QUEEN'S PARK, Feb. 10, 2006 -- Canada NewsWire

 

Energy Minister Donna Cansfield announced today she has directed the Ontario Power Authority (OPA) to move forward with the Portlands Energy Centre (PEC) for 550 megawatts of new, clean gas-fired generation and to procure 300 megawatts of conservation to ensure Toronto has the power it needs in 2008 and beyond.

The Independent Electricity System Operator (IESO) has warned that Toronto risks energy shortages unless 250 megawatts of supply are built by 2008, 500 megawatts are built by 2010 and energy conservation is maximized. The power lines bringing electricity to the city are almost at their maximum capacity during peak periods.

"In the 1960's, Toronto had half the population and 1,200 megawatts of generation in the city. Today, we have twice the population and almost no generation in the city," Cansfield said. "Our government is providing leadership and taking decisive action to keep the lights on in Toronto through a combination of conservation and clean electricity supply."

The government is moving forward with the PEC, which will generate 550 megawatts of clean gas-fired generation. The PEC will be delivered in two phases to meet the immediate and long-term electricity needs of the city. Phase one will have 330 megawatts in service no later than the summer of 2008, and phase two will have 220 megawatts in 2009 along with cogeneration capabilities to supply thermal energy to district heating facilities or other customers.

"We need to move forward now to ensure Toronto has the power it needs by 2008 to keep the lights on in this city," Cansfield said.

"As a leading city of the world, it is important for Toronto to have power generation located in the downtown core," said Rob McLeese, Chair of the Toronto Board of Trade Electricity Task Force.

"The Portlands power project must move ahead as soon as possible. It will reduce air pollution in Toronto and it will dramatically increase the security and reliability of Toronto's electricity system," said Jack Gibbons, Chair, Ontario Clean Air Alliance.

The McGuinty government has also directed the OPA to develop 300 megawatts of conservation and demand response in Toronto. Combined with the 250 megawatts of conservation programs by Toronto Hydro, this more than doubles the new conservation programs for the city.

"I'm pleased to see that the Province has stepped up to the plate and made conservation an equal priority to generation," said Chris Winter, Executive Director of the Conservation Council of Ontario. "I firmly believe we can address the challenge of reducing peak demand in Toronto through conservation."

Since taking office, the McGuinty government has set the wheels in motion for more than 10,000 megawatts of new supply and conservation measures throughout the province.

The Minister of Energy has directed the Ontario Power Authority to negotiate with the Portlands Energy Centre (PEC) for 550 megawatts of new, gas-fired generation. The OPA is also directed to produce 300 megawatts of conservation to ensure the ongoing reliability of the electrical supply in downtown Toronto.

New Downtown Supply

The Independent Electricity System Operator has identified an urgent need for new generation in downtown Toronto by the summer of 2008 to address the risk of rotating power cuts during periods of high demand. In addition to meeting demand, new generation in downtown Toronto will:

Several options have been proposed to meet the needs of downtown Toronto. The proposals included:

In examining the proposals, the government looked for the proposal most able to meet the following criteria:

The most advanced option presented to meet the firm supply requirement by 2008 is the proposal from the partnership of Ontario Power Generation and TransCanada Pipelines to build a state-of-the-art, cogeneration-capable gas fired plant located adjacent to the retired Hearn plant.

The proposal is to build the plant in two phases, with 330 MW capacity available by 2008 and another 220 MW by 2010, to meet the requirements identified by the IESO.

The original project has been through a two-year Environmental Assessment and has received a Certificate of Approval for air, water and noise. Based on the expected schedule, the project avoids the need for temporary generation. The project is also capable of providing steam for district energy needs in the Portlands, West Don Lands, and East Bayfront as these areas become developed as part of the Toronto Waterfront Revitalization Initiative.

The other proposed options have involved generation inside the Hearn station, but each of these options would need to begin Environmental Assessment studies which could take up to 2 years, would require additional costs and face uncertainty around project completion timelines. The Hearn building is 55 years old which imposes construction challenges.

The costs of indicative proposals are conservatively estimated to be 20 percent higher than the PEC project.

The Minister of Energy has directed the Ontario Power Authority to work with Toronto Hydro and the Toronto community to identify and procure up to 300 megawatts of additional energy conservation in Toronto by 2008 to ensure the ongoing reliability of the electrical supply in the city. Today's announcement, combined with the 250 megawatts of conservation programs by Toronto Hydro, more than doubles the conservation programs for the city.

The IESO's February 2006 Reliability Outlook indicated that conservation and demand management initiatives should be part of the solution to address Toronto's electricity needs.

Over the past two years, the Ministry of Energy has been involved in various conservation initiatives. These have included:

In its directive, the Ministry of Energy has asked the OPA to build on these conservation and demand-side management initiatives.

The OPA will work with Toronto Hydro and the local community to determine the best conservation options.

Disponible en français.

SOURCE: Ontario Ministry of Energy

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