Demand response programs that offer consumers compensation for curtailing their electricity demand during specific times of day. Bioenergy, in turn, is any form of energy (heat or electricity) generated from biomass. Ontario Power Generation (OPG) is currently conducting an environmental assessment for refurbishment of four operational units at Pickering B. 9 June. 2006, September . Ontario’s most recent competitive procurement was in 2014, but even then the result was an average 20-year price of 8.45 cents per kilowatt h… [69], Ontario's coal plants emit large quantities of greenhouse gases and smog-causing pollutants each year. There are 110 CHP generating plants currently in operation in Ontario, with a total capacity of approximately 2,300 MW. Ontario Economic Outlook and Fiscal Review. The Power Corporation Act required Ontario Hydro, (formerly HEPCO, renamed in 1974) to provide "power at cost". The heat is then used in local applications such as heating homes. Programs managed by the Conservation Bureau include: The Ontario Ministry of Energy (MOE) is responsible for ensuring that Ontario's electricity system functions at the highest level of reliability and productivity. If you are a customer of an electricity utility and in a lower-income home, you may qualify for a reduction on your electricity bill. The plant has since been restored to service fueled by biomass. Understand how your bill works and how rates are set. Never again can we allow private interests to create artificial or even real shortages and to be in control. As of 2007, two of the four smokestacks at Lambton and two of eight stacks at the Nanticoke station are currently equipped with scrubbers. Learn how you can take part. Industrial sector: this includes manufacturing activities, mining activities, forestry and construction. [16] In May 2005 the Minister of Energy, Dwight Duncan, asked the OPA to provide recommendations on what would be the appropriate mix of electricity supply sources to satisfy the expected demand in 2025, taking into account conservation targets and new sources of renewable energy.[17]. GHPs operate like refrigerators to transfer absorbed heat energy from below the frost line (about 1.2m soil depth for Southern Ontario) to connected buildings. The Megawatt Revolution: Solving the CO2 Problem. 2006. This peak is typically met by oil/natural gas-fired, coal and select hydro-electric power plants. This sector accounts for about 39% of Ontario's total electricity consumption and is projected to grow the most. Ontario faced three major electricity challenges: 1) the phasing-out of coal as a generation capacity source by 2007; 2) the impending end-of-life shutdown of nuclear generation capacity from 2009 to 2025; and 3) the steady increase of summer peak-demand in normal weather patterns. [19] This has been met with opposition from environmental groups, who argue that an EA of the IPSP is the "best way for Ontarians to understand the risks and costs of the government's electricity plan".[20]. Southern Ontario, in particular Toronto, receives as much summer solar radiation as the city of Miami, Florida, indicating that Ontario has sufficient solar energy that can be harnessed to generate electricity or heat. Conservation and Demand Management (C&DM) practices: C&DM initiatives can significantly reduce electricity demand. [74] at the time, Ontario had four coal-fired power plants in operation:[71]. The highest winter peak demand occurred 13 February 2007, when peak demand was 25,868 MW. Pepermans, Guido, Johan Driesen, Dries Haeseldonckx, R. Belmansc, and W. D'haeseleer. Reduced dependency on imported fuels which create energy security. The legislation provided for the creation of the Ontario Power Authority (OPA). In response to the concerns of the public health impacts of increased coal-fired generation, all three major provincial political parties included a coal-phase out plan in their 2003 election platforms. When talking about electricity, it is often referred to as Conservation and Demand Management (C&DM or CDM), as it aims to reduce electricity demand, either by using more efficient technologies or by changing wasteful habits. Peak demand refers to fluctuating, or varying, needs for electricity above and beyond base load levels. 2005. The World Commission on Environment and Development. Conversely, large hydropower plants and offshore wind parks, with substantial production capacities of 50–100 MW or more which feed into high-voltage transmission grids, cannot be considered distributed generation. Energy policy initiatives. Kenneth P. Green. [8] The legislation capped retail prices at 4.3 cents per kWh and Ontario Power Generation (the successor of Ontario Hydro's electricity generation division) was to provide customers with a rebate for 100% of all electricity charges above that mark, retroactive to the market opening and continuing until 1 May 2006. Renewables can also be considered distributed technologies, depending on their application. Regulation 276/06: Environmental Assessment Act – Designation and Examption of the Integrated Power System Plan. Commercial sector: this includes mainly space heating, and cooling, as well as commercial and office lighting. In, Daniels, Ronald J., and Michael J. Trebilcock. [86] In response, the OPA has entered into an agreement with Bruce Power to refurbish two units at Bruce, which are anticipated to add 1,540 MW of generating capacity by 2009. The Report of the Royal Commission on Electric Power Planning: Volume 1, Concepts, Conclusions and Recommendations, p.27; See also: Ontario Power Authority, Supply Mix Advice Report, Background Report, Volume 3. As Ontario’s independent energy regulator, we develop policy that contributes to a sustainable and reliable energy sector and protects consumers. Over the next 20 years, it is expected that approximately 80% of the province of Ontario's existing electricity generation capacity will need to be replaced. Population growth: According to 2006 census data, Ontario's population has increased 6.6% in the past 5 years. 