Tag Archives: IESO

Turbines go up, turbines come down

19 Tuesday Nov 2019

Posted by in Ottawa, Renewable energy, Wind power

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Crane used to dismantle grid-scale wind turbine in Prince Edward County this week. Meanwhile, more going up south of Ottawa [Photo: Alliance to Protect Prince Edward County]

Contrast between North Stormont and Prince Edward County an indication of Ontario’s muddled electricity file

November 19, 2019

While people in Prince Edward County are celebrating the demise of the “White Pines” wind power project as government-ordered decommissioning of the industrial-scale wind turbines is going on this week, the people of North Stormont, south-east of Ottawa, are watching the behemoths go UP.

The White Pines project in Prince Edward County, developed by Germany-based wpd, was a controversial power project appealed several times by residents concerned about the environmental impact of the wind power generators and infrastructure on wildlife and people. The original plan was for 29 turbines; that was reduced to 27 after legal action and finally, to nine.

The new Ontario government passed legislation not long after taking office cancelling the power project — residents say it should never have been approved in the first place.

But now, more than 30 giant grid-scale wind turbines are currently being erected in North Stormont, near the communities of Finch, Crysler and Berwick by Portugal-based power developer EDPR. EDPR sold the project last year to Axium Infrastructure; that consortium also owns the K2 Wind power project in Huron County, which has been the subject of appeals, and post-operation, hundreds of noise complaints.

K2 Wind is currently under order by the Director of the environment ministry to implement and evaluate a noise assessment plan for more than 80 of its 140 turbines, which were found to be out of compliance with Ontario regulations for wind turbine noise emissions.

“Nation Rise” as the North Stormont project is called, was also the subject of appeals, and a last appeal was submitted to the Ontario environment minister six months ago. No word on the status of the appeal, nor on the status of a request for a stay of construction, filed in May.

Residents are concerned not only about noise (the project got to use old, pre-2017 noise assessment rules under the Wynne government), and also damage to the environment, especially a fragile or “vulnerable” water table.

The Nation Rise final approval came through days before the provincial election in 2018, despite the “caretaker” government convention which discourages major decisions during the election period. The Independent Electricity System Operator (IESO) also granted a Notice To Proceed days after the election, despite being warned by government leader MPP Todd Smith not to approve any more projects.

Now, the giant towers are rising in the quiet communities of North Stormont, as the power developer races to meet a December operational deadline. The local MPP Jim McDonell claims there’s nothing he can do about it—that Notice To Proceed meant the project had to go ahead.

Pre-construction liability for Nation Rise (i.e., the cost of the government cancelling the contract) was about $400,000. If it goes into operation, the people of Ontario will bear the cost of the project which will add more than $400 million to electricity bills, over the 20-year life of the power contract.

So, while the turbines go up, others — already approved and built — come down. And you’re paying for it all.

OTTAWA WIND CONCERNS

Turbine blades at Johnstown, destined for Nation Rise

The local community group Concerned Citizens of North Stormont are having a fund-raising country breakfast December 1st. https://concernedcitizensofnorthstormont.ca/

 

Did the Ford government really cancel the Eastern Fields wind power project? Waiting for answers

06 Wednesday Mar 2019

Posted by in Renewable energy, Wind power

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Citizens thought this power project was gone. Is it? [Photo: Ontario Farmer]

March 6, 2018

Citizens of The Nation are waiting for answers from the Ford government after it was discovered — by accident — that the Ontario Energy Board awarded a 20-year licence to generate electricity to the Eastern Fields wind power project.

Eastern Fields was on the list of 758 power projects cancelled by the Ford government last July, and a check with the Independent Electricity System Operator (IESO) shows that the power developer, U.K.-based RES Canada does not now have a contract.

On the other hand, when both Wind Concerns and community group Save The Nation checked with a Ministry of the Environment, Conservation and Parks officer on the project status, the response was that it is in “technical review.” (This is an onerous process by which civil servants look at boxes on an application and see whether there is a check mark. Important information such as the presence of unstable Leda Clay in the case of the Nation Rise project, need not be assessed, or even known.)

Save The Nation put out the following news release, and is waiting for answers from the Ontario Minister of Energy, Greg Rickford.

In the meantime, says Wind Concerns Ontario president Jane Wilson, the citizens of The Nation lost seven valuable months in which they could have been gathering data on environmental impacts from the wind turbines. Wind Concerns Ontario has government records of thousands of reports about excessive wind turbine noise, which have not been resolved.

Media Release

For immediate release

How Can a Cancelled Wind Turbine Project Receive a Licence to Produce Electricity?

ST-BERNARDIN – Save The Nation is seeking answers from the Ontario Minister of Energy, Greg Rickford, regarding the issuance of an Electricity Generation Licence to the ‘cancelled’ Eastern Fields industrial wind turbine project. The Ontario Energy Board issued the licence on December 6, 2018, even though Minister Rickford had announced the cancellation of Eastern Fields project on July 13, 2018.

