Ontario Looks to Coal-Free Future

---

Researched by Industrial Info Resources (Sugar Land, Texas)--By the end of 2013, Ontario will have phased out its coal-fired power generation and will be the first major area in North America to do so. Ontario's Ministry of Energy (Toronto) said that the coal phase-out will be the single largest reduction in greenhouse gases undertaken in North America.

Ontario is replacing coal with a mixture of low-emission fuels, such as natural gas, as well as emission-free energy sources, such as nuclear and renewables; these include wind, hydro and solar generation.

By the end of 2013, coal-fired generation will be less than 1%, and 17 of 19 coal-fired generating units that existed in 2003 will be shut down, with the remaining back-up units eliminated by the end of 2014, according to the Ministry of Energy.

Ontario's population of about 13.5 million, the largest of any Canadian province, will see health and environmental benefits through the reduction of sulfur dioxide, nitrogen oxides and mercury emissions. The change was initiated by a coalition called the Ontario Clean Air Alliance (OCAA) (Toronto, Ontario), which was established by citizens in 1997, primarily as a public interest group to pressure politicians and the Power Industry.

Power plant fuel prices and fuel availability played a less critical role, as most coal for power generation in Ontario is imported from the U.S. and natural gas comes from western Canada provinces.

The Ontario feed-in-tariff (FIT) program introduced in 2009 was an important element in the switch from coal, offering up to 80.2 cents per kilowatt hour (kWh). The program is recognized as the first and most comprehensive in North America, and it is key in making Ontario a leader in clean energy production and manufacturing.

The early results show that over the next 18 months, an available supply of more than 3,000 megawatts (MW) will be added to the grid. Reserve margins are expected to be 20.2% for 2013 and at or above 18% through 2017, with regulated prices of 7.4 cents for less than 1,000 kWh/month and 8.7 cents for more than 1,000 kWh/month, on average.

Industrial Info is tracking $2.4 billion in solar energy projects, $8.1 billion in wind projects, $741.9 million in hydro projects and $1.2 billion in natural gas-fired generation projects that are scheduled to begin construction over the next 18 months in Ontario.

For more information, see May 29, 2013, article - Canadian Solar Reports Strong Shipments in First-Quarter 2013, Looks to Asia for Growth and Canada Continues to Work on Lowering Emission Levels through Windfarm Development.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.