Quebeckers are Hopefully Grateful for Ontario’s Natural Gas Plants

The past couple of days in Ontario have demonstrated the ups and downs of energy demand both from those of us in Ontario and our neighbours tied to us via the intertie grids.

February 2, 2023

Starting with February 2, 2023, examining IESO data, clearly demonstrates the ups and downs of demand for electricity coupled with the market price variation (HOEP) of overproduction of IWT (industrial wind turbines).  The wind was blowing hard all through the day but with baseload nuclear and hydro providing most of the demand what wasn’t needed was most of the power being generated by IWT.  IESO forecast IWT would generate 94,503 MW over the full day (80.3% of capacity) but it wasn’t needed. Recorded output was 72,115 MW (61.3% of capacity) meaning IESO instructed IWT owners to curtail almost 22,400 MW. As most Ontario ratepayers know the IWT contracts provides them with “first-to-the-grid” rights and also pays for curtailed power at the rate of $120/MWh and $135/MWh for the accepted power. For the full 24 hours on the day the price allocated for accepted and curtailed IWT generation amounted to over $12.4 million in costs to Ontario’s ratepayers/taxpayers and about $172/MWh in costs for the accepted power.

Coupled with the foregoing; as demand was low for most of the day, the market price (HOEP) averaged $3.12/MWh so IESO were busy disposing of unneeded power for pennies of its costs.  Even at the daily peak hour (Hour 19) the HOEP was only $5.18/MWh.  For the full day exported power was 41,911 MW representing 58.1% of the generation IESO accepted from IWT.  If one assumes the unneeded power from IWT represented all of the exported power or caused it, the cost added to the 30,200 MW of IWT generation consumed by Ontario ratepayers is another $7.1 million bringing the cost of the 30,200 MWh, added to the grid, to $11.2 million or $370/MWh (.37cents/kWh).

The happenings on February 2nd once again demonstrate how we Ontarians continue to provide cheap power to our neighbours. We do that by absorbing the costs of those intermittent and unreliable IWT sprinkled throughout the province allowing our neighbours to buy our surplus energy for pennies on the dollar while we eat the costs.

February 3, 2023

February 3, 2023, turned out to be a “Top 10” Ontario peak demand day reaching 21,388 MW and 24,821 MW for the “market peak” at Hour 19! The result was the HOEP for the full day averaged about $41.70/MWh. While that represents a large jump from the prior day those IWT were still costing us a lot more then the aforementioned HOEP average. 

To put the foregoing in context, IESO data in the first 5 hours forecast IWT generation would be 18,795 MW but they only accepted 13,838 MW meaning about 5,150 MW were curtailed and the HOEP over those 5 hours was a piddly 0.62 cents/MWh.  If one, then calculates the HOEP for the remaining 19 hours in the day it becomes $56.60/MWh so, much higher than the first 5 hours! Continuing to look at those 5 hours it becomes apparent we Ontarians absorbed the costs of almost $2.5 million to generate those 13,715 MW. Hopefully our neighbours in NY, Michigan and Quebec appreciate our generosity for those MW which was very close to the IESO accepted IWT generation. 

Looking at the full day, IWT were forecast by IESO to generate 69,174 MW but their output was 62,940 MW meaning we paid for around 6,200 MW of curtailed generation but as noted in the preceding paragraph only about 1,000 MW more were curtailed in the following nineteen hours.  Over the day IESO were busy selling off approximately 87,000 MW to our neighbours in Michigan, NY and Quebec with the latter taking well over a third of them.  The last point should be no surprise as Quebec is a winter peaking province and on February 2nd  Hydro Quebec asked their customers to reduce their electricity consumption due to the anticipated cold starting late Thursday night.

The other interesting happening related to generation on February 3rd was how much gas generation there was over the day. Ontario’s natural gas plants produced 88,172 MW which coincidently was only slightly higher than our total exports.  It is worth pointing out when a MWh of natural gas is generated ratepayers are only paying the raw costs of the natural gas plus a small markup as the capital costs and the approved ROA (return on assets) have been included in the price of electricity since those plants were originally commissioned.  In other words once a gas plant is operating it generates power that is very much cheaper compared to both wind and solar.

Quebec Support

About 60% of households in Quebec heat with electric furnaces or electric baseboards so are dependent on electricity to stay warm during cold winter days. For that reason we should suspect Ontario’s natural gas plants may have played a key role in ensuring those Quebecers were able to avoid a blackout on the recent very cold days we have just experienced.

The other thing Ontario’s natural gas plants may well be doing is allowing Quebec EV owners to recharge their EV batteries. Approximately 10% of all new cars registered in Quebec* are EV possibly due to the large $8,000. grant the province provides to purchase them.  Interestingly, while Hydro Quebec tells households to turn down their heat and avoid using certain appliances during peak hours, they say nothing about when you should or shouldn’t charge your EV.

The generosity of Ontarians is astounding due to the treatment of IWT and the contracts in place providing those “first-to-the-grid” rights. On top of that, if we are subsidizing the sales of our IWT surplus power to other markets where it may be used to charge EV it just doesn’t seem quite right!

Maybe the Ford Government should ask Quebec to provide Ontario with carbon credits to offset the “emissions” of our natural gas plants that keep their people warm in the winter!

*A September 22, 2022 New York Times article stated the following about EV in Quebec: “Quebec has 150,000 electric vehicles on the road, compared with 113,000 in New York State, an indication of how ubiquitous charging can encourage ownership.“

Five ENGO Demand More Government Bureaucracies to Execute the Just Transition

Five ENGO* (BLUEGREEN, Ecojustice, Environmental Defence, Equiterre and IISD) recently issued a 28 page proclamation labelled: “Proposals for the Canadian Just Transition Act”.  Needless to say they push the Justin Trudeau led Federal Government and all the provincial governments to jump on board the “Just Transition”.  They want the Federal Government to establish a “Just Transition Ministry” and equip it with bureaucrats ensuring the utopia of a “carbon-free” Canada with lots of low carbon, sustainable “green jobs” as the outcome!

If one does a word search in the 28 pages using the symbol “$” or the word “dollars” you come up with a big “0” but if you plug in “Net-Zero” you get 3 hits and if you try “emissions” it will generate 28 hits.  As one would expect searching the words “transition” and “just transition” respectively generated 391 and  293 hits. The proclamation is sprinkled with examples the authors feel exemplify what should be done in Canada.  They cite Spain, Scotland, New Zealand and Germany as examples of countries moving in the “Just Transition” direction but don’t bother to mention those countries are all suffering from high energy prices coupled with climbing energy poverty. You certainly won’t find any concerns expressed about the costs of the Just Transition on families or households in the 28 pages. 

The word “objective(s)” can be found 32 times and aligns with the word “Tables” found 27 times as the proclamation insists the Federal and Provincial governments establish objectives via those tables that must be adhered to under legislation set by the federal and provincial governments.  Naturally these objectives  require “monitoring” by more bureaucrats.

We should all be troubled by the fact that four of the five ENGO (more on BLUEGREEN below) are registered charities and all of them seem somewhat dependent on handouts (grants) and contracts from all three levels of government.  A quick review of the four and their CRA charity filings indicates over the five years of CRA records they have reported receiving over $27 million tax dollars, mainly as grants. IISD is one example with grants committed of almost $40 million.  Equiterre is another example reporting having received almost $7.7 million in grants/donations in their CRA filings over the past five years from Federal and Provincial governments.  Equiterre was reputedly co-founded by Steven Guilbeault, current Minister of Environment and Climate Change. Additionally two of them (Environmental Defence, IISD) have been contracted by government Ministries or subsets. It is also worth noting IISD also gets millions of dollars from UN Agencies, International Governments and their agencies as well as Foundations as noted in their Consolidated Financial Statement of March 31, 2022.

