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Tag Archives: cost wind power

Ontario consumers paid millions for wasted power in April, stats show

08 Monday May 2017

Posted by ottawawindconcerns in Renewable energy, Wind power

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clean energy, cost wind power, green energy, IESO, Ontario electricity bills, Ontario hydro bills, Parker Gallant, wind farms, wind power

While the Canadian Wind Energy Association, the trade association for the wind power industry and vested interests, continues to maintain that wind power cannot be contributing to Ontario’s rising and unsustainable electricity bills, the facts indicate otherwise. The figures for April 2017 show wind power produced out-of-phase with demand, causing power from other, clean sources to be wasted, and wind power producers paid not to add power to the Ontario grid.

Here is Parker Gallant’s analysis.

The Independent Electricity System Operator or IESO’s 18 month outlook report uses their “Methodology to Perform Long Term Assessments” to forecast what industrial wind turbines (IWT) are likely to generate as a percentage of their rated capacity.

The Methodology description follows.

“Monthly Wind Capacity Contribution (WCC) values are used to forecast the contribution from wind generators. WCC values in percentage of installed capacity are determined from actual historic median wind generator contribution over the last 10 years at the top 5 contiguous demand hours of the day for each winter and summer season, or shoulder period month. The top 5 contiguous demand hours are determined by the frequency of demand peak occurrences over the last 12 months.”

 The most recent 18-month outlook forecast wind production at an average (capacity 4,000 MW growing to 4,500 MW) over 12 months at 22.2%, which is well under the assumed 29-30 % capacity claimed by wind developers. For the month of April, IESO forecast wind generation at 33.2% of capacity.

April 2017 has now passed; my friend Scott Luft has posted the actual generation and estimated the curtailed generation produced by Ontario’s contracted IWT.   For April, IESO reported grid- and distribution-connected IWT generated almost 703,000 megawatt hours (MWh), or approximately 24% of their generation capacity. Scott also estimated they curtailed 521,000 MWh or 18 % of generation capacity.

So, actual generation could have been 42% of rated capacity as a result of Ontario’s very windy month of April 2017, but Ontario’s demand for power wasn’t sufficient to absorb it! April is typically a “shoulder” month with low demand, but at the same time it is a high generation month for wind turbines.

How badly did Ontario’s ratepayers get hit? In April, they paid the costs to pay wind developers – that doesn’t include the cost of back-up from gas plants or spilled or steamed off emissions-free hydro and nuclear or losses on exported surpluses.

Wind cost=22.9 cents per kWh

For the 703,000 MWh, the cost* of grid accepted generation at $140/MWh was $98.4 million and the cost of the “curtailed” generation at $120/MWh was $62.5 million making the total cost of wind for the month of April $160.9 million.   That translates to a cost per MWh of grid accepted wind of $229.50 or 22.9 cents per kWh.

Despite clear evidence that wind turbines fail to provide competitively priced electricity when it is actually needed, the Premier Wynne-led government continues to allow more capacity to be added instead of killing the Green Energy Act and cancelling contracts that have not commenced installation.

…

* Most wind contracts are priced at 13.5 cents/kilowatt (kWh) and the contracts include a cost of living (COL) annual increase to a maximum of 20% so the current cost is expected to be in the range of $140/MWh or 14cents/kWh.

Re-posted from Parker Gallant Energy Perspectives

Electricity in Ontario: higher cost, lower reliability

26 Monday May 2014

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 1 Comment

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Canadian Wind Energy Association, CanWEA, cost wind power, cost-benefit analysis wind power, electricity bills, electricity generation, electricity prices, electricity prices Ontario, hydro bills, Ontario, Ontario electricity supply, Ontario Power Authority, Robert Hornung, Robert Lyman

Here from Ottawa-based energy economist Robert Lyman, a commentary on how Ontario’s electricity system has evolved. (You may also wish to read a letter in today’s Ottawa Citizen by wind industry lobby group the Canadian Wind Energy Association president Robert Hornung, who would have us believe wind power is the cheapest source of power available. )

For most of Ontario’s history, the official energy policy of successive provincial governments was generally the same. The Province sought to keep electricity prices as low as possible consistent with the goal of ensuring that Ontario consumers and industry had secure and reliable sources of supply. With the election of a Liberal government in 2003, the goal changed. Since then, the Government has raised electricity costs significantly, emphasizing reliance on expensive industrial wind turbines, solar plants and biomass for generation, and using higher rates to force consumers to cut back on their energy use.

