Wind power developer EDP Renewables, based in Portugal, will be holding an Open House information session on the 100-megawatt, 30+-turbine, $430-million wind power development they have called “Nation Rise” on December 13 in the arena in Finch.
Last week, MPPs Jim McDonell and Grant Crack took letters and petitions containing more than 1200 signatures from citizens of North Stormont and Nation Twp to the Legislature at Queen’s Park, demanding that the contracts for the two Ottawa-area power projects be cancelled.
The Open House information sessions are typically just poster sessions with developer staff available to answer any questions.
The site plan for the project has not yet been made available although proposed turbine locations are usually part of the application to the IESO for a power contract. The lack of a site plan means there are community members who may yet be unaware that they will have an industrial-scale wind turbine generating power near them.
Wind turbines emit a wide range of noise including low-frequency or inaudible noise which has been linked to adverse health effects. Wind turbines have also been implicated in disturbances to the water table and drinking water (Dover Twp, Ontario) via seismic vibration, and wind turbines are responsible for the deaths of migratory birds and endangered species of bats.
A few weeks ago, Ontario Premier Kathleen Wynne admitted that her government’s electricity policies have been “a mistake” and that they need to work to get consumer bills down. Last week, Energy Minister Glenn Thibeault admitted that an “arbitrary” choice of wind power as a source of power generation had led to “sub-optimal siting” and community concerns.
The Nation Rise power project will cost Ontario as much as $430 million over the 20-year life of the contract.
The Open House will be held from 3:30-7:30 PM.
EDP wind turbine and home at South Branch project, Brinston, Ontario. Photo by Ray Pilon.
Former bank vice-president and vice-president of Wind Concerns Ontario was in Ottawa this past weekend, speaking at a Town Hall in Kanata on the details of Ontario’s electricity bills.
Today, he published an analysis of how much wind power is really costing us, on his Energy Perspectivesblog. When the well-financed wind power lobby claims wind power prices are low, they don’t factor in other costs such as wasted hydro, gas, and nuclear, he says.
This is really shocking, given the rise in energy poverty in Ontario.
For the cost to provide a small portion of Ontario’s power, wind is no bargain
Not a chance …
Most electricity ratepayers in Ontario are aware that contracts awarded to wind power developers following the Green Energy Act gave them 13.5 cents per kilowatt (kWh) for power generation, no matter when that power was delivered. Last year, the Ontario Auditor General’s report noted that renewable contracts (wind and solar) were handed out at above market prices; as a result, Ontario ratepayers overpaid by billions.
The Auditor General’s findings were vigorously disputed by the wind power lobbyist the Canadian Wind Energy Association or CanWEA, and the Energy Minister of the day, Bob Chiarelli.
Here are some cogent facts about wind power. The U.K. president for German energy giant E.ON stated wind power requires 90% backup from gas or coal plants due to its unreliable and intermittent nature. The average efficiency of onshore wind power generation, accepted by Ontario’s Independent Electricity System Operator (IESO) and other grid operators, is 30% of their rated capacity; the Ontario Society of Professional Engineers (OSPE) supports that claim. OSPE also note the actual value of a kWh of wind is 3 cents a kWh (fuel costs) as all it does is displace gas generators when it is generating during high demand periods. On occasion, wind turbines will generate power at levels over 90% and other times at 0% of capacity. When wind power is generated during low demand hours, the IESO is forced to spill hydro, steam off nuclear or curtail power from the wind turbines, in order to manage the grid. When wind turbines operate at lower capacity levels during peak demand times, other suppliers such as gas plants are called on for what is needed to meet demand.
Bearing all that in mind, it is worth looking at wind generation’s effect on costs in the first six months of 2016 and ask, are the costs are reflective of the $135/MWh (+ up to 20% COL [cost of living] increases) 20 year contracts IESO, and the Ontario Power Authority awarded?
As of June 30, 2016, Ontario had 3,823 MW grid-connected wind turbines and 515 MW distributor-connected. The Ontario Energy Reports for the 1st two quarters of 2016 indicate that wind turbines contributed 4.6 terawatts (TWh) of power, which represented 5.9% of Ontario’s consumption of 69.3 TWh.
