Category Archives: Renewable energy

Missing the point of Earth Hour in Ontario

18 Friday Mar 2016

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Earth Hour: cruel irony in Ontario where government policy is actually causing poverty and hardship
Earth Hour: cruel irony in Ontario where government policy is actually causing poverty and hardship

Earth Hour 2016 is tomorrow, March 19, 2016 from 8.30 PM to 9.30 PM when all the world is encouraged to turn off their lights for an hour of symbolic action. Specifically the goal is: “Earth Hour aims to encourage an interconnected global community to share the opportunities and challenges of creating a sustainable world.”

This is an admirable objective – everyone wants to do their best for the environment – but the truth is, much depends on how sustainability is positioned by politicians.

In Ontario the OEB (Ontario Energy Board) noted in a 45 page report dated December 22, 2014:  “Using LIM1. as a measuring tool, and relying on Statistics Canada household data, Ontario has 713,300 low-income households. The OESP is estimated to reach 571,000. This estimate recognizes that not all low-income households in the province pay their electricity bills directly (i.e., utilities included in rent).” That report led to the introduction of the OESP or Ontario Electricity Support Program start-up on January 1, 2016, expected to cost between $175 and $225 million, paid for by those 3.9 million households who don’t qualify for the OESP.

So did the Ontario government simply not understand creation of the Green Energy & Green Economy Act (GEA) would result in so many low-income households? It is now apparent the advent of the GEA played a major role, by raising the cost of the production of electricity by well over 70% since its enactment. The push for renewables in the form of industrial wind turbines, solar panels, etc., which require back-up from gas plants due to the intermittent and unreliable nature of renewables, added billions in costs. The transmission builds to bring wind and solar power to the grid added billions more and, coupled with the other billions spent trying to convince us to conserve, added even more costs.

The addition of almost 10,000 MW (so far) of renewable generation at prices over market impacted disposable income for all Ontarians living at, or close to, minimum wage and for many others living on fixed incomes. The other result of adding renewable power is that Ontario is now in the position of having surplus power generated at the wrong time of the year and night when demand is low. This surplus must be either sold off (exported), curtailed (wind and solar) or steamed-off (nuclear). Additionally, ratepayers and taxpayers are charged for the ideasNB: related to conservation such as paying for grants for electric vehicles and their charging stations.

March 13, 2016 is an example: it was a day when the sun shone and the wind was blowing. Ontario demand was low reaching only 320,000 megawatt hours (MWh) while generation, coupled with curtailed wind, idling gas plants, spilled hydro and even curtailed solar along with all of the distribution connected (Dx) power (principally wind and solar) was about 463,000 Mwh2.. Ontario’s ratepayers needed only 68% of that 463,000 MWh, so the other 32% was either exported or curtailed (to avoid blackouts) while being billed to Ontario ratepayers. Production costs (without the other items tossed into the “Global Adjustment pot) were over $100/per MWh, meaning the 143,000 MWh surplus picked ratepayers’ pockets for more than $14 million or $2.85 per ratepayer for just one day. (Bob Chiarelli, our Minister of Energy, would probably say that was just the cost of a “Timmies”!)

In 2015, Glen Murray, Ontario’s Minister of the Environment and Climate Change, said Earth Hour “Every passing year it becomes more infectious. It’s actually really doing what it intended to do, which is to get into the popular culture.”

Minister Murray should note we have turned off the lights, not because we want to but because we can’t afford to “keep them on.”

It appears to this Ontario ratepayer that what is really “infectious” is the Ontario government’s ability to create “energy poverty” for hundreds of thousands of Ontario’s households and, instead of promoting sustainability, it has instead driven many to a situation where they now have to decide whether to “heat or eat”.

Hardly the lofty goal that Earth Hour aspires to, and clearly not what well-meaning citizens wanted to happen.

©Parker Gallant,

March 17, 2016

NB: Note to Minister’s Chiarelli and Duguid: If you can afford a $100,000 Tesla automobile you can afford a charging station!