Now, let’s take a look at BLUEGREEN a not-for-profit whose membership consists of four charities (Pembina Institute, Environmental Defence, Columbia Institute and Clean Energy Canada), one not-for-profit (Broadbent Institute) and two unions (United Steelworkers and Unifor)!

BLUEGREEN

BLUEGREEN”s homepage states: “We can create good jobs across the country by making renewable energy, using energy more efficiently, decarbonizing manufacturing, and building more public transit.

The above statement seems incongruous with what most would imagine, the two biggest private sector unions in Canada, would buy into, should their leaders reflect on how accomplishing the foregoing would impact their members. Interestingly no one from either of the unions were cited as “Contributors” to the “proclamation” paper but two of them from Unifor were named as “reviewers”!

If one looks at their respective websites for their views on “climate change” they appear somewhat less committed, then the proclamation in the “Proposal”. One senior individual within the United Steelworkers Union (USU) at an event last year stated:  “In the past, we knew that investments in our plants would provide long-term benefits. Today, the same logic must apply to the environmental question.“ Identifying those investments is not an easy task as a major ingredient attracting investments is cheap energy but that is what the “Transition” will affect the most so, “long-term benefits” appear elusive.  That should send a not-so-subtle message to PM Trudeau and his Ministers! 

USU sent two observers to COP 27 in Egypt and one of the issues they noted was the Carbon Border Adjustment Mechanism and their synopsis stated: “This measure involves the introduction of a price (tax) on high-carbon products entering Canada. Other countries are preparing for the implementation of such a measure.“ Obviously this has implications for Canada’s trade relationship with other countries, but it appears the USU recognizes the impact it may have on their members unless we implement it too!

In respect to Unifor an article on their website emphasized: “Revenue from carbon pricing be invested in ensuring that transitions for workers and communities are appropriately managed through training and matching displaced workers with new opportunities.“ That statement suggests the Federal Government abandon the current carbon tax rebate program and instead “invest” it to create those “transitions” the Proposal recommends.

The Broadbent Institute is of course named after Ed Broadbent the former leader of the Federal NDP and as one would expect they are gung ho on the Just Transition and push Canada to spend lots more!  Rick Smith who has become an icon of the “climate change” push wrote an article for the Broadbent Institute saying “we should be spending in the hundreds of billions, not just billions in the single digits.“ 

The four charities include Environmental Defence where Rick Smith was the head honcho for 9 years but now he is the President of CICC, a taxpayer funded ENGO pushing the “net-zero” initiative on behalf of the Trudeau government.  Needless to say ED has received grants and contracts over the years from us taxpayers.

The Columbia Institute in its CRA filings does not claim any contributions from any of the three levels of government seemingly obtaining most of its revenue from other “charities”. 

Clean Energy Canada is a “climate and clean energy program” within the confines of Simon Fraser University so doesn’t report on an individual basis to the CRA charities. As one would suspect SFU on the other hand in it’s March 31, 2022 filing with the CRA reportedly received over $358 million (38.3%) of its gross revenue from the three levels of government. A search of Federal contracts disclosed many to SFU from the Ministry of Environment and Climate Change which we should assume went to Clean Energy Canada.

Now examining the Pembina Institute’s CRA filings one sees they claimed to have received $5,576K in grants from three levels of governments.  A search of the Federal Governments “Grants and Contribution” site however indicates they handed out $10,450K to Pembina! That is almost double the information filed with the CRA but with the CRA Union suggesting they will go on strike in early April they are unlikely to investigate.  The Pembina Institute also were handed $963K in contracts by the Federal Government over the same five years.

Conclusion 

The objective of ENGO employees, numbering in the tens of thousands, receiving huge support from taxpayers both via donations they receive (providing tax benefits to contributors) and via the various handouts from Federal, Provincial and Municipal Governments is self evident!

Those ENGO employees are concerned events happening around the developed world countries with costs of energy rising to historical levels are creating pushbacks on their views the “net-zero” target may be abandoned. The result is their jobs are in jeopardy so for that reason they continue to push the narrative about climate change and the “Just Transition” objectives. The bulk of those employed by ENGO fail to do proper research but have been hugely successful at manipulating elected politicians in Canada and those appointed to organizations, such as the United Nations, convincing them mankind are in full control of the weather. 

We, here in Canada and elsewhere around the world need to continue the pushback or we and our children and grandchildren will suffer the consequences!  Spending “the hundreds of billions“ proposed by Rick Smith in the Broadbent Institute article is beyond belief with energy poverty spiralling around the world.

The time has come to put an end to the Just Transition!

*ENGO are Environmental Non-Government Organizations

Affordable Housing in Ontario and the Sky is Falling According to Eco-Warriors

According to the eco-warriors using 7,400 acres (0.37%) of the 2 million acres of the Greenbelt land for the creation of “affordable housing” is something that should never be allowed so about 200 of them joined together to sign a letter making their views known. While they have expressed some legitimate concerns with Bill 23 and its negative effects on “conservation authorities” they have failed to recognize the unaffordable nature of housing affecting so many Ontario families.  The CBC reported that a request by the leader of the Ontario Green Party has gone to the Government of Ontario’s Integrity Commissioner asking for an investigation as to whether the plan has broken ethics rules. Those 7,400 acres could easily accommodate well over 74,000 homes or more in local municipalities and somewhat contain climbing house prices in the province but that goes against the wishes of those out to save the planet from “climate change” or what used to be referred to by them as “global warming”! 

Many of those same eco-warriors back in the days of the McGuinty/Wynne led government(s) pushed for the creation of the Greenbelt. They were rewarded by the allocation of those 2 million acres as protected land even though large portions of it were close to communities where housing needs were growing. At the same time the “charitable” Greenbelt Foundation was created and supplied with Ontario taxpayer dollars which continues to this day. 

The Greenbelt Foundation is a registered charity and their March 31, 2021 report indicates 89.4% ($4.079 million) of their gross revenue came from the Province ($3.828 million) and the Federal government ($251K). Only $12K came via receipted charitable donations despite their spending $479K on advertising and promotion and $1,677K on compensation.

Somewhat related to the foregoing pushback by the eco-warriors saw the Minister of Energy Todd Smith, recently receive a response from IESO (independent electricity system operator) in respect to his prior directive(s) to request a plan on how the province could achieve a full “decarbonization” of the electricity system.  The minister had issued those directives even though the current electricity system in Ontario is already slightly over 92% emissions free.

The IESO responded with their December 15, 2022 Pathways to Decarbonization a 39 page report that predicts by 2050 Ontario’s capacity will be 88,000 MW (megawatts) versus what the report claims is now 42,000 MW.  We assume the latter includes all DER (distributed energy resources) such as about 2,200 MW of solar, 600 MW of IWT (industrial wind turbines) small hydro, combined heat and power plants, battery storage, electric vehicles, and consumers who reduce electricity use on demand.

The ”Pathways” to get to that 88,000 MW include some interesting turnarounds by the Premier Ford led government who killed the GEA (Green Energy Act) enacted by former Premier McGuinty but now appears determined to make life for Ontarians much worse and more expensive.  The plan put forward by IESO will mean by 2050 Ontario will be reputedly powered by the generation sources in the following chart!

