How does Ottawa’s Climate team expect to run Ontario’s second largest city on power that’s just not there?
July 15, 2022
At 5 p.m. today, the province-wide demand for power was just over 19,000 megawatts on a warm summer afternoon.
The closest wind power plant to Ottawa is at Crysler (Finch, Berwick). At that hour, the 100-megawatt facility was generating just 7 megawatts of power. Next closest is Amherst Island’s Windlectric project, also producing just 7 megawatts of power.
Wind in total that hour was producing 395 megawatts of power.
Ottawa city staff on the climate team have made it clear they think Ontario’s second largest city can run on “predominately wind and solar.” On May 17th, section manager Andrea Flowers told the environmental protection committee that “we have explicitly said that [the energy resource for the city] would include renewable energy generation both wind and solar”.
Commentator and former international banker Parker Gallant has made much of Ontario’s unavailable wind power supply in recent days. He says, if you completely shut down Ontario’s wind power fleet, you wouldn’t notice a thing. Why?
It’s not there.
Here’s what he had to say about one day’s performance earlier this week:
“Yesterday, July 13, 2022, was one of those; not so hot summer days in most of Ontario so according to IESO (Independent Electricity System of Ontario) peak demand at hour 16 only reached 18,135 MW during a five (5) minute interval. At that hour those IWT (industrial wind turbines) with a capacity of 4,900 MW were contributing 108 MW or 2.2% of their capacity and 0.6% of demand. Had they been absent they wouldn’t have been missed!”
Gallant also wrote an article for The Financial Post this week in which he described wind as a “fickle energy friend.” In a day not unlike today, July 13th saw wind producing a few hundred megawatts of power while demand was more than 19,000 megawatts.
Who did show up for work that afternoon? Gallant answers the question:
“What sources did the work at this peak-demand hour? Here’s the breakdown:
Nuclear 9,529 MW
Hydro 5,222 MW
Natural Gas 4,336 MW
IWT 332 MW
Solar 207 MW
Biofuel 115 MW”
Ottawa’s Energy Evolution document, the “action plan” for the Climate Change Master Plan and the first step in implementation, actually calls for Ottawa to get its own 3,200 megawatts of wind power, which they translate into 710 wind wind turbines ( Energy Evolution, page 45).
The model states that those are the MINIMUM required for the city to get to “Net Zero” and electrify everything — a worthy goal, but not going to happen with wind power. No cost-benefit analysis was included.
Ottawa voters need to ask election candidates a few pointed questions leading up to the October municipal election.
Are you aware of the Energy Evolution plan?
Have you read it?
Do you support more than 700 wind turbines in Ottawa’s rural communities, effectively turning them into industrial power plants?
Oh, did we mention the Energy Evolution is priced out at $57 billion?????
Time to ask questions.
Ottawa Wind Concerns is an incorporated, not-for-profit group, with a membership list of several hundred residents of rural Ottawa communities and other stakeholders. We are a community group member of the Wind Concerns Ontario coalition.Our goal: a safe environment…for everyone
Turbines on Wolfe Island: hidden costs to wind power affect electricity customers
March 2, 2020
Ontario’s fleet of wind turbines cost electricity ratepayers more than $24 million last weekend, says retired bank executive now energy commentator Parker Gallant.
That was mostly due to the fact that wind — as usual–produces power out of phase with demand, but there is a lot more to the costliness of industrial-scale or grid-scale wind turbines, as he details in a recent article here.
Some added costs of wind power or Industrial Wind Turbines (IWTs):
Increased electricity costs due to the need for duplicate power sources such as gas plants.
Increased surplus power which must be curtailed or sold for pennies on the dollar.
Increased costs due to IWT inability to generate power when actually needed.
Increased surplus power from IWT often means other clean sources must either spill (hydro) or steam off (nuclear) power which adds costs to our electricity bills.
IWT kill birds and bats, many of whom are “species at risk” meaning insects, damaging to crops, are not eaten and farmers must spray their crops with insecticides adding costs to produce.
IWT may affect tourism areas driving away tourists and thereby affect income to those regions.
IWT cause various health problems requiring our health system to respond to individuals affected, thereby adding to health care costs.
IWT cause property values to fall affecting the realty tax base where they operate and the value of the property should the occupants try to sell after the installation of those IWT has occurred.
IWT lifespan is relatively short (20 years at most) compared to traditional sources of electricity generation and when unable to perform, create costs of remediation and disposal of recyclable and non-recyclable materials they consumed when built and erected.
The property value loss from the North Gower project that was proposed in 2008, got a contract to generate electricity from the IESO in 2010, but ultimately failed in a reorganization of the The Feed-In Tariff program, would have been in the millions.
