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.

The only real hydro bill relief is to get costs down: WCO

Rural residents and farm owners attended a meeting in Goderich with the Hydro One Ombudsman and told her hydro bills have to come down.

Ontario Farmer

January 25, 2017

The Hydro One Ombudsman Fiona Crean recently attended a meeting in Goderich, hosted by MPP Lisa Thompson where she heard a lot of stories from Ontario’s farmers about hydro bills, and the government’s electricity policies.

Time of Use rates for power make no sense for agricultural operations, she was told. Power use is driven by requirements — if the weather is hot, barns must be ventilated or livestock will be lost. And growers must harvest crops when they are ready, not when it might be cheaper to run equipment.

People in agriculture are being harmed by the increasing electricity bills and are now choosing other options to run their operations. Grain growers are converting their drying equipment to propane or natural gas, and many are converting or supplementing their home heating with wood. These moves run counter to the government’s policy goal to get off fossil fuel use.

Other residents commented on the unfairness of the low-density residential rates and delivery charges.

The Hydro One vice-president of Customer Relations also attending that day had some interesting responses: people just don’t “understand” their electricity bills, Warren Lister said, and relief is coming for low-density customers. He also said that now, an “independent” Hydro One represents its customers to government.

Here’s the message Hydro One should give the Wynne government: you must get costs down.

While the Energy Minister proudly claims that Ontario is now a “net exporter” of power because we have a surplus, what he fails to explain is that we pay a premium price for renewable energy, which is usually produced out of phase with demand, and we then sell it off at a significant discount. This past November, for instance, Ontario bought power for $169 million, then sold it for a “profit” of $21 million. Ontario’s electricity customers picked up the difference of $147 million – that is a cost that we must reduce.

It’s worth noting too, that the surplus electricity sold last November would have powered half of Ontario’s customers’ homes for the month.

The Minister has promised rate relief, including change for rural residents living in low-density areas, via the RRRPP or Rural or Remote Electricity Rate Protection Program. True, reducing rural customers’ bills might add up to several hundred dollars a year, but where is the money for the $116-million cost coming from? It, like the other costs, is being added to your bill in the regulatory line.

Similarly, the Ontario Electricity Support Program or OESP is being paid for by electricity customers.

Meanwhile, the government gave out contracts last year for five more large-scale wind power projects, for power we don’t need, that will cost ratepayers over $3 billion over 20 years. That cost has yet to hit our electricity bills.

Ironically, the government’s green energy program isn’t even achieving its stated goals. According to the Ontario Society of Professional Engineers, wind power has “relatively little economic value” and because of its intermittent nature it needs back-up from natural gas, which means more fossil fuel use for power, not less.

Rather than telling us we don’t “understand” our bills, and spending money on costly conservation advertising that claims to save us money, the Ontario government needs to take bold steps to get costs down. That means cancelling wind power contracts awarded in 2016, cancelling the entire wind power procurement program, and taking a hard look at all other contracts to determine whether buying them out is a better option than losing millions selling surplus power off cheap.

Parker Gallant is a former international banker who now analyzes Ontario’s electricity sector. He is vice-president of Wind Concerns Ontario.

Wind farm contract gag clauses prevent release public health info, say C-K residents

Water from Dover area wells showing sediment. [Photo: Sydenham Current]
A resident of Dover Centre in Chatham-Kent is calling for leaseholders in wind turbine projects to be released from the non-disclosure or “gag” clauses that are preventing full awareness of the situation regarding contaminated well water in the region, says a resident writing in the Sydenham Current.

When the recent appeal of the North Kent 1 wind power project was dismissed, the only expert advice offered was the technical report completed by Golder & Associates, paid for by the wind power developer.

“What if accepting the wind developer’s Golder report the Mayor and Mr. Norton put all of Chatham township’s property at risk from an environmental stigma?” asks letter writer Peter Hensel.

” A stigma that the aquifer below would be contaminated with vibrations and is no longer capable of providing safe clean water. You think your property won’t drop like a stone in value? Think again.

“What if accepting the Wind developer’s Golder report the Mayor and Mr Norton allowed pile driven turbine foundations that increased the heavy metal concentrations in the source water – the water in the aquifer below Chatham township? What price do you put on your families’ health?”

The Environmental Review Tribunal refused appellant Kevin Jakubec time to have other experts review the Golder report, which jeopardized his appeal.

“It was only because the MOECC [Environmental] Tribunal Branch refused a time extension to let Mr. Jakubec bring in well test results from Dover into the Trubunal’s final hearing did Mr. Jakubec make the best of Tribunal process and took what gains he could get from the mediation.

“Ask Mr. Jakubec if he stopped investigating Dover,” says Mr Hensel. “Ask Mr. Jakubec if the Tribunal process is fair and that everything is neatly wrapped up now as Mayor Hope and [C-K legal counsel] Mr. Norton would want you to believe.”

Read the entire letter here.

Ontario electricity customers paid millions for wind in November

Electricity sold off cheap could have powered 50% of Ontario homes; wind clearly not needed

StrongWindWeather

 The line of poetry “it’s an ill wind that blows nobody any good” was a reality in November for Ontario ratepayers. The IESO (Independent Electricity System Operator) finally released their November 2016 Monthly Market Report on Friday, January 13, 2017 and there was not much good news in it.

