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Tag Archives: electricity

Affordable electricity Decarbonization in OECD countries? Part I

After eight extensive posts about the Ontario electricity sector, I am expanding my geographic coverage to look at the electricity sectors in selected OECD countries. My focus will be on the historical and relative performance of each country’s sector with respect to decarbonization and prices. As in the case of Ontario, whole volumes could and have been written about each of these countries, and the electricity sector in general, including with respect to current and future reliability...

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Ontario Electricity VIII: Now also going backwards on climate

There have been a number of important developments in the Ontario electricity sector since my last update when I summarized my arguments in front of the Ontario Legislature against the proposed Provincial Conservative legislation, now enacted, that eliminated the Provincial Liberal rate-based borrowing scheme to subsidize electricity prices and replace it with Government revenues. The tax-payer financed subsidy of $2.8 billion in 2018/19 has now ballooned to $6.5 billion in 2021/22 and...

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Electrification and Climate I: Scale of the Challenge

Many elements have to come together if Canada is to significantly reduce its greenhouse gas (“GHG”) emissions. There is now a technical consensus that “electrification” – the replacement of fossil fuels with electricity as an energy source – is a necessary condition for decarbonization, and that electrification will require that zero/low-emission electricity generation double or triple by 2050. In this first of a series of electricity-oriented climate-related posts, I summarize the...

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Electrification and Climate I: Scale of the Challenge

Many elements have to come together if Canada is to significantly reduce its greenhouse gas (“GHG”) emissions. There is now a technical consensus that “electrification” – the replacement of fossil fuels with electricity as an energy source – is a necessary condition for decarbonization, and that electrification will require that zero/low-emission electricity generation double or triple by 2050. In this first of a series of electricity-oriented climate-related posts, I summarize the...

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Ontario Electricity VII – Committee Testimony

The PC Government in Ontario has introduced Bill 87 which would eliminate the rate-based borrowing to subsidize electricity prices and replace it with Government borrowing. Last week’s Provincial Budget estimates that the required borrowing to subsidize electricity prices for 2018/19 was $2.8 billion. It is likely to exceed $3 billion in 2019/20. Ontario is the only jurisdiction in North America where the Government would directly subsidize electricity prices. Today the Government...

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Ontario Electricity VII – Committee Testimony

The PC Government in Ontario has introduced Bill 87 which would eliminate the rate-based borrowing to subsidize electricity prices and replace it with Government borrowing. Last week’s Provincial Budget estimates that the required borrowing to subsidize electricity prices for 2018/19 was $2.8 billion. It is likely to exceed $3 billion in 2019/20. Ontario is the only jurisdiction in North America where the Government would directly subsidize electricity prices. Today the...

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Ontario Electricity Sector VI – Meet the new boss…

The provincial election of June ended 15 years of Liberal electricity policy in Ontario. Anger over high electricity prices continued to be an election issue, contributing to the Liberal loss of power and official party status (reduced from 55 to 7 seats). The PCs have formed Government with 76 seats, while the NDP is official opposition with 40 seats, and the Green Party won their first seat. The PC Government has moved quickly to act on some of their election promises and other unannounced...

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Ontario Electricity Sector V – What they knew, and when they knew it…

Last month I published a full-length article in the “The Monitor” magazine providing a “how we got here” analysis of the Ontario electricity sector and some options for the next Government.  Since then, two things have changed: first on May 31 two investigative journalists, Carolyn Jarvis and Brian Hill, wrote an excellent story for Global News about how successive Liberal Ministers of Energy ignored expert agency advice, which resulted in Ontario households having to pay billions of dollars...

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Ontario’s Electricity Sector IV: Pre-Election Update

My first, second and third posts on the Ontario electricity sector described how policy and administrative decisions by different Liberal Governments gave rise to excess electricity generation with an inflated cost structure, leading to higher electricity prices. In anticipation of June 2018 elections, the Liberal Government recently implemented a costly and first-in-Canada financial scheme to fund its “Fair Hydro Plan” (FHP) to provide a short-term 17% price reduction. Given that the FHP is...

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Ontario’s Electricity Sector III: Legislative & Finance Update

My January and April posts on the Ontario electricity sector described how decisions by different Ontario governments gave rise to excess electricity generation with an inflated cost structure, leading to higher electricity prices. Here I discuss the latest development, the Liberal Government of Ontario’s proposed financial framework for its “Fair Hydro Plan” (FHP). In election mode, the Government tabled Bill 132 on May 11, introducing a mechanism to finance the FHP, creating a 17% price...

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