Ontario's Changing Energy Supply Mix is Costly

Nuclear Power Plant - no credit availlable
Nuclear Power Plant - no credit availlable
Ontario's diverse mix of energy sources includes renewables and the capability to respond to changing economic, weather and grid conditions.

Ontario's Independent Electricity System Operator (IESO) has released a report on the energy mix which feeds Ontario's demands for electrical energy, a mix which is gradually bringing an increasing proportion of renewable resources into play, while increasing energy costs for Ontario consumers.

The downside of the renewable energy contribution - wind power and solar power - is that theses resources are being integrated into the electrical grid at a significant cost to Ontario taxpayers. The Ontario FIT (Feed-in-Tariff) program is costing the Ontario taxpayer between 50 cents and 80 cents per Kwh, depending on the details in the FIT agreement with energy providers.

Under Ontario's Green Energy Act, the FIT program will take $3.8 billion from consumers' pockets by 2015 to subsidize wind and solar power producers. The power authority will pay prices ranging from about 20 cents/kWh to 80 cents/kWh, and the cost of residential power by 2015 is forecast to grow to 21 cents/kWh, nearly triple the price in 2003.

Nuclear Energy Still Provides Over Half of Ontario's Electrical Energy Needs

As in previous years, Ontario's nuclear units provided more than half the energy required by Ontario consumers. At the same time, unusually low water levels last spring and summer resulted in reduced hydroelectric output. The reduced availability of hydro power coincided with an increase in demand triggered by hot, humid summer conditions, resulting in greater reliance on gas- and coal-fired generation compared to 2009.

Coal-based output was up in 2010, but still 45 percent lower than in 2008, and an about one-third of the 2003 output. Progress was made on the province's efforts to reduce coal-fired plants.

Higher summertime temperatures in 2010 pushed total electricity consumption for 2010 142 TWh, up from 139 TWh in 2009. Peak hourly demand was also up in 2010, at 25,075 megawatts (MW), up almost 700 MW from 2009 but short of Ontario's all-time peak demand of 27,005 MW in 2006. Hydroelectric output fell by 20 per cent to 30.7 TWh.

Wind Power and Solar Energy Growth

Output from Ontario's wind farms continued to grow as more units came online, resulting in total annual production of 2.8 TWh in 2010, up from the 2.3 TWh recorded in 2009. Wind generation is starting to play an important role in meeting Ontario's energy needs, and nine of the 10 highest output days for wind power were in November 2010. In fact, wind generation on November 26 averaged more than 1,100 MW over the entire day - a record for total daily output.

The integration of large volumes of renewable supply is contributing to a broad and sweeping transformation of Ontario's power system, noted the IESO in its latest 18-Month Outlook. "Energy production from new renewable resources is accelerating, and we are revising our operating policies and processes to integrate this new supply," said Paul Murphy, IESO president and CEO. "At the same time, we remain reliant on conventional sources of electricity, which provide the flexibility we need to manage the grid." For 2010, conventional sources contributed significant amounts of energy: nuclear provides close to half of Ontario's electrical energy needs,

Ontario's future energy mix will contain an increasing proportion of wind and solar power, with significantly more projects scheduled for completion beyond the 18-month time-frame of the IESO report.

Transmission and Distribution Upgrades

The year 2012 will be a turning point in the evolution of the provincial grid. According to IESO projections, new renewable resources will come into service at a rate of about 200 megawatts (MW) per month, with about 1,700 MW of new power generation coming on-line from December 2010 until May 2012, along with associated transmission and distribution system upgrades and enhancements.

Of the 1,700 MW of new supply, almost 1,000 MW represent renewable resources, bringing total grid-connected renewable energy sources to nearly 2,200 MW. In the next 18 months, there will be an additional 1,400 MW of renewables connected to Ontario's power grid, bringing distribution-connected renewables to about 2,100 MW.

Coal Plant Shut-downs

Four Ontario coal-fired plants were shut down in 2010. The Government of Ontario's recently released Long-Term Energy Plan (LTEP) reports that two additional units at the Nanticoke generating station will be shut down in 2011.

The IESO further reports that the province is focusing on integrating renewables into the electrical grid in a way which will support the "continued safe, efficient and reliable" operation of the power system. Conservation measures, embedded generation and time-of-use electricity rates will act to reduce peak demands. Energy consumption is forecast to remain flat in 2011 before showing a small increase in 2012.

Duane Sharp is a professional engineer and writer , photo by Mathew Sharp

Duane Sharp - I am a retired professional engineer (electronics), with over 40 years of writing experience in technology topics, with a focus on the IT ...

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