New academic wind farm toolkit disappoints

The need for mandatory community support and proper mitigation of harmful effects from wind turbines is acknowledged, but there is still no definition of who is “local” or a community, Wind Concerns Ontario says.

February 13, 2017

Map of municipalities formally demanding change to the IESO wind power bid process, to July 14, 2016 — a lot of unhappy communities

A Western University PhD candidate and a professor at the university have produced a “toolkit” on wind power development in Nova Scotia and Ontario, which purports to summarize social responses to wind power projects, and offer a set of recommendations.

The document is based on a survey of residents living near several selected wind power projects. It was prepared in association with Communities Around Renewable Energy Projects or COAREP, a “project”  designed to “produce original research and outputs to contribute to constructive and sustainable dialogue within and between rural communities and other wind turbine stakeholders.” COAREP is funded by the Metcalf Foundation.

The authors Chad Walker and Jamie Baxter explain the “toolkit” initiative: “The toolkit also explores some novel forms of planning mechanisms and benefit packages based on the preferences of those residents. We find high levels of support for systems that would allow for independent experts during planning stages, investment opportunities for local residents, and discounts on electricity for those living close to turbines. The paper closes with a list of nine principles which are intended to summarize the key points of the document.”

The “Toolkit” may be downloaded here.

Significant differences were noted between the people surveyed in Nova Scotia and Ontario, the authors noted.

Wind Concerns Ontario had the opportunity to view the toolkit in draft form several weeks ago; we were very concerned about the complete lack of any discussion of adverse health impacts, property value loss, and the fact that the wind power program in Ontario was launched without any cost-benefit or impact analysis (a fact pointed out by two Auditors General) — the situation in Ontario today is that the province has a surplus of power, the cost of signing expensive contracts for renewables like wind power has been a significant factor in driving electricity bills up, yet communities are being forced to “host” the power projects with little or no benefit locally, or to the province.

Wind Concerns Ontario also noted that there was very little real community consultation performed as part of the toolkit development process.

The authors acknowledged Wind Concerns Ontario’s contribution: “Wind Concerns Ontario submitted a 23-page report in response to the toolkit, outlining a range of issues not covered in much detail in the toolkit, but highly relevant to the issue of wind turbine facility siting. We have edited the toolkit considerably as a result …”

“While the creation of a ‘Toolkit’ is a worthwhile objective, it needs to be aligned with the realities being experienced by the host communities if it is to be useful as a framework for assessing interactions with these communities,” Wind Concerns Ontario said in its comment paper to Walker and Baxter.

“It is a concern to us that the work done in developing this ‘Toolkit’ seems to have included very limited communication with Ontario communities. To understand the full impact of wind turbines on a community, the contents of the current draft suggest that the authors need to have more direct contact with the people who are being affected by wind turbines. These are the people that are coming to WCO for information and assistance and forming local support groups to deal with the problems being created.”

While the Toolkit authors maintain that better communication (and money) is all that stands between communities and acceptance of wind power projects, WCO said that for the communities forced to lived with the power plants, the false mythology of wind power has been disproved.

“Over the past six years, the government claimed a number of benefits from the green energy program, including the following:

  • The investment in wind turbines allowed coal plants to be closed. Fact: the Asthma Society this year presented a certificate to Bruce Nuclear in Kincardine recognizing the role of the refurbished nuclear facilities in allowing this change to be implemented.
  • The investment in renewable energy technology creates jobs. Fact: Most jobs created are lower-skill, short-term construction jobs. In the 2011 report, Ontario’s Auditor General warned that studies in other jurisdictions which showed two to four jobs were lost due to increased electricity costs for every job created.
  • Surplus electricity is being sold to other jurisdictions at a profit. Fact: the IESO’s reporting shows that the revenue recovered is below the rates provided for in the wind turbine contracts. Neighbouring jurisdictions are now promoting their lower electricity rates to lure Ontario businesses to relocate.”

WCO pointed out flaws in the research behind the Toolkit development, in particular the fact that the power projects studied were small compared to many developments in Ontario. The use of the Gunn’s Hill wind power project was particularly questionable, WCO said, because while nominally a “community” group invested in the power project, in fact few locals were in the investment group—at the same time, residents fought the project from the beginning, even launching an appeal before the Environmental Review Tribunal.

“It is odd to suggest that this outside group hiding behind the façade of a community organization, will change local population’s perception of the project,” WCO wrote. The situation is confirmed by the survey results which indicate that the project, even in its new format, does not have community support.  Concerns about impact of the noise emissions on the nearby resident population take precedence over sham organizational structures.

