Wind power cost Ontario $20 million for just 3 days

Parker Gallant and Scott Luft have put together the numbers for the electricity sector over the Easter weekend … and it’s nowhere near as pretty as an Easter bonnet.

Demand is so low that 99,000 megawatt hours (MWh) of wind power had to be “curtailed” or constrained at a cost of $11.9 million for the three days, and the total cost of wind power was estimated to be $20 million. That brings the cost of delivered wind power to 33.5 cents per KWh.

Here is the article from Parker Gallant, posted today on his Energy Perspectives blog.

Wasted, unneeded power

 

The nice weather on Easter weekend in Ontario disguised the fact that April 14th, 15th and 16th were really bad days for electricity customers.

Scott Luft’s daily reports detailed the bad news, even before the Independent Electricity System Operator or IESO got out their daily summary for April 12th.   Some of the information in Scott’s reports are estimates, but they have always proven to be on the conservative side. These three reports paint a disturbing picture of what’s going on, and how badly the Ontario government is mismanaging the electricity file.

Here are a few of the events that our Energy Minister Glenn Thibeault and Premier Wynne should find embarrassing. They also confirm what many of us have been telling them for several years.

First, Thursday April 13th saw a disclosure from the Energy Ministry that Ontario paid out $28,095,332 including about $240,000 in interest to Windstream Energy to satisfy the award made to them under the NAFTA (North American Free Trade Agreement) tribunal, due to cancellation of  a 300-MW offshore industrial wind turbine project.

Wasted, unneeded wind power

Second, the HOEP (hourly Ontario electricity price) market, traded all of Ontario’s generation over the three days at “0” (zero) or negative value. While total demand for electricity was 1,031,448 MWh over the three days the HOEP market valued it at -$869,220 or an average of -.84 cents/MWh.  The “0” and negative values for the HOEP lasted 77 continuous hours, breaking a prior record of 62 hours.

Third, during the three days, ratepayers picked up the bill for 99,109 MWh of curtailed wind which exceeded the transmission (TX) and distribution (DX) connected wind by 60.2%. Curtailed wind at an estimated $120/MWh alone cost ratepayers $11.9 million, driving the price of delivered wind (61,882MWh) to a cost of $335.34/MWh or 33.5 cents a kWh.  Total wind costs were $20.8 million.

Fourth, solar power over the three days generated and curtailed (1,124 MWh) 35,539 MWh at a cost of   $16.8 million, which works out to $472.86/MWh or 47.3 cents/kWh.

Fifth was the cost of gas which in three days produced 18,433 MWh, but the cost was $12.5 million and $676.56/MWh or 67.7 cents/kWh.  The 9,943 MW of IESO grid-connected gas operated at 2.6% of actual capacity during the three days.

Sixth was the generosity shown to our neighbours in New York, Michigan and Quebec who took delivery of 157,768 MWh of free power along with a payment of $132,525.

The quick math on the above indicates a cost of wind, solar and gas generation plus the payment for exported power comes to $50.2 million.

Nuclear and hydro was all we needed

That’s bad enough, but if you look at nuclear and hydro generation during those three days, clearly the $50.2 million was “money for nothing” paid for by Ontario’s ratepayers.  Nuclear (including steamed-off of 49,118 MWh) was 688,981 MWh and combined with hydro generation of 324,001 MWh of could have provided 1,012,982 MWh versus Ontario’s demand over those three days of 869,232 MWh leaving 143,750 MWh of surplus.  Three days of nuclear and hydro cost $61.9 million or 6.1 cents/kWh.

Bottom line? Ontario ratepayers picked up the bill for not only the $28.1 million paid to Windstream for a canceled offshore wind project, but also another $50.2 million, making the past four days very expensive for everyone.

The $78.3 million could have been better spent on health care or so many other pressing needs!

It’s time to kill the Green Energy Act and cancel any uncompleted wind and solar contracts before all our weekends turn out like this one!

(C) Parker Gallant

 

Comments

Sommer
Reply

“It’s time to kill the Green Energy Act….”

It’s time to turn off all of the turbines that are harming rural residents!

