In Careless or Captured?, I questioned Vaughn Palmer’s accuracy in reporting on private power initiatives in British Columbia. This week’s Ontario takes green energy lead while B.C. keeps blowing smoke is an odd explanation of how “Our initiative faltered when the premier’s priorities shifted.”
In it, Palmer states that the provincial government commitment to Naikun Wind Energy and other clean/green power projects has been mostly of the rhetorical variety.
That is an outrageous misstatement. It pretends that granting water licenses and dedicating river systems to countless clean/green projects is of no value when it is one of two key public contributions that enable private developers to proceed.
The second, of course, is the requirement that BC Hydro purchase output power, without regard to market needs and at prices that eliminate financial uncertainty for the producers. Risk is transferred to the public.
The Vancouver Sun columnist might have passed along this information from In-Sights:
Logically, when a company such as Naikun Wind Energy Group announces a $2 billion project while it has onnly $14.6 million of shareholders’ equity and an accumulated deficit of $35 million (Sept 2009 audited financials), something strange is happening. Naikun Wind by the way has been known by other names during its history:
- Silver Butte Resources Ltd.
- Silver Butte Mines Ltd.
- Uniterre Resources Ltd.
- Consolidated Silver Butte Mines Ltd.
Naikun’s equity ratio is a little like a person purchasing a half million dollar home with no down payment, barely the cash to pay legal fees and no job or income.
Palmer briefly refers to the possibility that Ontario’s wind power will have to be subsidized and would drive power prices upward. He fails to mention the failed wind experiment in Denmark and ignores other details that have been discussed thoroughly by online journalists, including your humble servant here:
Palmer’s article in the Vancouver Sun could easily have been written by the Independent Power Producers Association of BC. On second thought, maybe it was.
January 27 update:
If you believe Palmer’s column is faulty journalism, visit the Vancouver Sun website and leave a comment with the article. Oh, wait. You can’t do that. No comments allowed. They also chose not to publish my Letter to the Editor on this subject.