2007. Facebook 0 Tweet 0 Pin 0. Electricity Conservation & Supply Task Force. [59] This target was set by Ministry of Energy's supply mix directive, which provides direction for preparation of Integrated Power System Plan (IPSP) for Ontario Power Authority. Thunder Bay Generating Station, the last coal-fired electricity plant in Ontario was shut down in April 2014,[80] completing the phase-out. [75] In 2005, the Government pushed back the target date to 2009, citing reliability concerns. [66] In this scheme, distributed energy sources are more numerous and sufficiently smaller than central generating plants so as to allow interconnection at nearly any point in the electricity system.[67]. [4] In 1992, Ontario Hydro issued a revised Supply/Demand Plan Report. Dewees. In its 2005 Supply Mix Advice Report, the OPA estimated that electricity demand will grow at a rate of 0.9% annually between 2006 and 2025, rising to approximately 170 TWh per year by 2025. Lessons from California and Pennsylvania." Ontario Ministry of Energy. Borsboom, N.W.J., Hetor, B., McCallum, B. and Remedio, E. 2000. C&DM also addresses reductions in peak demand via Demand Response (DR) programs. Ontario Supports the Expansion of the Agri-Food Sector in the North December 3, 2020 - RAINY RIVER - The Ontario government is providing $16,500 to help the town of Rainy River conduct a greenhouse feasibility study and support a growing agri-food sector in the north. Liberals Will Delay Closing Two Coal Plants Past 2009. For those that opted out of the contract option, electricity rates passed through a smoothed spot market price. consumes more energy than service- and knowledge-related economic sectors. It is estimated that Ontario has an area of about 300,000 km² within the reach of the transmission system that can be used for generating electricity from wind energy. Find out how we develop regulatory policies to meet emerging challenges in the energy sector. Ontario Ministry of Energy. Instead, the energy-related discussion in the budget repeats previously-issued announcements (see … The task force concluded that "the market approach adopted in the late 1990s needs substantial enhancement if it is to deliver the new generation and conservation Ontario needs, within the timeframes we need them". [40] The case of Enron in California is a prime example. The uncertainty embedded in these factors accumulates and makes it difficult to determine how much electricity will be consumed in the future. This occurred even with a large number of suppliers, and in the absence of any active collusion between them. The Minister's directive included minimum goals for conservation (increased substantially from the Supply Mix Advice report) and renewable energy, and a maximum limit for nuclear power production at approximately the capacity of the existing 20 reactors. Typically, community wind farms, solar photovoltaic arrays, geothermal installations, and biomass-fuelled power facilities are typically sufficiently limited in their generation capacity that they qualify as distributed energy sources. The oldest of these plants built in the 1970s were aging and in the early 1990s reliability began to decline significantly. The OPA was also instructed to develop high efficiency and value use options for natural gas. The urban location of CHP plants makes them very compatible with clean-burning fuels such as natural gas. Between the early 1970s and early 1990s twenty CANDU power reactors were brought into service at the Pickering (8 reactors), Bruce (8 reactors) and Darlington (4 reactors) nuclear generating facilities. "Electricity restructuring in Canada". "The Future of Ontario Hydro: A Review of Structural and Regulatory Options". Economically rational and technically feasible conservation is considered by some to be the cheapest, cleanest way to bridge the gap between supply and demand. Some of our practices include: The policies we develop for the energy sector can have a direct impact on households and small business owners throughout the province. As a result, seven new CHP generating stations are currently being developed in Ontario under contracts executed in 2006 with a combined total capacity of 414 MW. [7] Under surmounting pressure from consumers, the government adopted the Electricity Pricing, Conservation and Supply (EPCS) Act in December 2002. The health concerns associated with other fossil fuels (see coal above) make them less suitable for areas with high population densities. Keeyask, initially projected to be in service in 2011/2012, is expected to generate 600 MW. The term restructuring generally refers to the creation of these markets and the disintegration of vertically integrated utilities. They base their claims on several reports that estimate lower demand projections.