The consequences of those policies have been a doubling of residential electricity rates and the ever-increasing share of renewable energy generation as part of the provincial electricity generation mix. According to data from the Ontario Power Authority, in 2014 biomass, industrial wind turbines and solar plants will provide about four per cent of Ontario electricity supply, but will cost consumers $1.933 billion dollars, or 17 per cent, of the total generation cost. The amount of renewable energy brought on line is expected to increase significantly by 2018, adding further to the costs.

The Ontario Long Term Energy Plan, published in December 2013, included a table projecting what this will mean for the average residential customer who consumes 800 KWh of electricity per month. Taking into account the costs of electricity generation, transmission, distribution, taxes and related regulatory charges, the average monthly bill will rise from $125 in 2013 to 181 in 2020, a 45 per cent increase. Large industrial users will see their rates rise from $79 per MWh in 2013 to $104 in 2020, a 32 per cent increase.

These increases do not take into the account the significant costs associated with having to provide significant back up capacity because the wind and solar plants are “intermittent” sources of supply. This means that they usually produce energy when it is not needed, and production from these plants cannot be varied to accommodate changes in demand.  Ontario generation capacity now exceeds demand, and the Green Energy and Economy Act requires that renewable energy sources be given preferential access to the provincial grid over lower cost conventional supplies. The increases in rates do not take account of the cost of curtailing operations at existing plants or of losses on export sales. In 2013 this was about $1 billion.

So, do Ontario residents at least get more secure electricity supplies as a result of all these increased costs? The answer lies in…

Please read the rest of Mr LYman’s article here: ONTARIO ELECTRICITY – High Prices, Low Reliability

Economist: cancel the Feed In Tariff, Ontario

08 Tuesday Apr 2014

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 1 Comment

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Bob Chiarelli, cost wind power, Feed In Tariff program, FIT Ontario, Jack Mintz, Ontario finances, Ontario fiscal, wind farms Ontario

From today’s Financial Post, an opinion by economist Jack Mintz. Mintz holds the Palmer Chair in the School of Public Policy at the University of Calgary and is the former chair of the CD Howe Institute.

