CanWEA is in the process of undertaking a critical review of the recently released Fraser Institute report: What goes up…Ontario’s Soaring Electricity Prices and How to Get Them Down — by Ross McKitrick and Tom Adams, October 2014.

October 30, 2014

Ottawa, Ontario – October 30, 2014 – Electricity prices in Ontario are increasing.  Many factors have contributed to increased prices as Ontario has sought to modernize its electricity grid and phase-out coal-fired electricity generation – including the addition of new sources of electricity generation and investments to upgrade and build new transmission and distribution infrastructure.

Several studies, using different methodologies and approaches, have sought to determine the relative importance of different factors when analysing increasing electricity costs in Ontario. These studies have produced a range of results, but several have concluded that the addition of renewable energy has been a minor contributor to the increase seen to date in electricity costs in Ontario.

It is true that the addition of new sources of electricity generation is one factor in increasing electricity costs. This is because all new electricity generation built today, regardless of source, is more expensive to build than electricity supply built a generation or more ago. Wind energy is a cost-competitive, clean and scalable source of electricity generation that is cheaper than new nuclear power, cost-competitive with hydroelectric power and does not bear the commodity and carbon price risks associated with natural gas generation.

Ontario today has a more diverse and modern power supply mix. The elimination of coal-fired electricity generation in Ontario represents the single most significant action taken in Canada to reduce greenhouse gas emissions and has produced a reduction in a broad range of air pollutants in Ontario.

Ontario’s generation fleet continues to evolve as it incorporates more and more clean and affordable electricity supply to safely and reliably meet the province’s future electricity needs and address its economic and environmental priorities.

CanWEA will comment more fully when its analysis is complete.

For more information please contact:

Ulrike Kucera
Media Relations
613 867 4433