[55]. Dewess, Don. Trebilcock, Michael .J. The dual role of biomass as a substitute for fossil fuels and as a sink for atmospheric carbon is the main advantage for its use in energy generation. [110], Most imports from the United States are based on nuclear, natural gas, or coal-fired generation facilities. [56] For example, load reductions are vital in achieving the goal of shutting down Ontario's coal plants and in avoiding imports of US coal-fired power, which entails important health and environmental benefits. Experience with deregulation in the United States and the United Kingdom, however, has shown that competitive markets can lead to market power concentration and market manipulation. Only 50 of these facilities are connected to the grid. This includes fully internalizing external social costs of electricity production and pricing electricity according to demand fluctuations, even while maintaining stable supply.[31]. Etcheverry, J., Gipe, P, Kemp, W., Samson, R., Vis, M., Eggertson, B., McMonagle, R., Marchildon, S., Marshall, D. 2004. The Ontario Clean Air Alliance is perhaps the loudest critic of coal-fired generation in this regard. Natural gas is a fossil fuel composed mainly of methane, which can be burned to release heat that is then used to produce electricity. This area approximates the size of Germany, which is the leading country for producing electricity from wind energy. The Porter Commission's conclusions were simple: demand management, not supply planning, must be the focus of Ontario electricity planning.[3]. [36] In other words, deregulation is said to subject the electricity sector to the "innovative and productive forces of competition". Furthermore, the promise of competitive markets to lower consumer prices, for the most part, has yet to materialize. Ontario Hydro was forced to build new, more expensive generating plants and transmission and distribution infrastructure to keep up with demand. [18] If the OEB does not approve the IPSP based on these evaluation criteria, then the IPSP is sent back to the OPA for revision. [57] C&DM programs are also advantageous in that they can be implemented within limited time horizons and budgets relative to the huge lead times and financial risks involved in the installation of new generation plants. 1989. Greenpeace Canada. Organizations like Pollution Probe, the Pembina Institute, and the Ontario Clean Air Alliance claim that the OPA Supply Mix is fundamentally supply oriented and overestimates future electricity demand. The GEA will attempt to expedite the growth of clean, renewable sources of energy, like wind, solar, hydro, biomass and biogas, with the ambition to make Ontario become North America's leader in renewable energy. [37], Competition would require generating facilities to assume a much tougher stance in negotiating contracts for fuel sources, labour, and maintenance. According to an assessment commissioned by the OPA,[62] this potential applies to all three electricity sectors:[63]. Set in Q3 – July 29, 2019, 5:00 pm EST "[64] The ECO produces two-part annual reports on energy conservation, the first part on the broader policy framework affecting energy conservation in Ontario, and the second part on the results of initiatives underway. [70] Nevertheless, thanks in part to acid rain controls implemented in the 1980s and 1990s, coal emissions have been dropping. Base load refers to constant, or unvarying, demand for electricity. CCNR Green Energy Conference, Montreal. For a competitive market to function, firms cannot significantly influence prices by adjusting or shutting down supply individually. There is one fundamental lesson we must learn from this experience: electricity is really different from everything else. Ontario Power Authority. Electricity restructuring in Ontario. The development of a bioenergy industry in Ontario faces many challenges including, but not limited to, high costs owing to the small-scale nature of technologies used to convert biomass to energy and environmental issues (e.g., declining soil productivity and increased fertilizer and pesticides use) related to intensive harvesting of biomass for energy production. [28] In other words, rates in a deregulated system are "determined by hungry competitors contending for the last megawatt of demand in a market that clears every five minutes". The residential sector accounted for one-third of energy use in Ontario. Since then, the OPA has published eight discussion papers, as well as a preliminary version of the IPSP. Nuclear has high capital costs and lead times, but low operational costs, making it suitable only for base load applications. Find out how we develop regulatory policies to meet emerging challenges in the energy sector. This OPA estimate is nearly double the actual rate of electricity demand growth between 1990 and 2003 of 0.5% per year. The August 2003 blackout in eastern North America reinforced concerns over the future of electricity supply in Ontario. News Release, 15 June. U.S. Environmental Protection Agency. Technologies often associated with distributed generation include cogeneration—also known as combined heat and power (CHP) generation—as well as micro-turbines, fuel cells, and gas generators used for on-site or emergency backup power. The OPA assessment suggests that there is a potential electricity savings of 31% in Ontario's residential sector by 2015 via lighting and space heating upgrades. In December 2005, the OPA issued the Supply Mix Advice Report in response to the Minister's request. McGuinty Government Unveils Bold Plan to Clean Up Ontario's Air. • assist and support various projects and studies, including the analysis of energy consumption patterns in Ontario • provide research and policy development support for the Ministry's work on climate change resilience in the energy sector By 2025, installed natural gas and cogeneration capacity is targeted to increase from