Ontario have a clean, affordable and reliable supply of electricity in the years to come?
is the mandate of the Ministry of Energy, but the CAE Alliance has deep concerns about the target supply mix resources prescribed by the
Minister.Negligible environmental gains will not justify the significant impact
on our economy.The CAE Alliance wants to set the record straight
on emissions, resources and power system reliability.
Media Package including DVD will be available for Media Representatives
Listed below is the press package that we presented at Queens Park
Will Ontario have a clean, affordable and reliable supply of electricity in the years to come?
This is the mandate of the Ministry of Energy, but the CAE Alliance
has deep concerns about the target supply mix resources prescribed by the Minister.Negligible environmental gains will not justify the significant and detrimental impact on our economy.
♦ 6,500 MW of coal fired generation – affordable, reliable, the stability in
the power grid - is slated for removal from the system.This will cause vulnerability in the power grid.
♦ A full cost and environmental analysis of the decision to close the coal fired generating
stations has never been made.It is based on a misrepresentation of information.
Thermal generation is responsible for less than 7% of Ontario’s
air pollution and acid rain emissions.
Those emissions can readily and cost effectively be reduced to 1%, comparable
to natural gas.
♦ The Ontario Power Authority confirms that a “substantial amount” of
gas fired generation “will, in effect, replace coal-fired generation in Ontario” (over 6,200
MW of new projects).The cost of this, to Ontario
tax and rate payers, will be huge!
♦ All credible energy and government agencies confirm that North American natural
gas is depleting.Demand has outpaced supply.
♦ The Ontario Power Authority confirms that natural gas prices are expected to rise
by 2017 “due to depletion of conventional gas resources in the Western basin”.“More than 95% of the gas consumed in Ontario comes from outside the province, mostly from the WesternCanadianSedimentaryBasin.”
♦ When life cycle emissions are considered, natural gas may well be worse in terms
of global warming potential.
♦ The amount of gas needed to replace
coal fired generation on a daily basis will exceed what Ontario currently uses to heat our homes, causing
billions of dollars in infrastructure costs to accommodate this.Electricity
will be generated at 2-3 times the cost.
The switch from coal to
natural gas fired generation is unaffordable, unwise and unnecessary!
ECONOMIC IMPACTS OF THE COAL CLOSURE MANDATE
Foundational for power system planning is the advice to “Ensure that the relative
cost of different energy sources, fiscal implications, energy security, impact on job creation, export development and the
provincial economy were all considered.”(The Select Committee on Alternative Fuels, Final Report)
♦ Removal of Coal which sets market price about
50% of the time, at less than ½ the price of natural gas.
♦ Natural Gas at 2-3 times the cost will likely set market price
♦ The average cost per unit of energy was over 3 times higher for natural gas than
coal, over the 2002-2005 period.(US Energy Information Administration)
♦ High volumes of natural gas used will impact the price for industry,
agriculture, home heating as they compete for this diminishing resource
♦ High infrastructure costs for increased natural gas storage and delivery($7-10 billion minimum)
♦ Natural gas prices are expected to remain high and volatile
♦ Privately owned, “for-profit” power generation is always more expensive
– greater risk to the public - Bonuses paid to gas fired merchant generator power companies -huge tax breaks
priced coal generation (3.8 cents/kwh) would help offset the high cost of 8,000
MW of renewable power at$0.11 – 0.42/kwh
♦ Refurbishment of coal fired units “are assumed to take one year … $205
million per unit”.(Navigant Consulting – Report to the OPA)
♦ Premature retirement of publicly owned, paid-for assets, including upgrade costs
already spent to install emissions reduction equipment on some units – a waste of taxpayers money
♦ The economic drivers of Ontario (industry, business, the farming community) are warning of the consequences of higher energy rates, the closure of the coal fired
plants, and the use of natural gas for electricity. Ontario’s GDP will decrease by 1.2% to 2.0%, $6 to $10
billion depending upon the magnitude of the electricity price increase (AMPCO). The Ontario Chamber
of Commerce, representing 57,000 businesses in the Province, passed resolutions at their annual meeting affirming the need
to retrofit and maintain the coal plants in Ontario. Why are these warnings
♦ Removal of Coal which sets market
price about 50% of the time, at less than ½ the price of natural gas.
♦ Natural Gas at 2-3 times the cost will likely
set market price
♦ The average cost
per unit of energy was over 3 times higher for natural gas than coal, over the 2002-2005 period.(US Energy Information Administration)