Spring Arrives and IWT Generation Throws $6 Million Ontario Ratepayer Dollars Down the Drain

April 14^th and 15^th arrived and as frequently happens in the spring, Ontario’s peak demand was low reaching only 15,757 MW on the 14^th and 15,971 MW on the 15^th  with both occurring at hour 20 (hour ending at 8PM).

While those IWT (industrial wind turbines) were generating energy it wasn’t particularly high; nevertheless, due to low demand, it wasn’t needed but due to their contracts giving them “first to the grid” rights, all of what they generated was accepted. On the 14^th they generated 35,168 MW (29.9% of capacity) and on the 15^th they produced only 17,690 MW (15% of capacity) but absolutely none of it appeared to be needed based on what IESO were selling off to our neighbours in Michigan, New York and Quebec.

At this particular time a large portion of our nuclear plants are down for refurbishment (about 5,700 MW) with several more of them still in operation scheduled for future refurbishment. In addition to the foregoing a Ministry of Energy press release dated April 16^th  announced a “plan to refurbish its hydroelectric stations in the Niagara region, including the Sir Adam Beck Complex at Niagara Falls.“  The $1 billion refurbishment will commence in 2025 and is expected to be completed in 15 years and add 50 MW of capacity.

While all those refurbishment projects are happening; IESO’s Pathways to Decarbonization forecasts by 2050, we will have both an incredible amount of nuclear as well as 15,000 MW of hydrogen generation (currently an unproven source of low cost power) as one can see in the following chart. One should also note no natural gas plants will be in existence at that time! The chart also anticipates lots more IWT capacity will be added to the grid! We ratepayers must presume the “Demand Response” capacity will keep the “grid stable” while industrial companies will be severely impacted having to shut down on numerous occasions to contain blackouts!

As and when 2050 arrives we should also anticipate (laughingly) IESO’s plan is those IWT will have reached the stage where they will generate power only when needed unlike the recent two days which demonstrated their intermittent and unreliable nature.

The total generation for both of the two April days was unneeded as IESO were busy exporting the surplus power to our neighbours at an average HOEP price of $19.17/MWh on the 14^th and $27.41/MWh on the 15^th while they were paid $135/MWh! The net intertie exports (exports minus imports) on the 14^th (39,836 MWh) and the 15^th (51,925 MWh) both exceeded what those IWT generated meaning it was surplus to Ontario’s demand.

The net result of the foregoing was a cost to us ratepayers and taxpayers of over $6 million for those two days. We should expect that cost will surely rise should the Province of Ontario continue to believe we must “decarbonize” to save the planet from “climate change” resulting in an unreliable grid and further creation of “energy poverty” as all those EV and heat pumps gobble up whatever remaining dependable power is available in the future!

Why isn’t the Ford led provincial government fighting back on the inane push of the Federal led, Trudeau government to continue on the “net-zero” target and recognize what we are attempting in Ontario will not change the climate in any way!

Total insanity!