Tag Archives: electricity bills Ontario

Power from $450M Nation Rise wind project ‘inconsequential’ to Ontario

05 Tuesday Feb 2019

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Power that could be produced “like a fly on the flank of an elephant” says energy watcher Parker Gallant

The power from Nation Rise would be like a fly on an elephant in terms of Ontario demand. Cancelling would save hundreds of millions.

February 4, 2019

Last week, a news article appeared in the Nation Valley News reporting the local Conservative MPP, Jim McDonell’s response to a question asking on why the government hasn’t cancelled the 100-MW Nation Rise wind power project. Mr. McDonell said, “We’ve always been clear: We would cancel any project we could cancel economically,” and he added “… we just can’t spend a billion dollars to cancel a project and get nothing from it.”

The same day, a press release from the Ford government noted that Premier Doug Ford told people attending the annual Rural Ontario Municipal Association (ROMA) conference, that “We’re lowering electricity costs”.

I am at a loss to explain Mr. McDonell’s suggestion that cancellation of the Nation Rise IWT project would cost the same as the McGuinty/Wynne gas plant moves, but that’s what he said. It’s worth a look back at how this power project came into being, as it illustrates the disaster that has been Ontario energy policy for the last 15 years.

The Nation Rise wind project was one of five awarded contracts in March 2016; after that, its history gets really interesting … and very political.

Cost of the project

The Independent Electricity System Operator (IESO) at that time noted the average price for all the projects proposed was $85.90/MWh (or 8.5 cents per kWh). Over 20 years that would produce revenue of about $450 million, or less if their bid was lower than the average.

If the project were cancelled, no court would award them the full contract amount; it is more likely the government would be on the hook for perhaps 5 to10 % of that amount (on the high side).

There is no doubt that cancelling this project would save Ontario citizens hundreds of millions.

Timing of the approval

According to the Environmental Registry the Nation Rise entry for the Renewable Energy Approval or REA is dated May 7, 2018 and indicates it was loaded to the registry May 4, 2018.  That is just four days before the writ was drawn up by former Premier Kathleen Wynne, formally announcing the upcoming Ontario election.  It was known* the voting date would occur on June 7, yet the REA — a major decision — was given by the Ministry of the Environment and Climate Change (MOECC).  At that time, not only were polls forecasting a defeat for the Liberal government, “electricity prices” and hydro bills were a major election issue. The MOECC issued the decision anyway.

Is the power needed?

In 2015 (before the IESO called for more wind power proposals) Ontario had a huge surplus of generation. Our net exports (exports less imports) were 16.8 TWh (terawatt hours) or enough to supply almost 1.9 million average households (over 40% of all Ontario households) with their electricity needs for a full year.  It cost ratepayers an average of 10.14 cents/kWh to generate that power which was sold for an average 2.36 cents/kWh, representing a cost of $1.3 billion to Ontario’s ratepayers.

Due to the highly intermittent nature of output from wind turbines, the IESO’s projections of long-term capacity use only 12% of the nameplate capacity for wind power installations when calculating their contribution to overall capacity. So for Nation Rise, the IESO is projecting that the useable contribution of the project will be 105,120 MWh — just .0765% of the IESO’s forecast power consumption of 137.4 TWh. That is a fly on the flank of an elephant, in my estimation.

Cancellation of Nation Rise would not affect the long-term supply of electricity for the people of Ontario.

Worse, adding more capacity, particularly from an intermittent source, could result in more spilling of hydro, more curtailment of wind power generation, additional nuclear shutdowns or steam-off, all of which would drive Ontario’s electricity bills rates higher.

Property value loss

The property losses in value caused by the presence of 33, 650-foot industrial wind power generators throughout the countryside in the Nation Rise project will be in the tens of millions of dollars according to a study which notes: “Using research completed recently by a land economist with the University of Guelph and published in Land Economics, Wind Concerns calculates that overall, the property loss for houses within 5 km of the 33 planned turbines could be $87.8 million. Using other research that is less conservative, however, the property value loss could be more than $140 million.”

A loss of either magnitude would impact North Stormont’s realty tax base leading to either significant drops in revenue for the township or realty tax increases as a multiple of the COL (cost of living).

