The Displacement Impacts of Wind Power Electricity Generation: Costly Lessons from Ontario

Pejman Bahramian, Glenn Jenkins () and Frank Milne

No 1440, Working Paper from Economics Department, Queen's University

Abstract: The displacement impacts of wind power generation on other generation technologies are estimated for Ontario. In addition, their annual financial benefits, costs, and internationalstakeholder impacts are measured. For every 100 MWh generated, almost 53 MWh of gas output and 23 MWh of hydro output is displaced, and 19 MWh of power is exported. Ontario loses 826.42 million USD annually from having wind power generation in the system, while the US gains 7.50 million USD through electricity exported from Ontario. Wind power generation has produced an estimated 108.98 million USD in reducing CO2 emissions in the US and Ontario through displacing thermal generation. Comparing the environmental benefits with the net cost to consumers shows the promotion of wind power generation to be largely a waste of Ontario’s resources.

Keywords: wind power; thermal displacement; CO2 emissions; stakeholder analysis (search for similar items in EconPapers)
JEL-codes: D61 F18 F64 H23 H25 H43 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2020-07
New Economics Papers: this item is included in nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://www.econ.queensu.ca/sites/econ.queensu.ca/files/wpaper/qed_wp_1440.pdf First version 2020 (application/pdf)

Related works:
Journal Article: The displacement impacts of wind power electricity generation: Costly lessons from Ontario (2021)
Working Paper: The Displacement Impacts of Wind Power Electricity Generation: Costly Lessons from Ontario (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:qed:wpaper:1440

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