Missing something important
Not mentioned in those reports is the “curtailed” wind. The cost of curtailed wind (estimated at $120 per/MWh) is part of the electricity line on our bills via the Global Adjustment, or GA. Estimates by energy analyst Scott Luft have curtailed wind in the first six months of 2016 at 1.228 TWh.
So, based on the foregoing, the GA cost of grid-accepted and curtailed IWT generation in the first six months of 2016 was $759.2 million, made up of a cost of $611.8 million for grid-delivered generation (estimated at $133 million per TWh) and $147.4 million for curtailed generation. Those two costs on their own mean the per kWh cost of wind was 16.5 cents/kWh (3.2 cents about the average of 13.3 cents/kWh). The $759.2 million was 12% of the GA costs ($6.3 billion) for the six months for 5.9% of the power contributed.
But hold on, that’s not all. We know that wind turbines need gas plant backup, so those costs should be included, too. Those costs (due to the peaking abilities of gas plants) currently are approximately $160/MWh (at 20% of capacity utilization) meaning payments to idling plants for the 4.6 TWh backup was about $662 million. That brings the overall cost of the wind power contribution to the GA to about $1.421 billion, for a per kWh rate of 30.9 cents. If you add in costs of spilled or wasted hydro power to make way for wind (3.4 TWh in the first six months) and steamed off nuclear generation at Bruce Power (unknown and unreported) the cost per/kWh would be higher still.
So when the moneyed corporate wind power lobbyist CanWEA claims that the latest procurement of IWT is priced at 8.59 cents per kWh, they are purposely ignoring the costs of curtailed wind and the costs of gas plant backup.
22% of the costs for 5.9% of the power
Effectively, for the first six months of 2016 the $1.421 billion in costs to deliver 4.6 TWh of wind-generated power represented 22.5% of the total GA of $6.3 billion but delivered only 5.9% of the power. Each of the kWh delivered by IWT, at a cost of 30.9 cents/kWh was 2.8 times the average cost set by the OEB and billed to the ratepayer. As more wind turbines are added to the grid (Ontario signed contracts for more in April 2016), the costs described here will grow and be billed to Ontario’s consumers.
CanWEA recently claimed “Ontario’s decision to nurture a clean energy economy was a smart investment and additional investments in wind energy will provide an increasingly good news story for the province’s electricity customers.”
There is plenty of evidence to counter the claim that wind power is “a smart investment.” But it is true that this is a “good news story” — for the wind power developers, that is. They rushed to Ontario to obtain the generous above-market rates handed out at the expense of Ontario’s residents and businesses. And we’re all paying for it.
No community support for greed in Nation Twp [Photo: Ontario Farmer]
December 6, 2016
Residents of Nation Township and North Stormont recently gathered signatures on a petition and letters demanding the Ontario government halt the Large Renewable Procurement (LRP) process permanently (it is currently “suspended”), cancel the LRP I contracts awarded for five wind power projects earlier this year, and cancel contracts for wind power projects that have not yet been built.
The Premier of Ontario recently admitted that her government’s energy policies were a “mistake” that resulted in higher costs for Ontario citizens.
The Ontario Association of Food Banks recently released its Hunger report, placing the blame for Ontario’s “shockingly high levels of food bank use” on the electricity bills, and other factors. Hydro rates have increased 3.5 times and “off-peak” rates are now eight times what they were. Remedies proposed by the Wynne government, the association says, are a “drop in the bucket.”
The petitions filed at Queen’s Park yesterday refer to the high electricity rates and growing poverty and also to the fact that the Wynne government, specifically Energy Minister Glenn Thibeault, says it now has a “robust supply of power” for the years ahead.
So why pay out the millions for these new contracts, for power we don’t need, say the residents.
MPPs Jim McDonell and Grant Crack (the LIBERAL MPP for Glengarry-Prescott-Russell) read the petitions in the Legislature yesterday, while representatives of Save The Nation/Sauvons La Nation and Concerned Citizens of North Stormont watched from the Gallery.
EDP wind turbine and home at South Branch project, Brinston, Ontario. Photo by Ray Pilon.
October 21, 2016
Portugal-based power developer EDP Renewables is holding an Open House for its Nation Rise wind power project on Tuesday, October 25, from 4-8 PM in Finch Ontario, at the Finch arena.
