Insights
Generation Insights
Life on the Margin: What Generators Need to Know
March 2011
Ontario's natural gas and electricity markets are both complex and volatile. This poses a challenge for operators of natural gas-fired power generation facilties. Whether you are a district energy operator or your institution or industrial operation has embedded generation, your operating economics depend directly on what is happening in the natural gas and electricity markets relative to one another, hour by hour. This is a daunting task. Read more >>
Combined Heat and Power Projects: An Opportunity But Know the Risks
February 2011
The Ontario Power Authority is developing a Combined Heat and Power Standard Offer Program to elicit new projects up to 20 MW in capacity in certain areas of the province. The program will offer projects a standard contract with the OPA, designed to mitigate the risks developers face. The program is an opportunity worth evaluating for organizations with an available thermal load, but the opportunity is not risk-free. Read more >>
Green Power Math - It Adds Up to "Dilution"
November 2009
The Feed-in Tariff will make it tough for green power retailers to compete with the Ontario Power Authority to buy new green generation. For a retailer looking to provide some new and truly incremental green power, a lot of "dilution" is required to make the math work. Read more >>
Coal Phase-Out: What's the Net impact on Costs?
May 2009
Generation supply contracts falling under the Global Adjustment will moderate the net impact of spot price increases arising from the phase-out of coal-fired generation. Over 70% of spot price changes will be dampened. Once coal is completely phased out, the net impact of a $6 to $13/MWh spot price increase will be $2 to $3/MWh on the bottom line. Read more >>
Coal Phase-Out: Its Impact on the Global Adjustment
April 2009
Natural gas-fired generation plants have the same attributes as coal-fired generation facilities and so will be counted on by the Ontario Power Authority to replace coal. The estimated impact of almost 6,500 MW of natural gas-fired generation replacing an equivalent amount fo coal-fired is an increase of approximately $6/MWh in the Global Adjustment. This is in addition to the effect of the phase-out on spot market prices. Read more >>
Impact of Coal Phase-Out on Ontario Consumers
March 2009
Ontario Power Generation's almost 6,500 MW of coal-fired generation is scheduled to be phased out by the end of 2014. The impact on electricity consumers will be driven by a number of factors. The first is an upward pressure on spot prices as a result of coal-fired generation being replaced with natural gas-fired generation. Read more >>
Do Price Spikes Really Affect Electricity Consumers?
March 2009
On Februart 18, 2009 Bruce Power had to take one of its generators offline, creating a supply/demand imbalance for a three-hour period. Over this period, prices averaged $1,030/Mwh with the peak being $1,891. Such spikes can often cause alarm but unless sustained, the impact is not as severe as one would expect. Read more >>
Day Ahead Markets
August 2008
While natural gas operates on a day ahead market, power market prices change every five minutes throughout the day. The timing difference between the purchase of gas and the sale of power can present a substantial challenge for power generators. Read more >>
Key Considerations for CESOP
August 2008
With its Clean Energy Standard Offer Program (CESOP), the Ontario Power Authority has set the competitive bar high. In a continuation of our discussion from our June 2008 newsletter, we explore key considerations affecting the financial competitiveness of prospective projects. Read more >>
Key Considerations for CESOP and CHP
June 2008
If your organization is considering participation in the Ontario Power Authority's Combined Heat and Power (CHPII) request for proposal or the Clean Energy Standard Offer Program (CESOP), you need to give careful consideration to key elements of your gas supply strategy before you submit your proposal. Careful planning before submitting your proposal can ensure that you have taken full advantage of the OPA programs to manage your risks. Read more >>