And then there’s the water

One condition among many in the REA given to EDP/Nation Rise was related to identifying and mapping all water wells in the project area within a set range of any proposed equipment, meteorological tower or wind turbines. This was due to concerns about construction activities on the local aquifer. While EDP identified 444 wells, the community group says there are more than 800 homes within the immediate project. Water wells in other areas of Ontario and elsewhere have become contaminated allegedly due to drilling and vibrations from wind turbines. There is significant concern about contamination of the wells, and the assessment taking place.

North Stormont is dairy farm country, and each farm operation uses thousands of litres of water every day — what would be the effect on these businesses, and Ontario’s food supply, if suddenly, the water wells were not functioning?

Who is EDP?

EDP (parent of EDPR) is a Portuguese utility company partially owned by two of the Chinese government’s companies; China Three Gorges (23.27%) and CNIC Co., Ltd., (4.98%) and the former has been trying for several years to acquire the balance of the shares. That attempt is speculated to be off; however, a recent NY Times article suggested otherwise, based on discussions with Portugal securities regulator CMVM.

Where is democracy?

North Stormont, where the Nation Rise wind project is planned, declared itself an “unwilling host” in 2015, well before the award of the contract or the issuance of the REA. The people perhaps relied on promises made by former energy minister and Ottawa Liberal MPP, Bob Chiarelli, when in 2013 he declared: “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”. Despite their council passing the unwilling host motion, and also joining the 117 Ontario municipalities demanding a return of local land-use planning for energy projects, the IESO still granted Nation Rise the contract.

There are many questions about this project and many reasons why it simply isn’t needed. Cancelling this contentious project is a perfect way to lower future electricity costs, directly.

PARKER GALLANT

*The Toronto Star reported in an article dated October 19, 2016 the next Ontario election would be on June 7th, 2018

This article is reposted from Parker Gallant Energy Perspectives: https://parkergallantenergyperspectivesblog.wordpress.com/2019/02/04/the-political-web-of-edpr-and-the-nation-rise-wind-power-project/

Author: parkergallantenergyperspectivesblog

Retired international banker.

Wind power: out of phase with consumer demand

11 Wednesday Oct 2017

Posted by in Renewable energy, Uncategorized

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October 11, 2017

 

BelleRiverAug20

Turbines at the 100-megawatt Samsung Belle River power plant–power when we don’t need it

Friday October 6th, 2017 was a work day just before the Thanksgiving weekend. At 10 AM that morning, Ontario’s electricity ratepayers had much to be thankful for. Power generation from wind amounted to just 27 MWh, but that 27 MWh wasn’t really needed as nuclear, hydro and a little gas were providing all the power we needed.  And, both hydro and gas were capable of producing lots more if Ontario demand required it.

The hourly Ontario energy price (HOEP) during that hour was $13.50/MWh (megawatt hour) so the value of the 27 MWh that wind produced in that hour cost ratepayers about $365.

Two days later, Thanksgiving Sunday was a different story: at 3 AM wind power was working in the night, generating 1,145 MWh with another 2,797 MWh curtailed (wasted, held back, not added to the grid). Ontario’s ratepayers were paying $135/MWh for the grid-accepted wind and $120/MWh for the curtailed wind.

The HOEP was a negative $3/MWh so the grid-delivered wind was costing ratepayers $415.95/MWh or 41.6 cents/kWh! In total, that one hour cost ratepayers $476,274 for unneeded generation. On top of that, because Ontario demand for power was low (most of us were fast asleep so the LED lights were out), Bruce nuclear was steaming off excess generation (we pay for that), OPG was probably spilling water (we also pay for that), and we were exporting 2,802 MWh to Michigan, New York and Quebec and picking up the $3/MWh cost.

So, comparing the two hours suggests we didn’t need wind generation on October 6th during a business day and we didn’t need it on October 8th in the middle of the night!

This is more proof that wind power is produced out of sync with demand.

The time has come to stop all contracting for additional wind generation and to cancel any that are not under construction.

Parker Gallant

Wind Concerns Ontario

Re-posted from http://www.windconcernsontario.ca

Ontario wasting clean energy and $1B while raising electricity bills

29 Thursday Jun 2017

Posted by in Ottawa, Renewable energy, Wind power

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The Ontario Society of Professional Engineers (OSPE) today released an announcement on its blog stating that because Ontario has a surplus of power, it is constraining or wasting power that already comes from clean sources.

So, WHY has the government issued two contracts for MORE wind power in the Ottawa area, in Nation Township and North Stormont, where neither community supports the idea of becoming power plants? And the power is not needed anyway?

