The countries that get the highest percentage of electricity from low-carbon sources
Mostly Hydro and Nuclear. And a little wind.
Massive revenue guarantees for a handful of lucky wind power generators, but no appreciable environmental benefit from Ontario’s energy policies says economics professor Ross McKitrick
You may be surprised to learn that electricity is now cheaper to generate in Ontario than it has been for decades. The wholesale price, called the Hourly Ontario Electricity Price or HOEP, used to bounce around between five and eight cents per kilowatt hour (kWh), but over the last decade, thanks in large part to the shale gas revolution, it has trended down to below three cents, and on a typical day is now as low as two cents per kWh. Good news, right?
It would be, except that this is Ontario. A hidden tax on Ontario’s electricity has pushed the actual purchase price in the opposite direction, to the highest it’s ever been. The tax, called the Global Adjustment (GA), is levied on electricity purchases to cover a massive provincial slush fund for green energy, conservation programs, nuclear plant repairs and other central planning boondoggles. As these spending commitments soar, so does the GA.
In the latter part of the last decade when the HOEP was around five cents per kWh and the government had not yet begun tinkering, the GA was negligible, so it hardly affected the price. In 2009, when the Green Energy Act kicked in with massive revenue guarantees for wind and solar generators, the GA jumped to about 3.5 cents per kWh, and has been trending up since — now it is regularly above 9.5 cents.
In April it even topped 11 cents, triple the average HOEP.
So while the marginal production cost for generation is the lowest in decades, electricity bills have never been higher. And the way the system is structured, costs will keep rising.
Read more here
Go to Ron Clutz’s Page and follow the links. Horrible things are happening in Ontario!
The energy mix in Ontario’s electrical sector is dominated by hydro and nuclear, so getting off coal seemed doable. But in the provincial government’s drive to reduce CO2 emissions and join the California Emissions Trading Scheme, they have hardwired costly energy contracts that Ontarians will pay for through their noses for decades. Meet the Global Adjustment Fee (covering a multitude of sins and mismanagement).
Idiots are running Ontario. (Ruining … running … same difference)
Ontario continues its buy-high, sell-low policy for electricity by wasting cheap hydro in favour of expensive, intermittent wind. And the government is contracting for more, says Parker Gallant.
Wind generation cost @ $133/MWh (1.7 TWh @ $133 million per TWh = $226 million)
+ gas generation backup of 330 MW (assuming an average of $12,500 per MW per month and 60% capacity generation per MW) = $150 million
+ the cost of spilled hydro @ $44 million per TWh = $75 million for 1.7 TWh.
The total cost (without inclusion of steamed-off nuclear, cost of solar power, losses of revenue for exports, etc.) is
$451 million for the 1.7 TWh OPG spilled.
Cost to Ontario ratepayers for the 1.7 TWh OPG spilled cost ($451 million/1.7 TWh) = an average of 26.5 cents per kWh.
What this means: the Green Energy Act and its many flaws has created a situation where publicly and privately owned generators suffer no consequences from producing power “out of sync” with demand, and as a result, electricity ratepayers are penalized by paying six times the actual cost for a kilowatt of electricity (including a built-in profit).