“We were shocked to find out about this licence. We do not understand why or how a cancelled project can be issued a licence to produce electricity for a period of 20 years – until 2038. We’re also extremely disappointed that the Ford government does not seem to follow through with its announcement,” says Julie Leroux, spokesperson for Save The Nation.

Eastern Fields was one of 758 projects identified by Minister Rickford for wind-down on July 13, 2018, following a promise to cancel unnecessary and wasteful energy projects in order to cut hydro rates. “We’re asking Minister Rickford to confirm that this promise has been kept and that Eastern Fields Wind Farm LP is a dead project with no chance of ever moving forward. We also ask him to revoke the useless Electricity Generation Licence EG-2018-0213” adds Leroux.

The Electricity Generation Licence was issued on December 6, 2018. Incidentally, on that same day, the Ontario Government adopted the Green Energy Repeal Act, which will affect other acts and regulations, namely the Environmental Protection Act, the Renewable Energy Approvals Regulation 359/09 and the Planning Act when fully enacted.

Save The Nation is a grass-root movement that has been opposing the Eastern Fields industrial wind turbine project near St-Bernardin in The Nation Municipality and Champlain Township since it was publicly announced in June 2015. Save The Nation is not against green initiatives, but is fiercely opposed to the process that was used for the approval of renewable energy projects in Ontario under the Green Energy Act.

 – 30 –

Link to July 13, 2018, Ontario Media Release: https://news.ontario.ca/mndmf/en/2018/07/ontario-to-cancel-energy-contracts-to-bring-hydro-bills-down.html

Attachments: Letter sent to the Minister of Energy Honorable Greg Rickford-March1-2019

Information:

Julie Leroux

Save The Nation Society

sauvonslanation@xplornet.com

www.sauvonslanation.ca

NY wind farm problems a sign of what’s ahead for North Stormont?

13 Thursday Sep 2018

Posted by in Health, Renewable energy, Wind power

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September 13, 2018

Residents in Arkwright, NY, are shocked at the noise and environmental disturbance from a wind power project, which just started operation.

The project developer and operator is Spain-based EDP, the same company that runs the South Branch project in Brinston and which is planning the contentious Nation Rise power project in North Stormont.

Residents had hoped the project would be cancelled when the new Ontario government cancelled three other wind power projects, but the IESO claims the project–which is under appeal–has met all its contractual milestones.

Here is the news story with resident complaints of never-ending noise and visual disturbance.

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OBSERVER Photo by Jo Ward A large crowd fills the Arkwright Town Hall, as complaints of noise are heard regarding the wind turbines.

ARKWRIGHT– This week saw the powering up of the wind turbines in Arkwright, and the area received its first taste of what a wind farm is like when fully operational.

Despite what many deem as good news, others were not impressed.

“We were up at the lean-tos,” Joni Riggles, a concerned citizen stated. “I am so upset, EDP was asked not to put turbines within viewshot by the county planning board. It is a nightmare, a sonic nightmare, a visual nightmare. It sounded like sneakers in a laundromat. The campground is surrounded, it’s a toxic environment. Who’s going to want to camp here?”

Carrie Babcock, an Arkwright resident said, “It’s like jetliners surrounding my house. It’s a form of noise pollution. It’s awful. How can you help me move away from here? How do I get out of here and still have some property value?”

“I could be sitting on my couch reading and all I have to do is barely crack open a window and it sounds like a jet that’s going by that never goes by. We were told by these people everyday that you’ll never know they’re even there, and if you think that’s not a problem, you’re taking money from the windmill people,” Doug Zeller, another resident added.

“What do you want us to do about it?” Councilman Larry Ball asked. “What do you want us to do about it today?”

“Take them down,” Riggles voiced.

“That’s not going to happen,” Fred Norton, town supervisor, and others on the board responded.

In response to Riggles’ original question, Norton did note that the county gave a release to the developer allowing them to put their windmills there.

Beyond the noise complaints, a letter from Dorothy Fogelman-Holland was read by her husband, citing issues with cell phone interference. Within the letter she claims that there have been times, no matter the day or to who or what type of phone she calls, she’s unable to make a connection. These incidents are sometimes 11 calls being made consecutively and none of them connecting. She states that the issues started in July and are ongoing. Both she and her husband have spoken with their carrier and the carrier has found no issue with their phones or with the towers.

The problem for her is that she undergoes at home dialysis care, and is in need of a constant outside line in case she was to need emergency services. Fogelman-Holland is concerned that others might be in the same predicament with their phones, and that if someone is unable to make a call to 911 that it could be the difference of a life.

Concern was also raised with health issues the turbines might cause. In response Ingalls reminded citizens that, if there’s a complaint or health issue with them, the company has a hot line on the door of the Arkwright Town Hall that has been up throughout construction. If there is an issue they want to hear about it so that they can address it; those messages are checked every day.