This situation raises the question of how the authors have defined ‘community involvement’ in its analysis of the benefits. To be considered as having an impact on project acceptance, it would seem appropriate to include only groups that are located within a limited distance of the wind turbine project.  There also should be some measure of how the group reflects all the residents in an area.  In many wind turbine projects, a small group of landowners agree to participate and impose a project on a community despite the wishes of the wider community.  Creating a ‘community’ structure around these landowners does not change the basic relationship.”

Perhaps as a result of the WCO comment submission, the authors added an eighth principle to the document, related to adverse health effects and other issues with industrial-scale wind turbines:

Principle 8: Financial benefits are not a replacement for proper mitigation

Though residents living near turbines are dissatisfied with the amount of benefits and particularly how they are distributed among the people living closest to turbines, this does not mean that paying residents will quell concerns. Addressing the mitigation of negative impacts from turbines e.g., noise, vibration – and clearly establishing the need for new facilities – should still be viewed as priorities.

Principle 6 also acknowledges support for mandatory community support as part of the wind turbine siting process (i.e., as WCO says, contracts should not be awarded without community support as a mandatory requirement) and further, that any discussion in a community about he possibility of a wind power facility should occur BEFORE lease negotiations. In Ontario, the practice is to sign up leaseholders and by the time the community is aware of a potential power development, all the documents have been signed.

We remain disappointed that many in the academic world seem to be unmoved from the ideology of wind power development, while the real world community experience provides a different view.

Read the Wind Concerns Ontario critique of the draft Toolkit here: UWOToolkit-commentFINAL

 

The bluster about Ontario’s ‘community’ wind farm

February 6, 2017

Last week, the wind power communications machinery was touting the virtues of the Gunn’s Hill wind power project which they claim is Ontario’s first real “community” wind power project, half-owned by the local community.

The project’s success was owed to its partners, the Oxford Community Energy Cooperative, a (non-local) First Nation, and Bullfrog Power as well as the Germany-based power developer, Prowind.

The story was repeated on CBC’s Ontario Morning.

Community-based? Not so fast.

Retired engineer William Palmer wrote to correct the CBC on their assumptions, with this letter.

I listened with interest this morning as Wei Chen spoke with Miranda Fuller, Communications Director of the Gunn’s Hill Wind Project about this “community project” of the Oxford Community Energy Cooperative.

We learned:
– it is a project with 49% community ownership
– 33% of the members of the cooperative live in Oxford County

We heard also learned of the other owners, ProWind Canada, and Six Nations of the Grand River Development Corporation.

Let’s look a little deeper at this community involvement.

The Cooperative Web Site says, “The present membership consists of 160 individuals and organizations that live in the project vicinity, Oxford County and all of Southern Ontario,” to whom $9 million in shares and debentures were sold.  Yet, to be a member of the cooperative the minimum share is $100, so not every member needs to be a major investor. It is interesting to read who some of the other members of the cooperative are – including the project developers. Elsewhere the website says there are 186 members.

So that means there are about 33% of 186 = 62 members of the cooperative that live in Oxford County … which Wikipedia tells us had some 105,719 residents in 2011, so we can see that 0.06% of the county population are supporters. It’s not exactly a wide support base in the county.

You might be interested in knowing that at the Environmental Review Tribunal the Township of Norwich Councillor for the impacted ward, Mr. Wayne Buchanan spoke of the Township of Norwich’s past and ongoing objections to the Project. He presented three letters to the Tribunal, one from the Township to Premier McGuinty asking for a moratorium on wind turbine developments, one to the Approval Holder (developer) asking for a delay in the development until noise and health studies are available, and one to Premier Wynne noting that the Township of Norwich was an unwilling host of industrial wind turbines.

You might also be interested in knowing that the office of the participating Six Nations of the Grand River Development Agency is located over 50 km from the wind turbines. It is a financial investment, but not exactly in their neighbourhood.  (A similar case occurred in the community of Dutton Dunwich, where the participation of First Nations groups included First Nations located near the Manitoba Border or James Bay, but not the local First Nation.) “Points” are received by the Ontario Renewable Energy Approvals process for “community involvement, or for First Nations involvement, even if they are not from the impacted community.

Now, why would folks invest in such a development?  Well, the 10 turbines of Gunn’s Hill will be paid some (10 x $135 a MWh x 1.8 MW x 8760 hours a year x 24% capacity factor) = $5,108,832 a year for the estimated 37,843 MWh they will produce – whether the electricity they produce is needed or not (as wind developers can be paid to curtail operation or not produce when the electricity is not needed).  Interestingly, had the power been produced instead by Bruce Power, the payment would have been less than half as much.  That $5 million a year for a 20 year contract, is pretty good return for a project with a total investment of perhaps $40 million. Few other (government supported) investments will return some 12.5% a year on a guaranteed basis for 20 years. Sadly, the power consumers of Ontario, including those who cannot afford to pay their electricity bills, are the payees of that investment return.

