Samsung, Ontario ink $7 billion solar/wind manufacturing and development deal

They’re calling it the largest integrated solar-wind deal of its kind in the world. Whether or not it’s true, there’s no question that this one ranks high.

South Korean industrial giant Samsung Group signed a deal today with the Ontario government that will see 2,500 megawatts of solar and wind developments and construction of four manufacturing plants between 2013 and 2015. This $7 billion investment from Samsung is expected to create 16,000 jobs — a combination of permanent manufacturing jobs and temporary construction and development jobs. I first broke this story back in late September, but the deal is now official.

The first two plants — one to manufacture wind towers and one to manufacture solar inverters — must be in full operation by March 31, 2013. A solar module assembly facility must be in place by Dec. 31, 2013. Finally, a wind blade manufacturing plant must be in place by Dec. 31, 2015. Samsung, apparently, has long-term plans in the Ontario market, from which it hopes to export its products to the booming U.S. renewable-energy market. As for development projects, Samsung will get the same feed-in-tariff rate as any other company. But to the dismay of those other companies, the Korean consortium that Samsung is part of will get a $437 million economic “adder” — i.e. an incentive to make sure those manufacturing jobs do get created — and will have scarce transmission capacity set aside so the company doesn’t have to wait long in the grid-connection queue.

In addition to Samsung C&T, the consortium includes Korea Electric Power Corporation. Partners with the consortium include Satcon, Pattern Energy Group, and Dongkuk Steel.

See Toronto Star story here for initial details and comment about today’s announcement. See government announcement here and backgrounder here. Certainly more info to come…

12 thoughts on “Samsung, Ontario ink $7 billion solar/wind manufacturing and development deal”

  1. The Liberal government has signed an agreement that will bring more green energy and new jobs to Ontario. A Korean consortium will also work with major partners to attract four manufacturing plants. This will lead to the creation of 1,440 manufacturing and related jobs building wind and solar technology for use in Ontario and export across North America.What does all this mean to Windsor’s unemployed? Windsor has the highest unemployment in the nation. If Samsung or others entering the market do not manufacture any portion of these solar panels and/or components for wind turbines in Windsor, it means very little. The highly skilled unemployed trades people in Windsor, who already have the electrical, mechanical and metal bending skills for manufacturing, will have little to offer if instillation, and manteniance is all they are asking of Windsor. I am requesting help to ensure that the manufacturing jobs come to Windsor. What can we do to help?

  2. For sure Tom, an industry insider, was first to put this information online. More than willing to give credit where credit is due. But last I checked Tom Adams’ blog wasn’t the news press. Spreading it to the few dozen people who read his blog is akin to sending an e-mail and CCing it to industry buddies. When I said “broke the story” I was referring to breaking it to the general public through a mainstream publication.

  3. Thanks again for the info, Tyler. I am happy that these jobs are coming to Ontario, but would really like to have seen the grid capacity go to locally-owned projects. This way more of the revenue would remain in the local economy creating more economic activity and jobs. All of this would be accomplished without providing an economic adder to a company which may have set-up shop in Ontario anyways, given the domestic content requirements and generous Feed-in Tariff rates.

  4. Tyler, what are your thoughts on the sustainability of the feed-in tariff program in light of the enormous commitments to Samsung?

  5. I think this is great news. There are always subsidizes and uneqittable opportunities to the big players of any industry. I don’t like it. Choices have to be made – I dislike hearing manufacturing jobs are leaving Ont for good instead of returning even more. I’d rather subsidze this effort than oil and auto jobs of the past. It is the right direction inwhich to move.

  6. Personally, I really like this deal… we’re talking about almost 7 billion worth of direct foreign investment, which is really a massive sum. If the deal went to Michigan or New York instead, people would scream of the lost opportunity.

    I also like the references to Samsung being an anchor tenant to help drive the green economy forward. If only the government could find a way to create a level playing field regarding grid capacity for local projects… perhaps because of this, they could speed up and make some additional investments into the smart grid in certain areas… which will only be beneficial for everyone in the long run anyways.

  7. This is going to be highway 407 deal times ten. Every job created will eliminate many other manufacturing jobs due to higher cost of electricity.

Comments are closed.