Tag Archives: wind farm subsidies

Wind power costly, not reliable

27 Tuesday Oct 2015

Posted by in Renewable energy, Wind power

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CanWEA's Hornung: his definition of 'reliable' is a bit off

CanWEA’s Hornung: his definition of ‘reliable’ is a bit off

Wind power: unreliable, and costly

Re-posted from Wind Concerns Ontario, with permission

Robert Hornung, president of the Canadian Wind Energy Association (CanWEA), frequently uses the word “reliable” when expounding on the purported benefits of generating power from wind.  Here are a couple of them: “Wind energy is meeting Canada’s demand for new electricity in a clean, reliable and cost-competitive way,” says Hornung. And this one: “Wind energy provides reliable power”.

Hornung’s use of the word “reliable” is not the same as Webster’s defines it: “to be relied on” and “giving the same result on repeated trials”.   His use of the term “cost-competitive”  fails the same test!

Some recent events offer contradicting evidence on the issue of wind’s “reliability” as a power source.

On October 5, 2015 wind production for the full 24 hours was 2,636 megawatts (MW) averaging 110 MW per hour—that represented just 0.5% of Ontario’s average demand of 16,394 MW per hour.   Now measured against Ontario’s average hourly demand of October 19, 2015 at 14,997 MW is an interesting contrast.  Ontario’s industrial wind turbines (IWTs), with an IESO1. reported capacity of 3,427 MW, were producing an average of 2,474 MW per hour, and in  24 hours cranked out 59,389 MWh, representing 16.5% of the average hourly demand.  The lower demand day of October 19th  (9.4% less than October 5th) saw those IWTs producing power at very high levels, which coincidentally resulted in average hourly exports 760 MW higher per hour.

The connection to high wind power generation and higher exports is obvious, as is the lower average of the hourly Ontario energy price (HOEP). October 5th that was $30.99 per MWh, but only $21.62 (30% lower) on October 19th.

What does it mean? Ontario’s ratepayers subsidized wind on the higher demand day by picking up the cost of $252K (2,626 X $127/MWh2. = $333K – $81K [2,626 X $30.99/MWh]  = $252K).   Compared to the subsidy picked up by Ontario’s ratepayers on October 19th , however, that was a bargain.  On the latter day the cost was considerably more at $6.2 million (59,389 MWh X $127= $7.5 million – $1.3 million [59,389 MWh X $21.62/MWh] = $6.2 million).

Mr. Hornung and CanWEA may consider “reliable” to mean Ontario’s ability to supply our neighbours in New York, Michigan and elsewhere with power that is “cost-competitive.”  It’s just not in his best interest to express it that way.

CanWEA needs to find new talking points that deal with the facts: power generation from wind is totally unreliable and anything but cost-competitive!

©Parker Gallant,

October 25, 2015

  1. IESO do not report the full capacity until the IWT are commissioned by them, whereas the full capacity may be considerably higher.
  2. The OEB estimates the average cost of wind generation at $127/MWh.

 

P.S.: Hour 18 on October 24, 2015 saw a new record for wind generation in Ontario with  3,123 MWh meaning IWT were operating at over 91% of capacity, and the HOEP (hourly Ontario energy price) was $13.36— subsidies were $350K for just that hour.

Big Wind’s “Big Bonanza” in Ontario: subsidies benefit a few corporations, not ratepayers

04 Wednesday Feb 2015

Posted by in Renewable energy, Wind power

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From the Financial Post Comment, February 4, by Brady Yauch, executive director the Consumer Policy Institute

When the Ontario government launched its Green Energy Act (GEA ) in 2009, it promised “new green economy jobs” and ” a wide range of economic opportunities.” Then Minister of Energy George Smitherman argued that the GEA would be a boon to Ontarians of all stripes: “We see opportunities in our rural communities for farmers, not just to lease their land for big companies that are the proponents of wind farms, but indeed for clusters of farmers to see themselves as investors in projects…. the emergence of thousands of smaller green energy projects—microgeneration—in urban as well as rural areas.”

Yes, everyone would need to pay a little more for renewable power, the public was told, but the benefits would be widely shared, for the ultimate benefit of all. As it turned out, power rates didn’t go up a little – they soared. And the subsidies weren’t widely shared among the folk – a handful of billion dollar companies pocketed most of them, most of them outside the province.

According to an analysis by the Consumer Policy Institute and Energy Probe, 90% of the wind subsidies went to just 11 companies, 80% of the subsidies went to nine companies with annual revenues over $1-billion, 60% of the subsidies went to six companies with more than $10-billion in annual revenue.

As for the province’s claim that it wants to create an Ontario-based “green economy,” less than 10% of subsidies to wind generators went to small-scale or local owners.

Since 2006, when the province first started subsidizing wind turbines, the province has provided more than $1.92 billion in subsidies. This act of corporate welfare is far from over.

According to the Ontario Power Authority (OPA) – the provincial agency in charge of energy planning and contracting – the province has signed deals for another 2,630 MW of wind energy to come on stream in the coming years, on top of the 3,065 MW already in commercial operation. All of that generation will receive above market rates courtesy of ratepayers for their output. In total, the amount of subsidies to wind producers could hit $8-billion over the next decade and $13-billion over the next 20 years.

The list of companies receiving the lion’s share of subsidies reads like a “who’s who” in Canada’s energy sector and corporate heavyweights. Brookfield Renewable Energy (a subsidiary of Brookfield Asset Management), Enbridge and Transalta alone accounted for about 38 percent of all subsidies handed out to wind generators. Those companies combined brought in $54-billion in total revenue in 2013.

Samsung, which posted $217-billion in revenue last year, is expected to triple its wind capacity in Ontario – and the subsidies that go along with it – in the next couple of years.

The damage to ratepayers for such policies has been significant. Since 2009 – when the GEA was introduced – ratepayers in Ontario have seen the commodity cost on their energy bills climb dramatically, with the regulated price of power over that time having increased on average by 56%, or just over 9% annually – more than five times the rate of inflation, making electricity price increases worse in Ontario than elsewhere in Canada.

To make matters worse, the high rates being pushed onto ratepayers has lowered demand for electricity across the province in recent years. That means Ontario now has a significant surplus of power, which it then exports to neighbouring jurisdictions at a loss. Ontario ratepayers are now subsidizing the energy consumption of households in America and other provinces.

Nearly everyone is losing when it comes to renewable energy in Ontario – except for those few companies that planted industrial wind turbines across the province and are receiving billions in subsidies for their effort.

Brady Yauch is an economist and the executive director of Consumer Policy Institute. bradyyauch@consumerpolicyinstitute.org

NOTE from Ottawa Wind Concerns: The Library of Parliament, on request from MP Pierre Poilievre, estimated that IF the wind power project proposed for the North Gower-Richmond area of Ottawa by Germany-based Prowind had gone ahead (it almost reached approval), the 20-MW project would have cost Ontario ratepayers $4.8 million per year.