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HomeMy WebLinkAboutThe Lucknow Sentinel, 2015-03-04, Page 66 Lucknow Sentinel • Wednesday, March 4, 2015 The Wind Debate Continues Letters and Responses Regarding Wind Power Submitted Original Letter: More wind power will increase hydro rates Ontario electricity rate payers continue to watch with alarmed disbelief as their hydro bills skyrocket. The media repeatedly show examples of adverse impacts to our manufactur- ing industry, commercial enterprise, agricultural via- bility, and of families forced to choose between paying utility bills and buying gro- ceries. As an organization representing a dozen municipalities, we are very disturbed at the rapidly increasing cost of electricity. Much of this increase must be attributed to the introduction of renewa- bles—particularly wind energy. A policy to rapidly install wind turbines as a major part of the Ontario electrical scene was rushed through without adequate analysis or examination, justified by an ideology rather than a comprehen- sive business case. The gov- ernment over -generously contracted to pay renewable energy producers signifi- cantly higher rates than the market price. Our electricity has now become the most expensive in North Amer- ica, seriously threatening our prosperity. Ontario's Auditor General has pointed out that we pay twice for wind energy. Its intermittency and unpre- dictability prevent it from being a dependable base load source of power. Since it is mainly produced at times and seasons of low demand and is frequently unavailable during peak consumption it is a mis- match for Ontario's energy needs. The variability of wind makes it necessary to maintain an alternate source of generation availa- ble for when wind drops, especially during the increasing morning demand. When the over- supply of wind energy is not needed at night, other base- load generators such as hydro and nuclear have to be curtailed, but main- tained available to return to service when wind genera- tion falls. The requirement to build and supply gas gen- erators which can be run up when wind output falls has already added significantly to consumer bills. These costs will increase as more already contracted wind turbines become operational. How wasteful is wind Urrro//a GreatDeo/ moth the Classifieds energy? When variable wind is added to other steady base Load generators, it can result in unutilized base load gen- eration on many nights. The system operators must either curtail generation, or sell excess generation at prices below the cost of pro- duction, or both. Should Ontario electricity consum- ers be subsidizing New York and Michigan? Because the ideology - based policy gives prefer- ence to wind, the wind power is only partly cur- tailed. What is happening far too often now is that cheaper, non -0O2 produc- ing nuclear and hydraulic base load generators are being curtailed: nuclear units are dumping steam and hydraulic generating stations spilling water. Cur- tailment costs are substan- tial and they are increasing each year. Now IESO has issued a RFP to add another 300 MW of wind power. Why was no action taken when the Audi- tor General's 2011 report specifically warned of all these mismanagement issues? Ontario needs an economically viable energy policy, not one based on unrealistic ideology. We are calling on the Government of Ontario and the IESO to make a sober re- evaluation of the damage current energy policy is doing to our economy. We believe spiralling electricity costs urgently need to be halted. We are requesting full objective third -party cost -benefit analysis before there is any further procure- ment of wind or solar capacity. We stress that it is incumbent on the IESO and the Government of Ontario to ensure that electricity procurement contracts are awarded to the lowest cost provider capable of aligning real time generation with the requirements of the Ontario grid. We would appreciate your expedient response to this letter. Yours truly, Mark Davis, Deputy Mayor, Municipality of Arran-Elder- slie Chair, Multi -municipal Wind Turbine Working Group A Response to Original Letter: Using the Wind to Build our Communities On 21 January, 2015, a group calling themselves the Multi Municipality Wind Turbine Working Group (MMWTWG) wrote to you concerning the impact of renewable wind generation Ontario's electrical system. They say, based on no evi- dence, that "more wind power will increase hydro rates" They ask, with no credible justification, that the Ontario Government and the Independent electrical System Operator (IESO) " conduct a third -party cost - benefit analysis before there is any further procurement of wind or solar capacity." What you should know: The Multi -Municipal Wind Turbine Working Group or MMWTWG does not represent, or speak for, any municipality and is not a member the Association of Municipalities of Ontario (AMO). MMWTWG's letter to you was written by Keith Stelling, a member of the anti -wind turbine coalition, Centre Bruce Grey Wind Concerns Ontario (WCO). Although some of its members are elected offi- cials of some municipalities, based on its minutes, its sole purpose is to oppose wind energy and most of the participants are unelected. They believe wind genera- tion is responsible for increasing the cost of ink ril -TO .FJSHIP C- aHd`ri r, -ti .4ATAN Al l The Township ofAshfield-Colborne-Wawanosh has trees available for distribution to property owners who request a tree or trees. Each landowner will be limited to up to 5 trees. Trees are to be planted on property lines along road allowances and must be picked up, planted and maintained by property owners. Trees will be at no cost to the property owners and will be given first to those who did not receive trees in 2014 and will be on a first come first served basis with a