  1. LIM stands for “Low-Income Measure” per Statistics Canada.
  2. Big hat tip to Scott Luft for his great “daily reports” which go well beyond what IESO (Independent Electricity System Operator) provide.

Re-posted from Wind Concerns Ontario

The opinions expressed are those of the author and do not necessarily represent the policies of Wind Concerns Ontario.

TransAlta to decommission 23-year-old wind ‘farm’

16 Wednesday Mar 2016

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Power company looking for “incentives” to continue wind power project — that means taxpayer subsidies

A line of turbines on metal lattice legs catch the breeze at the Cowley Ridge wind farm in southern Alberta. The 23-year-old facility, Canada's first commercial wind project, is being decommissioned.

A line of turbines on metal lattice legs catch the breeze at the Cowley Ridge wind farm in southern Alberta. The 23-year-old facility, Canada’s first commercial wind project, is being decommissioned. Ted Rhodes / Calgary Herald

 

The oldest commercial wind power facility in Canada has been shut down and faces demolition after 23 years of transforming brisk southern Alberta breezes into electricity — and its owner says building a replacement depends on the next moves of the provincial NDP government.

TransAlta Corp. said Tuesday the blades on 57 turbines at its Cowley Ridge facility near Pincher Creek have already been halted and the towers are to be toppled and recycled for scrap metal this spring. The company inherited the now-obsolete facility, built between 1993 and 1994, as part of its $1.6-billion hostile takeover of Calgary-based Canadian Hydro Developers Inc. in 2009.

“TransAlta is very interested in repowering this site. Unfortunately, right now, it’s not economically feasible,” Wayne Oliver, operations supervisor for TransAlta’s wind operations in Pincher Creek and Fort Macleod, said in an interview.

“We’re anxiously waiting to see what incentives might come from our new government. . . . Alberta is an open market and the wholesale price when it’s windy is quite low, so there’s just not the return on investment in today’s situation. So, if there is an incentive, we’d jump all over that.”

In February, TransAlta president and chief executive Dawn Farrell said the company’s plans to invest in hydroelectric, wind, solar and natural gas cogeneration facilities in Alberta were on hold until the details of the province’s climate-change plans are known.

“We cannot make any major investment decisions in this market until we have more clarity around the policy environment and the policy recommendations turn into actual law and we know what the market is actually going to be like,” she said.

Last November, Premier Rachel Notley’s government vowed that coal-fired power plants would be forced to shut down or be emissions-free by 2030. Coal power companies in Alberta, including TransAlta, are looking for compensation.

Jean-François Nolet, vice-president of policy and communications at the Canadian Wind Energy Association, said Tuesday his organization has been included in the NDP government’s consultations and is optimistic that changes will be made to encourage wind power growth.

“What the investors need to see is more certainty in the market,” he said, adding that it “just makes sense” that a wind farm such as Cowley Ridge that is already connected to the grid and has a proven wind resource is rebuilt to continue to provide renewable energy.

Read the full story here: Calgary Herald, March 15, 2016

Wynne government ‘stealing our future’ says Kemptville resident

16 Wednesday Mar 2016

Posted by in Ottawa, Renewable energy, Wind power

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The wrong people profit from wind farms, says homeowner. ‘Grossly unfair’ for government to steal our futures, says Kemptville letter writer

Nowhere near Toronto and Queen's Park: wind power projects reduce rural property values
Nowhere near Toronto and Queen’s Park: wind power projects reduce rural property values

Ottawa Citizen, March 16, 2016http://ottawacitizen.com/opinion/letters/your-letters-for-wednesday-march-16-water-windmills-women

Re: New Eastern Ontario wind farms a betrayal, mayors near Ottawa say, March 11.

