Korean Consortium Hits Green Energy Gold

UNCLAS TORONTO 000058 SIPDIS DEPT PASS TO FERC DEPT PASS TO USTR/MARY SULLIVAN DEPT PASS TO EPA E.O. 12958: N/A TAGS: ENRG ETRD EINV SENV CA SUBJECT: Korean Consortium Hits Green Energy Gold REF: 09 TORONTO 255 ¶1. (U) On January 21, Ontario announced a landmark C$7 billion deal to develop 2,500 megawatts (MW) of wind (2,000 MW) and solar (500 MW) power projects at highly-subsidized rates. The winner of the award is a Korean consortium led by Samsung Corporation and the Korean Electric Power Corporation. The Province's announcement confirms speculation that Samsung would establish manufacturing facilities in the Province in order to qualify for the lucrative feed-in tariffs associated with the province's Green Energy Act (reftel). The consortium will reportedly manufacture equipment such as wind turbine towers and solar inverters in Ontario. ¶2. (U) Negotiations for the deal, shrouded in controversy, apparently began long before the domestic content requirements for feed-in tariff eligibility were finalized and released to the public in late September 2009. Details revealed in today's announcement, coming nearly four months after the deal was first leaked, does not differ markedly from the initial reports. JOHNSON