Canada’s sagging middle: Ontario
Ontario’s growth has lagged the rest of Canada, averaging less than 1% annually since 2009
With Quebec’s election over, we can turn to Ontario where a scandal-plagued Liberal government will soon present its 2014 budget – and possibly trigger a spring election. Ontario is sagging under the weight of monstrous public debt, uncompetitive energy prices and rising taxes. Given Ontario’s size, other regions of Canada are being hurt.
Ontario has only one way out: economic growth. Luckily, the American economic recovery will significantly benefit Ontario. However, it won’t be enough. The government needs to get its house in order.
Pushing aggregate demand with deficit spending won’t achieve growth. Economic stimulus might provide some short-term relief but won’t generate sustained expansion. Instead, growth will be attained with supply-side policies by reducing onerous regulations, providing some smart tax reforms and shifting to growth-oriented spending, especially to address the notorious Greater Toronto Area infrastructure problem.
Nor will growth come from expansionary public programs like the proposed Ontario pension plan. Forcing people to hold assets in a government-sponsored plan might be helpful to some but it will be just another form of new taxation for others, who are already have adequate savings for retirement.
Ontario’s growth has lagged the rest of Canada, averaging less than 1% annually since 2009. Employment since 2009 has increased by 375,000 but the employment rate has fallen to U.S.-levels of 61.4% as of March 2014, far less than Alberta’s at almost 70%.
Ontario‘s fiscal picture is also not pretty, with gross debt over $290-billion (net debt is $272-billion), requiring $10.6-billion in taxes to cover interest charges. This expense is enormous, about one-half of education expenditures.
The average Ontario debt interest rate is only 4% but interest rates are expected to rise within the next few years. Each point increase in interest rates will add at least another $3-billion in annual interest expense.
Ontario’s energy prices are soaring. Look at any bill and one can read added delivery charges, regulatory charges, debt retirement charges and HST, resulting in an average price of 12.48 cents per kwh in Toronto for households. Large power customers pay 10.89 cents per kwh in Toronto, less than New York but higher than most eastern U.S. and Canadian cities.
Ontario made real progress in 2009 by adopting the HST to replace the provincial sales tax and reducing Ontario’s corporate and personal taxes to ensure that revenues would not increase. However, the province reneged on tax cuts only two years later.
The Ontario corporate income tax rate is stuck at 11.5%, compared to the promised 2009 legislated rate of 10%. None of this helps the province’s poor investment climate. Ontario’s share of business capital spending is only 32% of Canadian investment, less than its share of population and dramatically less than a decade ago.
Personal income tax rates have also increased to almost 50% at the top end, third highest in Canada. There is a reason why many high-income taxpayers have moved Alberta with its top rate of 39%. Alberta’s rich households, with over $500,000 in family income, account for 15% of Alberta’s taxable personal income. This ratio is two-thirds higher than Ontario.
Add in Ontario sales taxes at a 13% rate (about the average Canadian rate), fuel taxes (Ontario’s at 14.7 cent per litre is one of the highest in the country) and property taxes (Ontario is on the high side especially for non-residential property) – it all adds up to a yoke on growth.
Ontario’s Minister of Finance is in a bind. He needs more growth but he also has to deal with a large debt mountain and an uncompetitive tax system. So what are his options? Here is a five-point plan.
First, focus spending on growth-oriented programs. Transportation infrastructure should be on the top of the list as GTA traffic results in unproductive use of time.
Second, kill off the feed-in tariff program for wind and solar that creates excessive electricity costs for households and companies. This would both improve growth and help reduce administrative costs….

Read the full article here.

Hydro bill rally set for tomorrow

03 Thursday Apr 2014

Posted by ottawawindconcerns in Renewable energy, Wind power

≈ 1 Comment

Tags

Bob Chiarelli, Carleton Land Owners, cost renewables, cost wind power, Energy Minister Bob Chiarelli, Ontario electricity bills, Ontario hydro bills

A number of people have organized a rally in front of Energy Minister Bob Chiarelli’s office at noon tomorrow, to protest Ontario’s rising electricity bills.

Despite the powerful wind power industry lobby group’s efforts to downplay the cost of renewables in Ontario’s electricity bills, the fact is that since Ontario launched its program to put wind and solar first to the grid, Ontario’s power prices to consumers is now the highest in North America. In fact, since wind and solar get preferential treatment, when supply exceeds demand, Ontario has been forced to waste power from other clean sources–hydro and nuclear–at great cost to the province.

See news story from Metro News on the Ottawa rally here. 

Note that there is also a rally planned for Carleton Place at 11 a.m.

 

Green Energy Act “bigger debacle” than gas plant scandal

27 Thursday Jun 2013

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

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cost benefit wind power, cost wind power, cost-benefit renewable power, Dalton McGuinty, Feed In Tariff Ontario, Green Energy Act, Kathleen Wynne, Ottawa wind concerns, Parker Gallant, rising electricity costs Ontario, wind power Ontario

Here from today’s Financial Post, a comment from Parker Gallant, on the cost of the Green Energy and Green Economy Act. He estimates $1,100 per household per year, but that’s not including property value loss for areas living near wind power projects…Ontario is in deep, deep trouble, and it’s not over yet.

The Ontario Power Authority is currently tripping through Ontario asking communities what will make them happier about the planning process for large-scale power projects.

Here is Parker Gallant: http://www.freewco.blogspot.ca/2013/06/parker-gallant-ontario-green-energy-act.html

Email us at ottawawindconcerns@gmail.com (join our confidential email list for updates) and please donate toward our legal and other costs PO Box 3 North Gower ON  K0A 2T0

Power rates up again: what’s happening to your power bill?

09 Tuesday Apr 2013

Posted by ottawawindconcerns in Ottawa, Renewable energy, Wind power

≈ 1 Comment

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cost renewables power, cost wind power, Dalton McGuinty, electricity bills Ontario, electricity rate increases, hydro rates Ontario, Ontario Energy Board, Parker Gallant, Robert Lyman

Here from Ottawa economist Bob Lyman, an overview of the electricity billing situation in Ontario. It’s not pretty.

