This engergy superpower needs an integrated plan
POWER PLAY
by Don MacKinnon
President
Power Workers’ Union
With abundant coal, oil, natural gas, uranium, water, wind and biomass – there’s lots of talk about Canada becoming an energy superpower. To achieve this status, Canada needs an integrated economic, social and environmental plan. Ontario’s current integrated power system plan process for meeting the province’s electricity needs to 2025 offers good lessons on what not to do.
Though Ontario needs to replace 80 per cent of its existing generating capacity, the province is closing its remaining coal plants and placing increased reliance on power generation fuelled by expensive and limited natural gas imports, unreliable wind power, and overly optimistic conservation and demand management targets.
A recent Ontario Power Authority report on emission control alternatives for Ontario coal generators clearly shows significant reductions in mercury, nitrogen oxide and sulphur dioxide emissions can be achieved affordably by using clean coal technologies. Experience in Denmark and Germany demonstrates that turbine upgrades and mixing biomass with coal achieves substantial greenhouse gas emission reductions.
The federal government’s recent Action Plan to Reduce Greenhouse Gases and Air Pollution provides a range of mechanisms that Ontario could use to fund the retrofit of its coal stations for cleaner energy production. Ontario could also benefit by joining Alberta, Saskatchewan and the federal government in the demonstration of emerging near-zero-emission coal generation technologies, including carbon capture and sequestration.
For the last 40 years, CANDU reactors have safely provided reliable, low-cost electricity to Ontario consumers. Besides producing no smog-causing or greenhouse gas emissions, nuclear energy has benefited Canada and Ontario by providing skilled jobs, technology exports and isotopes for medical treatments. While Ontario remains committed to nuclear, it has set production level caps too low, failed to streamline approval processes, and delayed progress until after the next election. Instead of leveraging Canada’s nuclear expertise, Ontario has prevaricated and delayed.
Renewables come at a higher cost and with limited capacity, particularly at times of peak demand. Like other jurisdictions, Ontario is quickly learning that renewables requireexpensive changes to transmission and distribution networks as well as operating practices. In many areas of the province, public opposition to “unsightly” wind turbines is growing.
Conservation and demand management should contribute to meeting future needs. However, other jurisdictions’ experiences show it takes time and sustainedinvestment to change consumer behaviour, and much more time for regulatory reforms to affect change. Ontario’s targets, which equate to the removal Toronto from the province’s electricity demand, are simply unrealistic.
OPA is also planning to use more natural gas. Yet with higher-priced natural gas providing 25 per cent of the province’s electricity supply by 2025, demand for gas will rise by more than 30 per cent, putting price pressure on consumers. Substantial investments will also be needed for new gas and electricity delivery infrastructures.
For decades, no major investments have been made in Ontario’s transmission infrastructure. Analysis by Global Energy estimates that, to accommodate the closure of the coal stations, the minimum cost for transmission enhancements is $3.1 billion. Since the consumer pays for these investments, OPA needs to be clear about its transmission priorities, the related costs and achievable timelines.
If Canada is to be an energy superpower, Ontario the country’s industrial heartland – needs a better energy plan. To ensure a secure, safe, environmentally sustainable and reasonably priced electricity supply, Ontario needs a diverse energy mix, including coal. Rather than playing provincial politics, Ontario should adopt best practices from other jurisdictions and employ the best means of optimizing its energy supply mix.
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TO READ THE FULL REPORT AS IT APPEARED IN THE GLOBE AND MAIL, PLEASE CLICK ON THE ATTACHED PDF >