Ontario Squandered Billions By Dumping Wind Energy at Massive Loss

Sky high electricity costs for Ontario consumers and businesses. Cheap electricity to the USA and Quebec.

Insanity.

Steve McIntyre tweeted: “Ontario lost $400 million in Q4 2015 alone in wind power. Dumped to neighbors for $5 M.”

This is the article he is referring to:

The 3,434,750 MWh is estimated to have cost ratepayers approximately $460 million. The 3 TWh of electricity IWT delivered to the grid cost about $405 million and the curtailed cost was almost $55 million.  During the quarter, the HOEP1. averaged $1.50/MWh, meaning if all of generated and curtailed wind was a part of the 5.4 TWh exported, it would have generated only a shade over $5 million —that would have reduced the cost to ratepayers to $455 million.   With 92 days in the last quarter of 2015, the money paid by Ontario ratepayers averaged daily was almost $5 million.

 I found another one for June. With a good explanation of the stupidity.

Electricity watchdog Parker Gallant keeps a wary eye on energy prices in this province.

In a recent post on the website www.windconcerns.ca, Gallant points out the government paid $200 million in June to dump electricity at a loss.

Gallant, vice-president of Wind Concerns, estimates 1.9 terawatts (TWh) of Ontario’s electricity production (15.2% of Ontario’s demand of 10.6 TWh) was exported to Michigan, New York and Quebec, in June.

Ontario was paid $29.1 million for those exports. Unfortunately, it cost provincial ratepayers $249.9 million to produce that same electricity.

Here’s the math: Ontario exported the power at the Hourly Ontario Electricity Price (HOEP) of $15.31/megawatt hour (MWh) or 1.53 cents per kilowatt hour (kWh) for $29.1 million. However, the cost to produce and transmit that 1.9 TWh, was $131.43/MWh (13.14 cents/kWh) — or $249.9 million.

“Most of that wound up in the big (and growing) pot referred to as the Global Adjustment (GA),” Gallant reports.

“So Ontario’s electricity ratepayers picked up the difference of $221 million, which when added to our export losses for the prior five months of 2015, brought costs to almost $1.1 billion for the first six months of 2015,” Gallant said.

 

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One thought on “Ontario Squandered Billions By Dumping Wind Energy at Massive Loss

  1. Economic ruin is ensured, just like the unchecked deficit spending in the US for the past 60 years. I can’t wait to see how this ends.

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