I. OVERVIEW

1. This case involves unfairness and abuse of the renewable energy regulatory process by the Government of Ontario. The objective of increasing the production and use of renewable energy is laudable– but the Government of Ontario, through inappropriate measures, transformed sustainable energy policies into discriminatory local development policies, where transparent and objective criteria were replaced with political favoritism, cronyism and local preference.

2. These non‐legitimate objectives were achieved through the imposition of discriminatory non‐transparent "buy local" contract requirements upon foreign investors who made investments in Ontario in the expectation that the Power Purchase Agreement process would be conducted in good faith, openly, transparently and on the basis of the program rules. Instead, Power Purchase proponents found capricious and arbitrary decisions, inherent discrimination against foreign entrants, and last‐minute nontransparent and arbitrary changes, which frustrated the long‐term renewable energy contracts of those foreign investors who "played by the transparent rules of the game".

3. Renewable energy is presenting societies with tremendous opportunities to diversify their energy supplies in an environmentally sustainable manner. With the growth in popularity of environmentally‐sustainable energy consciousness, producers of renewable energy have played an important role in facilitating societal shifts towards more sustainable energy production. This shift presented increased investment opportunities for renewable energy producers to expand to new markets, bringing the benefits of renewable energy to new locations.

4. A key reform of the Ontario electricity system introduced in the Electricity Restructuring Act of 2004 was the creation of the Ontario Power Authority (OPA), which was responsible for overall long‐term system planning, ensuring reliable and secure electricity supply, and promoting the diversification of Ontario's electricity supply with a particular emphasis on renewable and clean energy.1