There is a fund-raiser/information Brunch event Saturday September 15 9 a.m. to 1 p.m. at the arena in Finch, hosted by the Concerned Citizens of North Stormont.

Fundraiser-information brunch in Finch this weekend

12 Wednesday Sep 2018

Posted by in Renewable energy, Wind power

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Berwick area farm: 33 huge industrial wind turbines proposed, with risk to health, safety, environment and wildlife [Photo Dorothea Larsen, Kemptville]

September 12, 2018

The Concerned Citizens of North Stormont are hosting a special Country Breakfast-Brunch event this Saturday, September 15 at the Finch Arena, to offer information on the 100-megawatt “Nation Rise” wind power project, and to help raise funds for the citizen appeal of the power project.

The project is neither necessary nor wanted by the community.

The Independent Electricity System Operator (IESO) has stated that the project has met all the milestones; this is not possible as the project is under appeal, and is subject to a condition-laden Renewable Energy Approval. That approval was granted just three days before the writ for the recent Ontario election was drawn up.

In response to citizen concerns about damage to the aquifer and water supply and health impacts of exposure to noise emissions from the turbines, the power developer, EDPR of Spain, actually changed material aspect of the project in the middle of the appeal. The company announced in documents filed with the Environmental Review Tribunal that it was changed the method of construction to be used for the foundations, and changing the equipment type for the turbines.

The appeal has been halted for the moment but resumes next week with testimony on hydrogeology and risks to the environment.

The Brunch event is from 9 a.m. to 1 p.m.

For more information contact: http://concernedcitizensofnorthstormont.ca/

 

 

Most Ontario wind farms are foreign-owned: Wind Concerns Ontario

16 Monday Apr 2018

Posted by in Renewable energy, Wind power

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April 16, 2018

The rainbow didn’t end in Ontario after all …

Wind Concerns Ontario, the coalition of more than 30 community groups and hundreds of individuals and families, published a review of the ownership of large-scale Ontario wind power projects yesterday, and revealed that nearly 80 percent of the power projects are owned by offshore corporations.

The developers were attracted by the tax breaks, subsidies and other incentives offered by the Ontario government.

Two new wind power projects currently have contracts in the Ottawa area: “Eastern Fields” in The Nation, proposed by foreign-owned RES Canada, and “Nation Rise” in North Stormont by EDP Renewables of Spain. EDPR also operates the South Branch project in Brinston, south-east of Ottawa, which was originally developed by Germany-based Prowind.

Here is the article reposted from Wind Concerns Ontario’s website at www.windconcernsontario.ca

Follow the money … out of Ontario

A profile of who’s who in Ontario wind power development

Tax benefits and subsidies were important incentives

 

With the recent announcement that the Canada Pension Plan decided to purchase some of U.S. energy giant NextEra’s wind and solar portfolio (a $741M CAD deal that also involves assuming $800M in debt), many people are suddenly noticing ownership of Canada’s renewable power sector.

A popular view of the wind industry in Ontario is that it is composed predominantly of Canadian companies in an “infant industry” that needs government subsidies to survive. The reality only becomes clear when one looks behind the scenes at the actual participants in the industry.

Ontario’s industrial wind generators enjoy the benefits of many federal and provincial programs, all of which were intended to ease their access to financing and improve investors’ returns. The list of special incentives is a long one, but here are the five most important:

 

  • The implementation of special feed-in-tariff (FIT) rates far above the market rates received by conventional energy producers; these rates started at $135 per megawatt hour (MWh) and have only recently declined to $125 per MWh;
  • The guarantee of these rates for the twenty-year life of the contracts;
  • Granting wind and other renewable energy sources priority access, or “first-to-the-grid” rights, requiring the Independent Electricity System Operator to take their production whenever it was available, even when that meant curtailing the purchase of other (often cheaper) generation or dumping surplus energy at distressed prices on export markets;
  • Special tax benefits, including the federal government’s accelerated capital cost allowances and the Canadian Renewable and Conservation Expenses allowance and the Ontario government’s cap on the property taxes that industrial wind turbines pay to local municipalities;
  • Other subsidies, including the federal government ECOenergy for Renewable Power Program, $1.4 billion over five years in Budget 2017, and continuing large research and development assistance.

 

As a result, the Ontario wind industry, in general, has found the “pot of gold”, a level of income and wealth that far exceeds its general image. To illustrate this, let us examine some of the most prominent firms in the industry.

Here is a summary of the companies active in Ontario both as developers and operators, with financial statistics gleaned to the best of our knowledge and ability.

