Government of Ontario Electricity Supply Mix Directive: Initial Analysis from the Pembina Institute

June 13, 2006

Toronto-The Government of Ontario released its supply mix directive on the future shape of Ontario's electricity system today. The directive is to provide the basis for a 20-year electricity supply plan to be developed by the Ontario Power Authority (OPA).

The Pembina Institute has recommended that in meeting the province's electricity needs, the Government of Ontario follow a hierarchy of:

  • maximizing opportunities for energy efficiency and conservation
  • maximizing opportunities for low-impact renewable energy sources, like wind and biomass and
  • using high efficiency natural gas fired generation and cogeneration as a transitional fuel to meet remaining grid demand.

In this context, the Pembina Institute makes the following observations and comments on the directive issued today:

  • The plan largely follows the direction of the strongly nuclear oriented 'supply mix advice' provided to the government of Ontario by the OPA in December 2005
  • The directive would increase total available nuclear generating capacity, including the construction of at least two new reactors and attempts at refurbishments of units at the Bruce, Pickering and Darlington nuclear facilities.
  • The directive provides no firm deadline for the phase-out of coal-fired generation, with the implication of an abandonment of the government's earlier commitments to the phase-out of coal-fired generation by 2007 and 2009. This will have serious consequences for the achievement of the province's air quality and greenhouse gas reduction targets. None of the commercially available control technologies for coal result in significant reductions of greenhouse gas emissions.
  • The directive would increase the targets for conservation over the OPA's very modest December 2005 proposals. However, instead of using increased conservation to reduce the need for the highest risk and highest cost supply option (nuclear) the target for high efficiency natural gas-fired generation and cogeneration has been substantially reduced.
  • The overall targets for conservation, renewable energy and cogeneration remain far below the technical, economic and achievable potential identified by the Pembina Institute and other researchers.
  • There is no specific plan for the achievement of the revised conservation and efficiency targets. The Pembina Institute has challenged the appropriateness of a leadership role for the OPA in the achievement of conservation targets given the weak commitment to conservation in its December 2005 supply mix advice.
  • The directive provided no clarity on how the province intends to conduct a provincial environmental assessment of either the plan to be developed by the OPA, or the individual facilities to be developed under the plan. A legal opinion released by the Pembina Institute and other environmental organizations concluded that the plan to be developed by the OPA is subject to the province's Environmental Assessment Act. Individual facilities for which the province or its agencies are proponents would also be subject to the Act.

"The supply mix directive was a critical opportunity for the Government of Ontario to place the province's electricity system on a path towards environmental and economic sustainability. Unfortunately the government has chosen to look to the past instead of the future. A better vision is needed to ensure the health and prosperity of future generations of Ontarians," concluded Dr. Mark Winfield, Director the Pembina Institute's Environmental Governance program.

For more information contact:

Mark S. Winfield, Ph.D.
Director, Environmental Governance
The Pembina Institute
Tel: 416-978-3486
Cell: 416-434-8130
e-mail: markw@pembina.org
www.pembina.org

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