortly.