Silver-bullet go-green solutions do more harm than good

By Globe and Mail


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People looking to solve personal problems often accept superficially analyzed "silver-bullet" solutions. Public-sector policy makers are also vulnerable to this phenomenon. A classic example is the search for "green alternatives" to hydrocarbon energy.

It's been 15 years since Ballard Power listed on the TSX. Ballard's vision of hydrogen-fuelled cars, powered by fuel cells emitting nothing but water, was enthusiastically embraced by policy makers and investors.

Within a few years, Ballard's stock market capitalization soared to tens of billions of dollars. As then-head of one of North America's largest natural gas producers, I should have been a big booster of a hydrogen-fuelled future. Why? Because hydrogen is manufactured mainly out of natural gas.

But it was clear to me there simply weren't enough natural gas resources to supply existing users, plus fuelling a significant percentage of North America's auto fleet. That remains true today.

The alternative method of producing hydrogen is the electrolysis of water. There's enough water, but the electrolysis process takes a lot of electricity. Producing hydrogen in large quantities would require many new power plants, and most power plants burn hydrocarbons. The long-term zero-emissions answer would be a massive nuclear power program, but don't count on that happening any time soon.

Ballard has swapped its shareholder-value-destroying hydrogen car trip for stationary power-generating fuel cells. That makes a lot of sense and I wish them well. Unfortunately, policy makers take a lot longer to face reality... or to even bother to find out what the reality is.

Arnold Schwarzenegger, governor of a state where fantasy is a profession, continues to proclaim California as the hydrogen highway state, and has managed to convince B.C. Premier Gordon Campbell to come along for the ride. Too bad neither thought to ask energy producers where all that hydrogen is going to come from.

The latest alternative-energy silver bullet is biofuel. Canada, the United States and much of Europe have mandated minimum ethanol or plant-oil content in motor fuels, with the stated intent of reducing fossil fuel emissions. It turns out that producing Canadian grain-based ethanol and U.S. corn-based ethanol uses almost as much hydrocarbon energy for tractor fuel, fertilizer and distillation as the ethanol product yields. Scientists call this a "marginal energy balance."

There is also strong evidence that intensive biofuel farming practices are resulting in the drainage of sensitive wetlands and unsustainable water use. Then there's the eruption of the huge food-versus-fuel conflict. While subsidized American corn belt farmers buy bigger tractors and more expensive pickup trucks, Mexicans riot over a 400-per-cent rise in the price of tortillas. And it's not just in Mexico; food prices have soared around the world.

Palm oil is blended with mineral diesel fuel to create biodiesel. Borneo is a great place to produce palm oil, provided you first burn down a large part of one of the world's most important rain forests. A visit to this land of the endangered orangutan and previously little-disturbed aboriginals is a depressing lesson in misguided silver-bullet solutions. The air is blue with smoke, as hundreds of thousands of square kilometres of rain forest are burned and replaced with palm oil trees. It's ironic that a policy supposedly aimed at environmental improvement is polluting the air and permanently destroying the rain forest lungs of our planet.

Some authoritative institutions are finally speaking out. A recent OECD report warns that "powerful incentives to replace forests, wetlands and pasturelands with bioenergy crops" and "overall environmental impacts of ethanol and biodiesel can very easily exceed those of petrol and mineral diesel."

The European Parliament is considering a law to ban use of biofuels from crops grown on former forests, wetlands and grasslands, and would also require that a biofuel deliver a minimum level of net greenhouse gas savings. If they truly enforce such restrictions, it will be tough to find qualifying biofuel.

The real potential for ethanol depends on the success of research aimed at its production from waste materials, including switch grass, straw and corn stalks. When this technology might become viable is hard to say. Meanwhile, mounting evidence that current biofuel production methods are doing more harm than good hasn't stopped those greenwashing TV ads.

But I did note that, in response to yet another damning study, a spokesman for Canada's ethanol lobby asserted that it will all get better when cellulosic ethanol becomes feasible. This begs the question of why governments continue to mandate the use of biofuels that damage the environment instead of supporting research into biofuels that would protect it.

The saga of hydrogen and biofuels has followed the green silver-bullet formula. Tie your wagon to rhetoric and government subsides, label the skeptics as anti-environment troglodytes and, if you're David Suzuki, call for the non-believers to be jailed.

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Elon Musk could help rebuild Puerto Rico with solar-powered electricity grid

Puerto Rico Tesla Solar Power enables resilient microgrids using batteries, renewable energy, and energy storage to rebuild the hurricane-damaged grid, reduce fossil fuels, cut costs, and accelerate recovery with scalable solar-plus-storage solutions.

 

Key Points

A solar-plus-storage plan using Tesla microgrids and batteries to restore Puerto Rico's cleaner, resilient power.

✅ Microgrids cut diesel reliance and harden critical facilities.

✅ Batteries stabilize the grid and shave peak demand costs.

✅ Scalable solar enables faster, modular disaster recovery.

 

Puerto Rico’s governor Ricardo Rossello has said that he will speak to Elon Musk after the Tesla inventor said his innovative solar and battery systems could be used to restore electricity on the island.

Mr Musk was mentioned in a tweet, referencing an article discussing ways to restore Puerto Rico’s power grid, which was knocked out by Hurricane Maria on September 20.

Restoring the ageing and already-weakened network has proved slow: as of Friday 90 per cent of the island remained without power. The island’s electricity company was declared bankrupt in July.

Mr Musk was asked: “Could @ElonMusk go in and rebuild #PuertoRico’s electricity system with independent solar & battery systems?”

The South African entrepreneur replied: “The Tesla team has done this for many smaller islands around the world, but there is no scalability limit, so it can be done for Puerto Rico too.

“Such a decision would be in the hands of the PR govt, PUC, any commercial stakeholders and, most importantly, the people of PR.”

His suggestion was seized upon by Mr Rossello, who then tweeted: “@ElonMusk Let's talk. Do you want to show the world the power and scalability of your #TeslaTechnologies?

“PR could be that flagship project.”

Mr Musk replied that he was happy to talk.

Restoring power to the battered island is a priority for the government, and improving grid resilience remains critical, with hospitals still running on generators and the 3.5 million people struggling with a lack of refrigeration or air conditioning.

Radios broadcast messages advising people how to keep their insulin cool, and doctors are concerned about people not being able to access dialysis.

And, with its power grid wiped out, the Caribbean island could totally rethink the way it meets its energy needs, drawing on examples like a resilient school microgrid built locally. 

“This is an opportunity to completely transform the way electricity is generated in Puerto Rico and the federal government should support this,” said Judith Enck, the former administrator for the region with the environmental protection agency.

“They need a clean energy renewables plan and not spending hurricane money propping up the old fossil fuel infrastructure.”

Forty-seven per cent of Puerto Rico’s power needs were met by burning oil last year - a very expensive and outdated method of electricity generation. For the US as a whole, petroleum accounted for just 0.3 per cent of all electricity generated in 2016 even as the grid isn’t yet running on 100% renewable energy nationwide.

The majority of the rest of Puerto Rico’s energy came courtesy of coal and natural gas, with renewables, which later faced pandemic-related setbacks, accounting for only two per cent of electricity generation.

“In that time of extreme petroleum prices, the utility was borrowing money and buying oil in order to keep those plants operating,” said Luis Martinez, a lawyer at natural resources defense council and former special aide to the president of Puerto Rico’s environmental quality board.

“That precipitated the bankruptcy that followed. It was in pretty poor shape before the storm. Once the storm got there, it finished the job.”

But Mr Martinez told the website Earther that it might be difficult to secure the financing for rebuilding Puerto Rico with renewables from FEMA (Federal Emergency Management Agency) funds.

“A lot of distribution lines were on wood poles,” he said.

“Concrete would make them more resistant to winds, but that would potentially not be authorized under the use of FEMA funds.

"We’re looking into if some of those requirements can be waived so rebuilding can be more resilient.”

 

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Renewables surpass coal in US energy generation for first time in 130 years

Renewables Overtake Coal in the US, as solar, wind, and hydro expand grid share; EIA data show an energy transition accelerated by COVID-19, slashing emissions, displacing fossil fuels, and reshaping electricity generation and climate policy.

 

Key Points

It refers to the milestone where US renewable energy generation surpassed coal, marking a pivotal energy transition.

✅ EIA data show renewables topped coal consumption in 2019.

✅ Solar, wind, and hydro displaced aging, costly coal plants.

✅ COVID-19 demand drop accelerated the energy transition.

 

Solar, wind and other renewable sources have toppled coal in energy generation in the United States for the first time in over 130 years, with the coronavirus pandemic accelerating a decline in coal that has profound implications for the climate crisis.

Not since wood was the main source of American energy in the 19th century has a renewable resource been used more heavily than coal, but 2019 saw a historic reversal, building on wind and solar reaching 10% of U.S. generation in 2018, according to US government figures.

Coal consumption fell by 15%, down for the sixth year in a row, while renewables edged up by 1%, even as U.S. electricity use trended lower. This meant renewables surpassed coal for the first time since at least 1885, a year when Mark Twain published The Adventures of Huckleberry Finn and America’s first skyscraper was erected in Chicago.

Electricity generation from coal fell to its lowest level in 42 years in 2019, with the US Energy Information Administration (EIA) forecasting that renewables will eclipse coal as an electricity source this year, while a global eclipse by 2025 is also projected. On 21 May, the year hit its 100th day in which renewables have been used more heavily than coal.

“Coal is on the way out, we are seeing the end of coal,” said Dennis Wamsted, analyst at the Institute for Energy Economics and Financial Analysis. “We aren’t going to see a big resurgence in coal generation, the trend is pretty clear.”

The ongoing collapse of coal would have been nearly unthinkable a decade ago, when the fuel source accounted for nearly half of America’s generated electricity, even as a brief uptick in 2021 was anticipated. That proportion may fall to under 20% this year, with analysts predicting a further halving within the coming decade.

A rapid slump since then has not been reversed despite the efforts of the Trump administration, which has dismantled a key Barack Obama-era climate rule to reduce emissions from coal plants and eased requirements that prevent coal operations discharging mercury into the atmosphere and waste into streams.

Coal releases more planet-warming carbon dioxide than any other energy source, with scientists warning its use must be rapidly phased out to achieve net-zero emissions globally by 2050 and avoid the worst ravages of the climate crisis.

Countries including the UK and Germany are in the process of winding down their coal sectors, and in Europe renewables are increasingly crowding out gas as well, although in the US the industry still enjoys strong political support from Trump.

“It’s a big moment for the market to see renewables overtake coal,” said Ben Nelson, lead coal analyst at Moody’s. “The magnitude of intervention to aid coal has not been sufficient to fundamentally change its trajectory, which is sharply downwards.”

Nelson said he expects coal production to plummet by a quarter this year but stressed that declaring the demise of the industry is “a very tough statement to make” due to ongoing exports of coal and its use in steel-making. There are also rural communities with power purchase agreements with coal plants, meaning these contracts would have to end before coal use was halted.

The coal sector has been beset by a barrage of problems, predominantly from cheap, abundant gas that has displaced it as a go-to energy source. The Covid-19 outbreak has exacerbated this trend, even as global power demand has surged above pre-pandemic levels. With plunging electricity demand following the shutting of factories, offices and retailers, utilities have plenty of spare energy to choose from and coal is routinely the last to be picked because it is more expensive to run than gas, solar, wind or nuclear.

Many US coal plants are ageing and costly to operate, forcing hundreds of closures over the past decade. Just this year, power companies have announced plans to shutter 13 coal plants, including the large Edgewater facility outside Sheboygan, Wisconsin, the Coal Creek Station plant in North Dakota and the Four Corners generating station in New Mexico – one of America’s largest emitters of carbon dioxide.

The last coal facility left in New York state closed earlier this year.

The additional pressure of the pandemic “will likely shutter the US coal industry for good”, said Yuan-Sheng Yu, senior analyst at Lux Research. “It is becoming clear that Covid-19 will lead to a shake-up of the energy landscape and catalyze the energy transition, with investors eyeing new energy sector plays as we emerge from the pandemic.”

Climate campaigners have cheered the decline of coal but in the US the fuel is largely being replaced by gas, which burns more cleanly than coal but still emits a sizable amount of carbon dioxide and methane, a powerful greenhouse gas, in its production, whereas in the EU wind and solar overtook gas last year.

Renewables accounted for 11% of total US energy consumption last year – a share that will have to radically expand if dangerous climate change is to be avoided. Petroleum made up 37% of the total, followed by gas at 32%. Renewables marginally edged out coal, while nuclear stood at 8%.

“Getting past coal is a big first hurdle but the next round will be the gas industry,” said Wamsted. “There are emissions from gas plants and they are significant. It’s certainly not over.”
 

 

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Ontario's electricity 'recovery rate' could lead to higher hydro bills

Ontario Hydro Flat Rate sets a single electricity rate at 12.8 cents per kWh, replacing time-of-use pricing for Ontario ratepayers, affecting hydro bills this summer, alongside COVID-19 Energy Assistance Program support.

 

Key Points

A fixed 12.8 cents per kWh electricity price replacing time-of-use rates across Ontario from June to November.

✅ Single rate applies 24/7, replacing time-of-use pricing

✅ May slightly raise bills versus pre-pandemic usage patterns

✅ COVID-19 aid offers one-time credits for households, small firms

 

A new provincial COVID-19 measure, including a fixed COVID-19 hydro rate designed to give Ontario ratepayers "stability" on their hydro bills this summer, could result in slightly higher hydro costs over the next four months.

Ontario Premier Doug Ford's government announced over the weekend that consumers would be charged a single around-the-clock electricity rate between June and November, before a Nov. 1 rate increase takes effect, replacing the much-derided time-of-use model ratepayers have complained about for years.

Instead of being charged between 10 to 20 cents per kilowatt hour, depending on the time of day electricity is used, including ultra-low TOU rates during off-peak hours, hydro users will be charged a blanket rate of 12.8 cents per kWh.

"The new rate will simply show up on your bill," Premier Doug Ford said at a Monday afternoon news conference.

While the government said the new fixed rate would give customers "greater flexibility" to use their home appliances without having to wait for the cheapest rate -- and has tabled legislation to lower rates as part of its broader plan -- the new policy also effectively erases a pandemic-related hydro discount for millions of consumers.

For example, a pre-pandemic bill of $59.90 with time-of-use rates, will now cost $60.28 with the government's new recovery rate, as fixed pricing ends across the province, before delivery charges, rebates and taxes.

That same bill would have been much cheaper -- $47.57 -- if the government continued applying the lowest tier of time-of-use 24/7 under an off-peak price freeze as it had been doing since March 24.

The government also introduced support for electric bills with two new assistance programs to help customers struggling to pay their bills.

The COVID-19 Energy Assistance Program will provide a one-time payment consumers to help pay off electricity debt incurred during the pandemic -- which will cost the government $9 million.

The government will spend another $8 million to provide similar assistance to small businesses hit hard by the pandemic.

 

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Analysis: Why is Ontario’s electricity about to get dirtier?

Ontario electricity emissions forecast highlights rising grid CO2 as nuclear refurbishments and the Pickering closure drive more natural gas, limited renewables, and delayed Quebec hydro imports, pending advances in storage and transmission upgrades.

 

Key Points

A projection that Ontario's grid CO2 will rise as nuclear units refurbish or retire, increasing natural gas use.

✅ Nuclear refurbs and Pickering shutdown cut zero-carbon baseload

✅ Gas plants fill capacity gaps, boosting GHG emissions

✅ Quebec hydro imports face cost, transmission, and timing limits

 

Ontario's energy grid is among the cleanest in North America — but the province’s nuclear plans mean that some of our progress will be reversed over the next decade.

What was once Canada’s largest single source of greenhouse-gas emissions is now a solar-power plant. The Nanticoke Generating Station, a coal-fired power plant in Haldimand County, was decommissioned in stages from 2010 to 2013 — and even before the last remaining structures were demolished earlier this year, Ontario Power Generation had replaced its nearly 4,000 megawatts with a 44-megawatt solar project in partnership with the Six Nations of the Grand River Development Corporation and the Mississaugas of the Credit First Nation.

But neither wind nor solar has done much to replace coal in Ontario’s hydro sector, a sign of how slowly Ontario is embracing clean power in practice across the province. At Nanticoke, the solar panels make up less than 2 per cent of the capacity that once flowed out to southern Ontario over high-voltage transmission lines. In cleaning up its electricity system, the province relied primarily on nuclear power — but the need to extend the nuclear system’s lifespan will end up making our electricity dirtier again.

“We’ve made some pretty great strides since 2005 with the fuel mix,” says Terry Young, vice-president of corporate communications at the Independent Electricity System Operator, the provincial agency whose job it is to balance supply and demand in Ontario’s electricity sector. “There have been big changes since 2005, but, yes, we will see an increase because of the closure of Pickering and the refurbs coming.”

“The refurbs” is industry-speak for the major rebuilds of both the Darlington and Bruce nuclear-power stations. The two are both in the early stages of major overhauls intended to extend their operating lives into the 2060s: in the coming years, they’ll be taken offline and rebuilt. (The Pickering nuclear plant will not be refurbished and will shut down in 2024.)

The catch is that, as the province loses its nuclear capacity in increments, Ontario will be short of electricity in the coming years and the IESO will need to find capacity elsewhere to make sure the lights stay on. And that could mean burning a lot more natural gas — and creating more greenhouse-gas emissions.

According to the IESO’s planning assumptions, electricity will be responsible for 11 megatonnes of greenhouse-gas emissions annually by 2035 (last year, it was three megatonnes). That’s the “reference case” scenario: if conservation and efficiency policies shave off some electricity demand, we could get it down to something like nine megatonnes. But if demand is higher than expected, it could be as high as 13 megatonnes — more than quadruple Ontario’s 2018 emissions.

Even in the worst-case scenario, the province’s emissions from electricity would still be less than half of what they were in 2005, before the province began phasing out its coal generation. But it’s still a reversal of a trend that both Liberals and Progressive Conservatives have boasted about — the Liberals to justify their energy policies, the PCs to justify their hostility to a federal carbon tax.

Young emphasized that technology can change and that the IESO’s planning assumptions are just that: projections based on the information available today. A revolution in electricity storage could make it possible to store the province’s cleaner power sources overnight for use during the day, but that’s still only in the realm of speculation — and the natural-gas infrastructure exists in the real world, today.

Ontario Power Generation — the Crown corporation that operates many of the province’s power plants, including Pickering and Darlington — recently bought four gas plants, two of them outright (two it already owned in part). All were nearly complete or already operational, so the purchase itself won’t change the province’s emissions prospects. Rather, OPG is simply looking to maintain its share of the electricity market after the Pickering shutdown.

“It will allow us to maintain our scale, with the upcoming end of Pickering’s commercial operations, so that we can continue our role as the driver of Ontario’s lower carbon future,” Neal Kelly, OPG’s director of media, issues, and management, told TVO.org via email. “Further, there is a growing need for flexible gas fired generation to support intermittent wind and solar generation.”

The shift to more gas-fired generation has been coming for a while, and critics say that Ontario has missed an opportunity to replace the lost Pickering capacity with something cleaner. MPP Mike Schreiner, leader of the Green party, has argued for years that Ontario should have pursued an agreement with Quebec to import clean hydroelectricity.

“To me, it’s a cost-effective solution, and it’s a zero-emissions solution,” Schreiner says. “Regardless of your position on sources of electricity, I think everyone could agree that waterpower from Quebec is going to be less expensive.”

Quebec is eager to sell Ontario its surplus hydro power, but not everyone agrees that importing power would be cheaper. A study published by the Ontario Chamber of Commerce (and commissioned by Ontario Power Generation) calls the claim a “myth” and states that upgrading electric-transmission wires between Ontario and Quebec would cost $1.2 billion and take 10 years, while some estimates suggest fully greening Ontario's grid would cost far more overall.

With Quebec imports seemingly a non-starter and major changes to Ontario’s nuclear fleet already underway, there’s only one path left for this province’s greenhouse-gas emissions: upwards.

 

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Investigation reveals power company 'gamed' $100M from Ontario's electricity system

Goreway Power Station Overbilling exposed by Ontario Energy Board shows IESO oversight failures, GCG gaming, and $100M in inappropriate payments at the Brampton natural gas plant, penalized with fines and repayments impacting Ontario ratepayers.

 

Key Points

Goreway exploited IESO GCG flaws, causing about $100M in improper payouts and fines.

✅ OEB probe flagged $89M in ineligible start-up O&M charges

✅ IESO fined Goreway $10M; majority of excess costs recovered

✅ Audit found $200M in overbilling across nine generators

 

Hydro customers shelled out about $100 million in "inappropriate" payments to a natural gas plant that exploited flaws in how Ontario manages its private electricity generators, according to the Ontario Energy Board.

The company operating the Goreway Power Station in Brampton "gamed" the system for at least three years, according to an investigation by the provincial energy regulator. 

The investigation also delivers stinging criticism of the provincial government's Independent Electricity System Operator (IESO), slamming it for a lack of oversight. The probe by the Ontario Energy Board's market surveillance panel was completed nearly a year ago, but was only made public in November because it was buried on its website without a news release. CBC News is the first media outlet to report on the investigation.  

The excess payments to Goreway Power Station included:

  • $89 million in ineligible expenses billed as the costs of firing up power production. 
  • $5.6 million paid in three months from a flaw in how IESO calculated top-ups for the company committing to generate power a day in advance.   
  • Of $11.2 million paid to compensate the company for IESO ordering it to start or stop generating power, the investigation concluded "a substantial portion ... was the result of gaming."  

Most privately-owned natural gas-fired plants in the province do not generate electricity constantly, but start and stop production in response to fluctuating market demand, even as the energy minister has requested an halt to natural gas generation across the grid.  IESO pays them a premium for the costs of firing up production, through what it calls "generation cost guarantee" programs. 

But the investigation found IESO did little checking into the details of Goreway Power Station's billings. 

Goreway Power Station, located near Highway 407 in Brampton, Ont., is an 875 megawatt natural gas power plant. (Goreway)

"Conservatively, at least $89 million of Goreway's submissions were clearly ineligible by any reasonable measure," concludes the report.

"Goreway routinely submitted what were obviously inappropriate expenses to be reimbursed by the IESO, and ultimately borne by Ontario ratepayers,"

The investigation panel found an "extraordinary pattern" to these billings by Goreway Power Station, suggesting the IESO should have caught on sooner. The company submitted more than $100 million in start-up operating and maintenance costs during the three-year period investigated — more than all other gas-fired generators in the province combined. The company's costs per start-up were more than double the next most expensive power generator. 

"Goreway repeatedly exploited defects in the GCG (generation cost guarantee) program, and in doing so received at least $89 million in gamed GCG payments." 

Company fined $10M

The investigation covered a three-year period from when Goreway Power Station began generating power in June 2009. Investigators said that delays in releasing documents slowed down their probe, and they only obtained all the records they needed in April 2016.

The investigating panel does not have the power to impose penalties on companies it found broke the rules. 

The IESO fined Goreway Power Station $10 million. The company has also repaid IESO "a substantial portion" of the excess payments it received during its first six years of operating, but the exact figure is blacked out in the investigation report that was made public. 

The control room from which the provincial government's Independent Electricity System Operator manages Ontario's power supply. The agency is also responsible for managing contracts with private power producers.(IESO)

"Goreway does not agree with many of the draft report's findings and conclusions, including any suggestion that Goreway engaged in gaming or that it deliberately misled the IESO," writes lawyer George Vegh on behalf of the company in a response to the investigation report, dated Aug. 1.

"Goreway has implemented initiatives designed to ensure that compliance is a chief operating principle."     

The power station, located near Highway 407 in Brampton, is a joint venture between Toyota Tsusho Corp. and JERA Co. Inc. During the period under scrutiny, the project was run by Toyota Tsusho and Chubu Electric Power Inc., both headquartered in Japan. 

Investigators fear 'same situation' exists today

The report blames the provincially-controlled IESO for creating a system with defects that allowed the over-billing. 

"Goreway was able to — and repeatedly did — exploit these defects," says the investigation report. It goes on to explain the flaws "have created opportunities for exploitation, to the serious financial disadvantage of Ontario's ratepayers," even as greening Ontario's grid could entail massive costs.

The investigation suggests IESO hasn't made adequate changes to ensure it won't happen again, at a time when an analysis of a dirtier grid is raising concerns.   

"Goreway stands as a clear example of how generators are able to exploit the generation costs guarantee regime," says the report.

"The Panel is concerned that the same situation remains in place today." 

PC energy critic Todd Smith raised CBC News' report on the Goreway Power Station in Tuesday's question period. (Ontario Legislature)

After CBC News broke the story Tuesday, the provincial government was forced to respond in question period, amid a broader push for new gas plants to boost electricity production. 

"Here we have yet another gas plant scandal in Peel region that's costing electricity customers over $100 million," said PC energy critic Todd Smith. He slammed "the incompetence of a government that once again failed to look out for electricity customers." 

Economic Development Minister Brad Duguid said: "There is no excuse for any company in this province to ever game the system."

Nine companies overbilled $200M: audit 

The IESO found out about the overbilling "some time ago," said Duguid.

"They fully investigated, they've recovered most of the cost, they delivered a $10 million fine — the biggest fine on record."

The program that Goreway exploited became the subject of an audit that the IESO launched in 2011. The agency uncovered $200 million in ineligible billings by nine power producers, wrote the IESO vice president for policy Terry Young in an email to CBC News.