Wei Chen started to ask a question that deserved an answer … about how people will think when their electricity bills arrive. Ontario simply cannot keep paying twice as much for a product that is delivered best at times when it is not needed … and then pay Michigan or New York State to take the excess off our hands (or at the very least give them the electricity for free to power their industries) without adversely impacting power rates in Ontario. It is no wonder that Ontario rates are climbing so rapidly.

I thought that Wei Chen or other Ontario Morning staff might be interested in scanning  what concerns I would have presented to the Environmental Review Tribunal where I was accepted as an expert witness, had they chosen to accept all my testimony. (They did not, and what was presented was only a fraction of what was initially prepared for them). A copy of my presentation as initially offered to the Environmental Review Tribunal is attached, and signed as a Professional Engineer.  I note that many others in the community also made presentations – again with only partial acceptance by the Environmental Review Tribunal.

I have blind copied a few of the local participants and interested bodies who may not have heard your interview this morning and who may wish to contact you to confirm if what you were told was accurate that “once the turbines are in operation the project is accepted” or as Miranda Fuller noted, people see the turbines as “majestic.”

One of the Gunn’s Hill wind turbines. Photo taken from a non-participating, non-consenting and not happy neighbour’s home.

Amherst Island court appeal begins January 31

January 30, 2017

Ten species of owls on Amherst Island

Tomorrow, January 31, the Association to Protect Amherst Island heads to Ontario Divisional Court to appeal the decision by the Environmental Review Tribunal to allow the approval of the Windlectric wind power project on the island to stand, despite concerns for the natural environment and human health.

Despite the legal actions, Windlectric, owned by Algonquin Power, is proceeding with work on the power project — even without proper permits, From the APAI website:

Windlectric/Algonquin, the company granted approval to blanket Amherst island with 26, 50-storey turbines, has commenced dock construction on Amherst Island. The Company has not submitted a Marine Safety and Logistics Plan required by MOECC nor has it submitted an Operations Plan acceptable to Loyalist Township. No acceptable Emergency Response and Communications Plan is in place. No Roads Use Agreement with the County of Lennox and Addington has been approved.  In its first weeks of work the company blatantly disregarded commitments to only use the Island ferry for dock construction, to not disrupt the ferry schedule, to give notice of traffic disruptions and to consult with Amherst Island Public School staff and parents concerning road safety by the school. Not a good beginning!

On the eve of the court case beginning, Parker Gallant has published an overview of the situation on Amherst Island, and included the power situation in Ontario generally, here. An excerpt:

So, Ontario has a “robust supply” of electricity, wind turbines will harm the 34 endangered species, and we are exporting surplus generation at pennies on the dollar while curtailing wind, spilling hydro and steaming off nuclear energy.   Ontario doesn’t need the intermittent power from the turbines on Amherst Island. We don’t need them in Prince Edward County either (White Pines) or Dutton-Dunwich, or La Nation, or North Stormont. The Minister should demonstrate that he means what he said recently in North Bay:  “There are some families in this province that are struggling to meet their energy bills. It’s why I’ve recognized and the premier has recognized that we need to do more …That is why we’re making sure we can find ways to reduce bills. Everything is on the table within reason.”

The Minister has an opportunity to save ratepayers $1 billion dollars in future rate increases by simply canceling the Amherst Island Windlectric project and the Prince Edward County White Pines project, to name two.

He should take it.

The Amherst Island appeal begins at 10 a.m. at Osgoode Hall, in Toronto.

To contribute toward APAI’s legal fund, go to their website.

Advice to the Energy Minister on the new energy plan: get out of wind

Advice to Energy Minister Glenn Thibeault: get costs down
Advice to Energy Minister Glenn Thibeault: get costs down

Parker Gallant on his Energy Perspectives blog, has summarized some of the comments made to the Ontario Ministry of Energy, when it requested input for the new Long-Term Energy Plan (LTEP).

Predictably, the wind power trade association and lobbyist said more wind power is needed, but other organizations such as the Canadian Taxpayers, the professional engineers, and the Ontario Chamber of Commerce have different ideas. They think the new plan should focus on cost — otherwise, as the Canadian Manufacturers and Exporters warned, investment and jobs will go elsewhere.

The comments from Strategic Policy Economics were pointed: wind doesn’t work.

Marc Brouillette’s excellent submission on behalf of Bruce Nuclear also carries some sane observations such as “Wind generation has not matched demand since its introduction in Ontario” and, “Over 70% of wind generation does not benefit Ontario’s supply capability.” And this one, which is becoming more evident as ratepayers are forced to pay for curtailed generation: “Wind generation will not match demand in the OPO Outlook future projections as 50% of the forecasted production is expected to be surplus.”

