Ontario adds $100 million a year to electricity supply costs

The IESO has announced the contracting of more variable intermittent electricity.

  • 5 wind contracts totalling 299.5 MW, with a weighted average price of $85.94/MW…

  • 7 solar contracts totalling 139.885 MW, with a weighted average price of $156.67/MWh…

I am working on a post for my main blog that evaluates the value, and cost, of Ontario’s move off of coal, as well as it’s Green Energy Act facilitated mass contracting of industrial wind turbines and solar panels. From the template I’ve done for that post, I evaluated the implied carbon costs of this latest procurement.

LRP implied

$446 per ton of carbon dioxide equivalent is the implied carbon cost calculated in my simple estimate.

I’d wonder if the IESO has a figure they calculated while determining the value of the procured supply, and not simply the cost – but from the contracts awarded it’s highly unlikely value was considered.

Another 110 megawatts (MW) of wind in Chatham-Kent is quite simply stupid. This area is showing, in my tracking, rapid increases in the amount of curtailed supply already over the past 4 months – and there is more slated to enter service. Belle River and North Kent 1 are both 100 MW wind projects, and a 50 MW solar installation is coming to Windsor.

There is no reason for more power in that region of the province.

The 44 MW of Nanticoke is notable too – due to the connections of the proponents (OPG and SunEdison) noted by Tom Adams.

The head of the IESO should resign, and a professional engineer – not a lawyer and lifelong bureaucrat- sought who is capable of understanding what value is, and leading an organization in providing it.

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2 thoughts on “Ontario adds $100 million a year to electricity supply costs

  1. […] This is from the recent Large Renewable Procurement. Again there’s a difference in value between sources – and even pricing is difficult because curtailment is soaring. The LRP contract includes some unpaid curtailment, but basically assumes 2014 levels – curtailments doubled that in 2015 and by my tracking are trebling in 2016. Some hand wavy calculations I won’t do, but what’s driving the overall curtailment percentages is local surplus’ where new turbines are built near old. I wrote on curtailment here – with a quick recent post here – and one specifically on LRP contracts here. […]

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