At the time, Ottawa Wind Concerns estimated the property value loss for homes within 3 km of the multiple turbines would have been $134 million.
The current Ontario government has pledged to reduce electricity bills by 12%, but the many expensive wind power contracts signed by the previous government will go on for more than a decade.
Power that could be produced “like a fly on the flank of an elephant” says energy watcher Parker Gallant
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.
*The Toronto Star reported in an article dated October 19, 2016 the next Ontario election would be on June 7th, 2018
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.
“Assertions are complete nonsense … only wilful blindness would suggest that wind and solar are low cost”
Recently, energy analyst and occasional columnist for The Financial PostParker 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.
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)
Wind power contracts should be cancelled to control electricity costs: Mike Baggott of Ottawa Wind Concerns
Ottawa Wind Concerns was an invited guest speaker this week at a pre-budget consultation event held by Nepean-Carleton MPP Lisa MacLeod, at the Alfred Taylor Centre in North Gower.
Executive member with the group and North Gower resident Mike Baggott told the audience that while Ontario’s electricity bills are among the highest in North America, more costs, specifically expensive wind power contracts awarded to power developers, were yet to come.
“Everyone wants to do the right thing for the environment,” Baggott explained, “but has the Ontario government done the right thing?” Two Auditors General said there was never any cost-benefit or impact analysis for the province’s green energy plan, and the Wynne government pays twice as much for renewable energy as other jurisdictions do. The expensive wind contracts are among the factors pushing electricity bills up.
“As high as our bills are now,” Baggott said, “they will get worse if projects in Ontario recently awarded contracts are allowed to proceed.”
He noted the power projects in La Nation, east of Ottawa, and North Stormont –both opposed by the local communities — will cost Ontario ratepayers over $600 million for the 20-year contracts.
In all, Ontario is facing $5 billion in new wind power contracts, at a time when the province has a surplus of power. Wind power also cannot demonstrate any benefits to the environment, Baggott said.
“It’s time to stop digging the hole,” Baggott concluded.
The main speaker at the event was Parker Gallant, a former banker whose energy sector analysis is frequently published in The Financial Post, who explained line by line, “What’s in Your Hydro Bill.”
MPP MacLeod outlined steps that can be taken to control electricity costs, and answered questions from the audience.
“It’s hard not to get depressed when you hear, line by line, how we got here with our electricity bills,” commented Rideau-Goulbourn councilor Scott Moffatt.
Parker Gallant: what’s in your hydro bill? A lot of government mistakes
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.
The second event will be in early March, location TBA.
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.
WCO vice-president Parker Gallant and president Jane Wilson speak on Ontario’s mismanaged electricity sector, energy poverty, wind turbine noise regulation, and what’s ahead for 2017
(C) Wind Concerns Ontario
Q:You’ve been telling people about the impact of renewables, specifically wind power, on Ontario’s electricity or hydro bills. How much of our electricity bills is due to the wind power/renewables program in Ontario?
Parker Gallant: I recently reviewed the cost of wind and solar generation relative to its contribution to Ontario’s demand for electricity and its impact on our electricity costs is shocking. Wind and solar in the first six months of 2016 delivered 8% of our generated power and represented 35% of the Global Adjustment which appears set to average over $1 billion per month. That represents a cost of over 36 cents a kilowatt hour (kWh), including the hourly Ontario energy price (HOEP).
Q: Parker, you’ve also been telling people about the Global Adjustment or GA, which is where a lot of charges are hidden. Do you think these charges should be detailed on our bills, or is that even possible?Parker Gallant: While I believe in principle the GA should be revealed on our monthly bills, in practice, that would require reams of paper. How will the local distribution company explain how much you are billed for curtailed wind generation or the meteorological stations that measure the amount of curtailed wind that might have been generated? How to explain, say, the cost of spilled hydro or steamed off nuclear or the water fuel fee, or how to tell the ratepayer how much they are subsidizing the rates for large industrial clients, or what it is costing under the rural and remote rate plan (RRRP) that transports diesel fuel to remote First Nations, among dozens of other items included in our monthly bills?
Q: The Premier and Energy Minister are now saying that parts of their policies have been a “mistake” and that they need to get bills down. Wind Concerns is saying that canceling wind power contracts is necessary for that to happen. Can you explain? How much are the 2016 contracts worth?
Parker Gallant: Interesting they are now admitting a “mistake,” but when George Smitherman was Energy Minister he was provided with a long-term energy plan that had been carefully developed by “experts” within the crown agencies. He chose to cancel the plan and instead, impose one developed in conjunction with outsiders who were NOT experts. Previous Energy Ministers (Dwight Duncan comes to mind for his “smart meter” for every ratepayer) made mistakes, as did those who followed such as Brad Duguid and were roundly criticized by both the media and by ratepayers. The canceling of wind power projects not yet built or even contracted is only “step one” and will slow the climb in our bills. The current Minister, Glenn Thibeault has only suspended Large Renewable Procurement or LRP ll, and needs to cancel it, as well as LRP I and any of those contracts now past their agreed-to start date. There are ways to reduce costs almost immediately.