Here is the post. Readers are invited to go to the blog and post their comments. If you want to comment to the government directly, email Glenn Thibeault, Minister of Energy at minister.energy@ontario.ca

Ontario Wasted More Than $1 Billion Worth of Clean Energy in 2016

STAFF June 29, 2017 Advocacy, Featured No Comments

Following a detailed analysis of year-end data issued by the Independent Electricity System Operator (IESO) and Ontario Power Generation (OPG), the Ontario Society of Professional Engineers (OSPE) is reporting that in 2016, the province wasted a total of 7.6 terawatt-hours (TWh) of clean electricity – an amount equal to powering more than 760,000 homes for one year, or a value in excess of $1 billion.

“This represents a 58 per cent increase in the amount of clean electricity that Ontario wasted in 2015 – 4.8 TWh – all while the province continues to export more than 2 million homes-worth of electricity to neighbouring jurisdictions for a price less than what it cost to produce,” said Paul Acchione, P.Eng., energy expert and former President and Chair of OSPE.

OSPE shared these findings with all three major political parties, and will be at Queen’s Park this morning to speak to media regarding the importance of granting professional engineers more independence in the planning and designing of Ontario’s power system.

So why is Ontario wasting all this energy?

“Curtailment is an industry term that means the power was not needed in Ontario, and could not be exported, so it was dumped. It’s when we tell our dams to let the water spill over top, our nuclear generators to release their steam, and our wind turbines not to turn, even when it’s windy,” said Acchione.

“These numbers show that Ontario’s cleanest source of power is literally going down the drain because we’re producing too much. Speaking as an engineer, an environmentalist, and a rate payer, it’s an unnecessary waste of beautiful, clean energy, and it’s driving up the cost of electricity.”

In addition to curtailment, surplus hydroelectric, wind, and nuclear generation was exported to adjoining power grids in 2014, 2015, and 2016 at prices much lower than the total cost of production. This occurs because Ontario produces more clean electricity than it can use, so it is forced to sell off surplus energy at a discounted rate. Total exports in 2016 were 21.9 TWh compared to 22.6 TWh in 2015, and a significant portion was clean, zero-emission electricity.

“Taken together, those total exports represent nearly enough electricity to power every home in Ontario for an entire year,” said Acchione. “OSPE continues to assert that the government must restore the oversight of professional engineers in the detailed planning and design of Ontario’s power grid to prevent missteps like this from happening.”

Engineers have solutions

Because Ontario is contractually obligated to pay for most of the production costs of curtailed and exported energy, OSPE believes it would be better to find productive uses for the surplus clean electricity to displace fossil fuel consumption in other economic sectors. In the summer of 2016, OSPE submitted an advisory document to the Minister of Energy and all three major political parties detailing 21 actionable recommendations that would deliver efficiencies and savings, including reducing residential and commercial rates by approximately 25 per cent, without the creation of the subsidy and deferral account under the Ontario Fair Hydro Act.

OSPE also recommended the establishment of a voluntary interruptible retail electricity market in order to make productive use of Ontario’s excess clean electricity. This market would allow Ontario businesses and residents to access surplus clean power at the wholesale market price of less than two cents per kilowatt-hour (KWh), which could displace the use of fossil fuels by using things like dual fuel (gas and electric) water heaters, and by producing emission-free hydrogen fuel.

Ontario is currently in the process of finalizing its 2017 Long Term Energy Plan (LTEP), a multi-year guiding document that will direct the province’s investments and operations related to energy. This presents a key opportunity for the government to reduce Ontarians’ hydro bills by making surplus clean electricity available to consumers.

“It is imperative that we depoliticize what should be technical judgments regarding energy mix, generation, distribution, pricing and future investments in Ontario,” said Jonathan Hack, P.Eng., President & Chair of OSPE. “We are very concerned that the government does not currently have enough engineers in Ministry staff positions to be able to properly assess the balance between environmental commitments and economic welfare when it comes to energy.

Professional Engineers must be given independence in planning and designing integrated power and energy system plans, which will in turn benefit all Ontarians.”

About the Ontario Society of Professional Engineers (OSPE)

OSPE is the voice of the engineering profession in Ontario, representing more than 80,000 professional engineers and 250,000 engineering graduates, interns, and students.

