The decrease in the price of oil and resulting available capital may create a surge of investment in cleantech, renewable energy and electricity in Ontario, and Queen's Park appears to be doing all that it can to aid this East-bound capital flight.
The Liberal government's much publicized plan to liberalize the electricity sector and privatize 10% – 15% of Ontario Hydro, the Province's transmission giant, is an attempt to both finance long-term infrastructure projects and take advantage of US investors looking to capitalize on an undervalued asset. The depreciated price for a non-controlling interest in a multi-billion dollar asset will be attractive to Canadian and foreign investors alike looking to maximize return on investment. The Province looks to be trying to emulate the action in the electricity industry in Alberta, which has been attractive to foreign investors. For example, last year, Berkshire Hathaway Energy bought AltaLink, L.P., the province's largest electrical transmission company.
In addition to the front page policy moves, the Province has also been attempting to stimulate investment in renewable energy and cleantech at the grassroots level. Sustainable Development Technology Canada (SDTC) and MaRS Discovery District have recently announced a new partnership to strengthen efforts to grow Canada's clean technology and energy innovation sector. The new partnership will collaborate to grow globally-competitive clean technology companies.
These policies and initiatives are a welcomed sign to an industry that has been lagging behind its life sciences and information and communications technology counterparts. Investment in cleantech and renewable energy continue to fall relative to other industries, as its $132 million of venture capital investment last year amounted to only 7% of all investment by venture capital firms in Canada, and the $16 million invested in Q1 2015 amounting to only 5%.
Investors, consumers and tax payers will wait to see if the attempts to stimulate investment in the industry will produce similar results to the FIT programs introduced in 2009.
Norton Rose Fulbright Canada LLP
Norton Rose Fulbright is a global legal practice. We provide the world's pre-eminent corporations and financial institutions with a full business law service. We have more than 3800 lawyers based in over 50 cities across Europe, the United States, Canada, Latin America, Asia, Australia, Africa, the Middle East and Central Asia.
Recognized for our industry focus, we are strong across all the key industry sectors: financial institutions; energy; infrastructure, mining and commodities; transport; technology and innovation; and life sciences and healthcare.
Wherever we are, we operate in accordance with our global business principles of quality, unity and integrity. We aim to provide the highest possible standard of legal service in each of our offices and to maintain that level of quality at every point of contact.
Norton Rose Fulbright LLP, Norton Rose Fulbright Australia, Norton Rose Fulbright Canada LLP, Norton Rose Fulbright South Africa (incorporated as Deneys Reitz Inc) and Fulbright & Jaworski LLP, each of which is a separate legal entity, are members ('the Norton Rose Fulbright members') of Norton Rose Fulbright Verein, a Swiss Verein. Norton Rose Fulbright Verein helps coordinate the activities of the Norton Rose Fulbright members but does not itself provide legal services to clients.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