IESO’s estimate of the costs are as low as $375 billion to a high of $425 billion including substantial expenditures on transmission systems.  The report estimates electricity costs would rise to $200/$215/MWh. It is important to note IESO don’t hypothesize on the individual costs of the additional 68,793 MW by source such as the 15,000 MW of hydrogen or nuclear, but they do suggest the province had better start working soon as timelines for new transmission lines and the additional 17,800 MW of nuclear will be a long-drawn-out process. We should also be pretty sure their estimate on the cost of those 15,000 MW of hydrogen is more like a guess rather then a fact based estimate.

It is also interesting IESO includes an addition of 6,000 MW of solar capacity and 17,600 MW of IWT (industrial wind turbines) capacity as part of the “decarbonization” process as both are intermittent and frequently unreliable.  IWT also have the bad habit of causing harm to humans as well as decimating birds and bats.  It is likely those new planned IWT will receive considerable pushback by many municipalities throughout the province.  The latter is a factor as municipalities now have the power to deny access.  One should wonder if the Ford government will legislate; the power to deny access for IWT, is no longer an option for municipalities in their move to decarbonize the electricity sector?

Looking further at the planned addition of IWT and solar throughout the province will also mean the loss of considerable land for both farming and nature as both energy sources require either (or both) land clearing and/or farmland reductions. 

Based on estimates of what land will be required for the additional wind and solar generation should make the eco-warriors very upset.  Land required per MW of IWT varies from 2 acres/MW to 40 acres/MW of capacity so the 17,600 MW would need 35,200 acres on the low side to as much as 704,000 acres on the high side.  The additional 6,000 MW of solar could require as little as 5 acres/MW on the low side or up to 10 acres/MW on the high side meaning as little as 30,000 acres or as much as 60,000 acres.  What the foregoing suggests is both the additional IWT and solar could easily be accommodated on the Greenbelt’s 2 million acres. 

We should wonder how those 200 eco-warriors, who signed the letter to stop “affordable housing” on the Greenbelt, would feel, if the foregoing is the eventual conclusion as to where those wind turbines and solar panels in IESO’s “decarbonization” plan are destined for?

Wouldn’t that make the Greenbelt even greener with all those carbon free generating sources?

Steven Guilbeault, “Green Jesus” or the “Grinch out to Destroy Canada’s Prosperity”

On May 12, 2022, CTV News issued a report with a video about a second minke whale being observed in the St. Lawrence River in Montreal with the first one observed on May 9th!  The article noted this was the first time in over a century two whales had been spotted in the waters off Montreal.

Now, fast forward a few months to October 21, 2022, and an article in the Antarctica Journal stated Montreal would dump 2 billion gallons (about 7.6 billion litres) of raw sewage into the St. Lawrence River and they apparently received the blessing of the Environment Ministry.  This wasn’t the first time they had dumped sewage as a CTV article from November 15, 2018, reported: “A suburb of Montreal has begun the process of dumping an estimated 162 million litres (35.6 million gallons) of raw sewage into the St. Lawrence River“. They also dumped 8 billion litres back in 2015 and Catherine McKenna, then Federal Minister of the Environment gave her blessings to the dump.

Steven Guilbeault, current Minister of the Environment and Climate Change represents the Montreal riding of Laurier–Sainte-Marie and presumably gave his blessing to the latest raw sewage dump.  We should assume he wouldn’t want that fact to be known and tarnish the “Green Jesus” nickname he was reputedly given by La Presse many years ago.

Two weeks ago Guilbeault was interviewed by the NY Times and during the half-hour interview was quired as follows:

I’m curious about the sort of broader idea of being in opposition to the Harper government. I mean, it’s clear you had something to fight against, which seems like a natural extension of your previous activism. Did it feel like a familiar position?

He vaguely answered: “It’s a fascinating question, Lulu, because when you look at the history of the environmental movement, it was really created around being an opposition to something, to companies dumping toxic waters in our rivers and streams and lakes“. Interestingly he made no mention of his Municipality of Montreal’s habit of dumping raw sewage into the St. Lawrence River and the potential damage to the aquatic eco-system in his response but that is what we have come to expect from those eco-warriors.  He turned a blind eye to what is happening in his backyard!  How selective! 

Interestingly enough an article in the National Post October 30, 2021, shortly after his appointment as Minister of the Environment and Climate Change said:  “He told Radio-Canada he had wanted to work on something more local and more solution-oriented. That also meant working with governments on environmental issues, work that wasn’t a natural fit for the activism-oriented Greenpeace.”

The foregoing seems like a rather empty work plan as he has done nothing about his “local” community’s habit of dumping sewage into the St. Lawrence.  The CBC comment though does highlight his involvement with Greenpeace and activism while employed by them from 1997 until 2007.  Shortly after he left Greenpeace, he co-founded Equiterre.

Amazingly from 2010 to 2018 he was a registered lobbyist for Equiterre and after he was elected to Parliament on October 21, 2019 Federal grants to Equiterre took off and we generous taxpayers (surely coincidental) have provided them with almost $2.8 million so far.

His NY Times interview also touched on his arrests for activism while with Greenpeace and he went on and on about his climbing the CN Tower and his very first arrest at a OPG (Ontario Power Generation) coal generation plant in an attempt to prevent delivery by ship of coal to power the unit.

His two other arrests were not discussed but surely one of them should have been in respect to his stunt on Ralph Klein’s roof when Klein was Premier of Alberta.  That climb was to install a solar panel on the Klein’s roof carried out by activists including Guilbeault as an article in the National Post noted just after his appointment as the Minister for the Environment. As the article notes, “On April 11, 2002, Greenpeace pranksters climbed onto the roof of then-premier Ralph Klein’s bungalow in Lakeview. From inside, Klein’s wife, Colleen, saw vans arrive and people in orange uniforms take a ladder to the house. Mrs. Klein later said, “I was terrified,” she told an interviewer years later. She thought it was some kind of home invasion.“

Trying to determine if Guilbeault was jailed or fined as a result of any of the four arrests for his activism and the penalties he may have incurred is difficult. The only one with any detail on what the court decided was for climbing the CN Tower and for that he was fined $1,000 and ordered to perform 100 hours of community work.  We should all surmise the “community work” simply entailed him preaching about “global warming”!

To demonstrate the hypocrisy of Guilbeault, the Toronto Sun back in November 2020 called him out for the car mileage he was racking up during the Covid lockdowns at the rate of well over 3,000 km per month or three times what the average driver does. A year earlier during a radio interview he stated he would try to do without a car. His excuse, in respect to the Sun article was provided by his press secretary who stated, “he had to attend meetings in Ottawa”.  We should wonder why he didn’t simply take the Via train back and forth between Montreal and Ottawa! 

During his NY Times interview when asked if the environmental movement created in opposition could evolve beyond that, his partial answer was, “Everyone talks about electrification of transportation. OK, I’m all for it. I don’t own a vehicle. I’ve never owned a vehicle. I’ll never own a vehicle. But my ministerial vehicle is an electric vehicle.“  His strange response to the question suggests he may have been concerned the interviewee may have done some research that he needed to dispel in case he was asked about the Toronto Sun article! Oh, he probably rode his bike to Toronto to climb the CN Tower and all the way to Calgary to climb on the Klein’s roof (sarcasm fully intended)!

It is also interesting to look back at the two institutions (Greenpeace and Equiterre) Guilbeault spent his time with as both were members of the Strathmere Group; an army of 12 eco-warrior charities/not-for-profit creations that spent time organizing activities/media attention, etc. etc. in a push to scare everyone. Their initial “global warming” scare eventually evolved into “climate change” and their screams grew louder as the UN under the UNIPCC joined in!  Yours truly wrote about the activities of the Strathmere Group in several articles and Part 3 lists the 12 Canadian members.

The Strathmere Group and their affiliates have exerted tremendous influence on municipal, provincial and federal politicians. Those politicians seem to no longer possess either common sense or financial acumen. As a result, today, we find ourselves concerned about what Europe may or will experience this winter being, either a lack of energy or unaffordable costs. Media attention in Europe anticipate there will be a substantial increase in “deaths from the cold” and perhaps as many as 147,000. Many parents in Europe, here in Canada and elsewhere are also concerned how our children and grandchildren will survive in the future without fossil fuels.

As Christmas approaches, my belief is we should regard the “Green Jesus”, Steven Guilbeault and his Liberal and NDP cohorts as the Grinches out to destroy Canada’s prosperity!

Investigative Reporting by a Toronto Star Journalist is Disinformation

Recently invited to be a guest on Zoomer Radio, I agreed, and was informed I would be joined by Bryan Purcell, VP of Policy and Programs at The Atmospheric Fund. TAF is a “not-for-profit” company with almost $100 million of “restricted funds” that have been provided by the City of Toronto, the Province of Ontario and the Government of Canada and appears to have 30 employees.  They use the revenue generated from the funds ($7.1 million in their 2020 and $1.2 million in 2021 financial reports) and other revenue (minimal) to provide grants described as: “has the potential to generate large-scale carbon reduction in the GTHA“ (Greater Toronto Hamilton Area).

The planned discussion/debate was to be in respect to a Toronto Star article posted November 30, 2022 titled “Ontario’s new gas plants will cause your hydro rates to rise, report says” and presumably for Zoomer’s audience to hear competing views on the content in the article from yours truly.

Shortly before the program was to start the Auditor General of Ontario released her annual report so I, and presumably Bryan Purcell, were informed the discussion was cancelled as the host wanted to cover the AG report due to it’s significance in detailing how the AG viewed Premier Ford’s led financial management over the prior year.

The TorStar article was written by Marco Chown Oved* who identified himself as a “Climate Change Reporter” in the article heading! On his LinkedIn profile, he identifies himself as an “Investigative Reporter at Toronto Star”! The TAF representative, Bryan Purcell, also scheduled to be on the radio program, is quoted in the article and on his LinkedIn profile states he is a: “Environmental Professional focused on Climate Change mitigation“ but his qualifications suggest he is stretching the truth.

Below we will examine some of the claims made in the article based on the report prepared by Power Advisory, which we assume TAF paid for with our tax dollars!  The report’s author from Power Advisory was Travis Lusney, whose LinkedIn profile discloses he was the Senior Business Analyst at the OPA (Ontario Power Authority). In that former position he states he; “Managed analysis and implementation of procurement policy. Focused on the Feed-In Tariff Program with emphasis on pricing, connections and stakeholder engagement.“  Hmm, one should wonder if Mr. Lusney, was at least partially responsible for the cost of electricity in Ontario jumping by over 100% due to the FIT contracts to wind and solar proponents which paid them as much as 82 cents/kWh for rooftop solar. Perhaps we should take his recent report to TAF with the proverbial “grain of salt”, or should we simply shrug it off based on the “investigative journalism” claims of Marco Chown Oved, the Toronto Star reporter?

Claims from the article:

Rather than relying on natural-gas-fired generation to meet growing electricity demand, Ontario’s cheapest and most reliable options require new wind and solar,

It is unbelievable the “investigative journalist” didn’t bother to do a little research work on the foregoing claim as he would quickly discover wind and solar are not the “cheapest and most reliable”. Had the author simply bothered to look at the February 2022 report of the FAO (Finance Accountability Office of Ontario) he would have discovered they have driven up the cost of electricity to the point where taxpayers are forced to absorb a cost of “$38.6 billion (32.7 per cent) to move most of the cost of 33,000 renewable energy contracts with wind, solar and bioenergy generators from all electricity ratepayers to the Province.“  Had he also bothered to just examine a few days of IESO data he may also have discerned wind and solar’s bad habits of generating power when it’s unneeded and failing to deliver power during “peak hours” on cold winter days and hot summer ones. Recent examples of unneeded power generation occurred December 2nd and 3rd when IWT (industrial wind turbines) operated at 76% of their rated capacity whereas on December 7th and 8th they operated at a miserly 8.5% of their rated capacity. In the first instance the IESO were forced to sell off that power for pennies of it’s cost and in the latter case natural gas and hydro ramped up to prevent blackouts such as those that occur in California and elsewhere around the world where wind and solar are a large part of electricity grids.

People, governments and businesses are switching en masse to electricity as a power source for cars, heating and heavy industry in an effort to lower carbon emissions and avoid the worst effects of climate change.

Once again, the Toronto Star’s “investigative reporter” obviously did not do any research, or he would have discovered the “en masse” switch is not happening to any great extent without government grants, and they obviously must be higher or people won’t switch.  In the case of EV penetration a very recent article from mid November pointed out EV sales in Canada were low during the first 6 months of 2022 stating:  “Based on average new vehicle registrations, the EV total would have to grow from 55,600 to about 480,000 over six months to hit that 60 per cent target.” The 60 per cent target is for 2030 and the 2035 target is 100 per cent. The Federal government also hand out grants for heat pump conversions as well as interest-free loans of $40K but once again reviewing government statistics the conversion rate is not happening. A StatCan report notes heat pumps as a primary heat source have only grown from 3% in 2013 to 5% in 2019 and forced air furnaces have only declined by 1% from 53% in 2013 to 52% in 2019. Funnily enough, electric baseboard heaters over the same time frame fell from 28% to 26%. The actual data easily demonstrates the “en masse” switch the author suggests is a fallacy!

The report says Ontario needs to start making significant investments in its grid, especially considering the lengthy timelines required to build the transmission, generation and storage required to simultaneously meet demand and reduce emissions.

Hydro One just received approval from the OEB (Ontario Energy Board) for a rate increase for planned capital spending on their transmission system.  The spending appears to represent about $7.5 billion over the next five years.  Spending of that amounts suggests the investment is “significant” and a little research by the article’s author would have disclosed that!  No investigative integrity is apparent!  

“It’s very clear that if we’re going to go to net-zero, renewables are going to be part of the mix,” said Travis Lusney, the report’s author and director of power systems at Power Advisory. “How far you go is dependent on a lot of factors, even outside of the electricity sector.”

Well, it is apparent Lusney has a love affair with renewables as his prior role at the OPA (Ontario Power Authority), created by the McGuinty Government handed him the power to construct the mess of the electricity sector in Ontario that (as noted above) the FAO stated in his February 2022 report will cost taxpayers $38.6 billion.

“The report finds that a 97 per cent non-emitting grid can be achieved by building new transmission lines, solar and wind generation as well as energy storage facilities. This would allow the grid to reduce its dependence on natural gas to a few peak demand days in mid summer.”