Home ownership is the biggest investment a person can make.  Many people depend on the value of their homes to underwrite their futures, whether it be generating capital for their kids’ educations, serving as a stepping stone to a better home, or even financing their retirement. Folks who choose to live in rural areas already face challenges in marketing their properties, compared to their city cousins.

With the looming prospect of giant wind farms in their backyards, they are now told they must accept unanticipated decreases in their property values without complaint because “the needs of the many outweigh the needs of the few.” Rural dwellers also pay comparatively huge electricity transmission costs – and, ironically, will likely continue to do so even with the gargantuan structures towering over their homes. It is also likely that their municipal tax burden will not be adjusted to reflect the decrease in their property values.

It is grossly unfair for an all-powerful government authority to callously steal rural homeowners’ futures so that a corporate entity can profit from huge government subsidies and distant cities can meet their rapacious energy consumption needs. At the very least, these folks should be compensated for their loss.

Perhaps a good starting point would be to waive the “welcome tax” levied by the provincial government on home sales for those located within a set radius of wind farm installations, thus boosting the marketability of affected properties. Another measure would be to give these homeowners a discounted rate on their electric bills, or even the same remuneration provided to the farmers who profit from having such installations on their lands.

Burton Blais, Kemptville

Wynne gov’t not listening to municipalities says MPP McDonell

14 Monday Mar 2016

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IESO awards 100-megawatt wind power project to community in spite of no support

Cornwall Standard Freeholder March 13, 2016

Four renewable energy projects located in Stormont, Dundas, Glengarry will be offered contracts by Ontario’s Independent Electricity System Operator.

So far, at least one township is unhappy with the decision.

EDP Renewables Canada Ltd. has applied for permission to erect an on-shore wind farm in North Stormont. The organization began the Nation Rise project in 2012 with a 60-metre meteorological tower. Since then it has secured more than 4,000 hectares (10,000 acres) through land agreements with approximately 40 local landowners.

However, the Township of North Stormont released a statement last week where it issued a reminder that council voted on July 28 to not support any of the proposed projects within the municipality – including Nation Rise.

Even without the support of the township as a willing host, the IESO still awarded the 100,000 megawatt project a contract.

“The municipality will continue to work in its capacity as a commenting agency in regard to renewable energy projects and the necessary approvals that are required by the Ministry of Environment and Climate Change and the building code,” said the release.

MPP Jim McDonell also expressed his displeasure in the project by questioning the Minister of Energy on the government’s empty commitment to listen to municipalities and their residents who oppose these projects.

“Just before I asked my question, the Liberals said they listened to municipalities,” said McDonell.

“They clearly didn’t. The people of North Stormont and the Township of North Stormont said a clear no to wind farms in their township, rejecting the $9-million incentive offered by the developer in exchange for municipal support.

“This approval makes a mockery of due process and consultation.”

McDonell said he wouldn’t let the subject drop and has filed a Notice of Dissatisfaction with the minister’s answer.

“The minister will have to answer me a week from Tuesday in detail,” said McDonell. “The people of North Stormont deserve a voice when the government denies them one.”

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Read the full story here

Wind farms in Nation, North Dundas get contracts

14 Monday Mar 2016

Posted by in Ottawa, Renewable energy, Wind power

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The Independent Electricity System Operator (IESO) last week announced contracts for five wind power projects, for a total of 300 megawatts of new wind power generation.

According to Ontario’s Auditor General, the province is already in a situation of a surplus of power, and selling off the extra at a loss, a good portion of which is due to wind power.

Two Ottawa area communities were named in the contract announcement. The Municipality of Nation and Township of Champlain were tipped for a 32-megawatt project by RES Canada, and North Stormont is to get a 100-megawatt project by EDP Renewables. EDP Renewables (head office Spain) operates the South Branch wind power project in Brinston, which it purchased from Germany-based Prowind.

Citizens of Nation/Champlain who want to get involved should contact Save The Nation/Sauvons La Nation here.

In a recent paper prepared by eight Ontario academics (Fast et al, Nature Energy, January 2016), Ontario’s procurement process for large-scale renewable power projects came under fire for ignoring community concerns.

