Samsung Reduces Ontario Renewable-Energy Pledge by $1.9 Billion
Samsung C&T Corp. (000830), South Korea’s second-biggest construction company, reduced by C$2 billion ($1.9 billion) a planned investment in Canada’s renewable-energy industry.
Samsung is leading a group that will invest C$5 billion to develop 1,369 megawatts of renewable-energy capacity in the province by 2016, it said today in a statement. The Seoul-based company pledged in 2010 to spend C$7 billion to develop 2,500 megawatts of wind and solar projects.
Marcus Staviss, a Samsung spokesman, and Ontario Energy Ministry spokeswoman Beckie Codd-Downey declined to give a reason in phone interviews today.
They both said the change was unrelated to a World Trade Organization ruling May 6 upholding a complaint filed by the European Union and Japan against Ontario. The province offers above-market rates for electricity from renewable-power projects that use components produced in the province. The WTO said the policy violates its rules requiring imported goods to be treated the same as domestic goods.
The decision to re-negotiate the contract was “related specifically to our agreement with the government of Ontario,” Staviss said.
Samsung is developing solar projects in Ontario as well as wind farms in partnership with Pattern Energy LP and Capital Power Corp. (CPX) Its suppliers include CS Wind Corp., Siemens AG (SIE) and SMA Solar Technology AG. (S92)
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