It is worth noting the report fails to mention Ontario’s electricity grid is already over 92% “non-emitting” and fails to include a cost/benefit analysis to achieve the additional 5% emissions reduction it seeks. The report in the three scenario’s recommends adding as much as 12,700 MW of wind capacity, 5,500 MW of solar capacity and 3,900 MW of storage capacity. The report goes on to suggest those wind turbines, solar panels and the storage capacity be spread throughout the province. The report then forecasts due to the spreading it would require as much as an $8.4 billion spend on the transmission system in order to get the power to where its needed. In summary the Power Advisory report recommends  spending billions of dollars to achieve a 5% reduction in emissions in Ontario’s electricity system.  As outlined above it is very unlikely those new facilities coupled with the additional wind, solar and storage capacity and their associated costs would reduce electricity prices! Instead those costs would drive up prices much as they did in the past with a much smaller capacity addition of renewables. Nevertheless, we should be pretty sure Power Advisory would love the foregoing to happen and Travis Lusney would surely rise in the ranks of his employer, Boston Advisory, who would stand to benefit from the money stream generated by assisting applicants seeking contracts from IESO. 

“In each scenario, hydro prices will be lower than they would be if the province goes through with its plan to build new gas plants, the report concludes, mostly because gas is expected to get more expensive, a rise that will be exacerbated by the increase in carbon tax. Meanwhile, prices for wind and solar, which are already cheaper than natural gas, are expected to fall.”

First off, one should wonder how each scenario will cause “hydro prices” to be lower but perhaps they were actually suggesting “electricity prices” will be lower? Past and current experience in Ontario due to wind and solar generation have actually caused “hydro spills” meaning OPG are paid to simply spill water over dams without running them through the turbines. Ratepayers, however pick up the costs of those spills and for the past several years their costs have been substantial. The spills by OPG are almost always caused by unneeded wind generation as their contracts give them “first-to-the-grid” rights . On the statement, “prices for wind and solar” are expected to fall” is also far from the truth.  As one example an article last month about Vestas, the world’s largest wind turbine manufacturer, stated: “Vestas has raised prices more than 30% in the past year to help stem losses.“  It should also be recognized gas prices would fall if our abundant supplies in Saskatchewan and Alberta had more pipelines available but the Federal government has done everything in its power to prevent that from happening.

As the foregoing once again suggests; the Toronto Star, their reporters, and other MSM companies simply accept what they are told or read and fail to do any research to determine if they are providing facts or fiction. In this case it seems obvious it is the latter and reporter Marco Chown Oved should immediately rewrite his LinkedIn memes as it doesn’t suggest he is a “investigative reporter”!

* Marco Chown Oved’s LinkedIn biography brags about how the CAJ (Canadian Association of Journalists) were so enthralled with an article he wrote about “climate change” they blessed him for writing it. Perhaps they will do so again for this diatribe of BS as the MSM seems to have abandoned publishing the truth and the CAJ has endorsed their abandonment!  This is what Marco Chown Oved has on his LinkedIn site: ”Awarded the inaugural Environmental and Climate Change Award from the CAJ for my feature on heat waves in Montreal, a part of the Toronto Star’s Undeniable series on climate change.”

Once Again, Ontario Ratepayers and Taxpayers are Being Told to Hand Over More Money

A recent rate application before the OEB (Ontario Energy Board) brought back memories of when Bob Chiarelli was Ontario’s Minister of Energy and when queried about the costs of cancellation of the planned Oakville TransCanada gas plant stated:  “It’s less than a cup of Tim Hortons coffee a year“!

What brought the foregoing to mind was an OEB application from Wataynikaneyap Power LP for transmission rate increases that (it appears) would apply to all of Ontario’s ratepayers not just those 16 First Nations and their 14,000 residents that will eventually be connected to the power grid.

The announcement made in March 2018 with great fanfare by Ontario Premier Kathleen Wynne and Federal Minister of Indigenous Services, Jane Philpott, concerned a $1.6 billion dollar Federal Government grant to build an 1,800-kilometre transmission line(s) to connect those 16 communities. The application submitted to the OEB seeks .20 cents monthly from all Ontario’s residential ratepayers which equates to $2.40 annually so is very close to the cost of an extra-large “timmies”. Over the 40-year estimated life of the transmission lines the total amount paid by all residential households would be approximately $400 million for this application which is a lot of “timmies” coffee. We should suspect the cost will increase as the transmission lines reach further to connect with the 14 other First Nations.  Oh, and an unknown portion of the .20 cents will go to Hydro One. 

The OEB also recently ruled on a significant application from Hydro One related to both their transmission and distribution connected customers. The OEB labeled it as; “the largest and most complicated rate case to come before the OEB.“ The reasoning behind the foregoing comment was because it was “a combined proposed revenue requirement of approximately $20 billion and a proposed investment plan of about $13 billion over the 2023-2027 rate period“ The result of their review and ruling is; all ratepayers will see an increase in rates associated with transmission costs and those who are Hydro One distribution customers will be slapped with an additional rate increase.  

The bill impacts noted by the OEB stated “on the transmission portion of the application, it is estimated that for a typical Hydro One residential customer with a monthly consumption of 750 kWh, the total bill impact averaged over the 2023-2027 period will be an increase of $0.69 per month“. Once again that doesn’t sound like much and will amount to only $8.28 annually but with 4.2 million households it totals around $35 million for the year and over five years becomes $175 million without factoring in the costs to businesses and other large consumers. 

The rate increase for Hydro One’s distribution customers approved was; “ for a typical residential distribution customer of Hydro One with a monthly consumption of 750 kWh, the total bill impact averaged over the 2023-2027 period will be an increase of $2.43 per month or 1.5%.“ For a residential customer consuming 750 kWh monthly the annual cost comes to $29.16 but will be more for businesses, farmers and other larger consumers.  For the approximately 1.4 million Hydro one residential customers alone the costs will be north of $41 million annually and for businesses will be much higher than the $29.16 for the “average” residential customer. 

As is obvious from the OEB announcements electricity rates are going up but, those increases are not because Ontario has added new generation it’s simply to help build new transmission lines to First Nations, upgrade existing ones and their associated infrastructure for the planned “full electrification” of the electricity sector. One should wonder is it meant  to ensure you will be able to charge your EV during our cold winter days.

Hydro One customers may well be forced to reduce their “timmies” intake over the upcoming years!

Electric Vehicles Demonstrate Inept Governments via Grants, Mandates and New Taxes

Developed countries around the world are literally throwing money at trying to electrify the transportation sector (passenger cars and light trucks). Canada is no exception as at both the Federal and Provincial levels many announcements and articles have displayed how they have handed out grants to manufacturers of the vehicles, batteries to power them as well as charging stations. Depending on where you are around the world EV buyers receive a variety of incentives, including direct grants, tax breaks (no sales or VAT taxes), low-cost charging stations, etc. all  with taxpayer dollars.

Surprisingly despite all the billions of our tax dollars being handed out Canadians are not buying those EV at the same pace as the rest of the world as an article a few days ago noted: “Statistics Canada data show EVs made up one in 14 new vehicles registered in the first half of this year, compared with one in 20 a year earlier.“ The article went on to state China was responsible for 56% of global sales and for Canada to achieve the 60% sales target for 2030 they would have to grow from 55,600 to about 480,000 over six months to hit that target. Perhaps it has something to do with the fact the Canadian Automobile Association lists 80 EV models with an average sales price of $82,000 and, EV lose considerable range in our cold winters?