 

 

Acciona: With headquarters in Madrid, Spain, Acciona develops and builds power projects for itself and third-party companies in 20 countries worldwide. In Ontario Acciona operates the 76-MW Ripley wind power project. As part of its “wind power value chain” the company also manufactures some turbine components. Revenue in 2017 was €7.2B and net income was €220M or $350M CAD. Chairman is José Manuel Entrecanales; no compensation data is available.

Boralex: HQ France. Ontario Projects are Port Ryerse (10 MW) and the proposed/contracted Otter Creek (50 MW). Revenue from energy sales in 2017 to September 30 were $285M CAD. Total equity: $2.7B USD. Compensation for CEO Patrick Lemaire was $1.2M CAD in 2016.

Brookfield Renewable Energy Partners: Headquartered in Bermuda with an office in Toronto, Brookfield is “multi-technology, globally diversified, owner and operator of renewable power assets” which includes more than 70 wind power projects around the world. In Ontario the company operates the 189-MW Prince project, Comber (165 MW) and Gosfield (50.6 MW) Brookfield also owns 51% of US-based Terraform Power, which operates the Raleigh Wind Farm. North American revenue in 2017 was $1B USD. CEO is Sachin Shah; 2016 compensation was $3.8M USD.

 

EDF Renewables: This company is associated with EDF or Electricité du France, the Power utility in France. Headquarters for EDF Renewables is in San Diego, California; the company operates in Canada as EDF EN Canada (EDF Energie Nouvelles). EDF EN Canada currently has a contract for the 60-MW Romney Wind power project. CEO is Tristan Grimbert. No further financial data is available.

EDP Renewables : EDPR is a division of EDP or Energias du Portugal. The company’s headquarters are in Oviedo, Spain. EDPR claims to be the world’s fourth largest wind power developer. In 2017, the company states, it produced 27,600 GWh of power from wind. In Ontario, it operates the 30-MW South Branch project between Ottawa and Cornwall, and currently has a contract for the 100-MW Nation Rise project in North Stormont, south of Ottawa. Revenues in 2017 worldwide were €1.3 M or $2M CAD. CEO of EDPR is Joᾶo Manso Neta; there is no compensation data available for the CEO. In June 2017 it was announced that the CEO of parent company EDP was being investigated on corruption charges related to power contracts; the CEO of EDPR was also being investigated, but there has been no news since of any charges.

Engie: Based in France, with North American Headquarters in Houston, Texas, and an Ontario office in Markham. This company bought AIM Power Gen (operated by Mike Crawley who is known to many Ontarians, and is now VP at Northland) which had become GDF Suez; it now operates the wind power projects at Cultus-Clear Creek Frogmore (30-MW), Harrow (40 MW), Erieau (99 MW), East St. Clair (99MW), Plateau (27 MW), and Point Aux Roches (49 MW). Revenue for 2016 was €13M or $20M CAD. CEO is Isabelle Kocher, whose 2016 compensation was €2.8M or $4.4M CAD.

Horizon Wind: See EDPR. The Horizon “Legacy” company operates the 10-MW Ernestown Wind project near Kingston.

Invenergy: This U.S.-based company has its headquarters in Chicago, and offices in Toronto, Denver and Mexico City plus a European office in Warsaw. It currently manages or has developed 82 wind power projects. Net worth is approximately $1B USD. Current Ontario project: Strong Breezes Dutton Dunwich (57.5 MW). Invenergy also developed the 78-MW Raleigh Wind project, which it sold to TerraForm and Sun Edison. Invenergy had proposed a project in North Perth, but the contract with IESO was terminated when it became impossible for the company to meet the contracted amount of power generation, due in part to citizen action and community opposition.

Longyuan Canada Renewables/China Longyuan Power Group: With 10,000 wind turbines worldwide in its portfolio producing 17,000 MW of power, the China Longyuan Group is the world’s largest wind power developer. The company also produces power from coal, and has minor interests in thermal, biomass and solar. Wholly owned subsidiary Longyuan Canada Renewables is headquartered in Toronto with nine employees, and operates the 91.4-MW Dufferin Wind power project (Melancthon). President is Zhu Dong; no compensation data is available. The company recently applied for an amendment to its renewable energy approval, to install optimization software which will increase power output but not exceed its nameplate capacity of 99MW. Operating profits for China Longyuan in 2017 were CNY 8.3B ($1.7B CAD), up from 2016 due to higher prices for coal. The President/General Manager is Li Enyi whose 2016 compensation is reported by Bloomberg as CNY 1,074,00 ($219,000 CAD)

NextEra Energy: NextEra Energy Canada is a division of NextEra Energy Inc. The company’s headquarters are in Juno Beach, Florida FL with a Canadian office on Bay Street in Toronto. NextEra operates the following Ontario wind power projects under contract to the provincial government: Conestogo (22.9 MW), Jericho (149 MW), Adelaide (60 MW), Bluewater (60 MW), Summerhaven (124.4 MW), Goshen (102 MW), Cedar Point II (100 MW), Bornish (73.5MW), and East Durham (22 MW). Income of the parent company was $5.3B USD; president and CEO James Robo earned a base salary in 2016 of $1.3 M USD but topped it up with incentives, bonuses and stock options for a total compensation package of $16M USD. On April 2, 2018, it was announced that the Canada Pension Plan had agreed to purchase four NextEra wind facilities, plus two solar projects, in Ontario; the deal is subject to Canadian regulatory approval and if approved, may close in the second quarter of 2018.

