Economic Benefits

Economic Benefits

Waterpower provides significant returns to the taxpayers of Ontario. In the long term, waterpower pays a Gross Revenue Charge (GRC) to the Province of Ontario. Over the 40-year lifespan of the project it can be expected to generate a return of over $1 million to the people of this Province. In the past, a portion of the GRC was sent to the municipalities hosting waterpower facilities. However, the Ministry of Finance has suspended this practice for new waterpower development pending the outcome of a review of the program. Xeneca maintains that municipalities should benefit from these types of projects.
Development and construction of waterpower plants also have significant local and regional economic impact. As much as possible, Xeneca strives to procure goods and services locally. With the cost to construct a waterpower facility at approximately $4 - $5 million per megawatt, about half that spending would occur within the community or region where the facility is built. On average, $2.5 million per MW will be spent locally on labour, trucking, steel, equipment rental, surveying, legal & professional consulting services, food, fuel & accomodation. Expenditures have been ongoing since 2010 and will steadily increase through 2014-15.
All of the initial engineering, surveying, field studies, consulting, etc. is procured from sources within Ontario and much of the equipment – turbines, generators, control systems etc. – are purchased in this province.
Although modern waterpower facilities are now largely automated, some permanent jobs are created to undertake regular maintenance and upkeep.
From the perspective of electricity consumers, waterpower’s advantage is that it is nearly immune to erratic fluctuations of other energy sources. There is no reliance on commodities such as oil, coal, and uranium to operate and generate power. And, unlike wind and solar which cannot operate continuously, waterpower facilities are built where adequate water flow continues year round.