Two of Canada’s taxpayers smaller handouts

Lion Electric Company: Back onMarch 15, 2021 a joint announcement made by PM Trudeau and Quebec Premier Legault handed Lion Electric $100 million of our tax dollars and labelled it as an “investment”!  The grant they handed out was 54% of the cost ($185 million) of building a “battery assembly plant” in the Laurentians but labelling it as an investment seems a stretch as, if, and when, Lion Electric generate a profit we taxpayers will not be recipients of dividend payments or appreciating shareholdings.  On the latter note it is an interesting exercise to see how the shares have performed since the grant announcement.  Shares in the entity appear to have had an initial value on the NYSE of US$16.31/share on March 1, 2021, and as of November 18,2022 were valued at US$3.01 a drop of 81.54%! Interestingly Lion recently announced their third quarter 2022 results and stated their revenue was up 244% but losses increased by 316%! Quite the investment!

Taiga Motors Corporation: On July 12, 2021, the Mayor of Shawinigan and the Federal and Quebec Governments announced forgivable loans and grants to Taiga which would allow them to manufacture electrically  powered “personal watercraft, snowmobiles, electric motorization systems and battery packs.“ The collective amount was $50 million (40%) towards the $125.17 million cost of the new plant. Car and Driver tested one of the Taiga snowmobile models in March 2022 and while they didn’t disparage it, they suggested you better not stray too far from your base due to their limited miles range (62 miles for the one tested).  The price was also rather startling with the “Nomad” priced at US$19,490 whereas a Ski-Doo or Polaris model would be in the US$10/12,000 range with much higher mileage. Taiga’s initial share price after their launch in April 2021 was $13.25 and it now sits at $4.00 meaning it has dropped 70% and if one looks at their year over year results their losses as of the 9 months ended September 30th were down from $88.8 million to $35.9 million. Can we really trust politicians to create wealth using our tax dollars to electrify our transportation and other sectors?

As noted, the foregoing handouts were small ones, but we Ontarians have been subjected to handouts by the Ford and Trudeau led governments totalling in the billions aimed at the same goal of electrifying the transportation sector (automobiles and light trucks). They handed out $1 billion to Stellantis, $590 million to Ford $518 million to GM and $260 million to Honda meaning $2.368 billion of our tax dollars were committed to ensure we retain some of the jobs we have had for decades in the auto sector. The province and the feds have also been trying to attract battery manufacturers and will supply LG Energy with $1 billion of our tax dollars as well as an unknown amount to Umicore, a Belgian global metals refiner who will build a battery materials facility.

In addition to the foregoing taxpayer grants, the Federal Government also have the ”Zero Emission Vehicle Infrastructure Program aimed at handing out $680 million to entice people and companies to build “charging and refueling stations”. They apparently see this as “one of the key barriers to ZEV adoption“ but we taxpayers should suspect its related to the average sale price of those EV as noted above and our concern about them losing range during our cold winter days.

What’s happening elsewhere? 

Norway: A recent article; “Norway Became an EV Paradise, Now It’s Imposing a Weight Tax and Bringing  Back the VAT“ noted upcoming legislation in Norway will rescind most of the favourable benefits that have made it the country with the highest EV sales per capita. The new legislation will remove the many perks granted to EV buyers displayed in a graft posted in an article a few months ago. The VAT in Norway alone will add 25% to the purchase price of an EV and the weight tax another 2/3%.  As that occurs, we would expect, the 78 % EV sales have so far represented in 2022, will fall, as they will cost considerably more than a new ICE vehicle once those new taxes become legislated.

United Kingdom:  It appears the UK has recently become  concerned  the net zero target may well lead to “five fuel taxes: fuel duty, vehicle excise duty, landfill tax, the carbon price floor and the emission trading schemedrying up according to an article in the Financial Times!  As a result of that concern a “tax vacuum” will be created during a time when the country is running significant deficits so, as a start, they plan to charge EV owners with the vehicle excise duty.  Grants being handed out are also on a downward trail as purchase grants for new EV have been reduced from £5,000. to £1,500.

Targeted EV sales in Canada

The 2022 Federal budget expanded the push to electrify the transportation sector in Canada requiring 20% of all vehicles sold in Canada to be EV by 2026, 60% by 2030 and 100% by 2035. In addition, the budget extended the $5,000 per vehicle grant to help achieve those targets. Annual new auto sales in Canada vary between 1.5 million to 2 million so by 2035 at the low end $7.5 billion of our tax dollars will possibly wind up supporting those “mandated” sales. The other issue relates to lost sales taxes etc. from ICE vehicles as outlined in a January 17, 2022 article, published by the CPA (Canadian Professional Accountants), noting: “The federal government collects nearly $6 billion per year in gas and diesel excise taxes, not including the GST or HST on those purchases. Add in provincial fuel taxes and over $16 billion in annual government revenue that will disappear once Canadian drivers are weaned off the gas pump. It’s enough to rip a large hole in public finances.“ It is worth pointing out the CPA article was using 2021 data and the price of both diesel and gasoline have climbed considerably since then meaning the revenue lost added to government grants will increase taxpayer costs to over $30 billion annually.

Conclusion:

Looking only at the Trudeau led government’s plan to electrify the transportation sector in Canada demonstrates their inept ability to govern the country responsibly due to their insane belief Canada’s emissions reduction from the transportation sector will impact the climate. Not a chance!

IESO Creates and Promotes Hybrid Electricity Generation-What could go wrong?

Who knew?

IESO recently claimed by simply combining very old technology mankind would create hybrid electricity generation! 

The foregoing was stated recently by IESO in their September report “Enabling Foundational Hybrid Facility Models in the IESO-Administered Markets ”.  One example cited by IESO in the 46 page report, says combining batteries (invented in 1800 by Italian physicist Alessandro Volta) with electricity generated by wind turbines (created by Professor James Blyth in 1887) is “hybrid” generation.  The following from the report states: “Expiring wind and solar contracts along with declining technology costs for battery storage is expected to drive hybrid facility development over the next decade.”

It appears to be similar to mating horses and donkeys to create mules.  Considering how long batteries and wind generated electricity have been around perhaps IESO should name this new “hybrid” they claim now exists in Ontario?  The words “double-dealing” and or “chicanery” added to wind/battery or solar/battery would be a good descriptive for these hybrids!   

The foregoing implies IWT (industrial wind turbines) and solar with FIT (feed in tariff) contacts brought to us in Ontario by the McGuinty/Wynne governments will be renewed as long as battery storage is added by the owners. One should wonder if the Ontario Minister of Energy, Todd Smith has been played by Mark Carney, Vice Chair of Brookfield? A Brookfield subsidiary recently proposed a $300 million 161 MW (megawatts) battery storage unit that will reputedly contain four hours (644 MWh) of dispatchable energy and those batteries will be charged in the middle of the night and dispatched during the day when demand is high.  The benefit to Brookfield will translate to selling the power when the HOEP (hourly Ontario energy prices) market price is high while downloading it when prices are low. 

What looks to be somewhat confusing about this “hybrid” issue is the Energy Minister’s letter of August 23, 2022 wherein he states:  “I am pleased to see that through the first Medium-Term RFP (MT1 RFP) our government’s approach of competitive procurements has secured supply at a cost about 30 per cent lower than previous contracts.” It one believes he was referencing IWT contracts which are paid $135/MWh that would reduce the price for grid accepted wind to $94.50/MWh without including what we are also paying for “curtailed” generation of $120/MWh! 

Interestingly enough it appears the “30 per cent lower” quote from the Ministry letter is related to comments in the 46 page September 2022 report from IESO titled:  “Enabling Foundational Hybrid Facility Models in the IESO-Administered Markets”! The IESO report has the following two sentences: “Post-market renewal, there will be a locational marginal price (LMP) for the storage injecting resource and another LMP for the storage withdrawing resource. The LMP values may be different for the two (2) resources (e.g., $20/MW for the storage withdrawing resource and $21/MW for the storage injecting resource).”