RES Group, operating in Canada as RES Canada: Headquarters are in the UK with a Canadian office in Montreal. RES’ slogan is “Power for Good.” The company boasts a portfolio of more than 7,000 wind turbines and asset management of 2 GW of wind power generating facilities. RES Group was the subject of a BBC documentary called “Blown Apart” which featured an RES employee “Rachel” who infiltrated a village community with dreams of a green future for her community, only to be revealed eventually as a corporate operative trying to get people to sign wind turbine leases. In Ontario, RES was involved in construction of South Kent Wind, Brooke-Alvinston, Grand Valley 3, and Gunn’s Hill, and as a developer, has a contract for the 32-MW Eastern Fields in The Nation, near Ottawa. RES bills itself as a full-service provider, offering asset management and project design services. No data found on earnings, and no information on compensation for CEO Ivor Catta.

Pattern/Pattern Energy Group: The company’s slogan is “Transitioning the world to Renewable Energy.” Headquarters are in San Francisco; the company operates the Belle River (see Samsung), and North Kent projects in Ontario, is a partner in K2Wind, and is constructing the Henvey Inlet 300-megawatt project. 2017 revenues were $411.3 million USD. CEO/President is Michael Garland, whose 2016 compensation was $2.7 MM ($430.7K salary, $456K bonuses, and $1.8MM stock).

Prowind: Prowind is a very small player but managed to attract attention for its 18-MW Gunn’s Hill project near Woodstock, which it claims is a totally community endeavour. In fact, the lone community member in the investment leadership group went on to be president of Prowind Canada, and other “community” members were Toronto-based environmental organizations. The community launched an appeal of the REA, but was not successful. Prowind is a subsidiary of Prowind GmBH of Germany; president and CEO in North America is Frank Mascia and chair is Johannes Busmann. No financial data is available.

Samsung Renewable Energy: The company is a division of Samsung C&T Investment Trading Group. Samsung C&T is headquartered in Korea; there is an office in Canada located in Mississauga. Samsung developed the huge 270-MW K2 Wind project with Pattern and Capital Power, (its share was sold in 2016 to insurance giant ManuLife, the Alberta Teachers Retirement Fund and Toronto-based Axium). Samsung operates three wind power projects in Ontario: Belle River (100 MW) , Armow (180 MW), and South and North Kent (270 and 100 MW respectively). Samsung, also known as “the Korean consortium,” was given an extraordinary contract by the Ontario government in 2010 to buy $9.7B CAD worth of electricity. The contract amount was slashed by a third in 2013; the government claimed Samsung had missed some deadlines, but the fact is, that much power was not (is not) needed. Canadian vice-president is Steve Cho; Samsung C&T president and CEO is Chi H. Choi; no compensation data is available. Samsung C&T operating profits in 2017 were 881.3B won or $1.05B CAD.

Saturn Power: Saturn operates the 10-megawatt Gesner project. It is a private company so no financials are available; headquarters are in Baden, Germany.

Terraform Power: Headquartered in Bethesda, MD, Terraform is the “owner and operator of a 2,600 MW diversified portfolio of high-quality solar and wind assets, primarily in the U.S., underpinned by long-term contracts” which includes the 78-MW Raleigh Wind project, which it purchased from Invenergy. Revenue for 2017 according to the company pro forma was estimated to be $585 M USD. CEO is John Stinebaugh; no compensation data available.

Veresen Inc.: Veresen was the owner and operator of the 20-MW Grand Valley 1 wind power project; the company was recently acquired by Pembina in 2017 for $6.4B CAD.

WPD Canada: This is a wholly owned subsidiary of WPD Europe/WPD AG, a private company headquartered in Bremen, Germany. The Canadian office is in Mississauga. The company is active in 18 countries and says it has installed 1,700 wind turbines. In Ontario, WPD operates the Springwood (8.2 MW), Whittington (6 MW), Napier (4 MW) and Sumac Ridge (10.25 MW) projects, and has a contract (currently being disputed in the courts by a citizens’ group) for the 18-MW White Pines project in Prince Edward County. WPD Power’s CEO is Dr. Gernot Blanke; no compensation data is available

 

Canadian companies: the minority

Algonquin Power & Utilities Corp.: Algonquin is described as a Canadian utility involved in the generation, transmission and distribution of power. The headquarters are in Oakville, Ontario. At present in Ontario, the company’s wholly owned subsidiary Windlectric Inc. sold half its lone wind project to Newfoundland-based construction company Pennecon to build a 75-MW wind power project on Amherst Island. Algonquin Power is estimated to have $10B CAD in assets. With a five-year return of 73% the company has been the darling of Canadian investors but has tumbled with a more recent 1-year return of 2.06%. CEO of Algonquin is Ian Robertson, whose 2016 compensation was $3.5M according to Reuters; Pennecon’s president is David Mitchell for whom no compensation data is available.

