Adams and McKitrick: How green energy is fleecing Ontario electricity consumers

Tom Adams and Ross McKitrick have a column in the Financial Post which promotes their study being released tomorrow by the Fraser Institute.

This promises to be a report I’ll appreciate, having noted many times the systemic costs of growing intermittent renewables (very recently here)

How green energy is fleecing Ontario electricity consumers 

Green industry advocates, including the consulting firm Power Advisory and advocacy group Environmental Defense, have added up the direct payments to new renewable generators, and concluded that since those costs are relatively small, the impact of renewables on the total cost of power is likewise small.

However, such analyses ignore the indirect costs that arise from the way renewables interact with the rest of the power system. Adding renewable generating capacity triggers changes throughout the system that multiply costs for consumers through a mechanism called the Global Adjustment. Our new study, released Wednesday by the Fraser Institute, quantifies the impacts of different types of new generators on the Global Adjustment. The analysis pinpoints what causes the raw deal for consumers.

…Our analysis unpacking the costs of different types of generation shows that the consumer impact of new renewables substantially exceeds the direct payments to those generators by as much as 3 to 1. And renewables are a big part of the problem: Wind and solar systems provided less than 4% of Ontario’s power in 2013 but accounted for 20% of the commodity cost paid by Ontarians.

The entire article can be read, and commented on, at the Financial Post

 

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