The project will pose a significant burden on Ontario ratepayers who will fund the project through taxes and utility rates.
At 1,000 MW, the project will be Ontario’s biggest battery, storing enough clean carbon-free electricity to power nearly a million homes. The project will ensure Ontario gets the most value from its power generation, storing excess energy at night, during periods of low demand, and providing an energy balance by delivering that stored energy during the day, at times of extreme weather, during periods of high demand, reliably and responsibly. The project will save Ontario ratepayers $250 million per year
I.The IESO (Independent Electricity System Operator) concluded that “TCE’s proposal did not provide sufficient value to Ontario’s electricity consumers.” Savings are estimated to approximately $11/person/year, less than what an individual would save by changing a single incandescent bulb to an LED.
II.The estimated $4.3 billion dollar cost of TC Energy’s proposed pump storage project poses a significant burden on Ontario taxpayers who will bear the cost of the project in their taxes.
2)There are alternative more economic solutions.
I.Buying from Hydro Quebec: The Ontario Clean Air Alliance notes that twice the amount of energy can be acquired from Hydro Quebec for $80m. That’s 98% lower than the $4.3 billion cost of TCE’s proposed Ontario Pumped Storage plant.
II.Battery Storage: The IESO has recently entered into a 10-year energy contract for the Oneida Battery Storage project. IESO advanced the Oneida project to Gate 3 at the same time that it rejected TC Energy’s proposal at Gate 1. This demonstrates the economic and technological viability of battery storage. The capital cost for the Oneida project is approximately $500,000/MWh, in comparison with a capital cost for TC Energy’s PSP which is closer to $600,000/MWh. Oneida is also 95% to 98% efficient, while the Georgian Bay PSP is only 70% efficient (it uses 30% more energy than it generates).