Friday, April 13, 2012

Folly of Ontario' s renewable energy program provides warning for other governments

I feel obliged to comment of the Fraser Institute's strategy for Renewable Electrical Energy, which they released yesterday.  
Their report shows Canada will add 22GW of capacity over the next decade, while the United States adds on 17.5GW; Canada's annual output will grow 585TWh, while the US rises almost 4000TWh. They add less, and produce more.
LUEC of generation sources is increasingly irrelevant, the utilization rate of all elements of a system is increasingly the most relevant factor in residential costs.  Adding wind, for instance, is supposed to make the LUEC of a gas plant higher by displacing the need for it, without being capable of replacing it.
They also have the jobs metric backwards - the price elasticity of demand grows over a longer time.

Folly of Ontario' s renewable energy program provides warning for other governments; Ontario households to pay extra $285 million annually for electricity | Fraser Institute:
""The Ontario government has embraced wind, solar power, and other renewable energy sources without regard to the cost to consumers, which is already having widespread negative economic impacts," said Gerry Angevine, Fraser Institute senior economist and co-author of A Sensible Strategy for Renewable Electrical Energy.
"If other governments choose to emulate Ontario’s energy policies, they too will see higher electricity prices for homeowners and businesses, a need to build costly new electric transmission infrastructure, and the likelihood of job losses in the manufacturing sector as companies relocate in search of lower-cost electricity.""

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