OSPE’s 2012 report Wind and the Electrical Grid: Mitigating the Rise in Electricity Rates and Greenhouse Gas Emissions detailed the mounting risk of hydraulic spill, nuclear shutdowns, and periods of negative wholesale electricity prices during severe surplus base load generation.

While curtailment will decrease during the nuclear refurbishment program that began in October 2016 and the retirement of the Pickering reactors scheduled to occur from 2022 to 2024, it will rise again when the refurbished reactors return to service, unless the government takes action.

OSPE’s Energy Task Force has provided strategic engineering input to Ontario’s Ministry of Energy for more than ten years. The majority of OSPE’s recommendations have been fully or partially implemented over the past five years, saving consumers hundreds of millions of dollars per year. But more can be done if government engages Ontario’s engineers to optimize the use of the province’s clean electrical power system.

Wind power is 70% useless in Ontario: economics report

23 Friday Jun 2017

Posted by in Renewable energy, Uncategorized, Wind power

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All that despoliation of Ontario communities, agricultural land and the natural environment for … what? Expensive power produced out of phase with demand, says Marc Brouillette

In a stunning commentary published yesterday by the Council for Clean and Reliable Energy, energy policy consultant Marc Brouilette says that Ontario’s wind power program is an expensive adventure that does not achieve any of its goals for the environment or economic prosperity, and is in fact, making things worse.

At a cost of $1.5 billion in 2015, Brouillette says, the fact that wind power generation is completely out of sync with demand in Ontario results in added costs for constrained generation form other sources. Constrained nuclear and hydro cost $300 million that year, and a further $200 million in costs was incurred due to “avoided” natural gas generation.

And, the power isn’t even getting to the people who need it. “[O]nly one-half of total provincial wind output makes it to the Central Region and the GTA where most of Ontario’s electricity demand exists,” Brouillette states.

All things considered, wind costs more than $410 per megawatt hour, which is four times the average cost of electricity in Ontario. This is being charged to Ontario’s electricity customers, at an increasing rate.

Ontario should reconsider its commitment to more wind, Brouillette concludes: “these challenges will increase if Ontario proceeds to double wind capacity to the projected ~6,500 MW.”

Reposted from Wind Concerns Ontario windconcernsontario.ca

Energy poverty grows in Eastern Ontario

12 Sunday Feb 2017

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Ontario’s electricity bills are the fastest rising in North America, with rates increasing year over year. While the government talks about “relief,” it is not doing anything substantial to help.

Here is the news from Eastern Ontario, as reported in the Brockville Recorder and Times.

Leeds-Grenville councillors say rural electricity rates are negatively impacting their constituents, farmers and businesses, although Burnbrae Farms - one business cited by council members as a victim of high rates - says electricity costs were not behind its recent decision to expand its operations out of province. The Burnbrae operation near Lyn is shown on Tuesday morning, Feb. 7, 2017. (Ronald Zajac/The Recorder and Times)

Leeds-Grenville councillors say rural electricity rates are negatively impacting their constituents, farmers and businesses, although Burnbrae Farms – one business cited by council members as a victim of high rates – says electricity costs were not behind its recent decision to expand its operations out of province. The Burnbrae operation near Lyn is shown on Tuesday morning, Feb. 7, 2017. (Ronald Zajac/The Recorder and Times)

Frustration at Ontario’s high hydro rates boiled over at a United Counties meeting Tuesday as mayors railed against an “out-of-touch” provincial government that is indifferent to the plight of rural Ontarians.

“Seniors are losing their homes, seniors are going to food kitchens,” said Mayor David Gordon of North Grenville, who said he knows of 89- and 90-year-old farmers in his township who have to continue to work because they can’t afford their electricity bills.

Gordon said that if Americans were experiencing the same increasing power rates as in Ontario they would be demonstrating and rioting in the streets.

“Up here it’s just ‘deary, deary me’,” he said. “What’s going to happen when somebody dies because they don’t have any heat?”

Augusta Mayor Doug Malanka said the government has failed to consider the unintended consequences of high hydro rates.

As an example, Malanka cited the Prescott Curling Club, which has complained to the Ministry of Sport, Tourism and Culture that its escalating power bills put the future of the club in doubt.

Malanka said the club did extensive energy-saving upgrades to its rink several years ago. Despite this, the club’s power bill increased by $13,000 over an 18-month-period, bringing it to $25,000 annually, he said, noting that the rink operates only six months a year.