News reports following last week’s contract announcement quote local mayors as saying they feel “betrayed” by the government action–Dutton-Dunwich mayor Cameron McWilliam was quoted as saying “We live in the Province of Toronto, not the Province of Ontario.” His municipality conducted a full, legal referendum which resulted in 84% saying NO to the wind power project–they are getting a 57-megawatt project by U.S.-based Invenergy.

The municipalities do not even know where the turbines for the proposed power projects will go, as that information is not part of the bid process.

Energy Minister Bob Chiarelli, who told municipalities that it would be “impossible” for a power developer to get a contract if a community did not support it, now says, “They should have known” we never gave them a veto. He describes the power projects, bid and constructed by private corporations, as “public infrastructure.”

Eastern Ontario wind farm contracts a betrayal of communities

11 Friday Mar 2016

Posted by in Health, Ottawa, Renewable energy, Wind power

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Ottawa Citizen, March 11, 2016

3-MW turbine south of Ottawa at Brinston: Ontario. Communities had no choice. [Photo by Ray Pilon, Ottawa]

3-MW turbine south of Ottawa at Brinston: Ontario. Communities had no choice. [Photo by Ray Pilon, Ottawa]

By David Reeveley

The Ontario government has betrayed rural municipalities by approving new wind farms in places that have explicitly voted against them, mayors say — including just east of Ottawa.

“Since we declared ourselves unwilling hosts, we thought we had it made,” says François St. Amour, mayor of The Nation Municipality. “Because there was some talk in the last provincial election that they would honour municipalities that declared themselves unwilling. But I guess that was just another electoral promise.”

The agency that makes the province’s deals for renewable power is readying a contract for a 32-megawatt wind farm there, one of a bunch of bids from private generating companies it’s just accepted. The other in Eastern Ontario is the biggest of the group, a 100-megawatt project in North Stormont.

Both Eastern Ontario councils took votes in 2015 to say they did not want the wind farms on their territories.

The province’s Green Energy Act, meant to kickstart an Ontario industry in manufacturing and maintaining renewable energy technology, gave virtually no say to local governments on where wind and solar farms might go. Many rural residents believed, and still do, they’re being sacrificed for the electricity needs of cities.

The government pulled back. Under the province’s new rules, municipalities don’t get veto power over renewable energy projects but they do formally get asked to say whether new wind or solar farms are welcome or not. Ottawa’s city council regularly votes its formal support for small solar projects, which is worth extra points when would-be operators submit their bids.

“It will be virtually impossible for a wind turbine, for example, or a wind project, to go into a community without some significant level of engagement,” energy minister and Ottawa MPP Bob Chiarelli told a legislature committee in 2013.

“Engagement.” Not “agreement.”

“We will not give a veto, and no jurisdiction gives a veto, to a municipality on any kind of public infrastructure. That should have been clear to them,” Chiarelli says. Wind farms in rural Ontario are like tall buildings downtown, he says: immediate neighbours may hate them but they’re still needed.

Thirteen of the 16 new contracts got local council approval. All of the ones that didn’t are wind farms — the two here and one in Dutton-Dunwich, between London and Windsor, where residents took the issue up in a referendum and voted 84 per cent against. Two wind farms are going to Chatham-Kent, whose council voted to support them.

“They’ve put municipalities on the sidelines. It seems, though, that municipalities get most of the grief,” St. Amour says. His council first voted in favour of the wind farm in The Nation without a whole lot of thought, he says, treating it like the solar farms councillors have welcomed in the past. Councillors changed their minds after hearing from residents.

“It was rough on council last summer. It was really, really rough. Especially because we can’t do much about it. We thought declaring unwilling hosts was it,” St. Amour says.

Mayor Dennis Fife of North Stormont says his council thought the same. “At one time, the government said that if you came out with something saying you were an unwilling host, that would be respected, but that wasn’t the case,” he says.