The 100-megawatt power project is located completely in the Township of North Stormont; it was one of five to receive a contract from the Independent Electricity System Operator (IESO) earlier this year, and one of three projects to win a contract despite being proposed in an unwilling host community.
The contract is worth $436 million over 20 years.
In September, the IESO announced that Ontario has a surplus of power and that the new contract process scheduled for 2017 is now suspended. The IESO did not announce plans to cancel any of the contracts for more unneeded wind power announced a few months previous, despite IESO representative statements that the contracts are contributing to Ontario’s electricity bills.
Citizens of the area have formed a community group Concerned Citizens of North Stormont, and vowed to fight approval of the project, including legal action in future if necessary.
People gather at EDP Renewables open house in August, 2015
The Mayor of North Frontenac has written to Energy Minister Glenn Thibeault on behalf of all the 115 municipalities demanding change to the Large Renewable Procurement process. While relieved the next round of bids is “suspended,” he says, the municipalities say more can be done to stop the dramatic rise of Ontario electricity bills.
October 5, 2016
Mayors across Ontario who united together as a result of a resolution being supported to have municipal support mandatory for industrial wind turbines are relieved that procurement of future wind power has been cancelled for now. The Mayors still feel however that the government needs to take very aggressive actions to address the ongoing crisis caused by high electricity costs in this province. Taking steps to not add $2.45 per month in 2020 does not address the real hardship being felt by our residents now. It is also not clear that the other measures announced by the government will even offset the ongoing increases in hydro rates that can be expected in the short term unless additional changes are made.
It was important that the Minster of Energy’s statement confirmed that the province has a “robust” supply of electricity and the procurement process could be cancelled without increasing greenhouse gas emissions. This provides room for more aggressive actions that will address increasing costs. Our tracking of wind turbine contracts shows that there are still many wind turbine projects in the pipeline that will add at least another $7.9 billion to electricity generating costs. This is equivalent to another $82 per annum for each Ontario electricity user. Seven of these projects are under construction but will not be connected to the grid until sometime this fall or in 2017. Another five have not been issued ‘Notices to Proceed’ as they are, or have been until recently, involved in Environmental Review Tribunal proceedings or other legal appeals of Renewable Energy Approvals. The final six projects are in the pre-MOECC submission stage. These include the five contracts issued in early 2016 plus one outstanding project from earlier FIT offers.
In all of these cases, the IESO has the option of terminating the agreement for any reason with very limited cost liabilities relative to the 20 year commitment to electricity that is not required. We respectively ask that all industrial and solar wind projects be cancelled to avoid ongoing costs to our residents.
Bids were to be accepted beginning early in 2017. But Ontario now says it has enough power and wants to take steps to reduce electricity bills, so it doesn’t need the new renewable power capacity.
September 27, 2016
Moments ago, the Wynne government announced it is suspending its controversial Large Renewable Procurement program for sources of power such as wind and solar.
“Ontario will immediately suspend the second round of its Large Renewable Procurement (LRP II) process and the Energy-from-Waste Standard Offer Program, halting procurement of over 1,000 megawatts (MW) of solar, wind, hydroelectric, bioenergy and energy from waste projects. …
On September 1, 2016, the Independent Electricity System Operator (IESO) provided the Minister of Energy with the Ontario Planning Outlook, an independent report analyzing a variety of planning scenarios for the future of Ontario’s energy system. The IESO has advised that Ontario will benefit from a robust supply of electricity over the coming decade to meet projected demand.”
Wind Concerns Ontario(and two Auditors General for Ontario) has been saying for years that a cost-benefit analysis of the renewable energy program was never done, and should have been.
“Now, the impacts of this program are clear,” says President Jane Wilson.”We have unsustainable and punishing rises in electricity bills for the people of Ontario, with a corresponding rise in rates of energy poverty, while there is no evidence of any environmental benefit. In fact, there are widespread concerns about the damage being done to the environment from this high-impact form of power generation.”
Wind Concerns Ontario says that in addition to suspending the Large Renewable Procurement program, contracts for power projects not yet under construction need to be cancelled immediately.
“The government admits it has adequate power,” Wilson says. “There is no need to continue this assault on Ontario citizens, on our economy, and on the natural environment for little or no benefit.”