Club president Ron Whitehorne said the hydro bill now accounts for half of the club’s budget, and the rates continue to rise despite the $120,000 spent on renovations to make the rink more energy-efficient.

The rising rates, coupled with the depletion of the club’s capital reserves to pay for the improvements, has put a real squeeze on the volunteer-run club, Whitehorne said.

Malanka said counties mayors raised the hydro issues with Liberal MPP Bob Delaney, parliamentary assistant to the energy minister, at a meeting during last week’s Rural Ontario Municipal Association conference. Delaney was initially defensive about the mayors’ complaints, Malanka said, but he later agreed to a followup meeting with counties’ representatives. Warden Robin Jones agreed to contact Delaney to arrange a followup meeting.

Gordon said that the Liberal government has lost touch with the average Ontarian.

“These people living in Toronto don’t care because they are living in their fancy condo on the 27th floor,” he said.

Rideau Lakes Mayor Ron Holman, who chairs ROMA, said the Ontario government needs to set “predictable, prudent, long-term” hydro rates so that businesses and residents can plan for the future. Instead, the government seems to be taking an ad-hoc approach to hydro by fiddling with rates in response to the “flavour of the day,” he said.

Holman said Ontario Premier Kathleen Wynne is continuing to promise “adjustments” to hydro rates in the next budget.

“What does that mean? I have no idea. What assurance does that give to individuals or businesses that want to come to our community? It doesn’t,” he said.

Several mayors pointed to Burnbrae Farm’s decision to build new hen houses in Quebec, instead of Ontario, as a consequence of high energy costs. They were basing their comments on a news report that said the egg producer, which is centred in the United Counties of Leeds and Grenville, was expanding to Quebec to escape Ontario’s hydro rates.

But Margaret Hudson, president of Burnbrae Farms Ltd., flatly denied that hydro rates played a part in the decision.

“The cost of electricity was never a factor in our decision on where to locate our new farm,” Hudson said in a statement Tuesday.

Read the full article here.

MPP MacLeod to host pre-budget energy events

03 Friday Feb 2017

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MPP Lisa MacLeod will be holding two pre-budget consultations on energy issues, the first of which is scheduled for:

Thursday, February 23,  7-9 PM

Alfred Taylor Centre

2300 Community Way, North Gower

Special guest will be Parker Gallant. Mr Gallant’s commentary on energy issues is regularly published in The Financial Post and other media; he is a former international banker and vice-president at Toronto Dominion Bank. He is vice-president of Wind Concerns Ontario.

Parker Gallant

Parker Gallant

 

The second event will be in early March, location TBA.

You can read Parker Gallant’s commentary on his blog, Parker Gallant Energy Perspectives

Stop exploitation by wind power companies, municipalities tell Wynne government

12 Thursday Jan 2017

Posted by in Ottawa, Renewable energy, Wind power

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Public declaration demands cancellation of wind power procurement, and re-focus of energy policy by the Wynne government

Mayor Higgins (Photo CBC)
Mayor Ron Higgins: representing 25% of Ontario municipalities in fight against Green Energy Act (Photo CBC)

January 9, 2017

The Ontario Multi Municipal Group has issued a public declaration stating it wants the “exploitation” of rural Ontario by the wind power industry, aided by the Ontario government, to end.

“The implementation and expansion of renewable energy (industrial-scale wind turbines and large solar power projects) has developed to the point that it has caused hydro costs to increase, caused a division between rural and urban municipalities, and caused the citizens of Ontario to lose faith in democracy,” says Ron Higgins, Mayor of North Frontenac, in the document.

The municipal group was formed at the last meeting of the Association of Municipalities of Ontario (AMO) after 115 municipalities, or 25 percent of all municipalities in Ontario, passed resolutions demanding that municipalities get final say in the siting of renewable power projects.

“We are now speaking out on behalf of all those communities,” Higgins says.

Rights of communities ‘neutralized’

The Green Energy Act of 2009 removed the right to carry out local land-use planning for power projects –the Multi Municipal Group says that’s wrong. “It neutralizes the rights of residents of rural Ontario to advocate for, rely on and claim the benefit of sound land-use planning principles,” Higgins says. “It amounts to a form of discrimination.”

In the public declaration document, the group lists the impact of Ontario’s wind power program, saying it has not brought the economic benefits promised by the McGuinty government and in fact has resulted in an economic burden and energy poverty. They also say that no environmental benefit has been demonstrated and that “the natural world is suffering” because of large-scale turbines which are disrupting the natural environment and harming wildlife such as migratory birds and endangered species of bats.

