Wind Generation Cost to us Ontarians on April 13th Hit a Record of $2,054.81 per Megawatt Hour

Well, the wind wasn’t blowing quite as much as April 11th but what was actually consumed by Ontario’s ratepayers April 14th set a new record cost; to the best of my knowledge, per MWh!

On April 13th the 4,900 MW of grid connected capacity in Ontario of those IWT (industrial wind turbines) were forecast by IESO to generate 62,063 MW (52.8% of capacity) but only 53,317 MWh or 45.3% of its capacity was accepted meaning about 8,746 MW were curtailed. 

The math on the above meant total costs to Ontarians (ratepayers and taxpayers) for IWT generation was $6,722,325 for grid accepted generation at $135/MWh plus $1,049,520 at $120/MWh for curtailed generation so it totaled $7,771,845.

Just like two days earlier we didn’t need what those IWT generated as demand, while somewhat higher, throughout the day, peaked at 16,488 MW at Hour 19 (hour ending at 7 PM) and was only slightly over 16,000 MW for three hours (hour 18 to hour 20) of the whole day.

As it was on April 11th, IESO were busy selling the surplus power off with most of it going to Michigan, New York, and Quebec.  The average market price or HOEP (hourly Ontario export price) over the 24 hours was only $10.74/MWh and net exports (exports minus imports) were 93.4% (49,795 MW) of the grid accepted IWT generation.  Total net exports (exports minus imports) were 53,317 MW resulting in us ratepayers only receiving $534,798 (49,795 MW X $10.74 = $534,798) for the exported IWT generation.

As previously noted, we should assume most of the surplus we sold to our neighbours was either all IWT generated power or caused by it meaning Ontarians consumption of IWT generation was only 3,522 MW of the IESO accepted 53,317 MW generated by them.

Taking the foregoing logic to the next step we can easily calculate the cost of the 3,522 MW of IWT generation we consumed!  The math is simple; The total cost of IWT generation (grid accepted and curtailed) of $7,771,845 minus the $534,798 generated from their sale to our neighbours divided by the 3,522 MW we consumed in Ontario i.e., $7,237,047/3,522 MW = $2,054.81/MWh.*

Wow, the $2,054.81/MWh it cost us on April 13, 2023, for IWT generation is rather mind-boggling and who knows, it may well have happened in the past but unless you examine IESO data on a daily basis one would never know, although the $6.5 billion taxpayers absorb annually to keep rates at current levels may be why we don’t notice.

In the process of putting together this information a quick glance at generation today on April 14th disclosed IWT generation had dropped to the point where they generated 84 MW for Hour 17 and Hour 18 clearly disclosing why IWT are labelled intermittent and unreliable. The 84 MW could well be less than they are actually consuming to keep that light blinking on and off at the top of their towers!

We clearly don’t need them for grid connected generation and it is so disappointing our politicians won’t accept that obvious fact and rescind their “first-to-the-grid” rights!

*Equal to $2.05/kWh

Author: parkergallantenergyperspectivesblog

Retired international banker.

5 thoughts on “Wind Generation Cost to us Ontarians on April 13th Hit a Record of $2,054.81 per Megawatt Hour”

  1. Parker, thank you.
    Your calculations on days when the turbines are not running coincide with the days when nearby residents can enjoy being at their homes..free from audible noise, inaudible pulsations/infrasound radiation and shadow flicker.
    Someone has to get through to this government on all of these matters.
    Residents who are forced against their will to have to deal with the harm from trespassing effects because their homes have been surrounded by arrays/clusters of turbines have done everything they can think of to get through to the wind companies as well as both the Liberal and Conservative governments who are responsible for this mess.

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