limited quantity. To order trees please contact the Municipal Office at 519-524-4669 LET'S ALL DO OUR PART! PLEASE RECYCLE electricity to consumers and is impairing the efficiency of electricity generation in Ontario. Here are facts that MMWTWG appears not to know: Prices: The price of elec- tricity in Ontario has increased because of dec- ades of underinvestment in both new sources of elec- tricity and the electricity transmission infrastructure needed to deliver that power. Relative Consumer Costs: Studies (e.g. Hydro Que- bec's annual survey) show that Ontario's electricity costs to consumer are about the middle of the range and have been for some time. The lowest cost jurisdictions in Canada are Quebec, B.C. and Manitoba. They rely on less expensive and more manageable hydro electric generation for their base load and sell any surplus generation to other jurisdic- tions, including Ontario. This is not new. It has been the case for years. Generation Costs: New generation is always more expensive than existing gen- eration. However, new wind energy is cheaper than new nuclear power and is cost - competitive with new hydro- electric power. Also, wind generation, like all renewa- ble generation, is not subject to the risks of rising fuel costs like natural gas prices. Wind energy developers invest their own capital and absorb the risk of building and operating new wind energy projects - the result is no front-end or long-term risks to taxpayers and ratepayers. Wind generation contri- bution to consumer costs: Wind generated energy costs are relatively small and will remain so for three reasons: costs of wind gen- erated electricity will con- tinue to decrease as turbine technology improves and storage capabilities emerge; fuel costs will always be zero; and wind generation's overall contribution to cur- rent electricity supply is small (about 4% in 2014) and will only increase as it out -bids other sources of generation - especially nuclear refurbishment. Wind generation is pre- dictable and will become more accessible as storage technologies improve: Wind is intermittent but predicta- ble and functions effectively as a base load source of power- particularly for com- munities close to the gener- ators. Currently, the issue is not intermittent wind but excess nuclear power at times of low demand because nuclear generation cannot be efficiently pow- ered down to meet changes in demand. Energy storage technol- ogy for wind and solar are developing quickly and will reduce the issue of intermit- tency. Of course, tying in to the vast pools of stored hydro -electric power in Quebec and Manitoba prac- tically eliminates any issues of intermittency. Gas Peaking units: The location and construction of peaking units have nothing to do with wind generation but everything to do with the inflexibility of Ontario's nuclear fleet. Gas has essen- tially replaced coal as nucle- ar's partner on the grid. Generation Distribution: In 2014, nuclear generation produced 94.9 TWh or 62% of Ontario's total electricity. Wind turbines produced about 6.8 TWh or 4% of total annual generation (Source: IESO Total Electricity out- put 2014). According to MMWTWG the 4% of electricity gener- ated by wind turbines is responsible for the signifi- cant surpluses experienced by nuclear generators. This is hard to imagine let alone believe. The problem is not wind generation but the lack of maneuverability of the nuclear base load. Nuclear cannot be shut down when it is not needed so it becomes surplus to demand. Energy Pricing: Ontario electricity consumers pay a composite price for their electricity: the wholesale price of electricity plus a Global Adjustment. GODERICI• 1 519 524 7811 MOVIE INFORMATION.,. www.rnovielinksza mem d iedoi-800-216-3438 CONTINUED ON PAGE 7 j C,b- LET'S MAKE C&NCER EI !STORY lc" efavAal &El coma. .tea -.ice •• • * ®. .� 1 1 • qThe Lucknow Sentinel • Birthday Club 0 Hutton MacKay March 4, 2010 - 5 years old • * Shelby Barger March 5, 2005 - 10 years old 1 Justin Rintoul * March 6, 2006 - 9 years old .4 Tyler Aitchison March 6, 2008 - 7 years old .i Jesse Broome March 9, 2006 - 9 years old + Your child can be a member t of the Sentinel's birthday club • * call 519-528-2822 to register * ** Wckonw Sentinel 619 Campbell Street 519-528-2822 Urrro//a GreatDeo/ moth the Classifieds energy? When variable wind is added to other steady base Load generators, it can result in unutilized base load gen- eration on many nights. The system operators must either curtail generation, or sell excess generation at prices below the cost of pro- duction, or both. Should Ontario electricity consum- ers be subsidizing New York and Michigan? Because the ideology - based policy gives prefer- ence to wind, the wind power is only partly cur- tailed. What is happening far too often now is that cheaper, non -0O2 produc- ing nuclear and hydraulic base load generators are being curtailed: nuclear units are dumping steam and hydraulic generating stations spilling water. Cur- tailment costs are substan- tial and they are increasing each year. Now IESO has issued a RFP to add another 300 MW of wind power. Why was no action taken when the Audi- tor General's 2011 report specifically warned of all these mismanagement issues? Ontario needs an economically viable energy policy, not one based on unrealistic ideology. We are calling on the Government of Ontario and the IESO to make a sober re- evaluation of the damage current energy policy is doing to our economy. We believe spiralling electricity costs urgently need to be halted. We are requesting full objective third -party cost -benefit analysis before there is any further procure- ment of wind or solar capacity. We stress that it is incumbent on the IESO and the Government of Ontario to ensure that electricity procurement contracts are awarded to the lowest cost