Wind power a ‘false hope’ for the environment

Wind power has created “false hope” of steps to be taken to combat climate change and protect the environment, says the Multi Municipal Group. And, the Government of Ontario has ignored knowledge of the negative impacts of invasive wind power technology.

The group demands that all procurement of wind power be stopped, and the Green Energy Act repealed. They also recommend that the government base future policies on generation capacity and conservation, and use current energy supply assets.

“Our rural communities are unprotected against the exploitation [by] renewable energy,” Higgins concludes. The municipalities have no choice but to declare their position to the government and the public formally.

The Ontario Multi Municipal Group declaration may be found here: mmg-public-declaration-on-the-exploitation-of-wind-energy-in-ontario-jan-2017

The list of municipalities that have passed a support resolution for changes to wind power contract approvals: list-mandatory-municipal-support-resolution-communities-jan2017

Contacts

Mayor Ron Higgins: ron.Higgins@xplornet.com

Wind Concerns Ontario contact@windconcernsontario.ca

Map of municipalities demanding change to the IESO wind power bid process, to July 14, 2016
Map of municipalities demanding change to the IESO wind power bid process, to July 14, 2016

REPOSTED from Wind Concerns OntarioNote that Ottawa is one of the 116 municipalities.

Get costs down, electricity stakeholders tell Wynne government

12 Thursday Jan 2017

Posted by in Renewable energy, Wind power

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Former banker and now energy analyst Parker Gallant has prepared a summary of submissions to the Ontario Ministry of Energy, which last fall asked for input to a new Long-Term Energy Plan (LTEP).

Aside from the vested interests in wind power, the stakeholder groups like the Canadian Federation of Independent Business, Canadian Manufacturers and Exporters, and the Ontario Society of Professional Engineers all recommended the government act now to get costs down. And that includes, getting rid of wind power.

From the article, an excerpt on two of the submissions made to the government.

Strategic Policy Economics – Marc Brouillette’s excellent submission on behalf of Bruce Nuclear also carries some sane observations such as “Wind generation has not matched demand since its introduction in Ontario” and, “Over 70% of wind generation does not benefit Ontario’s supply capability.” And this one, which is becoming more evident as ratepayers are forced to pay for curtailed generation: “Wind generation will not match demand in the OPO Outlook future projections as 50% of the forecasted production is expected to be surplus.”

The recommendation that will cause the most handwringing will be: “The LTEP should integrate the objectives of Ontario’s environmental, energy, industrial, and economic policies for the long-term future benefit of Ontarians.”

Wind Concerns Ontario – The coalition of community groups and individuals throughout Ontario had this to say by way of advice to the Ministry: “The government policy to promote “renewables” such as wind and solar have been a critical factor in the grave economic situation today. Wind power for example, now represents 22% of electricity cost, while providing only 5.9% of the power. Worse, that power is produced out-of-phase with demand, as has been detailed by two Auditors General; so much of it is wasted. This is unsustainable.

“Clearly,” WCO continued, “the direction for the Ministry of Energy is to formulate a new Long-Term Energy Plan that will take immediate action on reducing electricity costs. Those actions must include a review of all contractual obligations for power generation from wind, and action to mitigate further costs to the system, and the over-burdened people of Ontario.”

WCO called for cancellation of all the wind power contracts given in 2016, the FIT 5.0 program, and further, cancellation of all contracts for projects not yet built or which are not going to make a critical commercial operation date. In fact, all wind power contracts should be reviewed and paid out, as Ontario can save money by eliminating the need to dispose of the surplus electricity.

Read the full article here.

Ontario passed over for huge data centre, jobs: hydro rates blamed

20 Tuesday Dec 2016

Posted by in Renewable energy, Wind power

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Ottawa Citizen

December 19, 2016

Amazon chooses Montreal for its Canadian data centre operations due to cheaper hydro costs

Internet giant Amazon Web Services has opened a cluster of data centres near Montreal due to the ready availability and cost of hydro-electric power in Quebec.

The company, which is notoriously secretive about its data centres, said there are now at least two data centres just outside Montreal to offer web-based services to the “Canada Region.” Canada joins 15 other regions around the globe from which Amazon is running data services on behalf of clients.