Read the posting here.

Municipalities demand halt to wind power ‘exploitation’ in Ontario

Public declaration demands cancellation of wind power procurement, and re-focus of energy policy by the Wynne government

Mayor Higgins (Photo CBC)
Mayor Ron Higgins: representing 25% of Ontario municipalities in fight against Green Energy Act(Photo CBC)

January 9, 2017

The Ontario Multi Municipal Group has issued a public declaration stating it wants the “exploitation” of rural Ontario by the wind power industry, aided by the Ontario government, to end.

“The implementation and expansion of renewable energy (industrial-scale wind turbines and large solar power projects) has developed to the point that it has caused hydro costs to increase, caused a division between rural and urban municipalities, and caused the citizens of Ontario to lose faith in democracy,” says Ron Higgins, Mayor of North Frontenac, in the document.

The municipal group was formed at the last meeting of the Association of Municipalities of Ontario (AMO) after 115 municipalities, or 25 percent of all municipalities in Ontario, passed resolutions demanding that municipalities get final say in the siting of renewable power projects.

“We are now speaking out on behalf of all those communities,” Higgins says.

Rights of communities ‘neutralized’

The Green Energy Act of 2009 removed the right to carry out local land-use planning for power projects –the Multi Municipal Group says that’s wrong. “It neutralizes the rights of residents of rural Ontario to advocate for, rely on and claim the benefit of sound land-use planning principles,” Higgins says. “It amounts to a form of discrimination.”

In the public declaration document, the group lists the impact of Ontario’s wind power program, saying it has not brought the economic benefits promised by the McGuinty government and in fact has resulted in an economic burden and energy poverty. They also say that no environmental benefit has been demonstrated and that “the natural world is suffering” because of large-scale turbines which are disrupting the natural environment and harming wildlife such as migratory birds and endangered species of bats.

Wind power a ‘false hope’ for the environment

Wind power has created “false hope” of steps to be taken to combat climate change and protect the environment, says the Multi Municipal Group. And, the Government of Ontario has ignored knowledge of the negative impacts of invasive wind power technology.

The group demands that all procurement of wind power be stopped, and the Green Energy Act repealed. They also recommend that the government base future policies on generation capacity and conservation, and use current energy supply assets.

“Our rural communities are unprotected against the exploitation [by] renewable energy,” Higgins concludes. The municipalities have no choice but to declare their position to the government and the public formally.

The Ontario Multi Municipal Group declaration may be found here: mmg-public-declaration-on-the-exploitation-of-wind-energy-in-ontario-jan-2017

The list of municipalities that have passed a support resolution for changes to wind power contract approvals: list-mandatory-municipal-support-resolution-communities-jan2017

 

 

Contacts

Mayor Ron Higgins: ron.Higgins@xplornet.com

Wind Concerns Ontario contact@windconcernsontario.ca

Map of municipalities demanding change to the IESO wind power bid process, to July 14, 2016
Map of municipalities demanding change to the IESO wind power bid process, to July 14, 2016

2016 a year of bad planning and government mismanagement in Ontario: Wind Concerns Ontario

WCO vice-president Parker Gallant and president Jane Wilson speak on Ontario’s mismanaged electricity sector, energy poverty, wind turbine noise regulation, and what’s ahead for 2017

Wind Concerns Ontario

YEAR-END INTERVIEW

 

Q:You’ve been telling people about the impact of renewables, specifically wind power, on Ontario’s electricity or hydro bills. How much of our electricity bills is due to the wind power/renewables program in Ontario?

Parker Gallant: I recently reviewed the cost of wind and solar generation relative to its contribution to Ontario’s demand for electricity and its impact on our electricity costs is shocking. Wind and solar in the first six months of 2016 delivered 8% of our generated power and represented 35% of the Global Adjustment which appears set to average over $1 billion per month. That represents a cost of over 36 cents a kilowatt hour (kWh), including the hourly Ontario energy price (HOEP).

Parker Gallant at a recent event in Kanata, Ontario: shocking mismanagement. [Photo: Metroland Media]
Parker Gallant at a recent event in Kanata, Ontario: shocking mismanagement. [Photo: Metroland Media]
Q: Parker, you’ve also been telling people about the Global Adjustment or GA, which is where a lot of charges are hidden. Do you think these charges should be detailed on our bills, or is that even possible?

Parker Gallant: While I believe in principle the GA should be revealed on our monthly bills, in practice, that would require reams of paper. How will the local distribution company explain how much you are billed for curtailed wind generation or the meteorological stations that measure the amount of curtailed wind that might have been generated? How to explain, say, the cost of spilled hydro or steamed off nuclear or the water fuel fee, or how to tell the ratepayer how much they are subsidizing the rates for large industrial clients, or what it is costing under the rural and remote rate plan (RRRP) that transports diesel fuel to remote First Nations, among dozens of other items included in our monthly bills?

