I am writing on the very poor paper CanWEA paid for to debunk the Fraser study. My Cold Air study will support the criticisms made by McKitrick and Adams in “Hot air from the wind power lobby”
Wind and solar power are key drivers behind Ontario’s surging electricity prices
On Oct. 30 we published a Fraser Institute study entitled “What Goes Up… Ontario’s Soaring Electricity Prices and How to Get Them Down.” We analyzed the factors driving the rise in Ontario’s electricity prices, focusing on the so-called Global Adjustment (GA), which is a non-market surcharge set by the province to fund payments to electricity producers for above-market revenue guarantees. Our econometric analysis allowed us to track not only the impact of direct payments to power generating firms but also indirect effects arising when one distorted production decision subsequently distorts the incentives of others, boosting overall provincial liabilities. Among other things we found that adding wind power to the grid increases costs by about three times the amount of the direct payments to wind turbine operators, with the interaction effects making up the difference.
On November 3, The…
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