Electricity price rises a concern to industry

[phantom power]

I think the bigger picture is that energy is going to be more expensive in the future, regardless of how we choose to produce it.

Bruce Sharp of Aegent Energy Advisors had earlier predicted power prices would rise about $304 a year for a typical household because of the harmonized sales tax, time-of-use pricing and other factors.

But with the awarding of the renewable power contracts, he says a more likely figure is an increase of $377 per household by the end of 2011. That would push the annual bill for a home using 1,000 kilowatt hours of electricity to $1,585 from today's level of $1,208, he figures.

The new contracts for wind, solar and water-powered generation will pay the companies an average of 15.2 cents a kilowatt hour, Sharp says. That's close to four times the standard market price.

Sharp estimates the renewable energy contracts awarded to date will provide about 5 per cent of the province's power. But they'll make up 11 per cent of the total cost of generation because of the price.

http://www.thestar.com/business/article/793174--electricity-price-rises-a-concern-to-industry

[kristopher]

1. It is kind of you to share the perspective of the Ontario Chamber of Commerce equivalent.

"...Manufacturing companies will meet Ontario energy ministry officials next week to voice increased concern about rising electricity prices after 184 renewable power contracts were awarded this week.

One analyst – who had already predicted a hefty increase in power prices – says the contracts will push power bills even higher for consumers and businesses.

High prices mean higher costs, said Ian Howcroft, Ontario vice-president of Canadian Manufacturers and Exporters. ..."


It is obviously a piece designed to push back against climate change. Thanks for keeping us updated.

What the article doesn't mention, of course is the price stability factor where that price is proof against any future fuel cost increases. For twenty years those prices (plus inflation adjustments) will be quaranteed.

Second is the fact the market price for the power that these sources is replacing is (right now) mostly natural gas peaking power, which is much, much more expensive than the average price they used for comparison.

Finally ratepayers should be aware that these early projects are laying the foundation for what will ultimately be a system that is far more reliable than the current system and overall less expensive as renewable technologies become commodities like TVs and cars.

[endless october]

2. we need more capacity.

we should be working on this instead of interventionism.

[freebrew]

3. We have lost sight of

hydro-electric power?
We don't need to dam up rivers anymore, new dynamos can be placed in the rivers and do not disturb the eco-system.
These are small(comparatively) and very efficient. My state alone has many hundreds of miles of powerful current on the Missouri and Mississippi rivers, not to mention the smaller creeks and spring-fed streams.
So, why doesn't the power companies use this resource?

It's too cheap!

[kristopher]

4. It is in the pipeline - 'wave/current/tidal'

The density and dependability of water power makes it a no-brainer. They started working n earnest on these ideas about 10 years ago and there are advanced pilot projects going all over the place.

[NNadir]

5. Yeah, there are still one or two free rivers on the planet. Let's dam 'em.

The world's largest energy disaster, by far, was the one that our resident anti-nuke's couldn't care less about, was the disaster at the Banqiao dam, which killed about 1/4 of a million people.