JS
Reply

The lack of oversight of the government today from the top down is alarming, not only is there no consequence for wrong doing but there is fumbled leadership and direction for our tax dollars being spent properly. Our country and most important the province of Ontario needs to reflect the proper and transparent spending of our money and start doing the right thing for the people!
I have no idea what the government of Ontario is thinking other than to ruin our economic value and buy votes for the next election by giving away our children’s future.
It is important to make good decisions and follow through along with giving us the people what we deserve and not wasting our money!
Shameful Government decisions in Ontario!!!!!

whooper
Reply

And even though the power was not needed and curtailed wind cost over 20 million over Easter weekend and Ontario provided free power outside the province, K2 Wind (yes, the very same K2 Wind (Pattern Energy, Capital Power & Axium Infrastructure) that was shown to EXCEED noise compliance limits and TONALITY that MPP Lisa Thompson spoke to at Queens Park and Glen Murray about in Parliament on April 12, 2017, was permitted to run, at times, near full capacity (249/270 MW) on Easter! The noise, during prime Easter Egg hunt time was SICKENING! https://www.youtube.com/watch?v=a4NA2icxqHg

Maks Zupan
Reply

Good timing: I just sent this to my MPP, Premier, Energy minister and MP.
Dear Mr. Walker, MPP: Subject: Open letter to Ms. Wynne (most od the letter was published on WCO comments already)

When I was certified by the PEO as a professional electrical engineer in
1970 I signed that my top priority would be the quality of life and the safety of the people of Ontario. With this in mind I sent the following letter to the premier of Ontario and her energy minister as an attempt
to explain the green energy fiasco in Ontario in the simplest possible language. The liberal government has not listened at all to serious engineering and financial warnings. If the following letter was easily understood by a group of young people in their low teens, I hope Ms Wynne and Mr. Thibeault would finally see the simple truth: Wind propaganda sounds promising, but the reality is grim. I appeal to everybody to use the same or similar simple language based on measured and proven facts to press the liberal government to stop this costly utopia immediately.

Examples: Wind does not blow when we need the most energy. Marginally useful wind blows only 17%, maybe 20% of time. When it does blow, it causes instability and air pollution. Because running the back up gas turbines is like running and stopping a car all day long. And when the wind blows full blast, nobody wants to pay for that short lived surplus and we have to pay to curtail the production or “sell” at a big loss. Our modern economy needs a steady energy supply which wind will never be able to deliver, And, “storage costs on a big industrial scale would be beyond astronomic” said Bill Gates and I fully agree. Finally, thousands of rural residents complain about the health effects of this ugly and useless monsters which also kill birds and bats in large numbers.

The pathetic experiment with “green” energy , based on dreams and not reality, almost doubled our hydro cost and badly hurt the Ontario economy. It is by far the the most useless, costly and downright stupid project I have ever seen during my long engineering career in Switzerland and Ontario. 12% approval rating is well justified! Ms Wynne and Mr. Thibeault, both without any technical education and experience – or willingness to understand anything but wind propaganda – should learn from the attached – and act fast in the interest of the people of Ontario and not their ego.! Total power for 13 years corrupts totally!

Maks Zupan Owen Sound
( Followed by: Open letter to K. Wynne : you do not listen to engineers. You mislead the public by repeating the unproven wind industry propaganda)

Barbara
Reply

Those who voted for the present government got what they voted for.

The Premier and the Minister of Environment and Climate Change prefer to be on the world-stage instead of taking care of Ontario’s energy issues.

Barbara
Reply

For general information as this topic has been brought before at WCO.

Congressional Budget Office, Washington

‘International Trade and Carbon Leakage’, December 2013

Pages 12-15

Estimates of Leakage

Leakage would probably be low in the first few years after a program is started and would grow over time.

Carbon Leakage = Businesses moving elswhere.

Agriculture sector & Greeenhouse gases other than CO2 which includes methane gas/CH4 are also included in this paper.

http://cbo.gov/sites/default/files/113th-congress-2013-2014/workingpaper/44970-InternationalTradeCarbonLeakage_1.pdf

Barbara
Reply

For general information.

NREL/National Renewable Energy Laboratory, USA
Innovation for Our Energy Future

Technical Report: NREL/TP-6A2-47312

‘Carbon Taxes: A Review of Experience and Policy Design Considerations’, December 2009

B.C. and Quebec information are included in this report.

Read at:
http://www.nrel.gov/docs/fy10osti/47312.pdf

Barbara
Reply

Ontario Ministry Of Agriculture, Food and Rural Affairs

Climate Change and Agriculture

‘Main Sources of Agricultural Greenhouse Gas Emissions’

“Within agriculture, the main source responsible for GHG emissions are ruminant livestock belching and manure both of which release methane(CH4) into the air …”

http://www.omafra.gov.on.ca/english/engineer/facts/climatechange.htm

From UN origin right into Ontario.

Stan Thayer
Reply

So now more evidence of the great renewable energy scam. I thought the truth would stop this scam years ago, then I realized it had nothing to do with renewable energy. The Green Energy Act is and was designed to move money from the masses to the few through the Liberal government account. Those for got some, those against got none. It is that simple folks. Like I have stated many times over the years, “I am all for renewable energy but not like this”.
Does anyone have any new idea’s on how to stop this scam or charge the perpetrators?
Stan Thayer

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