Ontario needs to replace coal plants with gas, nuclear: study
Philadelphia (Platts)--27Apr2005
The most cost-effective way for Ontario to secure its future capacity needs would be to shut down its coal-fired plants and replace them with new gas-fired plants and refurbished nuclear plants, according to a study by DSS Management Consultants, RWDI Air and Peter Victor, former head of the Faculty of Environmental Studies at York University. The study, for the province's energy ministry, compared the financial, health and environmental costs of four scenarios. It found that the combined health and generation-cost impact of the continued operation of Ontario Power Generation's coal-fired fleet would be more than twice that of replacing it with new gas plant and refurbished nuclear plant. The study said the annual health and generation cost of continued reliance on coal would be about C$4.4-bil ($3.5-bil), while replacing coal with gas-fired and nuclear generation would cost C$1.9-bil; replacing coal with gas-fired generation only would cost C$2.6-bil, and fitting the coal plants with emissions control equipment would cost C$2.8-bil. Ontario Energy Minister Dwight Duncan said at the release of the study that coal-fired generation "is costing the people of Ontario more than the number on their electricity bills. This study shows the true cost of coal is in air pollution-related illness, hospital visits and premature deaths. That's why we are committed to replacing coal-fired generation with cleaner sources of electricity." Ontario's ruling Liberal Party government has promised to shut down all of OPG's coal plants by the end of 2007 as long as there is sufficient replacement capacity in operation, but has been under pressure from some local governments to keep coal plants in their area in operation and to fit them with emission-control equipment to reduce their environmental impact. This story was originally published in Platts Natural Gas Alert http://www.naturalgasalert.platts.com
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