Ecology Ottawa / 08 September 2011
Recently there has been much media attention paid to the Green Energy and Green Economy Act. Sometimes the information available is not complete, and sometimes it is not accurate. We want to help with some myth-busting.
1. Is renewable power causing electricity rates to go up?
With 215 megawatts (MW) of new solar and 1,234.6 MW of wind (0.05% and 1.2% respectively of Ontario's energy supply), as the main renewable energy developments to date, the affect on rates has been minimal. The recent electricity price increases were a result of the expensive cost of upgrading Ontario's aging nuclear sector, long overdue upgrades to the Ontario power grid, the building of new power plants, and the Harmonized Sales Tax (HST). Solar energy that generates during daylight, or "peak demand" hours helps moderate the sharp cost increases of peak demand electricity.
2. Is renewable energy unreliable? The sun doesn't always shine, the wind doesn't always blow
Solar panels produce electricity at very predictable times and at predictable average quantities. They also produce electricity fairly consistently throughout the year—even during the darker days in winter so long as they are situated properly to shed snow in wintertime. Most importantly, they produce the most power right when we need it most, during peak summer days when air conditioners are on full blast and spot electricity prices are highest. Reliability in wind energy is increased with new forecasting technologies. Also, if turbines are distributed across a large grid such as Ontario's, the wind will almost always be blowing somewhere.Sources such as hydroelectric and bioenergy can backstop variable sources. Smart grid and energy storage technologies as well as 'peak shaving' measures will enable more renewables.
3. Are prices for green electricity too high?
The rate for small hydro is 12¢ per kilowatt hour (kWh) and wind power is 13.2¢/kWh, both of which are lower than the nuclear alternative (see question 4 below) and are stable for 20 years, keeping rates low for the future. The cost of solar energy is currently the highest rates offered (44.4 to 80.2¢/kwh) but is rapidly coming down. Similar to when the personal computer became mainstream, solar electricity rates are predicted to drop by 40% in next few years. By investing in solar energy now, Ontario will build a manufacturing sector that will be able to compete in the global marketplace. Another rationale for investing in solar electricity in Ontario is because of its congruence with the electricity peak, which is in the summer in Ontario (for air conditioning). Solar panel output peaks on hot summer days and offsets the most expensive electricity that would otherwise come from gas-powered peaking plants. Since solar electricity can be produced on the roofs of buildings, it also reduces the line losses which, during peak times, can be as high as 30 to 40%.
4. Isn't nuclear power cheaper than renewables?
A comparison of building renewable power or new nuclear power found that renewable power would be significantly less expensive than new nuclear,
.135/ kWh on average for renewable power vs.
.19 -
.37/ kWh for nuclear. Every nuclear project in Ontario's history has gone over schedule and over budget by 150%, which is often absorbed by taxpayers. Nuclear power also has hidden costs as radioactive waste disposal and insurance costs are subsidized out of taxes. In fact, no nuclear project would ever get built without these "special deals." A Queen's University study found that insurance costs are at least $33 million per nuclear plant per year. Ontarians are still paying for past nuclear cost overruns. We have collectively made $19.6 billion in payments on the old Ontario Hydro's "stranded debt" and still owe another $14.8 billion. Nuclear facilities, such as the new Bruce Nuclear Station, have already burdened taxpayers $237.5 million in overrun costs, while also requiring major transmission grid upgrades, which is responsible for a significant portion of the recent electricity rate increases.
5. Green energy cannot provide enough energy for our needs
A comprehensive report has shown that a 100% renewably powered world is possible by 2050. Such a transition requires a parallel significant commitment to energy conservation. Benefits would be felt by not only the environment but also by citizens around the globe who would save money. Another study of just Ontario showed that investing in renewables and energy efficiency will keep costs 12 to 48% lower than if the same energy was supplied with nuclear power; it will also create 27,000 new jobs over 10 years. Benefits of renewables include: a) technologies have been proven to work whereas all nuclear designs considered in Ontario currently are untested prototypes; b) projects can be built in smaller increments to match demand whereas nuclear is all or nothing; and c) the feed-in tariff program for renewables puts the risk of cost overruns on the developer whereas nuclear cost overruns are often placed on the backs of taxpayers.
Above all else, the burning of coal, oil and natural gas releases greenhouse gases causing climate change. If greenhouse gas emissions are not drastically reduced, mass species extinctions, extreme storms, floods, droughts and the breakdown of key ecosystems are likely, threatening the survival of humankind.