provider capable of aligning real time generation with the requirements of the Ontario grid. We would appreciate your expedient response to this letter. Yours truly, Mark Davis, Deputy Mayor, Municipality of Arran-Elder- slie Chair, Multi -municipal Wind Turbine Working Group A Response to Original Letter: Using the Wind to Build our Communities On 21 January, 2015, a group calling themselves the Multi Municipality Wind Turbine Working Group (MMWTWG) wrote to you concerning the impact of renewable wind generation Ontario's electrical system. They say, based on no evi- dence, that "more wind power will increase hydro rates" They ask, with no credible justification, that the Ontario Government and the Independent electrical System Operator (IESO) " conduct a third -party cost - benefit analysis before there is any further procurement of wind or solar capacity." What you should know: The Multi -Municipal Wind Turbine Working Group or MMWTWG does not represent, or speak for, any municipality and is not a member the Association of Municipalities of Ontario (AMO). MMWTWG's letter to you was written by Keith Stelling, a member of the anti -wind turbine coalition, Centre Bruce Grey Wind Concerns Ontario (WCO). Although some of its members are elected offi- cials of some municipalities, based on its minutes, its sole purpose is to oppose wind energy and most of the participants are unelected. They believe wind genera- tion is responsible for increasing the cost of ink ril -TO .FJSHIP C- aHd`ri r, -ti .4ATAN Al l The Township ofAshfield-Colborne-Wawanosh has trees available for distribution to property owners who request a tree or trees. Each landowner will be limited to up to 5 trees. Trees are to be planted on property lines along road allowances and must be picked up, planted and maintained by property owners. Trees will be at no cost to the property owners and will be given first to those who did not receive trees in 2014 and will be on a first come first served basis with a limited quantity. To order trees please contact the Municipal Office at 519-524-4669 LET'S ALL DO OUR PART! PLEASE RECYCLE electricity to consumers and is impairing the efficiency of electricity generation in Ontario. Here are facts that MMWTWG appears not to know: Prices: The price of elec- tricity in Ontario has increased because of dec- ades of underinvestment in both new sources of elec- tricity and the electricity transmission infrastructure needed to deliver that power. Relative Consumer Costs: Studies (e.g. Hydro Que- bec's annual survey) show that Ontario's electricity costs to consumer are about the middle of the range and have been for some time. The lowest cost jurisdictions in Canada are Quebec, B.C. and Manitoba. They rely on less expensive and more manageable hydro electric generation for their base load and sell any surplus generation to other jurisdic- tions, including Ontario. This is not new. It has been the case for years. Generation Costs: New generation is always more expensive than existing gen- eration. However, new wind energy is cheaper than new nuclear power and is cost - competitive with new hydro- electric power. Also, wind generation, like all renewa- ble generation, is not subject to the risks of rising fuel costs like natural gas prices. Wind energy developers invest their own capital and absorb the risk of building and operating new wind energy projects - the result is no front-end or long-term risks to taxpayers and ratepayers. Wind generation contri- bution to consumer costs: Wind generated energy costs are relatively small and will remain so for three reasons: costs of wind gen- erated electricity will con- tinue to decrease as turbine technology improves and storage capabilities emerge; fuel costs will always be zero; and wind generation's overall contribution to cur- rent electricity supply is small (about 4% in 2014) and will only increase as it out -bids other sources of generation - especially nuclear refurbishment. Wind generation is pre- dictable and will become more accessible as storage technologies improve: Wind is intermittent but predicta- ble and functions effectively as a base load source of power- particularly for com- munities close to the gener- ators. Currently, the issue is not intermittent wind but excess nuclear power at times of low demand because nuclear generation cannot be efficiently pow- ered down to meet changes in demand. Energy storage technol- ogy for wind and solar are developing quickly and will reduce the issue of intermit- tency. Of course, tying in to the vast pools of stored hydro -electric power in Quebec and Manitoba prac- tically eliminates any issues of intermittency. Gas Peaking units: The location and construction of peaking units have nothing to do with wind generation but everything to do with the inflexibility of Ontario's nuclear fleet. Gas has essen- tially replaced coal as nucle- ar's partner on the grid. Generation Distribution: In 2014, nuclear generation produced 94.9 TWh or 62% of Ontario's total electricity. Wind turbines produced about 6.8 TWh or 4% of total annual generation (Source: IESO Total Electricity out- put 2014). According to MMWTWG the 4% of electricity gener- ated by wind turbines is responsible for the signifi- cant surpluses experienced by nuclear generators. This is hard to imagine let alone believe. The problem is not wind generation but the lack of maneuverability of the nuclear base load. Nuclear cannot be shut down when it is not needed so it becomes surplus to demand. Energy Pricing: Ontario electricity consumers pay a composite price for their electricity: the wholesale price of electricity plus a Global Adjustment. GODERICI• 1 519 524 7811 MOVIE INFORMATION.,. www.rnovielinksza mem d iedoi-800-216-3438 CONTINUED ON PAGE 7 j C,b- LET'S MAKE C&NCER EI !STORY lc" efavAal &El coma. .tea -.ice