BluEarth Renewables: With headquarters in Calgary, Alberta, BluEarth is described as a “private independent” company whose major shareholder is in fact the Ontario Teachers Pension Plan. It operates two wind power projects in Ontario: Bow Lake Wind (60-MW), and St Columban (33 MW). In February 2018, BluEarth announced a deal with Veresen in which it would acquire an interest in three Ontario wind power projects, with a view to own and operate, in the long term.   Net worth is estimated at $10B CAD. President and CEO is Grant Arnold; no compensation data is available.

Capital Power: Based in Edmonton, Capital is involved in a variety of power generating enterprises, including wind; Capital is a partner in K2 Wind, and operates the 40-MW Kingsbridge project in Ontario. Revenues in 2017 were $1B and net income was $144M. CEO is Brian Vaasjo whose 2016 compensation was $2.9M.

Enbridge: The company is best known as a producer of fossil fuels in Canada. Headquartered in Calgary, Alberta the company says it transports, generates and distributes energy, in that order. It operates 16 wind power projects in North America, including the Talbot (98.9 MW) and Underwood (181.5 MW) power facilities in Ontario. Adjusted earnings for 2017 were $3.2B CAD of which “green power” earnings were $101MM. CEO until recently was Al Monaco who is listed as one of Canada’s 100 highest paid executives with a base salary of $1.377MM and total compensation of $11.391MM.

Kruger Energy: Kruger is a family-owned company headquartered in Montreal that is involved in paper, paperboard recycling, and energy. Kruger Energy was founded in 2004 to develop power projects in Canada, and currently operates the 101.2-megawatt facility at Port Alma, and the 99.4-MW Kruger Chatham Wind Farm in Ontario. The company also put forward a proposal in 2015 for another Chatham-Kent facility. The company is privately held by the Kruger family. CEO is Jean Roy; no compensation data is available.

Northland: Northland is a rare bird in wind power development in Ontario, with headquarters in Toronto. The company operates two wind power projects at present: McLean’s Mountain on Manitoulin Island (60 MW), and the Grand Bend facility in Zurich (100 MW). Profits for 2017 were up 37% to $1.2B CAD, with net income up 45% to $276 MM. Northland is involved in two offshore wind projects in Europe and owns 100% of the Nordsee wind power project. Northland is also involved in solar projects in Ontario. CEO is John Brace whose 2016 compensations was $1.9MM CAD ($473K salary, $1MM stock, and $9,000 “other”). Also on Northland’s executive team is Mike Crawley, former CEO of AIM PowerGen and also famously chair of a McGuinty government panel that looked at a mix of energy resources for Ontario, and he was later president of the Ontario Liberal Party, and subsequently, the Liberal Party of Canada. Mr. Crawley’s 2016 compensation was $923K.

Suncor: The company describes itself as an “integrated energy company.” With headquarters in Calgary, Alberta, Suncor currently operates four wind power projects in Canada, one of which is the Adelaide power project. But the company used to own more: in 2015, however, Suncor announced it was divesting almost all its wind assets, particularly in Ontario, and so sold off Ripley and Cedar Point as well as its share in the Kent Breeze project. Funds from operations in 2017 were $3B CAD. CEO is Steven Williams who is also listed by Canadian Business as one of Canada’s 100 highest paid executives. His base salary in 2017 was $1.375M, and total compensation was $11.482M.

TransAlta: Based in Calgary, TransAlta owns and operates the wind power project on Wolfe Island (famous for being one of the wind power projects with the highest number of bird kills in North America) and phases 1 and 2 of the Melancthon project in Shelburne (199 MW). The company claims production of 2,300 megawatts of power, of which 54% is from wind, in 18 facilities around the world. Wolfe Island and Melancthon 2 receive payments not only from their power purchase agreements with Ontario but also federal ECOenergy payments. Revenues for 2017 were $2.3B with operating income of $138M. The President and CEO is Dawn Farrell whose compensation came under fire in 2017 at the shareholders’ meeting; they objected to the 60% rise in compensation. Ms Farrell was paid $7.4M, which included a base salary of $960,000 plus stock options and bonuses.