Q: The Premier and Energy Minister are now saying that parts of their policies have been a “mistake” and that they need to get bills down. Wind Concerns is saying that canceling wind power contracts is necessary for that to happen. Can you explain? How much are the 2016 contracts worth?

Parker Gallant: Interesting they are now admitting a “mistake,” but when George Smitherman was Energy Minister he was provided with a long-term energy plan that had been carefully developed by “experts” within the crown agencies. He chose to cancel the plan and instead, impose one developed in conjunction with outsiders who were NOT experts. Previous Energy Ministers (Dwight Duncan comes to mind for his “smart meter” for every ratepayer) made mistakes, as did those who followed such as Brad Duguid and were roundly criticized by both the media and by ratepayers. The canceling of wind power projects not yet built or even contracted is only “step one” and will slow the climb in our bills. The current Minister, Glenn Thibeault has only suspended Large Renewable Procurement or LRP ll, and needs to cancel it, as well as LRP I and any of those contracts now past their agreed-to start date. There are ways to reduce costs almost immediately.

Jane Wilson: Wind Concerns Ontario prepared a detailed document for the IESO on the Long-Term Energy Plan, suggesting ways they could save $1.7 billion annually. That would have an immediate cost reduction impact.

Q: The Energy Minister says that now, Ontario is a “net exporter” of electricity like that’s a good thing. He claims we’re making money: is that true?

Parker Gallant: Being a “net exporter” of 16.8 terawatts (TWh) in 2015 is simply a demonstration of being a bad planner and manager of the system. If one adds the spilled hydro and curtailed wind to the net exports, the 21.2 TWh could have provided over half of all average Ontario households with power for a full year, yet we sold it 2.36 cents/kWh while we paid 10.14 cents/kWh for its generation. Ontario contracted for far too much intermittent and unreliable wind and solar power creating a domino effect the increased our costs of generation. Paradoxically, if Ontario ratepayers consumed more of the annual excess power (15.5% in 2015) it would help reduce our per kWh cost.

Q: What is WCO’s stance on climate change?

Jane Wilson: Our position is that everyone wants to do the right thing for the environment, whether that is preventing air pollution or using the most efficient forms of power generation — but that isn’t industrial-scale wind. For example, the Ontario Society of Professional Engineers or OSPE says that the proliferation of large-scale wind will actually increase greenhouse gas emissions, therefore not achieving the government’s stated goals. In the OSPE’s most recent report, they say “Wind generation offers less GHG reduction value in Ontario because base-load generation is already carbon-free and wind generation often displaces hydroelectric and nuclear base-load generation.”

Q: Why does the Ontario government continue to force wind turbines on communities that don’t want them?

Jane Wilson: The government is acting on an ideology that is not supported by fact and to do that, it erased communities’ right to local land-use planning with the Green Energy Act. We think that’s wrong, and are supporting the now 116 municipal governments that have demanded a return of that control and also that community support be mandatory for wind power contracts. There is a concern too about communities in the North where there may not be elected municipal governments, where contracts can be awarded for wind power projects that have a significant negative impact on the natural environment, for little or no benefit.

WCO worked with Ontario municipalities on the mandatory support resolution.

Q:Can the government really cancel wind power contracts? Can a new government cancel the subsidy programs?

Jane Wilson: Yes. There are clauses in the contracts under LRP I that are “off-ramps” in the case of cancellation, and which set out the financial steps needed to do that. For example, the contract with EDP for the “Nation Rise” project south of Ottawa in North Stormont, worth $430 million over 20 years, would cost $250,000 plus reimbursement for development costs that must be justified, to a maximum of $600,000. And yes, government can cancel subsidy programs. The LRP II, now “suspended”, should be cancelled outright.

The other opportunity is to cancel wind power projects that do not have a “Notice-to-Proceed”: this is straightforward. WCO has also suggested to the IESO that the government look seriously at all contracts and review them for opportunities to cancel. Even costly negotiated buy-outs will reduce hydro costs significantly, due to the high cost of disposing of surplus power.

Q: What is WCO doing to help people already living with wind turbines, and the noise they produce?

Jane Wilson: We support the public health investigation being done by the Huron County Health Unit, and hope that other municipalities will take similar action. We are also looking at how research can be done to help change the Ontario regulations on noise –which are not based on current science and in fact, are completely inadequate to protect health. We prepared a detailed document on how to revise noise enforcement regulations, another on how the approval process must be changed to protect health, and we submitted a document to the World Health Organization which is preparing global noise regulations for wind turbines. In short, we take every opportunity possible to explain the situation for people living in communities where wind turbines and their noise emissions have been forced, without consent, on the people of Ontario, with the goal of having regulations and processes changed.