While net exports* were down compared to the same month in 2015, it wasn’t related to the amount of wind power generated and curtailed (estimates of the latter from Scott Luft); that exceeded November 2015 by about 152,000 megawatts (MWh) and clocked in at 1,363,000 MWh.  Generated and curtailed power exceeded Ontario’s net exports in 2015, representing 102.7% versus 72.9% the previous year.  One should suspect November 2016 also saw spilled hydro and steamed off nuclear, but at 102.7% of our net exports, it is obvious that power generation from wind was clearly not needed.

November 2016 was not the month with the highest combination of generated and curtailed wind, but rather the second highest. The highest, according to Scott’s estimates, was December 2016, but we will save that report for another day.

Exported power could have served half of Ontario

Net exports in November 2016 were equivalent to the power that approximately 150,000 “average”** Ontario households would use in a year, or to put it another way, was sufficient to supply 2.4 million of those same households for the whole month of November. That is slightly more than 50% of all Ontario households.

The net exports of 1,326,960 MWh in November 2016 cost Ontario ratepayers $169 million to generate and sold at an average price of $16.69 per/MWh, resulting in income of  $21.4 million.  What that means is, Ontario’s electricity ratepayers subsidized the sale, picking up the difference of $l47.4 million, along with another $30.8 million for the 254,000 MWh of curtailed wind.  Past and present Energy Ministers in the Wynne-led government would probably claim the deeply discounted sale price for those exported MWh was actually a “profit” but most ratepayers recognize that claim to be untrue.

Cancel the contracts

Current Energy Minister Glenn Thibeault has a chance to make his mark by halting all planned acquisition of wind power generation in LRP I and LRP II, as well as cancelling any wind power projects that have not commenced construction, or which have passed their critical “operational” dates.

Time to treat industrial-scale wind power development as that “ill wind”!

© Parker Gallant

January 14, 2017

 

*Net Exports are total exports less total imports.

**The Ontario Energy Board claims the “average” Ontario household consumes 9 MWh annually, or 9,000 kilowatts.

Reposted with permission from Parker Gallant Energy Perspectives

 

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

Cancel wind contracts to get electricity bills down, WCO tells Ministry of Energy

Wind power a significant portion of punishing electricity bills, community coalition says. Cancel contracts wherever possible, immediately.

The lessons learned from adding wind power to the grid: intermittent, expensive, not needed
The lessons learned from adding wind power to the grid: intermittent, expensive, not needed

 

The Ontario Ministry of Energy asked for input to its new Long-Term Energy Plan (LTEP) both online and through a series of consultations held throughout the province in October and November.

Wind Concerns Ontario filed its formal comment document this week on behalf of its membership, and recommended the Ministry do everything it can via the LTEP to get costs down. That includes cancelling the wind power contracts awarded past spring, cancelling contracts for wind power projects not yet built, cancelling contracts for projects already operating that are not meeting the terms of their Renewable Energy Approvals, and permanently cancelling the Large Renewable Procurement (LRP) II process, which is currently only “suspended.”

“I was horrified by the comments about the growing energy poverty in this province and the fact that social assistance agencies like the Food Bank association and the United Way are pointing at electricity bills as a major factor,” says Wind Concerns Ontario president, Jane Wilson.

“We are in a situation of surplus power, and the past few years have clearly shown that not only is large-scale wind power development a poor source of power, it is also unaffordable, and has few benefits for the environment. More than half of wind power produced is unusable, but we’re paying for it anyway. Poor families, and people on fixed incomes like seniors are paying for it — this has to stop.”

While the corporate wind power lobby maintains that wind power is a low-cost option for power, Wind Concerns Ontario’s analysis shows that the real cost is far higher than the industry and government say. Costs such as wasting nuclear and hydro power to accommodate wind power when it shows up in times of low demand are often not included in promotional material.

It’s also a myth that the government actually makes money on selling surplus power, WCO says.

Ontario electricity customers are bearing costs that they shouldn’t be, the report also says, such as the Low-Income Energy Assistance Program which should properly be funded by the ministry responsible for social assistance, not already over-burdened electricity customers. Inequities between urban and rural power customers also need to be addressed: rural Ontario is being penalized by being forced to host wind power projects and then charged more money for electricity.

“The Premier and the Minister of Energy have both said that the energy policy has failed, and that the government now needs to get electricity bills down,” Wilson said. “That should be the focus of the new Long-Term Energy Plan: to find lowest cost sources of power and to do proper planning based on cost-benefit analysis.”

Wind Concerns Ontario’s recommendations:

    • Reduce costs by cancelling contracts for wind turbine projects. The supply of power in Ontario is “robust” and additional capacity is not required. The action affects LRP I and II, FIT 5.0 and projects without a Notice to Proceed.
    • Reduce costs by reviewing contracts for operating projects being paid excessive rates. Assess potential to buy out all contracts to eliminate cost over the medium term, while achieving immediate savings by eliminating the need to dispose of surplus electricity.
    • Reduce costs by removing non-electricity costs from consumer charges, ending ineffective conservation programs and funding for speculative innovation.
    • Reduce costs by reassessing delivery costs and improving customer service.
    • Reduce costs through improved procurement processes.

 

 

Read the entire report from Wind Concerns Ontario here: wco-ltepresponse.

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.]