the current 4,976 MW to 11,000 MW—roughly 27% of system generation capacity. Ronald Daniels and Michael Trebilcock, for example, argue that a premium should be placed on incrementalism and decentralization in terms of decision-making, rather than planning for "some once-and-for-all, system-wide set of collective decisions as to the future of the [electricity] industry". The situation forced Ontario Hydro to dramatically reduce staff and transmission investments. Naing Win Oo and V. Miranda[42] used intelligent agent simulation to show that in moving from a vertically integrated to a competitive electricity market, retail consumers were heavily disadvantaged and suppliers used this to steadily increase both prices and profits. [107], The OPA estimates that these technologies will contribute about 1,000 MW to Ontario electricity capacity by 2025. Wind may be considered an unreliable source of electricity due to its intermittent nature. For example, to ensure overall system reliability, a considerable portion of generation capacity from peaking plants must remain idle most of the time. 1987. Schott, Stephan. The Ontario Liberals came to power in 2003 promising to phase-out and replace all of the province's coal stations by 2007. The IPSP regulation mandates that the OPA consider environmental sustainability in the IPSP. [18] The OPA's approach to sustainability is outlined in IPSP Discussion Paper #6: Sustainability. December. First, as large consumers of energy for public facilities, energy prices impact municipal budgets. 2002. Prepared for Chief Conservation Officer, OPA. In other words, the insurance cost of reliability is spread out and shared equitably by all customers. As demand is communicated to a power system dispatcher, this least-cost operating principle requires the dispatcher to first employ plants with the lowest marginal costs. Instead of an environmental assessment of the plan, as had been the case 1989 DSP, a regulation made under the Electricity Act, 1998, the OPA was instructed to "[e]nsure that safety, environmental protection and environmental sustainability are considered" in the development of the Integrated Power System Plan (IPSP). 2004. {{|0=28 September 2007 }} . [102] Other reports suggest that biomass has the potential to produce about 14.7TWh (2,450 MW) of electricity and 47.0 TWh of heat in 10 – 20 years time.[98]. The Minister of Energy, Northern Development and Mines also calls on us to implement special requirements – called directives – and to provide expert and impartial advice on important policy initiatives. Demand-Side Management (DSM) consists of the implementation of different policies and measures that serve to influence the demand for a product. Six context-specific criteria were identified by the OPA: feasibility, reliability, cost, flexibility, environmental performance, and societal acceptance. 2005. [111], History of electricity demand planning in Ontario, Ontario's short experiment with competitive retail markets, Electricity Conservation and Supply Task Force, Central planning and traditional regulation versus competitive markets, Central planning and traditional regulation, Current and expected future electricity demand, Conservation and demand-side management initiatives in Ontario, Government actors involved in conservation and demand management, Ontario (Porter Commission). The OPA is expected to recommend whether or not to install scrubbers at remaining coal facilities in Spring 2007. November. In 2005, the average price of coal power in Ontario was C$46/MWh, compared to $89/MWh and $107/MWh for hydropower and oil/natural gas generation, respectively. [72], New 'clean coal' technologies—such as Flue Gas Desulphurization (FGD) "scrubbers" for SO2 removal and Selective Catalytic Reduction (SCR) for NOX—can be used to reduce toxic releases, but have no effect on carbon emissions and are expensive to install. The following year a review board of industry experts concluded that the operations of Ontario's nuclear plants were "below standard" and "minimally acceptable". Havelsky, V. 1999. The committee recommended the elimination of Ontario Hydro's monopoly on managing generation capacity and that the electricity market be opened up to competition. Low operating costs leading to low heating and electricity costs. Peter, R., S. Hall and M. Winfield. Energy is key to the well-being and prosperity of the people of Ontario. It is estimated that 30% of Ontario electricity demand will be produced from these sources by 2025. After Confederation in 1867, Canadian energy policy was designed to promote the greater use of domestic coal reserves by the imposition of a tariff on American imports. Ontario currently has 18 nuclear units in operation. [29], Those who defend the combination of traditional regulation and central planning for the electricity sector, like Hampton, often base their arguments on the basic premise that electricity is an essential good required for consumer well-being. [81] In the United States the average natural gas-fired plant emits 516 kg of carbon dioxide, 0.05 kg of sulfur dioxide and 0.8 kg of nitrogen oxides (NOx) per megawatt-hour of energy generated. Ontario's new electricity market. Ontario's economy currently reflects relatively low electricity productivity levels, measured as GDP per electricity use. Financial incentives (in the form of rebates) for energy efficiency in affordable housing units. The majority of energy consumers live in Ontario and Quebec and the major … To address this gap, Ontario Hydro proposed building several additional nuclear and coal-fired generation plants. [76] It has since revised this plan once more, maintaining its political commitment, but refusing to set a specific deadline for a complete phase-out. Ontario Hydro also published a document called Hydro 21. Particular emphasis will be placed on developing hydroelectric plants with large storage capacities that can be used to provide dispatchable energy, which are equally capable of meeting peak electricity demand or offsetting the intermittent nature of other renewable sources such as wind. Solar generation is a renewable energy source fuelled by the sun. 2004. 