The Ontario electricity industry has a ‘hybrid’ structure: electricity is bought and sold in a competitive wholesale electricity market while supply mix planning and procurement are conducted through a government agency. Most generation is secured through long-term contracts. Aggressive renewable energy programs have led to rapidly growing renewable capacity, mainly wind generation. Coal-fired generation has been eliminated and electricity sales have dropped. The competitive hourly market price has declined and there is a clear merit-order effect: an increase of wind generation from 500 MW to 1500 MW can be expected to decrease price by 7 CAD/MWh. However, the all-in price, which incorporates contractually guaranteed supply prices, has risen from about 60 to 100 CAD/MWh between 2009 and 2014. Operational and market integration of renewable resources has been achieved relatively smoothly. The procurement process is over-centralized: increased reliance on market discipline and greater separation between governmental policy makers and regulators would enhance both the efficacy and efficiency of decarbonization policies.
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Nearly 100 utilities’ credit ratings downgraded since 2020 as wildfire risks grow
The article explains how nearly 100 utility companies have had their credit ratings downgraded since 2020 due to increased wildfire risks. This has made it...