Jane Wilson: Wind Concerns Ontario is not stopping [Photo: Julie Oliver, Ottawa Citizen]
Jane Wilson: Wind Concerns Ontario is not stopping [Photo: Julie Oliver, Ottawa Citizen]
Q: What’s ahead in 2017?

Jane Wilson: It’s a very different world for wind power now, than in 2009 when the Green Energy Act was passed. People are genuinely questioning the benefit of high-impact, large-scale wind power development, especially when there seem to be few, if any, benefits, and we are seeing the shocking results of the government’s complete mismanagement of the electricity sector such as lost jobs and rising energy poverty. We believe the government will have to take dramatic action if it is serious about getting electricity bills down. The fact that Ontario municipalities are speaking out on this issue and taking action will also have results, we believe. We are hoping for a complete halt to the ongoing damage of the government’s policies, and that there will be help for people already living with the noise and other impacts of industrial-scale wind turbines.

As for Wind Concerns Ontario, we are not stopping our work.

Wind power continues to affect Ontario electricity bills

Eulogy for the wind power industry is premature … unfortunately.

Wind turbines near SS Marie (National Post photo)
Wind turbines near SS Marie (National Post photo)

December 15, 2016

Parker Gallant in today’s Financial Post

The Day Ontario’s wind tyranny ends, there will be dancing in the streets

The editor of the magazine North American Windpower, recently marked the demise of Ontario’s wind industry. His article was titled “Eulogizing Ontario’s Wind Industry.” Apparently the eulogy was a result of Ontario Energy Minister Glenn Thibeault’s announcement of Sept. 27 that he was “suspending” the acquisition of 1,000 MW (megawatts) of renewable energy under the previously announced LRP ll (Large Renewable Procurement).

Thibeault explained that “IESO (Independent Electricity System Operator) had advised that Ontario had a robust supply of electricity over the coming decade to meet projected demand.” Thibeault didn’t express surprise at this sudden turn of events or explain what led to the realization. To put some context around the suspension, only a few months earlier former Energy Minister Bob Chiarelli had issued the directive to acquire the 1,000 MW that Thibeault shortly after “suspended.”

The Windpower article opens with: “Ladies and gentlemen, we are gathered here today to pay our respects to Ontario’s utility-scale wind industry, which has passed away from unnatural causes (a lack of government support).”

If Ontario’s wind industry had truly passed away, the celebrations among hundreds of thousands of Ontario ratepayers would have rivaled the scale of celebrations exhibited in Florida by Cuban exiles after hearing that Castro died. As it is, Ontarians are hardly celebrating. We will be forced to live with and among industrial wind turbines for at least the next 20 years. The “government support” alluded to in the eulogy isn’t dead. It continues to get pulled from the pockets of all Ontario ratepayers and has caused undue suffering.

The wind industry rushed to Ontario to enjoy the largesse of government support via a government program that granted above-market payments for intermittent and unreliable power. Industrial wind turbines have so driven up electricity prices that Ontario now suffers the highest residential rates in Canada and the fastest growing rates in North America. The Ontario Association of Food Banks in its recent 2016 “Hunger Report” noted: “Since 2006, hydro rates have increased at a rate of 3.5 times inflation for peak hours, and at a rate of eight times inflation for off-peak hours. Households across Ontario are finding it hard to keep up with these expenses, as exemplified by the $172.5 million in outstanding hydro bills, or the 60,000 homes that were disconnected last year for failing to pay.”

Beyond that, the cost of energy affects businesses and, as noted by the Canadian Federation of Independent Businesses, “fuel, energy costs” ranks for their Ontario members as the second-highest “major cost constraint” behind “tax, regulatory costs.”

Until the day we actually see Ontario electricity consumers dancing in the streets one day, the eulogy for this province’s wind-power tyranny is unfortunately premature.

Parker Gallant is a former bank executive who looked at his power bill and didn’t like what he saw.

Wind cannot meet power demand: new report on Ontario’s power mix

“The significant increase in wind capacity is questionable …”