The IESO has recovered up to 85 per cent of those ineligible costs, Young noted.

Reforms to the design of the the program have removed the potential for overpayments and made it more efficient, he said, even as Ontario weighs embracing clean power more broadly. Last year, its total annual costs dropped to $23 million, down from $61 million in 2014.

 

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Enel Starts Operations of 450 MW Wind Farm in U.S

High Lonesome Wind Farm powers Texas with 500 MW of renewable energy, backed by a 12-year PPA with Danone North America and a Proxy Revenue Swap, cutting CO2 emissions as Enel's largest project to date.

 

Key Points

A 500 MW Enel wind project in Texas, supplying renewable power via PPAs and hedged by a Proxy Revenue Swap.

✅ 450 MW online; expanding to 500 MW in early 2020

✅ 12-year PPA with Danone North America for 20.6 MW

✅ PRS hedge with Allianz and Nephila stabilizes revenues

 

Enel, through its US renewable subsidiary Enel Green Power North America, Inc. (“EGPNA”), has started operations of its 450 MW High Lonesome wind farm in Upton and Crockett Counties, in Texas, the largest operational wind project in the Group’s global renewable portfolio, alongside a recent 90 MW Spanish wind build in its European pipeline. Enel also signed a 12-year, renewable energy power purchase agreement (PPA) with food and beverage company Danone North America, a Public Benefit Corporation, for physical delivery of the renewable electricity associated with 20.6 MW, leading to an additional 50 MW expansion of High Lonesome that will increase the plant’s total capacity to 500 MW. The construction of the 50 MW expansion is currently underway and operations are due to start in the first quarter of 2020.

“The start of operations of Enel’s largest wind farm in the world marks a significant achievement for our company and reinforces our global commitment to accelerated renewable energy growth,” said Antonio Cammisecra, CEO of Enel Green Power, referencing the largest wind project constructed in North America as evidence of market momentum. “This milestone is matched with a new partnership with Danone North America to support their renewable goals, a reinforcement of our continued commitment to provide customers with tailored solutions to meet their sustainability goals.”

The agreement between Enel and Danone North America will provide enough electricity to produce the equivalent of almost 800 million cups of yogurt1 and over 80 million gallons2 of milk each year and support the food and beverage company’s commitment to securing 100% of its purchased electricity from renewable sources by 2030, in a market where North Carolina’s first wind farm is now fully operational and expanding access to clean power.

Mariano Lozano, president and CEO of Danone North America, added:“This is an exciting and significant step as we continue to advance our 2030 renewable electricity goals. As a public benefit corporation committed to balancing the needs of our business with those of society and the planet, we truly believe that this agreement makes sense from both a business and sustainability point of view. We’re delighted to be working with Enel Green Power to expand their High Lonesome wind farm and grow the renewable electricity infrastructure, such as New York’s biggest offshore wind projects, here in the US.”

In addition, as more US wind projects come online, such as TransAlta’s 119 MW project, the energy produced by a 295 MW portion of the project will be hedged under a Proxy Revenue Swap (PRS) with insurer Allianz Global Corporate & Specialty, Inc.'s Alternative Risk Transfer unit (Allianz), and Nephila Climate, a provider of weather and climate risk management products. The PRS is a financial derivative agreement designed to produce stable revenues for the project regardless of power price fluctuations and weather-driven intermittency, hedging the project from this kind of risk in addition to that associated with price and volume.

Under the PRS agreement, and as other projects begin operations, like Building Energy’s latest plant, High Lonesome will receive fixed payments based on the expected value of future energy production, with adjustments paid depending on how the realized proxy revenue of the project differs from the fixed payment. The PRS for High Lonesome, which is the largest by capacity for a single plant globally and the first agreement of its kind for Enel, was executed in collaboration with REsurety, Inc.

The investment in the construction of the 500 MW plant amounts to around 720 million US dollars. The wind farm is due to generate around 1.9 TWh annually, comparable to a 280 MW Alberta wind farm’s output, while avoiding the emission of more than 1.2 million tons of CO2 per year.

 

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  • Free access to every issue

Live Online & In-person Group Training

Advantages To Instructor-Led Training – Instructor-Led Course, Customized Training, Multiple Locations, Economical, CEU Credits, Course Discounts.

Request For Quotation

Whether you would prefer Live Online or In-Person instruction, our electrical training courses can be tailored to meet your company's specific requirements and delivered to your employees in one location or at various locations.