The question becomes; had IESO negotiated the additional payment(s) with the IWT owners and made the Minister aware of the agreement reached before he penned his letter as it infers; due to the date of his letter proceeding the IESO report by one month?

Despite the foregoing question it seems interesting that the two additional payments added to the 30% reduction would bring the total cost of wind generation to $135.50 ($94.50+$20.00+21.00=$135.50).  The other question is whether the IWT owners can pick and choose when to sell their stored energy and if they will be allowed to choose hours when the HOEP market price is higher than the guaranteed price?

Another very recent announcement from Capital Power in Windsor suggests Ontario’s natural gas fired plants are keen to get in on the “battery” storage action as the September 21, 2022 article in the CBC suggests.  Capital Power is proposing to add a 40 MW battery storage unit particularly as IESO has forecast “demand in southwestern Ontario as a whole is expected to double over five years to about 2,000 megawatts”.  The article highlights a report from Power Advisory which amusingly recommends the City of Windsor ironically investigate “importing power from Michigan” whom the EIA (US Energy Information System) note in 2021 got their largest share (32%) of electricity from coal generation.

One of the principal reasons for the IESO projected demand increase is; “the announcement of the $4.9-billion Stellantis-LG Energy Solution electric vehicle battery plant, a massive facility slated to open in 2024.” The press releases from the Provincial and the Federal Governments don’t disclose how much taxpayers will be providing as the Federal Press Release notes: “Details of this agreement are subject to commercial confidentiality and cannot be disclosed at this time”.  Needless to say we taxpayers should expect government grants will be several hundred million of our tax dollars! Both press releases tout the wonders of converting from manufacturing ICE to EV automobiles in line with PM Trudeau and his minions seeking to achieve his target of “100% zero-emission vehicle (ZEV) sales by 2035”. The only announcement about grants was from the City of Windsor who have committed $68 million with the help of a $45 million loan from Infrastructure Ontario an Ontario taxpayer owned entity.

As IESO and the Federal, Provincial and Municipal governments here in Canada continue the push for batteries to be manufactured in Ontario and to also provide electricity it is interesting to note California has similar targets as those proposed by our various government bodies. Very recently PG&E (Pacific Gas & Electric) experienced yet another major battery fire at a large battery storage unit (182.5 MW) and that plant has now been shut down indefinitely!  

From the above summary of ongoing events here in Ontario and elsewhere it seems, in the minds of our bureaucrats and politicians charged with running our energy system (whose objectives should be reliable power), their view is:

“everything old is new again”!

Perhaps Voters Should Demand IQ Tests for Anyone Running for Public Office

Numerous events recently have caused yours truly, and hopefully many more, to wonder; are we are being led by elected politicians, federally, provincially and municipally with IQs (intelligent quotients) that would easily qualify them for a place in the “Dumb & Dumber” cast of the movie of the same name!  Those politicians take it upon themselves to direct bureaucrats; responsible for managing public services (entities paid with our tax dollars), to do what they are told. The bureaucrats do as they are told as they are well paid with lots of perks so they don’t “pushback” no matter the stupidity of the directives!

Let’s have a look at a few issues related to mankind’s need for “energy” firmly under control of politicians. Energy, until recently, has caused the world to become a better place; reducing poverty, climate related deaths, increasing lifespans, and damage from weather anomalies i.e.; not “climate change”!

Ottawa is a Great Example of Municipal Idiocy

With municipal elections just around the corner, Ottawa’s Mayoralty Candidates are having “eco-debates”!  The candidates include Bob Chiarelli a former mayor of Ottawa and when he was Ontario Minister of Energy is famous for suggesting the $1 billion cost associated with moving the planned Oakville gas plant was the cost of a Tim Horton’s coffee. It should come as no surprise the debates relate to the city councils approved; “Energy Evolution”, an 86 page document forecast to cost $57.4 billion and will reputedly transition Ottawa to a “net-zero” city by 2050. With a population of about 1.1 million that represents a cost per resident of about $52K or more than $200K for a family of four. An earlier article about Ottawa’s plan to get to “net-zero by 2050” strongly suggests it was written by Pollution Probe a group dedicated to convincing us all to abandon our use of fossil fuels to achieve the COP-26 targets. As if to exacerbate the push to spend those billions of dollars the City of Ottawa contracted Innovative Research Group to conduct a survey* that seems destined to produce favourable results for the Ottawa politicians due to the skewing of the questions. Perhaps Pollution Probe also had a hand in generating those survey questions?  It would be great if those municipal politicians running for mayor or council took the time to look at what has happened in the UK or Germany where energy prices have skyrocketed due to their push to “green” the electricity sector. This winter they plan to control the temperature households set to heat their homes! It seems apparent research isn’t something those seeking reelection or election to the City of Ottawa have bothered to do!

Province of Ontario Demonstrates Provincial Idiocy

From all appearances it seems almost conclusive the Premier Ford led government is simply carrying on with what Ontario experienced under the McGuinty/Wynne led government which brought us an almost tripling of the cost of electricity in the province.  While Ford did cancel the GEA (Green Energy Act), it is obvious they are still committed to eliminating fossil fuels completely which affects reliability and will surely drive-up generation costs. 

Beyond the announcement OPG would be adding a 300MW SMR (small modular reactor) which may be in service in 2028 at the Darlington site we have seen nothing from the current Ontario government aimed at ensuring we have a reliable supply of electricity in the future!  With the approximately 3,000 MW of the Pickering Nuclear plant scheduled to close by 2025 the Ford government (via his Minister of Energy, Todd Smith) is pushing the Pathways to Decarbonization (P2D)” which fearfully, doesn’t seem to project reliability. The latter is concerning, as via a recent directive Minister Smith “asked IESO to evaluate a moratorium on the procurement of new natural gas-fired generating stations in Ontario and to develop an achievable pathway to phase out natural gas generation and achieve zero emissions in the electricity system.”  From all appearances the directive has led to the upcoming (September 19, 2022), Ontario Energy Conference “Navigating to Net Zero” classified as “Ontario’s Energy Transition”!  According to the page describing the conference a key issue is; “Energy customers are demanding clean energy solutions with some urgency” but doesn’t disclose who those “energy customers” are. My (personal) guess would be they are not small/medium sized businesses or households suffering from inflation but may include eco-warrior charities like Environmental Defence, David Suzuki Foundation, etc. etc.  In reality, it appears to be simply Ontario’s politicians complying with the wishes of Prime Minister Trudeau and his Minister of the Environment and Climate Change, Steven Guilbeault; famous for his actions when he was an eco-warrior climbing on the roof of former Alberta Premier, Ralph Klein’s home and scaring his wife as well as his criminal action of climbing the CN Tower!

It is worth noting that IESO had previously been asked by Minister Smith to evaluate the phaseout of natural gas and their report indicated the cost to eliminate it by 2030 would be $27 billion and raise electricity prices by 60%.  Interestingly on the page with the link to the foregoing report IESO note; “Did you know that natural gas provides just 7% of Ontario’s electricity needs, but on the hottest summer days can provide up to 30%?”  This was a clear message from IESO that without natural gas, Ontario would have to increase its generation considerably to ensure reliability and prevent blackouts.

A clear message about vulnerability totally ignored by Minister Smith and the Ford Government!

