Going Green February 19th Hurt Ontario’s Taxpayers but Our Neighbours Loved it

Yesterday, Ontario’s IWT (industrial wind turbines) were humming and supplied the Ontario grid with 81,736 MW despite IESO appearing to have curtailed another 5,600 MW of their potential generation! 

Due to the fact it was a Sunday with businesses shut for the weekend coupled with a mild winter day, demand was light so the peak reached at Hour 19 was only 16,478 MW.  Because of those factors, IESO were busy selling off our surplus power to our neighbours in Michigan, New York and Quebec for pennies of its cost to Ontarians. Total exports were 69,070 MWh or 84.5% of the accepted IWT generation and the sale price averaged $5.45/MWh or just over a half a cent per kWh (kilowatt hour).

To put the foregoing in perspective the 69,070 MWh is about what 2.4 million Ontario households consume daily and represents around 46% of all Ontario households.

Based on the foregoing data from IESO it is obvious that generation by the IWT were fully responsible for the 69,070 MW that was exported. What that illustrates is with the guaranteed contracted prices of $135/MWh that generation cost Ontario ratepayers/taxpayers $9.324 million and adding the cost of the 5,600 MW of curtailed generation (at a cost of $120/MWh) it brings the additional costs to $9.996 million.

Oh yes, and we exported those 69,070 MW for the HOEP market price of $5.45/MWh, so we earned $376K (3.8% of their costs) reducing  the overall costs to $9.620 million.

So one might ask, so how much did it cost us per MWh for the 12,666 MWh we didn’t export, and they would be shocked to find out it works out to $759.51/MWh or 0.76 cents/KWh.

Going “green” sure hurts the ratepayers and taxpayers in Ontario but our neighbours are surely delighted we are providing them with our highly subsidized “emissions free” electricity!

Now, try to imagine if we did the foregoing every day of the year and shake your head at the $3.5 billion it would cost us! 

In fact, the taxpayers in Ontario are actually burdened with an annual cost of $6.274 billion for “Electricity Cost Relief Programs” associated with those renewable energy contracts as outlined in the very recent 2022-2023 Third Quarter Finances update from the Provincial Ministry of Finance.

From the Update:

Now try to imagine how that money could have benefited our health sector or built out some needed infrastructure!

Author: parkergallantenergyperspectivesblog

Retired international banker.

6 thoughts on “Going Green February 19th Hurt Ontario’s Taxpayers but Our Neighbours Loved it”

  1. But…the plan is to send the excess kWhs to storage batteries, so we can buy them again tomorrow. OK, so the max return from batteries is 90%. Then, yes, they should only be discharged to 80% to save them. But Six Nations, Northland Power, NRStor, Aecon Group, and yes, Tesla will make money, AND ratepayers will SAVE money. That and the battery will reduce emissions! The kWhs we pay 13.36c for to charge the battery, go in at 25gCO2 equ. and come out of the battery at 200g! (Emaps re CA battery storage) WOW! What’s not to love? You might think they’d be proud to tell us how little (much) we pay tomorrow but haven’t so far.Hhmm…

    Liked by 2 people

    1. The Oneida Energy Storage Project can only store 1,000 MWh of power, or 18% of the average weekend production from the 377 MW of wind power in Haldimand County, all for an investment of $500 million. #ClimateScam

      Liked by 1 person

      1. That’s my point. We pay 13.36c/kWh to charge the battery. 14.8c IF it was wind. What they won’t say is how much we pay ‘tomorrow’ when the battery is discharged. Ford ranted about the Liberal’s opaque and punitive FIT contracts and now is writing 20 year contracts with little transparency. We know Six Nations, Northland Power, NRStor, Aecon and Tesla will all make money. We don’t know how rate&taxpayers will save or any calculation of how emissions will be reduced!

        Liked by 1 person

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