The wind farm in North Stormont, near Finch, will probably have between 30 and 50 windmills. “You’re going to see all of them. There’s the health aspect that people are worried about. Noise, blinking lights, all of that,” Fife says.

Read the full story here.

 

Eastern Ontario wind power projects get contracts

10 Thursday Mar 2016

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Wind turbine and home, Brinston, Ontario. Photo by Ray Pilon.

Wind turbine and home, Brinston, Ontario. Photo by Ray Pilon.

Communities of North Stormont and Nation Township get huge power contracts, despite community opposition

March 10, 2016

The Independent Electricity System Operator (IESO) announced the successful bids for its 2015 Large Renewable Procurement process this morning.

Among the five wind power projects announced are two in Eastern Ontario: Township of Champlain and Municipality of Nation (RES Canada, 32 megawatts) and North Stormont ( EDP Renewables, 100 megawatts).

The IESO said as part of its announcement:

The full list of contract offers, including project location, fuel type, contract capacity and contact information, see the LRP I RFP Selected Proponents List.

The development and design of the program’s requirements, including those for community and municipal engagement, were informed by broad engagement with municipalities, Aboriginal communities, industry associations, the general public and other stakeholders. The LRP program requirements were designed to strike a balance between early community engagement and achieving value for ratepayers. Local support – from the municipality, local First Nation community and/or from landowners adjacent to the project – was a factor in project evaluation.

Both communities saw citizen opposition. Residents of Nation were concerned about the impact on the local economy and the dangers of constructing power generating machines on Leda Clay, while North Stormont, home to the South Branch project, cited the social impact of the Brinston area project.

Ontario municipalities unite to fight new wind power contracts

09 Wednesday Mar 2016

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Ontario communities banding together to fight new wind power contracts

This is from the wind power industry’s own publication, North American Windpower

NAW Staff, March 8, 2016

Fifty-one Ontario municipalities are endorsing a resolution recently passed by the Township of Wainfleet Council that calls on the government of Ontario to stop awarding feed-in tariff (FIT) contracts for power generation from wind.

The resolution, passed in January, was based on December’s auditor general report that claimed Ontario has a surplus of power generation capacity and, under existing contracts, is paying double what other jurisdictions are paying for wind power, explains the Township of Wainfleet.

Thus, adding more surplus generation capacity would add to the already high costs of disposing of surplus electricity, says the township, which adds that the cost of electricity is a key concern for many Ontario residents.

The Ontario Chamber of Commerce has also reported the impact of high electricity costs on their members’ ability to grow their businesses and create jobs in Ontario. Thus, says Wainfleet, this suggests the need for a full, cost-benefit review of the renewable energy program before committing Ontario electricity users to even more surplus power.

According to Wind Concerns Ontario, the resolution also calls attention to the fact that wind power projects cause damage to the environment by killing wildlife.

April Jeffs, mayor of the Township of Wainfleet, is pleased with the support that her council’s resolution is receiving from across the province: “This quick response from other municipalities to the circulation of the resolution indicates that wind turbines are still front and center as an important issue in rural Ontario,” she says.

According to the township, Jeffs reports that at least one of the two projects in the area is the cause of citizen reports of deteriorating health. She is particularly concerned about the second project currently under development in her area – which involves 77 3.0-MW turbines in Wainfleet, West Lincoln and eastern Haldimand County.

The township says the more powerful turbines are located in areas with a sizeable residential population with an estimated 2,000 households living within 2 kilometers of the towers. The project will operate under one of the older, expensive FIT contracts criticized by the auditor general; the Wainfleet resolution asks the government to review options under the contract to cancel the project.

Now that coal-fired power plants have closed, says Wainfleet, the government should have met its carbon-reduction goals for the electrical power system in Ontario – which is now largely based on carbon-free hydroelectricity and nuclear power. This gives the province an opportunity to assess renewable generation alternatives that have less impact on the host communities, according to the township.