Jane Wilson: Wind Concerns Ontario prepared a detailed document for the IESO on the Long-Term Energy Plan, suggesting ways they could save $1.7 billion annually. That would have an immediate cost reduction impact.
Q: The Energy Minister says that now, Ontario is a “net exporter” of electricity like that’s a good thing. He claims we’re making money: is that true?
Parker Gallant: Being a “net exporter” of 16.8 terawatts (TWh) in 2015 is simply a demonstration of being a bad planner and manager of the system. If one adds the spilled hydro and curtailed wind to the net exports, the 21.2 TWh could have provided over half of all average Ontario households with power for a full year, yet we sold it 2.36 cents/kWh while we paid 10.14 cents/kWh for its generation. Ontario contracted for far too much intermittent and unreliable wind and solar power creating a domino effect the increased our costs of generation. Paradoxically, if Ontario ratepayers consumed more of the annual excess power (15.5% in 2015) it would help reduce our per kWh cost.
Q: What is WCO’s stance on climate change?
Jane Wilson: Our position is that everyone wants to do the right thing for the environment, whether that is preventing air pollution or using the most efficient forms of power generation — but that isn’t industrial-scale wind. For example, the Ontario Society of Professional Engineers or OSPE says that the proliferation of large-scale wind will actually increase greenhouse gas emissions, therefore not achieving the government’s stated goals. In the OSPE’s most recent report, they say “Wind generation offers less GHG reduction value in Ontario because base-load generation is already carbon-free and wind generation often displaces hydroelectric and nuclear base-load generation.”
Q: Why does the Ontario government continue to force wind turbines on communities that don’t want them?
Jane Wilson: The government is acting on an ideology that is not supported by fact and to do that, it erased communities’ right to local land-use planning with the Green Energy Act. We think that’s wrong, and are supporting the now 116 municipal governments that have demanded a return of that control and also that community support be mandatory for wind power contracts. There is a concern too about communities in the North where there may not be elected municipal governments, where contracts can be awarded for wind power projects that have a significant negative impact on the natural environment, for little or no benefit.
WCO worked with Ontario municipalities on the mandatory support resolution.
Q:Can the government really cancel wind power contracts? Can a new government cancel the subsidy programs?
Jane Wilson: Yes. There are clauses in the contracts under LRP I that are “off-ramps” in the case of cancellation, and which set out the financial steps needed to do that. For example, the contract with EDP for the “Nation Rise” project south of Ottawa in North Stormont, worth $430 million over 20 years, would cost $250,000 plus reimbursement for development costs that must be justified, to a maximum of $600,000. And yes, government can cancel subsidy programs. The LRP II, now “suspended”, should be cancelled outright.
The other opportunity is to cancel wind power projects that do not have a “Notice-to-Proceed”: this is straightforward. WCO has also suggested to the IESO that the government look seriously at all contracts and review them for opportunities to cancel. Even costly negotiated buy-outs will reduce hydro costs significantly, due to the high cost of disposing of surplus power.
Q: What is WCO doing to help people already living with wind turbines, and the noise they produce?
Jane Wilson: We support the public health investigation being done by the Huron County Health Unit, and hope that other municipalities will take similar action. We are also looking at how research can be done to help change the Ontario regulations on noise –which are not based on current science and in fact, are completely inadequate to protect health. We prepared a detailed document on how to revise noise enforcement regulations, another on how the approval process must be changed to protect health, and we submitted a document to the World Health Organization which is preparing global noise regulations for wind turbines. In short, we take every opportunity possible to explain the situation for people living in communities where wind turbines and their noise emissions have been forced, without consent, on the people of Ontario, with the goal of having regulations and processes changed.
Q: What’s ahead in 2017?Jane Wilson: It’s a very different world for wind power now, than in 2009 when the Green Energy Act was passed. People are genuinely questioning the benefit of high-impact, large-scale wind power development, especially when there seem to be few, if any, benefits, and we are seeing the shocking results of the government’s complete mismanagement of the electricity sector such as lost jobs and rising energy poverty. We believe the government will have to take dramatic action if it is serious about getting electricity bills down. The fact that Ontario municipalities are speaking out on this issue and taking action will also have results, we believe. We are hoping for a complete halt to the ongoing damage of the government’s policies, and that there will be help for people already living with the noise and other impacts of industrial-scale wind turbines.
As for Wind Concerns Ontario, we are not stopping our work.
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
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.