Municipalities May Not Exercise Their Powers To Frustrate Projects Granted Renewable Energy Approvals

In a recent decision by the Ontario Superior Court of Justice, the court found that the City of Kawartha Lakes had acted outside its jurisdiction and in bad faith when it passed a resolution denying use of a roadway by a wind turbine developer.

Wpd Sumac Ridge Wind Inc. (wpd) obtained a Renewable Energy Approval (REA) for the construction of five industrial wind turbines and associated infrastructure in the City. The roadway was the "spine" of the project. Wpd brought an application for judicial review the City's resolution arguing that the City's conduct of the previous few years, culminating in and evidenced by the resolution, left no doubt of the City's opposition to and intention to prevent the construction of the project. Wpd claimed that the City had deliberately frustrated the REA and acted in bad faith in denying wpd the use of a roadway.