Ownership at a glance

Developer ownership Megawatts in operation/planned Ontario
Non-Canadian 4,023.35
Canadian 1,048

Almost 80 percent of Ontario’s wind power projects are owned by non-Canadian companies

 

 

 

Suppliers:

Senvion Canada: Senvion Canada is a division of Germany-based Senvion S.A., one of the world’s leading turbine manufacturers. The company began operating in Canada in 2009 and now has more than 660 turbines installed. Senvion Canada is headquartered in Montreal, Quebec, with offices in Toronto, Ontario and Vancouver, British Columbia. Senvion’s 2017 revenue was €1.8M ($2.8 CAD), sales or “order book” were €5B ($8B CAD). Senvion is owned by Centerbridge Partners, a New York-based private equity firm. CEO is Jurgen Geissinger; no compensation data is available.

GE Renewable Power is a division of GE or General Electric, which is aiming to profit from the renewables sector by manufacturing equipment including turbines. GE headquarters are is Boston, Massachusetts. In Canada, GE manufactures wind turbine blades at a plant in Gaspé. Profits have been down lately for the company, with a 1-year return on investment of -54%. In 2017, operating cash flow was $10B USD. CEO of GE Renewables is Jérôme Pécresse; no compensation data is available.

Vestas Wind Systems: Based in Aarhus, Denmark, publicly owned Vestas is perhaps the best known among wind turbine suppliers. According to one 2015 industry article, Vestas is the number one company in the world for turbine installations. Annual revenues for 2017 were €9.9B or $15.5B CAD, and operating profit was €1.6B or $2.5B CAD. CEO is Anders Runevad, who came on board in 2013 to help shift the company back to good fortune. Mr. Runevad maintains a low public profile and there is no compensation data available.

Siemens Canada is a division of worldwide engineering firm, Siemens AG, headquartered in Munich, Germany. Siemens Canada claims expertise in the fields of electrification, automation and digitalization and is involved in sustainable energy, “intelligent infrastructure,” healthcare and manufacturing. One of the world’s largest producers of energy-efficient, resource-saving technologies, Siemens is a foremost supplier of power generation and power transmission solutions. The company is also a leading provider of medical imaging equipment and laboratory diagnostics as well as clinical IT. With Headquarters in Canada in Oakville, Siemens Canada has approximately 5,000 employees, 44 offices and 15 production facilities from coast-to-coast. Siemens AG assets as of 2017 were €134B or $214.6B CAD; revenue was €83B ($9.61B CAD); operating cash flow was €6B ($132B CAD). Siemens Canada President and CEO is Faisil Kazi; no compensation data is available.

 

Aecon: This Canadian construction company is engaged in infrastructure and energy projects throughout Canada. The company is currently in negotiations to be sold to Chinese company CCCC International, but the sale is under review by the federal government on the grounds of national security interests. Aecon has headquarters for various regions but the Canada East office is in Toronto. Financial results were presented under Infrastructure and Energy—we’re not sure where the company’s work for wind power developers fits. Results for 2017 are: Infrastructure revenues $685M CAD and operating profit was $32.5 M CAD; Energy revenues were $395.7 M, and operating profits were $23.1M. Total assets for Aecon were $2.5B. President and CEO is John M. Beck whose 2016 compensation was $3.6M.

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Thanks to energy economist Robert Lyman and energy commentator Parker Gallant for their input. Sources: company financial reports, Bloomberg, Reuters, Canadian Business

contact@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.

Hard questions for wind farm developer in Finch

28 Wednesday Jun 2017

Posted by in Renewable energy, Wind power

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Community concerns about giant wind power project in quiet rural area remain unanswered

Concerned Citizens of North Stormont leader Margaret Benke, in Finch, Ontario

Last evening marked the final public engagement session in the lead-up to power developer EDP applying for Renewable Energy Approval for its 100-megawatt “Nation Rise” power project.

The local population has made it clear they are not in favour of the giant wind power project, which will cost the people $3.3 million over the 20-year contract with the IESO, and add more to everyone’s electricity bill.

For power that Ontario doesn’t need.

People attending had some questions for the developer that may have been tough to answer. Some examples:

The Draft Project Description Report, under Wind Turbines states that the hub height will be anywhere from 100 to 140m. This is significantly higher than the 100m towers at your South Branch Wind Project in Brinston, where residents have filed complaints.

How will the proposed 132m height affect the transmission of noise across our flat, relatively non-forested terrain and how will it differ when there is a hard ice/snow covering on the frozen ground and no leaves on the trees, a condition often found between late November and early April in North Stormont?

In your noise report, you use a global ground absorption factor” of 0.7.  This number is supposed to reflect the worst-case scenario, in our case when surfaces are hard/non-absorptive, like those we see repeatedly in winter, when the ground is frozen and following ice rain events (6 or more this past winter).  Why have you not included a more accurate “0” absorption factor, which is our “worst case” scenario, or something closer to it, which reflects local conditions in North Stormont?

Who are the engineers referred to in Section 3.2.6 of your “Site Considerations” Review? Will they sign, without “qualifying” their report, and assume professional responsibility for all information provided?

