The answer, Ontario, is blowing in the wind

March 23, 2009
Toronto Sun
Jack Gibbons
 

The answer, Ontario, is blowing in the wind

The Green Energy Act lays out the McGuinty government's new energy agenda in very broad strokes: More emphasis on efficiency and renewable power. 

But it's the details -- and what's not yet in the act -- that will determine whether this legislation powers a green energy revolution or leaves Ontario a sputtering green weakling.

There are four additional elements needed to create a prosperous green economy: A real commitment to ramp up spending on energy efficiency; a more enlightened approach to using natural gas; increased electricity trade with Quebec; and an end to blank cheque spending on nuclear projects.

Right now, Ontario is committed to spending $60 on new generation sources for every dollar it has spent on improving our energy efficiency. Essentially, the province has contracted for $19 billion of new electricity supply capacity while nickel and diming the fastest and cheapest way to keep our lights on -- energy efficiency investments.

Instead, the government must provide our municipal utilities, like Toronto Hydro, with the funding they need to pursue all our cost-effective energy efficiency opportunities.

Almost every building in Ontario uses natural gas to deliver just one service -- heat. Virtually the same amount of gas could be used to simultaneously generate two services -- heat and electricity. Much greater use of combined heat and power (CHP) systems, which can be located in hospitals, schools, high rises and factories, would dramatically increase the efficiency of our natural gas usage and provide us with a huge supply of low cost and clean electricity.

The Green Energy Act should be amended to require the government to pay consumers to install CHP plants in their homes, buildings and factories.

And then there is Quebec. Despite the fact that Quebec has vast, low-cost hydro-electric generation capacity, our electricity trade with our neighbour is virtually non-existent. This does not make sense.

Fortunately, with the completion of a 1,250 megawatt Hydro Quebec/Hydro One interconnection facility in 2010, the potential for increased electricity trade between our two provinces will dramatically increase. The potential benefits from better coordinating Ontario's and Quebec's power systems are huge. For example, Quebec's hydro-electric reservoirs can be used to back-up our growing fleet of wind turbines.

When the wind isn't blowing in Ontario, Quebec can increase the output of its hydro generating stations to supply us with electricity. And when the wind is strong in Ontario, we can send power back to Quebec to permit it to store more water in its hydro reservoirs.

By integrating Ontario's wind generation with Quebec's hydro-electric reservoirs, our intermittent wind generation can be converted into a firm 24/7 supply of renewable electricity for Ontario.

The Green Energy Act should give clear priority to increasing our electricity trade with Quebec before we consider building costly nuclear plants.

Finally, speaking of nuclear costs, it is time to say "no" to more bailouts.

Ontario's electricity consumers and taxpayers shelled out $2 billion in 2008 to pay down the stranded nuclear debt of the defunct Ontario Hydro. That's the equivalent of $150 per year for each of Ontario's citizens -- or $600 for a family of four. And we're on the hook to continue to pay these debt charges for years to come.

Despite the fact that every nuclear project in Ontario's history has gone over budget, Energy Minister George Smitherman still wants to give the nuclear industry another gigantic, blank cheque to build two new nuclear reactors.

Based on the cost estimates of Moody's Investors Service, these new reactors could cost $26 billion.

Unlike the nuclear industry, renewable and gas-fired power developers are not allowed to pass their capital cost overruns on to consumers or taxpayers. We need to create a level playing.

The Green Energy Act must make it illegal for nuclear power companies to pass their cost overruns on to Ontario's long-suffering electricity consumers and taxpayers.

With these key reforms the Green Energy Act will power a green economy and protect consumers and taxpayers.