Teresa Carlson, vice-president of public sector with Amazon Web Services, said the cost and availability of hydro-electric power is ultimately what made Amazon choose Quebec as its Canadian home.

“We picked the area that we did because of the hydro power,” said Carlson. “We did find them (Quebec) to be very business friendly.”

Carlson said Amazon conducted a thorough review of various options within Canada, including Ontario, that involved looking at a number of factors, including the price of electricity. …

Read the full story here.

Wynne government should cancel wind power contracts for hydro bill relief, says WCO

21 Monday Nov 2016

Posted by in Renewable energy, Wind power

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 cancelwind_fb

NEWS RELEASE

November 21, 2016 

“Poverty is getting worse in Ontario,” says Wind Concerns Ontario president

 

Wind Concerns Ontario welcomes the acknowledgement by Premier Kathleen Wynne of financial hardship imposed by her government’s energy policies, and has sent six recommendations for action that will provide immediate relief.

“We know that energy poverty in Ontario is real and worsening under this government,” says WCO president Jane Wilson. “Hundreds of thousands of people are having difficulty paying their electricity bills, and many are having to choose between ‘heat and eat.’ Meanwhile, corporate power developers are getting paid huge profits in Ontario – this has to change, now.”

Wind Concerns Ontario sent the Premier a list of recommendations: 

  1. Immediately cancel LRP II renewable power program. Currently “suspended,” its target was to acquire 1,000 megawatts (MW) of power, even though the government says we have a “robust” supply of power for the future. The cost of this new capacity would go straight to Ontario’s electricity bills
  2. Cancel the five wind power contracts awarded under LRP I for 299 MW. This action will save ratepayers about $65 million annually and $1.3 billion over 20 years. Cancellation costs will amount to a small fraction of the annual cost, probably on the order of about $2 million, at most. In addition, cancelling approved but not yet built wind power projects, and the new FIT 5.0 program will also save money. Together, these cancellations can save ratepayers from future rate increases of nearly $4 per month.
  3. Cancel “conservation” spending of $400 million annually. This action would have an immediate effect on ratepayers’ bills, reducing them by $5.50 per month or about $70 a year. Ontario’s ratepayers have already reduced their consumption from 157 TWh in 2005 to 137 TWh in 2015, for a significant 12.7% decrease.
  4. Allocate the Ontario Electricity Support Program (OESP) to the Ministry of Community and Social Services. The OESP is essentially a social assistance program and it is questionable as to whether ratepayers should bear the burden of its costs. With an estimated annual cost of $200 million, the effect of this would be an immediate savings of about $4 per month on ratepayers’ bills, and an annual savings of $50. We recognize, however, that the move would impact the budgetary shortfall by a like amount so we recommend the following action.
  5. Levy a tax on wind and solar power generation on a per-megawatt basis starting at $10 per/MWh. This would result in raising sufficient revenues to offset the OESP costs. The effective rate could be held at that level or increased in the event the OESP costs exceed the forecast $200 million per annum. The Auditor General previously reported the award value per MWh of the 20-year contracts to wind and solar power developers exceeded those in other jurisdictions by a considerable margin. The tax would serve as a recognition of those excessive margins. (Note: the wind power contracts also contain cost of living increases of up to 20% over the term of the contracts.)
  6. Immediately reduce the Time of Use (TOU) off-peak rate. We recommend an immediate reduction in the TOU off-peak rate from 8.7 cents/kWh to 7.4 cents/kWh to encourage the shift of power consumption from peak to off-peak time in order to flatten daily demand.

“Poverty is a major factor in population health,” says Wilson, a Registered Nurse. “It is time Ontario takes action to help people now, and not cause further hardship for Ontario families.”

Wind Concerns Ontario is a coalition of community groups, individuals and families concerned about the impact of industrial-scale wind power development on the economy, on the natural environment, and on human health in Ontario.

http://www.windconcernsontario.ca

OTTAWA WIND CONCERNS NOTE: The contract for the “Nation Rise” wind power project in North Stormont, just south-east of Ottawa, will cost Ontario residents $430 million over its 20-year contract, for intermittent wind power we don’t need. Cancelling the power project, slated to be 100 megawatts and over 30 industrial-scale wind turbines, would cost no more than $600,000. Other projects in our area would be the much-contested Amherst Island project which will endanger birds and other wildlife species, and the White Pines project in Prince Edward County, also a danger to migratory birds and other wildlife. Cancelling these projects which are not yet built will save millions.