 Energy
Supply
What
is the the issue?
Ensuring a safe, reliable,
affordable energy supply has been a long standing
issue in the Province of Ontario. In the summer
of 2003, this issue became even more prevalent
in the minds of Ontarians when power was lost
for days across the province.
Current electricity
prices are artificially low and people know the
price will not change, leaving little or no incentive
to reduce usage. Money spent by the Ontario government
to finance an electricity rate cap (e.g. $293
million in 2002) can go a long way toward financing
the government’s commitment of bringing
a greater number of clean, renewable generation
sources online.
Currently, there are
long lead times for the approval and construction
of new nuclear plants. Renewable sources of energy
such as wind, cannot form part of the energy base
load in Ontario and maintain the existing energy
balance on the electricity grid without additional
costs for new transmission and controls.
Why is this
an important issue for engineers?
Engineers have a significant
role to play in Ontario’s infrastructure
development. Rebuilding and creating additional
electricity capacity in this province is now near
the top of the government’s agenda, providing
an excellent opportunity for engineers to share
their technical expertise and advice with the
government. Engineers are in a position to encourage
investment in Ontario’s electricity infrastructure
to ensure long-term sustainability.
OSPE’s
position
As stated in numerous
letters, press releases and submissions OSPE recognizes
that there is no single "technological fix"
for the challenges confronting Ontario’s
electricity system. A multi-faceted approach that
gives equal consideration to conservation, renewable
energy and new generation is needed both to fuel
Ontario’s economy and provide reliable power
to consumers.
Through our Energy
Working Group, OSPE has offered public support
for an energy restructuring plan that would include:
- a central electricity
system planning and implementation authority
- a system plan that
provides adequate supply to meet Ontario’s
electricity demand plus some reserve electricity
rates that are stable and reflect the true costs
of generation and delivery
- electricity rates
that are stable and reflect the true costs of
generation and delivery
- mechanisms to ensure
a stable market that encourages investment in
Ontario
- equal consideration
for conservation promotion and new generation
- a rate structure
that encourages conservation
- a wide basket of
technologies in the generating mix, including
renewable energy sources, to avoid shortages
- consideration for
gas-fired generation as an appropriate technology
for peaking supply, particularly for co-generation
and distributed power formats
- rapid pursuit of
coal replacement initiatives, mitigated by creation
of alternate/replacement supply
OSPE believes that
raising the electricity rate cap would encourage
conservation. In order to meet the Ontario government’s
commitment of reductions in energy consumption,
incentives are essential. OSPE believes that the
government could lift the electricity rate cap
gradually, which would still protect consumers
from volatile costs until new generation can be
brought online. Such a move would also reduce
the tax burden on consumers and make more money
available for investment in electricity infrastructure
and generation.
OSPE’s position
is that coal should remain a failsafe option until
adequate replacement power is available, and that
the energy replacement should be phased-in. The
first phase would focus on fuel conversion of
the existing coal plants to gas-fuelled plants
in the short-term, and the replacement of the
gas-fuelled plants and the existing nuclear plants
over the long term with nuclear being recognized
as required to supply the balance of power. It
is also OSPE’s position that existing transmission
infrastructure at the province’s coal-fired
generating plants can be used for new supply generation,
and that the role of co-generation in Ontario
needs to be maximized.
OSPE also believes that
there is a broad range of expertise available
in the Ontario engineering community. This expertise
can be used to create sufficient renewable energy
sources and take advantage of other supply options
and opportunities for co-generation. This, in
turn, could lead to employment opportunities and
economic prosperity for Ontario.
OSPE
Progress on Energy Supply at a glance>>>
Developments
Nov.
14, 2006 - Calling all members – Energy conservation
brochure development underway.
Oct.
11, 2006 - Excitement builds for OSPE's new energy
conservation brochure.
Sept.
15, 2006 - Ministry of Energy partners with OSPE
on new energy brochure
Aug.
18, 2006 - Minister of Energy hears concerns of
engineers
Aug.
17, 2006 - OSPE energy recommendations included
in Ontario's new plan
Feb.
21, 2006 - Professional engineers essential to
Ontario's Energy Supply Mix
Oct.
27, 2005 - Energy assessment and planning approval
process reforms needed immediately
Oct.
21, 2005 - Society attends Ontario Power Authority's
inaugural business plan review
Sept.
19, 2005 - OSPE submits recommendations on Ontario’s
long-term energy planning to Ontario Power Authority
Jan.
17, 2005 - OSPE recommendations result in P.Eng.
appointment to the new Ontario Power Authority
Nov.
15, 2004 - OSPE Bill 100, The Electricity Restructuring
Act, 2004 submission to the Ministry of Energy
Aug.
24, 2004 - OSPE presentation to the Standing Committee
on Social Policy on Bill 100, The Electricity
Restructuring Act, 2004
Jun.
16, 2004 - Ontario engineers support restructure
of province’s electricity system - Press
Release
Feb.
13, 2004 - OSPE’s Pre-Budget Submission(2004)
– Encouraging the government to invest in
electricity
Jan.
19, 2004 - Letter to Dwight Duncan, Minister of
Energy responding to Electricity Conservation
and Supply Task Force Report
Nov.
19, 2003 - Society supports examining the cap
- Press Release
Nov
19, 2003 - Letter to Dwight Duncan, Minister of
Energy regarding examination of the electricity
rate cap
Nov.
19, 2003 - Letter to entire Liberal Caucus regarding
examination of electricity rate cap
Nov
19, 2003 - Letter to Premier McGuinty regarding
examination of electricity rate cap
Nov.
19, 2003 - Letter to Allan Rock, Minister of Industry
supporting International Thermonuclear Experimental
Reactor
Nov.
12, 2003 - Article: New Government will face tough
decisions on energy
Oct.
30, 2003 - Lift the Price Cap, says Society of
Professional Engineers - Press Release
View
all of OSPE's Submissions on Energy
Energy
Working Group
June 12, 2003
– The OSPE Board of Directors approve the
creation of the Energy Working Group.
The Energy
Working Group is a committee of the Board
that formulates positions to be taken by the Society
regarding the Government’s energy agenda.
The working group also examines provincial government
plans for alternative energy generation and how
we can partner with the government on implementation
of those plans.
Legislative
Links
Bill
100 - Electricity Restructuring Act, 2004
Electricity
Conservation & Supply Task Force Report
Demand-Side
Management and Demand Response in the Ontario
Electricity Sector
Alternative
energy links
Select
Committee on Alternative Fuel Sources –
Final Report
Climate
Change
Text
of the Kyoto Protocol
United
Nations Industrial Development Organization
Other Organizations interested in electricity
issues
Ontario
Sustainable Energy Association
Ministries
Environment
Canada
Ontario
Ministry of the Environment
Ontario
Ministry of Energy
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