WHAT HAS HAPPENED TO ELECTRICITY RATES  IN ONTARIO SINCE 2002?

In 2002, the residential electricity rate in Ontario was 4.3 cents per kWh. There was only one tier that applied at all times and levels of residential use. This is the rate for the power alone, and does not include the charges for transmission, distribution, regulatory charges, debt retirement and taxes.

In 2004, the two-tier system was introduced. The lower-tier rate was 4.7 cents per kWh and the upper-tier rate was 5.8 cents per kWh.

By 2011, the lower-tier rate had increased to 6.8 cents per kWh and the upper-tier rate had increased to 7.9 cents per kWh.

In 2011 and 2012, Ontario introduced time-of-use (TOU) rates based upon the use of “smart” meters. The rates were set at 6.3 cents per kWh for the off-peak and 11.8 cents per kWh for the peak periods.

Last Friday (April 5, 2013), the Ontario Energy Board authorized an off-peak rate increase to 6.7 cents and a peak period rate increase to 12.4 cents.

Since 2002, therefore, off-peak rates have increased by 56%, and peak period rates have increased by 188%. Transmission and distribution costs have increased as well, of course, but not as much in percentage terms. The addition of the HST has added about $1.2 billion to ratepayers’ bills every year.

There are many conflicting projections as to where rates will go in future. The province projected in 2010 that rates would rise by about 50% by 2015. Parker Gallant, the well-known critic of provincial electricity policies, has estimated that costs could rise by $7.3 billion per year by 2016, or almost 100%.

Incidentally, Ontario consumes about the same amount of electrical energy today as it did in 2004.

This is the McGuinty legacy.

Robert Lyman

Economist

Ottawa

Email us at ottawawindconcerns@gmail.com

Dalton McGuinty’s legacy: highest electricity bills in North America

21 Monday Jan 2013

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

≈ 3 Comments

Tags

cost of renewable power Ontario, cost wind power, cost-benefit renewable power, Dalton McGuinty, electricity costs Ontario, health effects wind power, Parker Gallant, property value loss wind power, property value wind farms, Robert Lyman, Wind Concerns Ontario

Here, from Parker Gallant, a comment on what Dalton McGuinty and the Liberal government has done to Ontario. We have spent billions on new “renewable” power sources, without actually adding any generation capacity. How does that make any sense?

But here’s the kick: by the end of 2016, Ontario consumers will be paying $2,055 a year MORE for power because of the McGuinty government’s policies.

Read the article, originally published in the January 18 Financial Post, here:

http://www.freewco.blogspot.ca/2013/01/ontarios-power-trip-mcguintys-legacy.html

Ottawa’s own Robert Lyman has already had a comment:

I was glad to see the article that Parker Gallant published in the National Post. For the first time that I have seen, it draws together the costs of the decisions taken by the McGuinty government in the electricity field since it came into office. The results are striking.
The “bottom line” is that the costs to the average Ontario homeowner, which have doubled since 2004, will double again by 2016. Over the next four years, the additional costs per ratepayer/taxpayer will be about $2,050. The cost of wind turbines is only one part of that cost, but it alone will add $2.5 billion per year to the costs of the electrical system. All of this, on a net basis, has not added one bit to Ontario’s generation capacity, as the province has essentially shut down the inexpensive coal plants and replaced them with the super-expensive wind and solar plants and the “smart meters”.
This analysis, never before assembled (to my knowledge), provides a powerful case against the electricity policies of the current Ontario government.
Of course, this just deals with the costs to consumers and small- and medium-sized business; never mind the dropping property values in rural communities invaded by wind power companies, the reduced appeal of Ontario tourist destinations and–most horrific of all–the damage to the health of some Ontario citizens forced to live near these power projects.
Email us at ottawawindconcerns@yahoo.ca and follow us on Twitter at northgowerwind.
For more news and comment daily, go to http://www.windconcernsontario.ca and follow Wind Concerns Ontario on Twitter at WindConcernsONT

Recent Posts

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