Integration of Renewables into the Ontario Electricity System

Brian Rivard and Adonis Yatchew
Authors registered in the RePEc Author Service: Adonis Yatchew

The Energy Journal, 2016, vol. Volume 37, issue Bollino-Madlener Special Issue

Abstract: The Ontario electricity industry has a 'hybrid' structure: electricity is bought and sold in a competitive wholesale electricity market while supply mix planning and procurement are conducted through a government agency. Most generation is secured through long-term contracts. Aggressive renewable energy programs have led to rapidly growing renewable capacity, mainly wind generation. Coal-fired generation has been eliminated and electricity sales have dropped. The competitive hourly market price has declined and there is a clear merit-order effect: an increase of wind generation from 500 MW to 1500 MW can be expected to decrease price by 7 CAD/MWh. However, the all-in price, which incorporates contractually guaranteed supply prices, has risen from about 60 to 100 CAD/MWh between 2009 and 2014. Operational and market integration of renewable resources has been achieved relatively smoothly. The procurement process is over-centralized: increased reliance on market discipline and greater separation between governmental policy makers and regulators would enhance both the efficacy and efficiency of decarbonization policies.

JEL-codes: F0 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (7)

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