December 14, 2016
As part of the Long Term Energy Planning process, a report that contains information that is highly critical of wind turbines’ role in generating electricity has been produced in response to the Ontario government’s consultation process on the LTEP in the context of the government’s climate change initiatives.
The report, titled Ontario’s Emissions and the Long-Term Energy Plan, is available at this link:
The author is Marc Brouillette of the strategic consulting firm Strategic Policy Economics; the report and analysis was funded by Bruce Power, the Organization of Canadian Nuclear Industries, Powerstream and the Power Workers Union.   The report documents the case for nuclear as the long-term stable solution for electrical generation in Ontario and as a cost effective solution to reach the Liberal government’s carbon emission goals.
Expanding Ontario’s wind power generation capacity is “questionable” the authors say, for three reasons:
  • Wind generation has not matched demand since its introduction in Ontario;
  • Over 70% of wind generation does not benefit Ontario’s supply capability: and,
  • Wind generation will not match demand in the OPO Outlook future projections as 50% of the forecasted production is expected to be surplus.
It has been well documented that wind turbines generate power that is out of sync with Ontario’s power demands.  This report provides data on the extent of this problem confirming its statement that over 70% of wind generation does not benefit Ontario’s supply capability (page 20).
The report goes on to confirm that when wind generation is available it causes “curtailment (waste) of both nuclear and hydro, exports of wind generated electricity at prices well below the cost of production and reduction of natural gas fired generation” (page 21).  This situation may improve going forward, but still, the report concludes, over 50% of wind generation in Ontario is not productively used by Ontarians” (page 22). Further, “it could be viewed as wasted through curtailments and/or via uneconomic exports to neighbouring jurisdictions.”
Cancel the contracts
Wind Concerns Ontario and now more than 116 municipalities as well as other stakeholders and interest groups have repeatedly called for the cancellation of wind turbine contracts. The information in this detailed report supports the case for cancelling the contracts under Large Renewable Procurement I (LRP I)  and halting LRP II and FIT 5.0 as well as all wind power projects not yet in commercial production (e.g., White Pines, Amherst Island, Fairview).  The government of Ontario will find it difficult to justify these contracts in the context of this data, and in the context of what the Energy Minister has said is an existing “robust” supply of power in Ontario at present.
Parker Gallant in his role as an energy observer estimated that wind power, which has an average contract price in the range of 13.3 cents, actually ended up costing the Ontario electrical system about 30.9 cents over the first six months of 2016.
These data, plus information from the 2015 report by the Ontario Auditor General,  indicate that there is substantial benefit for the people of Ontario in cancelling wind power contracts.
The report includes the recommendation that the Ontario LTEP should “seek out the lowest cost, emission-free energy solutions that reflect the integrated costs of generation, transmission, and distribution.”
Wind Concerns Ontario will continue its call to cancel the wind power contracts; our response to the Long-Term Energy Plan will be published shortly.
cancelwind_fb

The real cost of wind power

Ontario's Auditor General said Ontarians overpaid billions for renewable power; then Energy Minister Bob Chiarelli said that wasn't true. Parker Gallant details the costs.
In 2015, Ontario’s Auditor General said Ontarians overpaid billions for renewable power; then Energy Minister Bob Chiarelli said that wasn’t true. Parker Gallant details the costs.

December 6, 2016

Most electricity ratepayers in Ontario are aware that contracts awarded to wind power developers following the Green Energy Act gave them 13.5 cents per kilowatt (kWh) for power generation, no matter when that power was delivered. Last year, the Ontario Auditor General’s report noted that renewable contracts (wind and solar) were handed out at above market prices; as a result, Ontario ratepayers overpaid by billions.

The Auditor General’s findings were vigorously disputed by the wind power lobbyist the Canadian Wind Energy Association or CanWEA, and the Energy Minister of the day, Bob Chiarelli.

Here are some cogent facts about wind power. The U.K. president for German energy giant E.ON stated wind power requires 90% backup from gas or coal plants due to its unreliable and intermittent nature.  The average efficiency of onshore wind power generation, accepted by Ontario’s Independent Electricity System Operator (IESO) and other grid operators, is 30% of their rated capacity; the Ontario Society of Professional Engineers (OSPE) supports that claim.  OSPE also note the actual value of a kWh of wind is 3 cents a kWh (fuel costs) as all it does is displace gas generators when it is generating during high demand periods.  On occasion, wind turbines will generate power at levels over 90% and other times at 0% of capacity.  When wind power is generated during low demand hours, the IESO is forced to spill hydro, steam off nuclear or curtail power from the wind turbines, in order to manage the grid.  When wind turbines operate at lower capacity levels during peak demand times, other suppliers such as gas plants are called on for what is needed to meet demand.

Bearing all that in mind, it is worth looking at wind generation’s effect on costs in the first six months of 2016 and ask, are the costs are reflective of the $135/MWh (+ up to 20% COL [cost of living] increases) 20 year contracts IESO, and the Ontario Power Authority awarded?

As of June 30, 2016, Ontario had 3,823 MW grid-connected wind turbines and 515 MW distributor-connected. The Ontario Energy Reports for the 1st two quarters of 2016 indicate that wind turbines contributed 4.6 terawatts (TWh) of power, which represented 5.9% of Ontario’s consumption of 69.3 TWh.

