[getsmart-l] Ontario Power Generation not allowed to develop wind power

[Gloria Boxen]

http://www.thestar.com/columnists/article/213477

Scientists want OPG in Wind Game
Tyler Hamilton
Toronto Star, May 14, 2007



It's no surprise that the Society of Energy
Professionals, a shareholder of nuclear operator Bruce
Power, wants the government to order several new
nuclear reactors for Ontario.

More curious is the society's belief, expressed in a
series of recommendations last week, that the
provincial government should make wind-energy
development a part of Ontario Power Generation's
mandate as a publicly owned corporation. The society
has been arguing this case ever since the McGuinty
government took wind and other renewables out of OPG's
mandate two years ago.

Under its revised mandate, "OPG will not pursue
investment in non-hydroelectric renewable generation
projects unless specifically directed to do so by the
shareholder." The government, representing the public,
is the shareholder.

Banning OPG from developing wind makes no sense, says
Andrew Muller, president of the society, which
represents more than 7,000 engineers and scientists
working in Ontario's energy sector. "They have a lot
of land, a lot of property to do this on, and let's
face it, OPG was the first one to build commercially
viable windmills in Ontario," he said last week.

OPG does have several small wind turbines installed in
a variety of locations, including Nanticoke and
Pickering. The crown corporation is also a partner in
the five-turbine Huron Wind Farm in Kincardine. As
Muller pointed out, this was the first commercial wind
farm in the province. OPG got involved in these
projects before its mandate was snipped back.

The question now is whether wind development in
Ontario would benefit or suffer by letting OPG back in
the game. An argument can be made, at least from a
public policy perspective, that there would be a net
benefit.

This, according to private wind developers such as
John Kourtoff, would come with the caveat that OPG not
get preferential treatment.

"The bottom line is Ontario needs power, and the
public wants renewable power. If the private sector
doesn't do it on comparable terms and conditions, then
let OPG to it, because you can't let these
opportunities just sit there," says Kourtoff, chief
executive of Trillium Power Energy Corp., which hopes
to build a massive wind farm offshore in Lake Ontario.

One geographic area where OPG's participation might
serve Ontario well is in the north, where the company
is already developing hydroelectric projects, in
consultation with aboriginal groups, and where wind
resources are rich. Two examples are the Chute
Generating Station in Tamiskaming and projects on the
lower and upper Mattagami River.

The Ontario Power Authority wants to expand
hydroelectric and wind generation as part of its
20-year system plan. It should be a co-ordinated
effort.

"Wind and hydro are natural allies," says Roger Short,
a co-founder of Chinodin Wind Power, which originally
conceived and is a partner in the Melancthon Wind
project 90 minutes north of Toronto.

The two resources are allies because when the wind
slows down or stops blowing altogether, a
hydroelectric dam can easily pick up the slack, a job
that is often done by coal and natural gas plants.

When the wind is blowing, it also means hydro
facilities can store water so the energy can be
dispatched during peak times. This interplay between
wind and hydro allows us to use the energy from
intermittent renewable resources when we need them.

Wind and run-of-river hydro are also complementary
because, as a rule, there's more wind in the winter
when hydro capacity is lower and less wind in the
summer when hydro increases. By developing wind and
hydroelectric resources in tandem and on a large
scale, it could get Ontario to the point where it can
export surplus renewable energy – as opposed to
nuclear power – to the U.S., says Short.

But doing so on such a large scale may require that
OPG join the activity. "OPG, in my view, would be one
of several who could be a natural fit for this," says
Short. "They have might and experience ... (and) could
pull it off."

He adds one warning: "Just don't let them run wild out
there. You don't want them to pickle the low-hanging
fruit and squeeze out everybody else."

That possibility – an OPG out of control – has many
firmly and understandably opposed to the idea. After
all, if wind power up north near a hydroelectric site
can be developed at a reasonable price, then the
private sector is likely to step up. If it's not
reasonable, it won't – and OPG probably shouldn't
either.

"What we need is a grid build-out strategy from Hydro
One that extends the grid to parts of the province
with good wind resources," said one industry source.
"Once they build out the grid, private money can build
the production better than OPG."

In fact, many argue that OPG's current hydroelectric
portfolio, particularly in the north, should be
auctioned off so that new private owners can risk
their own capital by complementing them with wind. Or,
some say, OPG should be broken up into smaller pieces
and have all or some of its parts privatized.

"That would go a long way to fixing the Ontario crisis
of supply, and enabling the market to determine the
true value of electricity in the province," said the
source.

Perhaps it's time again to debate these issues.

Email Tyler Hamilton at thamilt at thestar.ca.