The Voice - Winter 2020 - 26

COVER STORY

power grids from 2014 to 2019 at prices much lower than the cost
of production. This occurs because Ontario produces more clean
electricity than Ontario consumers currently use, so the province is
forced to sell off the surplus at the low wholesale market rate. Total
exports in 2019 were 19.8 TWh, compared to 18.6 TWh in 2018.
OSPE estimates that about half of those exports were surplus clean
electricity, enough to power about 1.2 million homes for one year.

Ontario produces more clean
electricity than Ontario consumers
currently use, so the province is
forced to sell off the surplus at the low
wholesale market rate.

The Impact of COVID-19

Ontario's current electricity system is built to support businesses
operating between the hours of 9:00 a.m. and 5:00 p.m. and a large
percentage of homes left idle for a minimum of eight hours a day.
Electricity consumption patterns have drastically changed over
the last six months, primarily as a result of shifts in the business
climate and workplace. These changes have led to an inevitable
increase in wasted electricity.
" The restrictions COVID-19 has imposed on economic activity
are already having an impact on Ontario's electricity consumption, "
said Perruzza. " OPG reported that in the first quarter of 2020,
hydroelectric curtailment increased by 130 per cent. This will
continue for the duration of the pandemic, ultimately resulting in a
significant increase in the amount of curtailment in 2020. " Despite
high Ontario system demand peaks such as those at some hours of
the day in July 2020, there remains many, many hours during the
year with surplus generation that is either curtailed or exported

at low prices - which is a wasted economic and environmental
opportunity.

Proposed Solutions

OSPE has become recognized as a trusted advisor by the Ontario
government and is regularly looked to by politicians to provide
input on policy, planning, and budget decisions. Rather than
continuing to waste viable clean electricity, OSPE recommends
the province leverage its excess electricity to:
*
*
*

Displace fossil fuel consumption for consumer's heating
needs
Charge Ontario's growing fleet of electric vehicles
Create clean hydrogen for Ontario's industrial sector and
hydrogen powered vehicles

Emily Thorn Corthay, P.Eng., OSPE's Energy Task Force Chair,
emphasizes that " OSPE's proposed retail electricity pricing
would incentivize people to fill the troughs in electricity demand
through low pricing with no additional system costs which would
overall lower total energy costs for those consumers who choose
to opt in. "
" Professional engineers are key to discovering, leading, and
implementing data-driven, practical solutions to support the
integration of green technologies for a long-term, sustainable and
resilient future, " said Réjeanne Aimey, P.Eng., President and Chair
of OSPE. " Re-allocating surplus electricity by way of price reform
is the next step in Ontario's advancement, and engineers are
equipped with the innovation and scientific skills to accomplish
this. "
OSPE will keep monitoring this file in the upcoming months
and years, with the goal of having the provincial government
reform its electricity pricing system.

1 https://www.oeb.ca/oeb/_Documents/Documents/Report_Defining_Typical_Elec_Customer_20160414.pdf

THE VOICE Winter 2021

https://www.oeb.ca/oeb/_Documents/Documents/Report_Defining_Typical_Elec_Customer_20160414.pdf

The Voice - Winter 2020

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