Phase Out of Coal-Fired Power Generation in Ontario Leads to Increased Natural Gas and Wind Generation

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Researched by Industrialinfo.com (Industrial Information Resources, Incorporated; Houston, Texas). As a result of the planned phase out of coal-fired generation in Ontario, numerous renewable energy and natural gas-fired projects are being developed. Over 80 wind generation projects have been proposed totaling 6,300 megawatts. These projects are scheduled to be constructed and become operational between 2005 and 2008.

Companies from all over Canada, the United States, Germany, and France have proposed wind projects. Some of the windfarm projects are being developed in conjunction with local municipal governments. For example, Toronto and Niagara, have created a joint venture called Wind Energy Niagara to build, own and operate the 10 MW Wainfleet Windfarm in the Township of Wainfleet. Companies proposing windfarms include: Invenergy, LLC (Chicago, Illinois), Schneider Power, Incorporated (Toronto, Ontario), Vision Quest Windelectric, Incorporated, a subsidiary of TransAlta Corporation (NYSE:TAC ) (Calgary Alberta), Vector Wind Energy, Incorporated (NYSE:CA:VWE ) (Ottawa, Ontario), Ventus Energy, Incorporated (Toronto, Ontario), SkyPower Corporation (Toronto, Ontario), AIM PowerGen Corporation (Toronto, Ontario), Northland Power, Incorporated (NYSE:CA:NPI.UN) (Toronto, Ontario) and Canadian Hydro Developers, Incorporated (NYSE:CA:KHD ) (Calgary, Alberta).

The staff needed to operate the windfarms is less than 50% needed to run coal plants, but due to the unreliability of the wind they will not be able to be used as base load facilities like coal units. So, it will be necessary to build either more wind capacity, or generation from other fuel types. IIR is tracking 30 natural gas fired units totaling more than 4,700 MW, ten hydroelectric for 636 megawatts, 41 windfarms totaling almost 4,300 MW, two nuclear for 1,750 megawatts, nine waste heat/combined cycle units for 1,950 MW, and seven other units of varying fuel types, including waste-fired totaling more than 600 MW.

Click on the image at right to view a chart showing the breakdown of power projects in Ontario by fuel type.

The province of Ontario is striving to lower air emissions by having province-owned Ontario Power Generation (OPG) (Toronto, Ontario) close or convert coal-fired power plants to meet promises made during the last major election. These changes will affect 7,591 megawatts (MW) of generation capacity and will entail the closing of four operating coal generating stations totaling 7,265 megawatts. A fifth 326 MW station will be converted to natural gas.

The eight-unit 1,140 MW Lakeview Generating Station (Mississauga, Ontario) that employed 275 people closed in 2005.

The 230 MW Atikokan Generating Station (Atikokan, Ontario), which has been operational since 1982 and has a staff of about 90, is scheduled to close at the end of 2007.

The four-unit 1,923 MW Lambton Generating Station (Courtright, Ontario) started operations in 1969, and at one point had a staff of 380, will also be closing at the end of 2007.

The eight-unit Nanticoke Generating Station 3,920 MW (Nanticoke, Ontario), the largest fossil fuel power plant in Canada, became operational in 1972, and employed a staff of about 600 personnel is scheduled to close in 2009.

The two-unit 326 MW Thunder Bay Generating Station (Thunder Bay, Ontario) that has been operational since 1963, and has a staff of about 150, is the lone coal-fired plant scheduled remain open, but will be converted to utilize natural gas in 2007. Major staff reductions will ensue.

For more information on future business trends and project spending in the Power Industry check out Industrialinfo.com's recently released 2006 Global Industrial Outlook.

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