{"id":27879,"date":"2014-07-30T00:00:00","date_gmt":"2014-07-30T04:00:00","guid":{"rendered":"http:\/\/ashleydev.com\/2014\/07\/30\/finding-facts-in-the-fog-of-fiction\/"},"modified":"2020-08-27T11:41:15","modified_gmt":"2020-08-27T15:41:15","slug":"finding-facts-in-the-fog-of-fiction","status":"publish","type":"post","link":"https:\/\/cna.ca\/fr\/2014\/07\/30\/finding-facts-in-the-fog-of-fiction\/","title":{"rendered":"Finding Facts in the Fog of&nbsp;Fiction"},"content":{"rendered":"<p><strong>By John Stewart<\/strong><br \/>\n<em>Director of Policy and Research<\/em><br \/>\n<em>Canadian Nuclear Association<\/em><\/p>\n<p>Have you seen the email that says, \u201c<a href=\"http:\/\/www.cleanairalliance.org\/cna\">The nuclear industry doesn\u2019t want you to think about Quebec<\/a>\u201d? Well, we actually do want you to think about Quebec, because the argument that Ontario could import cheap electricity from Quebec and scrap the refurbishment of the Darlington generating station just doesn\u2019t work.<\/p>\n<p><a href=\"http:\/\/consultationenergie.gouv.qc.ca\/documents\/rapport.asp\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright wp-image-3303 size-medium\" src=\"http:\/\/talknuclear.ca\/wp-content\/uploads\/2014\/07\/cover-232x300.png\" alt=\"Commission report on Quebec's energy future\" width=\"232\" height=\"300\" \/><\/a>Quebec\u2019s commission on energy policy <a href=\"http:\/\/consultationenergie.gouv.qc.ca\/documents\/rapport.asp\">turned in a report<\/a> in February 2014 on its public consultations \u2013 the same report used as the foundation of the import-from-Quebec\u00a0argument.<\/p>\n<p>As <a href=\"http:\/\/www.thestar.com\/opinion\/commentary\/2014\/07\/23\/buying_power_from_quebec_opportunity_mugged_by_reality.html\">we pointed out last week<\/a>, the business case to import Quebec electricity just isn\u2019t there in today\u2019s power market. Don\u2019t just take our word for it. Look at these direct quotes from the commission\u2019s report. (The translation is ours.) It turns out that\u00a0Quebec is awash in supply that it\u2019s been overpaying for in costly, misplaced efforts to encourage alternatives:<\/p>\n<blockquote><p>\u201cElectricity demand has flattened\u2026. Despite this, Quebec has added important sources of production: wind, small hydro, biomass&#8230;. This reality results in an annual subsidy to electricity producers that will reach $1.2 billion in 2017, at the expense of power consumers and taxpayers.\u201d (p. 21)<\/p><\/blockquote>\n<blockquote><p>\u201cIn North America, including Quebec and Ontario, authorities subsidize renewable energy on their own territory&#8230; rather than pay a premium for clean energy imported from outside&#8230;.\u201d (p. 181)<\/p><\/blockquote>\n<p>That new supply has been costing Quebec much more than its traditional big hydro. To cover that cost, Hydro Quebec needs to export power at peak periods. Otherwise, it loses money:<\/p>\n<blockquote><p>\u201cToday, these surpluses can only be disposed of on export markets. The first 10 TWh are exported at peak periods at high prices and are profitable for Quebec. The rest, about 20 TWh, is exported in off-peak periods at an average price of $0.03\/KWh. But, the cost of energy from new production sources added since 2008 varies between $0.06\/KWh and $0.12\/KWh.\u201d (p. 21)<\/p><\/blockquote>\n<p>The export channels, or \u201cinterconnects,\u201d that export those profitable 10 TWh\/year cannot handle a greater load:<\/p>\n<blockquote><p>\u201cThe additional (20 TWh) cannot be sold at peak periods because the current interconnects with neighbouring markets are saturated; it can only be sold in off-peak or base periods at prices that are too low to make recent investments profitable&#8230;.\u201d (p. 176)<\/p><\/blockquote>\n<p>More interconnects are not the answer in this market. Rather, the commission recommends against new export deals, and it calls on the Quebec government to trim the subsidized sources of supply within the province:<\/p>\n<blockquote><p>\u201cThere is no doubt in the Commission\u2019s mind that the government of Quebec must immediately cease new requests for the production of electricity and that it must cancel contracts in the process of renewal&#8230;.\u201d (p. 184)<\/p><\/blockquote>\n<p>As we pointed out last week, this is one reason why <a href=\"http:\/\/www.eia.gov\/electricity\/wholesale\/xls\/ice_electric-2014.xls\">actual deals for long-term electric power<\/a> have been expensive in 2014 (more than 10 cents per KWh in the New England power pool).<\/p>\n<p>Electricity exporters have to earn much more than the average cost of production from their big, efficient base-load generating stations \u2013 hydro dams in Quebec, and nuclear energy stations in Ontario. They also have to subsidize pricey alternatives. That\u2019s why they need a sales price that covers production costs plus subsidies.\u00a0 And any power supply that replaces Darlington must be not only large (over 3,000 MW), but available around the clock \u2013 not just off-peak or whenever the interprovincial connections\u00a0allow it.<\/p>\n<p>The bottom line: facts are facts. The price of power is what people pay for it, and not some made-up number based on flawed assumptions. In today\u2019s market, a profit-seeking Hydro Quebec wouldn\u2019t want to sell electricity to Ontario on a sustained basis below the cost of its most expensive production.<\/p>\n<p>Here\u2019s another fact: nuclear energy safely delivers reliable, low-cost power to Ontario. And, in displacing coal and natural gas from Ontario\u2019s supply mix, nuclear energy reduces Ontario\u2019s greenhouse gas emissions by nearly 90 megatons per year.<\/p>\n<p>You\u2019d think an organization that promotes clean air would celebrate nuclear\u2019s zero-carbon emissions rather than generate a fog of fiction.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By John Stewart Director of Policy and Research Canadian Nuclear Association Have you seen the email that says, \u201cThe nuclear industry doesn\u2019t want you to think about Quebec\u201d? Well, we actually do want you to think about Quebec, because the argument that Ontario could import cheap electricity from Quebec and scrap the refurbishment of the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[537],"tags":[],"topic":[],"class_list":["post-27879","post","type-post","status-publish","format-standard","hentry","category-talknuclear"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Finding Facts in the Fog of Fiction - Association nucl\u00e9aire canadienne<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cna.ca\/fr\/2014\/07\/30\/finding-facts-in-the-fog-of-fiction\/\" \/>\n<meta property=\"og:locale\" content=\"fr_FR\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Finding Facts in the Fog of Fiction - Association nucl\u00e9aire canadienne\" \/>\n<meta property=\"og:description\" content=\"By John Stewart Director of Policy and Research Canadian Nuclear Association Have you seen the email that says, \u201cThe nuclear industry doesn\u2019t want you to think about Quebec\u201d? 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