In addition, clauses in the 2015 RFP documents issued by the Independent Electricity System Operator do not commit the government to issue any wind contracts, so the government is protected against lawsuits from the bidders should it change course at this time, Wainfleet adds.

“Wind power is produced out of phase with demand in Ontario,” says Jane Wilson, president of Wind Concerns Ontario. “According to the Ontario Society of Professional Engineers, that can mean more greenhouse gas emissions, not less, because of the need for backup by natural gas power plants. Everyone wants to help the environment, but utility-scale wind power is not the answer.”

Brandy Giannetta, the Canadian Wind Energy Association’s (CanWEA) regional director for Ontario, calls the resolution a “political statement at the municipal level.”

Although it’s “unfortunate that it’s out there,” Giannetta tells NAW, she notes the importance of the province’s Large Renewable Procurement (LRP) process in showing the cost-competitiveness of wind power. The process calls for the procurement of utility-scale renewables projects; specifically, the LRP I requested up to 300 MW of wind.

The LRP, led by the Independent Electricity System Operator (IESO), aims to “strike a balance between early community engagement and achieving value for ratepayers,” according to the IESO. Giannetta says the LRP contracts will be awarded as soon as this week.

In March 2015, when the first request for proposals under the LRP was issued, Robert Hornung, president of CanWEA, said, “An important part of the RFP process will be early and meaningful community engagement. Effective community engagement is fundamental to the success of wind energy projects, and the wind industry values the right of individuals to have an important role in discussions about developments in their community.”

A full list of the municipalities supporting the resolution can be found here.

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EDITOR’S NOTE: As of this writing the number of municipalities is now 61. See the list here.

Exxon forecasts rise in natural gas for energy supply to 2040

08 Tuesday Mar 2016

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EXXON’S VIEW OF GLOBAL ENERGY SUPPLY AND DEMAND TO 2040

By Robert Lyman

EXXON Corporation, one of the world’s largest energy enterprises, recently published its updated projection of energy supply and demand to 2040. The International Energy Agency, the United States Energy Information Administration, and British Petroleum have recently issued similar projections.

Projections of these kinds are interesting for several reasons, among which is the fact that they offer informed judgments about the trends in the world economy and energy sector that one may compare to the political aspirations of governments that the world sharply reduce fossil fuel consumption as a way to reduce greenhouse gas emissions. At the recent Conference of the Parties to the Climate Change Convention in 2015 in Paris, several governments committed in principle to the goal of eliminating the use of fossil fuels by 2100 and aiming to do this in the developed (OECD) countries by 2050. In short, several governments have claimed that they will eliminate all use of oil, natural gas, and coal by 2050. Environmentalists seek to do while also prohibiting any growth in the use of nuclear energy, the most reliable source of non-carbon base load electricity generation.

A question, therefore, is how do EXXON’s projections square with the goals articulated at the COP 21 meeting?

Generally, EXXON has accepted that the political push to reduce GHG emissions will have significant impacts in the OECD countries over the period to 2040, especially in terms of altering the sources of electricity generation and requiring fuel economy improvements in light duty vehicles and other energy-using equipment.

The following are the main observations that come from the EXXON report as to the changes that will occur from 2014 to 2040:

  • World population will grow 25% from 7.2 to 9 billion people.
  • Global income will more than double, with developing countries leading the growth.
  • Global energy demand consequently will grow by 25%. China and India together will account for almost half this increase.
  • The world middle class will grow from 2 billion to nearly 5 billion; the new members will want to have the cars, quality residences and appliances enjoyed by the middle class today.
  • By 2040, oil, natural gas and coal will not fade away as hoped by governments. In fact, they will continue to meet about 80 % of global energy demand. Natural gas demand will grow more that any other source.
  • Substantial gains in energy efficiency will see the carbon dioxide intensity of the global economy cut in half by 2040.
  • Global demand for transportation will increase by about 30%. Today there are about 1 billion light-duty vehicles (cars and SUVs) in the world. This number will rise by close to 800 million vehicles by 2040, with about 90% of this growth outside of the OECD.
  • Hybrid vehicles will increase from 2% of new car sales today to 40% by 2040, but all-electric plug-ins are likely to account for less than 10% of new car sales by 2040.
  • Demand for heavy-duty vehicles (i.e., trucks and buses) will increase by 45% by 2040, with about 85% of the growth coming from non-OECD countries.
  • Energy demand from ships, planes and trains will grow by 65%.
  • Over 90% of transportation demand will still be met by oil in 2040.
  • Global demand for electricity is expected to rise by 65% by 2040; 85% of electricity demand growth will comes from developing countries.
  • By 2040, the share of electricity generated by natural gas will rise to 30% and be about even with coal. (In other words, despite claims that coal will be eliminated, it will still be a major source of electricity supply globally.) The amount of electricity generated by coal in India will rise 150% from 2014 to 2040.
  • The amount of electricity from nuclear power will double from 2014 to 2040, with much of this growth coming in China.
  • Wind and solar energy will account for about 10% of electricity generation in 2040, up from 4% in 2014. (This projection is entirely at odds with the predictions of environmental groups that wind and solar energy will replace all other energy sources by 2030.)
  • Carbon dioxide emissions will rise from about 30 billion tonnes per year in 2014 to a peak of about 37 billion tonnes by 2030, before slightly declining thereafter. By 2040, global emissions still will be about 35 billion tonnes, even though emissions in the OECD will drop by 20%.

Robert Lyman is an Ottawa-area economist who specializes in analyzing energy issues.

Wasted hydro power adds millions to electricity bills

07 Monday Mar 2016

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Wind gets first-to-the-grid (which we pay for) meaning spilled or wasted hydro (which we also pay for). [Photo: OPG]

Wind gets first-to-the-grid (which we pay for) meaning spilled or wasted hydro (which we also pay for). [Photo: OPG]

OPG spills hydro and $150 million goes “down the drain” 

OPG released their 2015 annual report  Friday March 4, 2016; it confirms that 3.2 terawatts (TWh) of water that could have been used for power was spilled last year. (This is similar to the spilled amount in 2014 year.)

How much is 3.2 TWh? Enough to supply about 350,000 average Ontario households with electricity for a full year … but it didn’t!

Here is what OPG’s annual report had to say:

“Baseload generation supply surplus to Ontario demand continued to be prevalent in 2015. The surplus to the Ontario market is managed by the IESO, mainly through generation reductions at hydroelectric and nuclear stations and grid connected renewable resources. Reducing hydroelectric production, which often results in spilling of water, is the first measure that the IESO uses to manage surplus baseload generation (SBG) conditions. During each of 2015 and 2014, OPG lost 3.2 TWh of hydroelectric generation due to SBG conditions.” 

The principal reason we have surplus baseload is due to wind and solar being granted “first to the grid” rights. And, because wind and solar are intermittent (and unreliable) OPG is forced to spill clean renewable hydro power.

While spilling hydro in itself is disturbing in Ontario, especially considering our hydro-electric history, the fact we are now obliged to pay for the spilled hydro at the same time we are paying wind developers 13.5 cents a kilowatt hour (kWh) and solar generators as much as 80 cents a kWh simply adds more costs to our monthly hydro bills.

OPG received $47 million per TWh (4.7 cents/kWh) for the spilled hydro. That means electricity ratepayers’ pockets were picked for over $150 million, or about $31.00 per ratepayer.   Our reward for absorbing that cost was zero.

This month, Energy Minister Bob Chiarelli, will likely announce that Ontario will add even more intermittent, unreliable wind and solar generation. Your pockets are not safe yet.

© Parker Gallant

March 7, 2016

Reposted from Wind Concerns Ontario. See the post at Wind Concerns Ontario here.