Tuesday, July 10, 2012

Ontario moves Toronto's Planned Generation to Lambton.

The government has announced that the generation facility planned for the western GTA is being relocated to Lambton.

Statement from Ontario Minister of Energy:
"Today, I am pleased to announce that the Ontario Power Authority (OPA) has reached an agreement with Greenfield to relocate the plant. The government has accepted the OPA's recommendation to relocate the 300 megawatt natural gas plant on part of Ontario Power Generation's Lambton Generating Station site."
The total cost of relocation is approximately $180 million. This includes a settlement agreement with EIG, the financier of the Greenfield South Power project, on behalf of Greenfield, the OPA and the Province. The settlement is necessary in order to relocate the plant and resolves all outstanding legal proceedings. The total relocation cost also includes all payments made in relation to the original site, including construction costs, design costs, and permitting costs.
Read the entire press release here:
Some historical IESO comments on the need for increased supply in the southwestern GTA
Load supply adequacy in southwestern GTA has been an ongoing concern over the last number of years with a number of transmission solution options available. Lower than expected increases in the growth in the area have reduced some of the urgency around these requirements, although the fundamental requirements remain. Appropriate study efforts have begun with the OPA and affected transmitters.
Over the last few years the southwest GTA demand experienced moderate growth, compared to previous years, resulting in supply margins still being available. Load growth is continuing, and although the need is not immediate, action on a solution is required in the near future. To address this need transmission reinforcement solutions are now being considered in order to maintain reliability in the area.
December 2010 18 Month Outlook 

It is unclear how replacing one of Lambton's coal units, on that site, will solve the issues that the Greenfield plant was intended to solve, without significant additional transmission costs the news release does not address.

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