Ontario power in July: demand down, price up. Does this make ANY sense?
For those who are interested in drilling down into the finer points of Ontario’s power system, specifically supply and demand, take a look at the analytical blog, Cold Air, and the most recent posting, here.
Here’s a striking monthly change: If you value the Ontario portion of the market as the hourly demand at the Hourly Ontario Energy Price plus the overall total for the global adjustment, you’ll find, based on the IESO’s estimate of a $593.7 million, that July’s total Ontario market value rose $10.2 million from June, while the total electricity demand rose 1.7 million MWh.
That makes the incremental cost of the additional supply required in July less that 7/10ths of a single cent/kWh.
Which is nonsensical: the highest demand months are the lowest cost months only because of extraordinarily poor market design.