Wind turbines near SS Marie: power supply saturated but Ontario buying more wind. (National Post photo)
Worthy of a repost, from the National Post, this opinion from a renewable energy insider.
September 2, 2016
Ontario set an all-time peak electricity demand of 27,005 megawatts (MW) 10 years ago this summer. At the time, rising demand and plans to retire its coal-fired power plants dominated provincial energy policy. What followed was optimism for a new energy policy, focused on the ambitious procurement of large wind and solar installations. I felt great pride in helping to lead an industry that would make Ontario’s power system clean, responsive and cutting edge.
What a difference a decade makes. Intrusive policy and poor implementation are largely responsible for the energy market debacle Ontarians face today. But there is no excuse now for buying more mega-projects when our power supply is saturated and hydro bills are skyrocketing.
Coal-fired power generation effectively disappeared after 2010, by which time Ontario’s electricity demand had already started to plummet. Demand has fallen 13 per cent in the past 10 years, including consecutive reductions in each of the past five years. In 2016, Ontario will consume less electricity than in 1997.
Peak demand exceeded 23,000 MW only one day this summer, despite parts of the province seeing 35 days with temperatures above 30 C. Yet our installed capacity approaches 40,000 MW. The system will have reserves above extreme summer peaks well into the 2020s. The Independent Electricity System Operator (IESO) reinforced this point recently when it confirmed “Ontario will have sufficient supply for the next several years.”
Against this troubling background, the Ontario government is procuring an additional 1,300 MW of large wind and solar generation under the Large Renewable Procurement (LRP) program. This decision is indefensible. It makes the frequency of negative pricing (paying our U.S. neighbours to take Ontario energy during periods of low demand) and curtailment (paying wind developers for energy production even when the grid can’t use the power) even worse. These problems have become billion-dollar burdens for Ontario electricity customers.
Sweet contracts, painful electricity bills
Offering sweet contracts to large renewable energy developers while demand stagnates has helped push hydro bills higher. Electricity prices have increased by seven per cent a year since 2009. Costs have risen faster than Ontario’s inflation rate in each of the past several years. The province’s electricity rates are increasing faster than any other jurisdiction in North America.
It’s clear that change must begin with the renewable industry, since our industry alone benefits from the continued overprocurement of electricity. The fact is large wind and solar developers have been pampered by Queen’s Park for far too long. Although solar installation costs dropped 70 per cent in the past decade, the government froze prices for years at a time. When permitting delays enabled projects to be built as much as five years after contracts were awarded, multi-millionaires were created overnight.
Today, with no logical reason to build more wind and solar mega-projects in Ontario, renewable developers must confront the economic damage they are doing to their families, friends and neighbours, and to the next generation of citizens who will bear the brunt of this green corporate welfare.
Renewable energy companies must confront the economic damage they are doing.
We need to make four changes. First, Ontarians must demand a return to basic electricity policy principles: safety, reliability and cost effectiveness. Second, the government should revisit the IESO’s legal obligations associated with the current LRP process and exit this procurement process without paying the ransoms that characterized Ontario’s gas plant debacles. Third, the IESO should restrict renewable procurement to the smaller rooftop and distributed energy projects that actually benefit customers. Fourth, Ontario renewable energy firms must learn to export their pioneering expertise and target new domestic and international markets.
The global renewable energy revolution has just started. Solar energy is increasingly the cleanest, cheapest and most environmentally sustainable option. The advent of battery storage, smart grids and the Internet of Things will catalyze innovative economies that embrace change. Renewables have a bright future in this world, but we need to regain control of Ontario’s failing electricity policies — and do it soon — to ensure we seize the energy opportunities of the 21st century.
National Post
Jon Kieran is a Toronto-based renewable energy consultant. He is a member of the Canadian Solar Industries Association’s board of directors. He declines LRP work from clients.
Replacing coal in Ontario: what the government really did
There is so much mythology now around Ontario’s coal plants for power generation, it really is time to set the record straight on what really happened, how much it cost, and what was actually achieved. This is the first in a two-part series by Parker Gallant.