Only a Few of Many Examples of Federal Idiocy

Looking back to August 19, 2021 and viewing a video of Trudeau announcing one of his handouts before the upcoming election is an interesting exercise! At the press conference in BC he promised to provide funding “to support the training of 1,000 new community-based firefighters and the purchasing of new equipment to continue to fight the impacts of climate change across the country”. A question presented to him asked about inflation and the Bank of Canada possibly loosening inflation controls and his response was: “You’ll forgive me if I don’t think about monetary policy”!  We should also suspect his Minister of Finance and Deputy PM, Chrystia Freeland, is of a like mind so, spending our tax dollars on the “net-zero” pledge requires no thoughts about the consequences on Canada’s future despite the federal deficit having reached $314 billion in the year that had just ended on March 31, 2021.

German Chancellor Olaf Scholz recently visited Canada with the presumed hope Canada might be able to supply some natural gas via LNG shipments but all he got was a promise that maybe, sometime in the future, we might be able to supply Germany with “green hydrogen” generated by IWT (industrial wind turbines) out of Newfoundland. An article out of Germany however about the latter titled“Will rescue come from Canada?”casts serious doubt on that possibility as the following from the article notes (from the Google translation):  “So does this prove the feasibility of LH2 imports from Canada? The technical possibility may be given. However, the profitability is more than questionable. If you look at the whole supply chain: wind energy – electricity – electrolysis – liquefaction – ship transport – distribution – storage – generation in fuel cells – feeding into the grid – then you have to be very skeptical. It would be maddeningly expensive. Maybe then the LH 2 tax will be introduced in Germany and the kilowatt hour will ultimately cost one euro.” This was the best PM Trudeau could offer as the Liberals have stifled the generation of fossil fuels and the pipeline that would have brought them to export terminals.

The Trudeau led government during their reign in Canada have continued their efforts to achieve “net-zero” crippling our natural resource sector, advocating for EV to replace ICE vehicles by subsidizing their purchase and increasing the carbon tax on gasoline and diesel fuels. He and his minions such as Steven Guilbeault, Minister of the Environment and Climate Change and Jonathan Wilkinson, Minister of Natural Resources, despite having some of the largest reserves of natural gas in the world, have refused to allow the building of the infrastructure needed to export our oil and gas resources!

TheBuild(ing) Back Better” advocacy pushed by the WEF (World Economic Forum) has become the recent version of the former communist “Five Year Plans” by the Liberal Government and enshrined in past budgets of the Trudeau government. It appears they haven’t realized Russia abandoned those Five Year Plans many years ago!  Canadians are now experiencing the results of those plans with inflation climbing, record Federal Debt, taxes rising and investment fleeing the country despite Canada’s abundance of resources.  It sure appears “Building Back Better”, by eliminating Canada’s exploitation of our natural resources is cripplingly us and harming those citizen’s who are not members of the elite’s of the Canadian Liberal Party.    

We should all find it fascinating a couple of months ago PM Trudeau was in Nova Scotia for a staged presence once again handing out $255 million of our tax dollars with $125 million destined for wind projects and $130 million for battery storage.  While making the announcement he was standing in a farmer’s field and in the background were several wind turbines that were totally dormant. We should doubt Trudeau actually noticed how those IWT demonstrated their intermittency and unreliability!  

The foregoing event occurred shortly after Trudeau displayed his new haircut patterned after Jim Carrey when Carrey stared in the movie series, Dumb & Dumber.  Now isn’t that ironic in how his new haircut and those dormant wind turbines enunciate how incredibly incompetent our current crop of elected leaders appear!

The time has come for politicians to take off the blinkers and do basic research before accepting what the eco-warriors incorrectly see as the end of the world unless we achieve “net-zero” emissions.

*Full disclosure:  I completed the survey twice using my e-mail address without pushback so eco-warriors from Pollution Probe or others may well have completed it dozens of times.

Vestas Wind System Awarded Top ESG Score by Corporate Knights

A recent and very long article in The Oregonian titled “How an airborne blade exposed broader problems at PGE’s flagship wind farm” went into considerable detail on the effects of a turbine blade that was spinning and suddenly was launched in the middle of the night plowing a four-foot furrow in the wheat stubble where it landed.  The foregoing led to a full shutdown of the 217 wind turbines in the Biglow Canyon by PGE (Portland General Electric) and lots of responses from locals pointing out many other issues associated with those IWT (industrial wind turbines). The article elaborates on six major reported issues which included oil spills, metal debris appearances, etc. etc. and also states, how over the years, those turbines (manufactured by Vestas and Siemens) underperformed in respect to generation they originally promised. The article reports on more unfavourable information about the Vestas turbines versus the Siemens ones but both are criticized. It is somewhat surprising the article does not even mention how those IWT also kills birds and bats or how their associated noises (both high decibel and infrasound) affects humans and animals in a negative way.

Vestas is a company with their head office in Denmark and is touted as the world’s largest supplier of IWT.  It may seem oxymoronic to many that Denmark has the highest household electricity prices in the EU currently at “0.3448 euro per kWh”!  The prior fact illustrates what many around the world have experienced due to the favourtism, tax dollars and tax benefits accorded companies awarded contracts to erect IWT to save us from “climate change”! The end result of those IWT installations is much higher electricity prices and unreliability due to the intermittent nature of wind versus dependable energy generation from nuclear and fossil fuels!

Interestingly, Vestas was favourably recognized by Corporate Knights of Toronto* in their January 2022 ESG (environmental, social and governance) assessment of 6,914 companies with more than US$1 billion in annual revenues.  Corporate Knights ranked Vestas Wind Systems as the world’s most sustainable corporation, granting them as the only company, to achieve an A+ rank! Needless to say Vestas tout that ranking in their 74 page  2021 Sustainability Report stating they were “The most sustainable company in the world”. One should wonder about the qualifications of Corporate Knights staff and their ability to examine those 6,914 companies as it relates to ESG accounting standards.  Those ESG accounting standards have been widely criticized as being far too vague as noted in a recent article by Bloomberg.

So, one should wonder did the “top of the heap” award by Corporate Knights spotlighting Vestas ranking higher than the other 6,913 companies provide a benefit to Vestas’s shareholders? The quick answer is no!

If one looks at the Vestas share price on January 3, 2021 it was US$17.23/share but by September 9, 2022 it was US$8.17/share having dropped by 52%.  Looking at the share price on the Corporate Knights release date of the “World’s 100 most sustainable corporation” on January 19, 2022, the Vestas share price was US$9.21 but as noted it fell to US$8.17/share by September 9th down by 11.3%. 

It seems obvious those involved in investing our funds through assets management companies or private pension plans** are not convinced renewable energy is a sound investment.  A recent article notes fossil fuel companies have out performed renewable energy companies by a factor of ten in the current year. Renewable energy companies beat the S & P by an average of 4.3% whereas fossil fuel stocks have outperformed the S & P by an average of 43%.

From all appearances it should be apparent the population who view the possibilities of renewable energy providing the world with all the energy we need are in short supply no matter what Corporate Knights or politicians tell us minions!

*Corporate Knights describe themselves as “The Voice for Clean Capitalism” but seem quite happy to take tax dollars from the Federal Government for their “magazine” as well as obtaining contracts from them to report on “decarbonization trends in Canadian industry sectors”.

**Public pension plans have jumped on board to support renewable energy and have suffered the consequences as pointed out in a recent article about Caisse de Depot and OMERS who took a pounding on just one of their investments.