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EU joins fight against Ontario green energy policy

Published by Steve Coleman on August 12, 2011

A Texas-based company won't be alone in its challenge of Ontario's green energy policy.

The European Union has joined Japan and Texas-based Mesa Power Group in contesting the Ontario Green Energy Act and its connected Feed-In Tariff Program.

While Mesa plans to launch a NAFTA appeal Oct. 3 against provisions that allow wind turbine sites to move and stay connected to the grid with power lines, the challenge from the two countries is aimed at the World Trade Organization.

The EU launched its complaint Aug. 11 saying the contracts offered are "in clear breach of the WTO rules that prohibit linking subsidies to the use of domestic products."

While Japan filed its complaint last fall, the EU stepped in with third-party status. Staying at arm's length meant eurozone countries couldn't seek changes to the policy or file for damages.

Ontario's policy was designed to attract new green energy businesses to the province. In exchange for higher electricity rates, contractors had to agree to use at least 60 per cent made-in-Ontario equipment to generate the power.

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