Intermittent, undependable wind power installed to replace coal-fired power generation. Seen here: road construction for a new turbine in the Algoma Highlands. Photo: Gord Benner
Back in 2011, Ontario had coal plant capacity of 4,484 MW but the plants really operated only occasionally, producing 4.1 terawatts (TWh) of power — just 10.5% of their capacity. The 4.1 TWh they generated in 2011 represented 2.7% of total power generation in Ontario of 149.8 TWh. The cost per TWh was $33 million or 3.3 cents/kWh, making the ratepayers’ bill for those 4.1 TWh $135 million.
As most Ontarians know, those coal plants were either closed (Lambton and Nanticoke) or converted to biomass (Atikokan and Thunder Bay). We were continually told closing or converting those coal plants would save Ontario’s health care system $4.4 billion, based on a study completed while Dwight Duncan was Ontario’s Energy Minister. Duncan’s claim was a fictitious interpretation of the actual study, but it was repeated so often by Liberal ministers and MPPs that they all believed it and presumably felt the public believed it, too.
Good PR but … the truth?
Whether one believes the Duncan claim, the fact is the coal plants were closed or converted and the ruling Ontario Liberal government made a big deal of it even to the point of obtaining an endorsement from Al Gore as the first jurisdiction in North America to end coal fired power generation.
The government never disclosed how much it cost the ratepayers/taxpayers of the province to close or convert those coal plants, and we certainly haven’t seen any improvement in our healthcare system since it happened, as one would expect from saving billions. So, was the claim of savings a falsehood? And what did closing the plants really cost?
Let’s start with looking at our electricity consumption level in 2011 and compare it to 2015. In 2011 Ontario generated 149.8 TWh and consumed 141.5 TWh. In 2015 we generated 159.6 TWh, including 5.9 TWh of embedded generation, and we reportedly consumed 137 TWh, not including the 5.9 TWh of embedded generation consumed within the confines of your local distribution company (LDC).
The difference of 8.3 TWh in 2011 and 16.7 TWh in 2015 was exported.
Replacing coal-fired generation
As noted, coal capacity was 4,484 MW in 2011 and in 2015 was zero — so what did we replace it with? According to the Independent Electricity System Operator (IESO) Ontario Energy Report for Q4 2015, since the end of 2011 we have added:
Nuclear supply increased by 1,532 MW (Bruce Power)
754 MW of hydro
Natural gas generation increased 602 MW
2,580 more MW capacity of industrial wind turbines (IWT)
Solar up by 2,078 MW
Bio-mass increased by 481 MW (principally conversions of Atikokan and Thunder Bay from coal)
“Other” increased by 10 MW
As well, residential ratepayers conserved 1.184 GWh1. , equivalent to 450 MW of wind turbines operating at 30% of capacity (generating electricity intermittently and out-of-phase with demand).
So altogether, Ontario added 8,037 MW of capacity to cover the loss of 4,484 MW of coal which, in 2011, operated at only 10.5% of capacity.
Ratepayers also reduced consumption by 6,553 GWh with residential ratepayers representing 1,184 GWh of that reduction.
It would appear the variations of long-term energy planning emanating from the Ontario energy portfolio continually overestimated future demand by a wide margin. Their numerous ministerial directives to the Ontario Power Authority (merged with IESO January 1, 2015) with instructions to contract more and more unreliable intermittent wind and solar generation with “first-to- the-grid” rights at high prices produced surplus energy.
This stream of directives and the acquisition of excess capacity resulted in increasing electricity costs for ratepayers due to surplus generation and payment guarantees for displaced generation.
They also added other expensive policies such as conservation initiatives that simply piled on unneeded costs.
Parker Gallant
August 28, 2016
Interestingly, the OEB in a revision to the “average” residential ratepayers monthly consumption reduced it from 800 kWh to 750 kWh, yet suggests conservation achieved (2011 to 2014) was 1,184 gigawatts (GWh). The total number of residential ratepayers suggests that consumption has declined by 2,739 GWh (4,564,835 residential ratepayers at December 31, 2015 X 50kWh [montly] X 12 = 2,739 GWh) since 2009.
NEXT: The second in this series will examine the additional costs associated with the various policies applied and how generation additions to Ontario’s energy mix continue to drive up Ontario’s electricity costs
[Reposted from Wind Concerns Ontario and Parker Gallant Energy Perspectives]
The Windlectric wind power project on tiny Amherst Island has no hope of meeting its “drop-dead” Commercial Operation date, so Ontario’s Independent Electricity System Operator (IESO) can cancel the Feed In Tariff (FIT) contract right now, with no penalty, says the Association to Protect Amherst Island.