Given that over 3,200 noise complaints were officially documented in Ontario from 2006-2014, (just as EDP’s South Branch was brought on-line) and from your prior experience internationally, how have you addressed noise and health complaints?

Community members were particularly concerned that EDP, even though this was the last community event, still could not provide information on the exact equipment to be used, and how many turbines there would actually be in the project that could have as many as 34 50-storey structures.

For more information or to provide support and donations for possible legal action, contact the Concerned Citizens of North Stormont here.

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

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

08 Monday May 2017

Posted by in Renewable energy, Wind power

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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

CanWEA comments on wind power cost ‘incorrect and cannot stand’ says university professor

04 Thursday May 2017

Posted by in Renewable energy, Wind power

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“Assertions are complete nonsense … only wilful blindness would suggest that wind and solar are low cost”

UWaterloo Prof Natin Jathwani, Executive Director Waterloo Institute for Sustainable Energy: Big Wind guilty of wilful blindness on energy costs?

Recently, energy analyst and occasional columnist for The Financial Post Parker Gallant wrote that the Canadian Wind Energy Association (CanWEA) was hitting back at allegations that wind power was contributing to Ontario’s rising electricity bills.

Ontario representative Brandy Gianetta said wind power was a low-cost energy source, and she referred to University of Waterloo professor Jatin Nathwani for support.

Trouble is, she was wrong.

Professor Nathwani took the time to correct CanWEA’s statements in an email to Parker Gallant, published on his Energy Perspectives blog today.

Here is Professor Nathwani’s email:

Dear Mr Gallant:

In your Blog, you have cited Ms. Giannetta’s post on CanWEA’s website on April 24, 2017 as quoted below:

Her article points to two articles that purportedly support the “myth” she is “busting,” but both require closer examination. She cites Waterloo professor Natin Nathwani’s, (PhD in chemical engineering and a 2016 “Sunshine list” salary of $184,550) article of March 6, 2017, posted on the TVO website, which supports Premier Wynne’s dubious claims of “a massive investment, on the order of $50 billion, for the renewal of Ontario’s aging electricity infrastructure.” Professor Nathwani offers no breakdown of the investment which suggests he simply took Premier Wynne’s assertion from her “Fair Hydro Plan” statement as a fact! It would be easy to tear apart Professor Nathwani’s math calculations — for example, “The total electricity bill for Ontario consumers has increased at 3.2 per cent per year on average” — but anyone reading that blatant claim knows his math is flawed!

First and foremost, the record needs to be corrected since Ms Giannetta’s assertions are simply incorrect and should not be allowed to stand.

If she has better information on the $50 billion investment provided in the Ministry of Energy’s Technical Briefing, she should make that available.

 The breakdown of the investment pattern in generation for the period 2008-2014 is as follows:

Wind Energy $6 Billion (Installed Capacity 2600 MW)

Solar Energy $5.8 Billion (Installed Capacity 1400 MW)

Bio-energy $1.3 Billion (Installed 325MW)

Natural Gas $5.8 Billion

Water Power $5 Billion (installed Capacity 1980 MW)

Nuclear $5.2 Billion

Total Installed Capacity Added to the Ontario Grid from 2008-2014 was 12,731 MW of which Renewable Power Capacity was 6298MW at a cost of $18.2 Billion.

For the complete investment pattern from 2005 to 2015, please see data available at the IESO Website.

In sum, generation additions (plus removal of coal costs) are in the order of $35 billion and additional investments relate to transmission and distribution assets.

I take strong exception to her last statement suggesting that the 3.2 percent per year (on average) increase in total electricity cost from 2006 to 2015 in real 2016$. The source for this information is a matter of public record and is available at the IESO website.

Ms Giannetta’s assertion is complete nonsense because she does not understand the difference between electricity bill and generation cost. Let Ms Gianetta identify the “blatant flaw.”

As for the electricity bill that the consumer sees, there is a wide variation across Ontario and this is primarily related to Distribution.

The Ontario Energy Board report on Electricity Rates in different cities provides a view across Ontario:

For example, the average bill for a for a typical 750kWh home Ontario comes is $130 per month.

In Toronto it is $142, Waterloo at $130 and Cornwall at $106. On the high side is Hydro One networks is $182 and this is primarily related to cost of service for low density, rural areas.

Your Table 2 Total Electricity Supply Cost is helpful and correctly highlights the cost differences of different generation supply.

Only wilful blindness on Ms Giannetta’s part would suggest that wind and solar are coming in at a low cost.

Warmest regards

Jatin Nathwani, PhD, P.Eng

Professor and Ontario Research Chair in Public Policy for Sustainable Energy

Executive Director, Waterloo Institute for Sustainable Energy (WISE)

Faculty of Engineering and Faculty of Environment Fellow, Balsillie School of International Affairs (BSIA)

University of Waterloo, Waterloo, ON