Tag Archives: renewable energy

Wind and solar power: the hidden costs

20 Tuesday May 2014

Posted by in Ottawa, Renewable energy, Wind power

≈ Leave a comment

Tags

, , , , , , , , , , , , , , ,

Wind power: not free

Wind power: not free

Here, from Ottawa-based energy-specialist economist Robert Lyman, a quick look at what many people don’t know (and aren’t getting told by the government or the wind power lobby) about the costs of generating power from wind and solar.

A must-read.

THE HIDDEN COSTS OF ONTARIO RENEWABLE ELECTRICITY GENERATION 

Ontario residents can be forgiven if they fail to understand the public debate during the current (2014) provincial election about the costs of different types of electricity generation and why these have caused electricity rates for consumers to rise so much over the past ten years. The complexity of the system makes it difficult to explain the costs associated with one source of supply, namely the renewable energy generation  (industrial wind turbines and solar power generators). In this note, I will nonetheless try to explain in layperson’s terms why these costs are significant.

Electricity supply in Ontario takes place within the framework of the policy and legislative framework established by the Ontario government, an important part of which is the Green Energy and Economy Act of 2009 (GEA). Historically, the goal of Ontario electricity policy was to keep electricity rates for consumers as low as possible consistent with the goal of maintaining adequate and reliable supply. Within the current framework, however, that is no longer the goal. The GEA seeks to stimulate investment in renewable energy projects (such as wind, solar, hydro, biomass and biogas) and to increase energy conservation.  To do this, it:

  • Changed the review process for renewable energy projects to reduce environmental assessment and hasten approvals
  • Created a Feed-in-Tariff that the Independent Electricity Systems Operator (IESO) must pay, guaranteeing the specific rates for energy generated from renewable sources (typically, the rates are fixed for the full term of the twenty year contracts, with inflation escalators)
  • Established the right to connect to the electricity grid for renewable energy projects and gave renewable energy source preferential access over other sources of generation
  • Implemented a “smart” grid to support the development of renewable energy projects
  • Eliminated local approval requirements that local governments previously could impose on renewable energy projects

The guaranteed rates paid under the FIT system are not negotiated based upon the actual costs of production. In fact, the actual costs of production are largely unknown. …

Read the full analysis here: THE HIDDEN COSTS OF ONTARIO RENEWABLE ELECTRICITY GENERATION

Horwath in Sarnia: still believes in wind farms

16 Friday May 2014

Posted by in Renewable energy, Wind power

≈ 1 Comment

Tags

, , , , , , , , , ,

The NDP has not released its official platform yet for the election, and has been sparing with details, especially on the energy sector. Some clues may be had, however, in this report from Sarnia where the NDP leader appeared yesterday. She was greeted by sign-bearing members of WAIT-PW/We’re Against Wind Turbines-Plympton Wyoming, a community that is facing multiple turbines.

Here is the report from the Sarnia Observer:

Paul Morden, Sarnia Observer, May 16, 2014

Horwath talked about electricity when her campaign bus stopped next to the St. Clair River and the Blue Water Bridge Friday morning after a meet-and-greet the night before at the Ups ‘N’ Downs pub downtown where she was greeted by anti-wind turbine protestors.

A 92-turbine wind project is current under construction in Lambton County, and another 46-turbine project is awaiting provincial environmental approval.

Both have led to protests by opponents of wind energy and the province’s Green Energy Act.

“We believe that the Liberals have made a mess of the green energy sector, as well,” Horwath said.

“It’s a sad day in Ontario when we have families pitted against each other, when we have neighbours pitted against each other, when we have communities pitted against each other.”

Renewable energy is something most people believe is a good thing but the Liberals decided to shut down community participation, “ignore the voices of local residents and rammed through projects,” Horwath said.

“That’s a wrong-headed way of doing things.”

She said the NDP believes there’s no need to call in international companies to get green energy up and running in Ontario. Instead, Horwath said she would encourage municipalities, farm co-ops and First Nations to develop projects that are scaled to their communities and benefit local residents.

“Instead we have this situation that has pitted people against each other,” she said.

“Its very divisive and, frankly, is a failure of the Liberals.”

Read the full story here.

European countries revising wind power contracts

20 Thursday Mar 2014

Posted by in Ottawa, Renewable energy, Wind power

≈ 1 Comment

Tags

, , , , , , , ,

Europe tearing up renewable energy contracts (you can too, Bob)

Europe’s renewable energy investors are facing a harsh reality – that the promises from politicians can be taken away at any moment. Canada’s renewable energy investors may soon face that same reality.
Idyllic isn’t it? Also not the truth.

Governments rip up renewable contracts

Brady Yauch, Special to Financial Post | March 18, 2014 | Last Updated: Mar 19 7:13 AM ET
More from Special to Financial Post

Companies ‘do not have a right [to expect the compensation] not to be changed’
Governments across Europe, regretting the over-generous deals doled out to the renewable energy sector, have begun reneging on them. To slow ruinous power bills hikes, governments are unilaterally rewriting contracts and clawing back unseemly profits.
In Italy, one of Europe’s largest economies and one that lavished billions in subsidies on the renewable sector, the government in 2013 applied its so-called “Robin Hood tax” to renewable energy producers. Under the new rule, renewable energy producers with more than €3 million in revenue and income greater than €300,000 must now pay a tax of 10.5%.
That follows a 2012 move to charge all solar producers a five cent tax per kilowatt hour on all self-consumed energy. The government also told solar producers that it would stop taking their power – and would offer no compensation – when their output overwhelms the system.
The result of these and other changes, says the solar industry, has been a surge in bankruptcies and a massive decrease in solar investment.
In Belgium – where both regional and federal bodies hand out renewable subsidies – a number of retroactive changes have capped the largesse renewable producers once received. In one region the price for “green certificates” – which producers received for renewable energy – was slashed by 79%. The government original committed to buy green certificates at a benchmarked price for 20 years, then cut it to 10 years.
Belgium’s regulators tried to impose a fee on all energy added to the grid from small- to medium-sized solar producers. While the country’s court of appeals struck down that fee, a defiant regional government plans to reintroduce it next year, forcing all solar producers to pay an annual fee that varies with the power they pump into the grid. Various municipalities, meanwhile, are introducing taxes on new and existing wind turbines.
As in Italy, Belgium’s renewable sector in the county has gone dark –“imploded” in the view of a solar industry publication. Many companies shrank or went bankrupt.
In France the government last year cut by 20% the “guaranteed” rate offered to all solar producers, and retroactively applied it to projects connected to the grid in the previous three months. The government is also considering ending an 11% tax break on solar energy producers.
Perhaps the most dramatic moves occurred in Spain, for years the poster child for those touting a transition to green energy. Since 2000, Spain has given renewable producers $41-billion more for their power than it has fetched on the open market. To recover those subsidies, the Spanish government recently killed its Feed In Tariff (FIT) program for renewables,….

Read the full story here.