Missing something important

Not mentioned in those reports is the “curtailed” wind. The cost of curtailed wind (estimated at $120 per/MWh) is part of the electricity line on our bills via the Global Adjustment, or GA.  Estimates by energy analyst Scott Luft have curtailed wind in the first six months of 2016 at 1.228 TWh.

So, based on the foregoing, the GA cost of grid-accepted and curtailed IWT generation in the first six months of 2016 was $759.2 million, made up of a cost of $611.8 million for grid-delivered generation (estimated at $133 million per TWh) and $147.4 million for curtailed generation. Those two costs on their own mean the per kWh cost of wind was 16.5 cents/kWh (3.2 cents above the average of 13.3 cents/kWh).  The $759.2 million was 12% of the GA costs ($6.3 billion) for the six months for 5.9% of the power contributed.

But hold on, that’s not all. We know that wind turbines need gas plant backup, so those costs should be included, too. Those costs (due to the peaking abilities of gas plants) currently are approximately $160/MWh (at 20% of capacity utilization) meaning payments to idling plants for the 4.6 TWh backup was about $662 million. That brings the overall cost of the wind power contribution to the GA to about $1.421 billion, for a per kWh rate of 30.9 cents.   If you add in costs of spilled or wasted hydro power to make way for wind (3.4 TWh in the first six months) and steamed off nuclear generation at Bruce Power (unknown and unreported) the cost per/kWh would be higher still.

So when the moneyed corporate wind power lobbyist CanWEA claims that the latest procurement of IWT is priced at 8.59 cents per kWh, they are purposely ignoring the costs of curtailed wind and the costs of gas plant backup.

22% of the costs for 5.9% of the power

 Effectively, for the first six months of 2016 the $1.421 billion in costs to deliver 4.6 TWh of wind-generated power represented 22.5% of the total GA of $6.3 billion but delivered only 5.9% of the power.  Each of the kWh delivered by IWT, at a cost of 30.9 cents/kWh was 2.8 times the average cost set by the OEB and billed to the ratepayer.  As more wind turbines are added to the grid (Ontario signed contracts for more in April 2016),  the costs described here will grow and be billed to Ontario’s consumers.

CanWEA recently claimed “Ontario’s decision to nurture a clean energy economy was a smart investment and additional investments in wind energy will provide an increasingly good news story for the province’s electricity customers.” 

There is plenty of evidence to counter the claim that wind power is “a smart investment.” But it is true that this is a “good news story” — for the wind power developers, that is. They rushed to Ontario to obtain the generous above-market rates handed out at the expense of Ontario’s residents and businesses. The rest of us are now paying for it.

[Reposted from Parker Gallant’s Energy Perspectives blog.]

Suggestions for Ontario’s power bill crisis

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Global TV News published a summary of opinions by several commentators on how the Government of Ontario might deal with the crisis in electricity bills, which is causing unprecedented energy poverty.

Wind Concerns Ontario was pleased to be asked to contribute to the special news feature found here and excerpted below.

The following is by both Parker Gallant, a retired banker who now analyses Ontario’s energy sector and is the author of the blog “Energy Perspectives” as well as Jane Wilson, the president of Wind Concerns Ontario.

The Ontario government undertook its program to add renewable power without proper cost-benefit or impact analysis.

Now we have electricity bills that are the fastest rising in North America. The rich contracts awarded to huge corporate wind power developers are a factor.

Here’s what we suggest:

Immediately cancel Large Renewable Procurement (LRP) II that is currently “suspended.” With its target of acquiring 1,000 megawatts (MW) of more renewable capacity — it’s not needed and will further add to consumers’ power bills.

Cancel the five wind power contracts awarded in 2016 under LRP I and save electricity customers about $65 million annually or $1.3 billion over 20 years. Cancellation costs will amount to a small fraction of the annual cost. Cancelling approved but not yet built wind power projects and the new FIT 5.0 program will also save money.

Cancel “conservation” spending of $400 million annually. Ontario has already cut back on power use by more than 12 per cent since 2005 when consumption was 157 tWh to 2015 when it had fallen to 137 tWh. Do this and save immediately on electricity bills.

Read More: Kingston Hydro cuts off single mom who chose groceries over utility bill

Move the Ontario Electricity Support Program to the Ministry of Community and Social Services, where this social assistance program really belongs. Electricity customers should not bear the burden of its costs. The move would create a budget shortfall so we recommend the following action:

Levy a tax on wind (and solar) power generation. The auditor general reported that 20-year wind and solar contracts exceed those in other jurisdictions — the tax would help correct that.

Last, reduce the Time of Use (TOU) off-peak rate. This would encourage the shift of power consumption from peak to off-peak time in order to flatten daily demand, with less waste of hydro and nuclear power, and intermittent wind.

Let’s stop adding expensive, intermittent power to our system and stop punishing Ontarians.