2004. [65], Electricity supplies can be classified as either distributed or centralized in nature. This philosophy became part of the culture and lore of electricity supply in Ontario. Grant, John. A recent trend has developed whereby summer peak demand has grown to outpace winter peak loads. Thus a market in electricity does not respond in the same way as the market for products which can be stored, whose purchase can be deferred, or which are not essential. [85] That said, due to its predominant use only in high-value energy applications, natural gas is only expected to account for 6% of Ontario's overall electricity production.[86]. The OPA Supply Mix Advice Report recommends 1,250 MW of imports for Ontario. Ontario's electricity supply outlook is projected to deteriorate in the near future due to increasing demand, aging electricity supply infrastructure, and political commitments, part… In summer months, demand peaks in the late afternoon, when temperatures are at their hottest. Supply Mix Advice Report. Proponents of deregulation and restructuring of the electricity sector used these limitations to strengthen their case, arguing that such flaws are typical of regulated/centrally planned systems. Ontario finds itself faced with choices that define energy policy debates throughout the western world: the role of markets vs. centralized planning and what Amory Lovins has termed "hard" versus "soft energy paths"; i.e. Moore, Paddy. [90], The Canadian Energy Research Institute (CERI) prepared a report[91] for the Canadian Nuclear Association in 2004 comparing environmental impacts of nuclear generation to other base load generation technologies in Ontario. It is a public good that must be protected from private abuse. Residential sector: this includes residential space and water heating and cooling, lighting, household appliances, etc. Overview: Energy policy in Ontario Since 2002 (when the previous electricity system of public ownership of Ontario Hydro went bankrupt and had to be replaced), the province has used electricity expenditures to support not just customer-driven system requirements, but also environmental and economic development goals. In, Schott, Stephan. Retrospective Analysis. 2007. The net result was a complete cessation of new investment in generation capacity and a significant cutback in new investment in transmission and distribution. Nuclear facilities have long lead times for both environmental and other approvals, as well as actual construction. [26] Economies of scale exist for a vertically integrated electric utility because a larger generating system can provide power to many users, and additional users can be accommodated with small increases in power costs.[27]. Average demand in Ontario is currently 17,500 MW.[46]. Added to this base load, the peak load raises Ontario's maximum electricity demand to 27,000 MW. At present, forest biomass is the main source of biomass used for energy production, followed by agriculture biomass as well as municipal solid waste and waste water. Ontario electricity policy refers to plans, legislation, incentives, guidelines, and policy processes put in place by the Government of the Province of Ontario, Canada, to address issues of electricity production, distribution, and consumption. Directives to OPA. CFI Consulting Company. Ontario, the largest consumer, was (and still is) supplied by Pennsylvania mines, while Nova Scotia and Alberta producers supplied the eastern and western provinces, respectively. Based on their estimates of future demand, the OPA has recommended 1,820 MW as a target for peak demand reduction to be achieved by 2025. The competitive market did not actually open until May 2002. Cogeneration, or combined heat and power (CHP), refers to the concurrent generation of power and heat from the same energy source. Click here to learn more about it. Does Ontario have a formalized energy policy? Legislative Assembly of Ontario. Performance standards for processing applications, Archived and complete policy initiatives and consultations, Reporting and record keeping requirements (RRR), Forms and templates: energy contracts and certificates of compliance, Licensed companies and licensing information, Trade names associated with licensed companies, We review utilities’ rates and activities, and make decisions, We monitor the market and energy companies, Government directives and priority projects, Consumer complaints about energy companies, Nearing the end of an energy contract: How renewals and extensions work, COVID-19 Energy Assistance Program - Residential (CEAP), COVID-19 Energy Assistance Program - Small Business (CEAP-SB), Energy policy - consulting with consumers, Electricity utility performance dashboard, Natural gas and electricity utility yearbooks, See more energy policy initiatives and consultations, Public consultations and meetings with Indigenous Communities, Review of practices in other provinces or countries. 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