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Utility Sector - Power Generation - Canada – December 31, 2016
BY: PAUL YOUNG, CPA, CGADATE: DECEMBER 31, 2016
Overview This presentation will discuss energy trends in Canada. The analysis will include oil rigs,
commodity prices, investment, wages, employment and government policies
Agenda
GDP
Canada Power Generation
Renewable Trends
Quotes
The National Energy Board says a renewable power project building spree between 2005 and 2015 took its share of overall generation in Canada from two per cent to 11 per cent. NEB chief economist Shelley Milutinovic says the buildup means Canada is the fourth-largest generator in the world of environmentally friendly power from sources including wind, solar, biomass and hydroelectric plants. Renewable generation capacity grew by 26 per cent from about 75,000 megawatts in 2005 to nearly 95,000 megawatts in 2015, according to the federal regulator's report, Canada's Renewable Power Landscape. Source - http://www.cp24.com/news/renewable-power-now-represents-11-per-cent-of-power-generation-in-canada-report-1.3114844
Key facts on Power Generation In the hydro-rich areas of Yukon, British Columbia, Manitoba, Quebec and Newfoundland & Labrador, more than 90 per cent of
electricity comes from renewables. Between 2005-15, Ontario’s share of renewable power production rose from 23 to 34 per cent while Nova Scotia’s doubled from 12 to 24 per cent.
In 2005, non-hydro renewables comprised just two per cent of total Canadian power capacity. By 2015 that number had grown to 11 per cent.
Canada’s annual GHG emissions from the power sector declined 40 per cent from 2010-14. Ontario leads Canada in wind power capacity of more than 4,000 megawatts and solar capacity of more than 2,000 megawatts. NWT now uses liquefied natural gas (LNG) to fuel one of its power plants. LNG reduces GHG emissions by about 25 per cent
compared to diesel. Alberta’s generation from renewables increased 66 per cent from 2005 to 2015. By 2030, Saskatchewan plans to achieve 50 per cent of its power capacity from renewable sources.
Source - http://news.gc.ca/web/article-en.do?nid=1137649
Quotes/Consumers With hydro prices on the rise, the Ontario government has been dogged with complaints, particularly
from rural residents. Amid the turmoil, the National Post checked in with five ratepayers across Ontario to see how much they pay — and what they’re doing to pay less http://news.nationalpost.com/news/canada/portrait-of-five-ontario-hydro-bills-how-a-rural-couple-pays-500-a-month-and-toronto-brothers-pay-100
In the government’s public accounts for 2015-16, the Independent Electricity System Operator reported a “previously unrecognized actuarial loss and past service costs” of just over $80 million. http://www.torontosun.com/2016/10/25/electricity-system-operator-reports-80-million-loss-after-accounting-change
Ontario will import enough electricity from Quebec to power a city of more than 200,000 people under a seven-year agreement signed Friday, but the provinces won't say how much Ontario is paying Hydro Quebec. Premiers Kathleen Wynne and Philippe Couillard signed the deal, which will see Ontario import up to two terawatt hours of electricity from Quebec annually, allowing the province to reduce its use of natural gas to generate power. http://www.cbc.ca/news/canada/toronto/quebec-ontario-hydro-1.3815203
http://www.cbc.ca/news/indigenous/first-nations-pursue-canada-clean-energy-economy-1.3829405
GDP – Utility Sector
Source – Stats Canada
• GDP would include projects like Wind and Solar. Wind and Solar are very costly• Utilities contribute only 2% to GDP• Hydro rates are big piece of household budgets• Natural Gas is required to backup Wind and Solar Power
Canada Power Generation
http://www.iea.org/statistics/monthlystatistics/monthlyelectricitystatistics/
Commentary:• Wind/Solar is driven by
FIT in Ontario• Hydro is main source of
power in Canada. Provinces like British Colombia, Quebec, Manitoba and Newfoundland are the leaders
• Solar/Wind received subsidies
Hydro Rates / Comparison
Source - http://business.financialpost.com/news/energy/who-pays-the-most-and-the-least-for-power-in-ontario-hydro-one-toronto-hydro-among-priciest?__lsa=4b7f-f413
Ontario Premier Kathleen Wynne is calling high electricity prices her "mistake. Both McGuinty, Wynne and Gerald Butts are responsible for the mishandling of hydro.
Here are examples Smart Meters -
https://www.thestar.com/business/2014/12/09/smart_meters_have_few_benefits_for_big_costs_ag_report.html
There has been little scale back in terms of either subsidies or contracts - https://www.thestar.com/news/queenspark/2015/12/02/ontario-consumers-likely-paying-billions-extra-for-hydro-one-decisions-auditor-general.html
Transmission System - http://www.torontosun.com/2015/12/02/lysyk-doubles-down-on-hydro-one-criticism
Grid needed repair, but the Liberals never look at the best way to fixed the grid. Clean Energy Jobs - http://www.torontosun.com/2013/06/26/green-energy-job-claims-are-a-farce Carbon Tax will be applied to hydro bills
Source - http://www.cbc.ca/news/canada/toronto/wynn-hydro-her-mistake-1.3859003
Ontario Clean Tech Policies
Solar and Wind and Hydro / United States example
Source - http://www.nextbigfuture.com/2016/12/will-solar-and-wind-surpass-hydro-by.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fadvancednano+%28nextbigfuture%29
Solar and Wind and Hydro
Source - http://www.nextbigfuture.com/2016/12/will-solar-and-wind-surpass-hydro-by.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fadvancednano+%28nextbigfuture%29
Solar and Wind and Hydro
Source - http://www.nextbigfuture.com/2016/12/will-solar-and-wind-surpass-hydro-by.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fadvancednano+%28nextbigfuture%29
Solar and Wind and Hydro
Source - http://www.nextbigfuture.com/2016/12/will-solar-and-wind-surpass-hydro-by.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+blogspot%2Fadvancednano+%28nextbigfuture%29
Source - http://www.cbc.ca/news/canada/toronto/ontario-hydro-bill-electricity-prices-hst-rebate-1.3907155
Ontario / Power Rates
• Bills will include carbon tax, but it will be buried in the cost/kilowatt hour• Ontario continues to sell power at a loss -
http://www.macleans.ca/news/ontario-has-given-away-millions-in-electricity-say-pcs/• Ontario power capacity - http://www.ieso.ca/Pages/Power-Data/Supply.aspx • Power Costs -
https://ottawawindconcerns.com/2016/12/06/wind-power-22-of-the-costs-for-less-than-6-of-the-power/
How?