See the letter to IESO Chair Tim O’Neill here and below.
Dear Dr. O’Neill,
In August 2015 The Association to Protect Amherst Island requested that the IESO exercise its ability to cancel the Fit Contract dated February 25, 2011 with Windlectric Inc. (Algonquin Power) without penalty because of the inability of the company to achieve its commercial operation date.
In its 2016 Q2 Quarterly Report, extract attached, Algonquin now advises that construction is expected to take 12 to 18 months and that the Commercial Operation Date will be in 2018. This timeline is contrary to what was submitted to the Environmental Review Tribunal and to the Ontario Energy Board. A COD of 2018 is seven years from the date of award of the contract.
Cancellation of the contract at this time would enable the IESO to achieve cost avoidance exceeding $500 million over the next 20 years based on the high cost of power generation at 13.5 cents per kilowatt-hour set out in the contract with Windlectric and based on the IESO’s commitment to pay Windlectric to not produce power when capacity exceeds demand. Cancellation of the Windlectric contract could be achieved without penalty due to noncompliance and would address in part the IESO’s budget challenges and energy poverty in Ontario.
Accordingly, the Association reiterates its request that IESO cancel the FIT Contract with Windlectric Inc.
Rick Conroy, in the attached article from the Wellington Times, explains the Kafkaesque and cruel nature of allowing the Amherst island project to continue especially in light of the unused power capacity of the nearby Lennox Generating Station and the Napanee Gas Plant under construction.
In summary:
• Windlectric cannot comply with the Commercial Operation Date in its FIT Contract.
• At a time of skyrocketing hydro rates and financial challenges the IESO could save $500 million over the next 20 years by cancelling the Windlectric Contract without penalty.
• Existing nearby generating capacity is almost never used and will increase when the Napanee Gas Plant comes online. Intermittent and expensive power from wind turbines on Amherst Island is not necessary
Finally, please provide the IESO’s understanding of the Commercial Operation Date for Windlectric, any extensions awarded by the IESO, and the number of days granted due to Force Majeure and judicial matters.
The City of Ottawa, North Frontenac and at least 73 other municipalities want Ontario’s Independent Electrical System Operator (IESO) to “make formal municipal support a mandatory requirement in Ontario’s next round of procurement for renewable energy projects,” according to the resolution.
The provincial energy agency claims to let communities express their concerns, but that has little impact on the outcome, according to North Frontenac Mayor Ron Higgins.
“We basically don’t have any democratic right when it comes to deciding where these wind turbines go … within our municipality,” he said.
75 municipalities across Ontario have endorsed a resolution that calls for increased local consultation before the next round of renewable energy projects. (Robert F. Bukaty/Associated Press)
Higgins said if given the opportunity North Frontenac would turn down all wind turbine projects, but he said some area municipalities would support them.
“We may want them, we may not want them, but if we do want them we’d like to be able to tell you where to put them,” said Higgins.
“Not right in front of a cottage door, or high on a mountain where all our cottages can see it.”
Current process ‘unfair,’ Ottawa councillor says
The current procurement process for renewable energy projects is “unfair” and “incredibly frustrating,” according to Rideau-Goulbourn ward Coun. Scott Moffatt.
Moffatt said he has no choice but to tell upset constituents “‘sorry, it’s the province, sorry, it’s the province.’ It just sounds like we’re passing the buck, but literally we have no control over these things.”
Both Higgins and Moffatt said they’re hopeful Ontario’s new energy minister, Glenn Thibeault, will be open to new discussions.
Higgins said he requested meetings with previous minister, Bob Chiarelli, three times, but that all requests were denied.
![No community support for greed in Nation Twp [Photo: Ontario Farmer]](https://ottawawindconcerns.com/wp-content/uploads/2015/09/savethenation-001-2.jpg)
![Mayor Ron Higgins in North Frontenac: we know better about where development should go [Photo CBC]](https://ottawawindconcerns.com/wp-content/uploads/2016/06/ron-higgins-north-frontenac.jpg)
Ottawa Wind Concerns 