IWT for Three of 24 Hours didn’t cost Ontario’s Ratepayers
Alerted to a tweet of Scott Luft which stated (referencing January 11,2022); “noticed yesterday’s Ontario Demand high of 21,250MW. Checking I find that’s 2nd highest daily winter peak since 2015“ was intriguing.
Sure enough, when looking at Ontario Demand data at Hour 18, peak demand for the day, at interval 10 of that hour hit 21,522.9 MW (megawatts) and averaged 21,250MW for the full hour!
Looking further at IESO data one notes wind at that hour was operating at 84.6% of capacity and generated 4,024 MWh or 18.7% of that hour’s demand. We also exported 3,436 MWh to our neighbours during that hour!
With curiosity further piqued a look at the HOEP (hourly Ontario energy price) disclosed surplus generation traded at $44.58/MWh at Hour 18, so considerably less than what we were paying for wind power at $135/MWh guaranteed* whenever it’s generated.
While viewing the HOEP data however one notes prices at hours 9, 10 and 11 were respectively $151.60, $230.87 and $160.14 per MW or an average of $180.87/MW. IWT generation over those three hours averaged only 891 MW (18.4% of capacity) so if one suggests they were all exported for those three hours we actually sold them for more than we paid! Hourly demand over those three hours was over 20,000 MW and thankfully Ontario’s gas plants were at the ready and generated an average of 5,718 MW providing the power needed to keep the lights on and avoid blackouts.
Yahoo, for three hours we ratepayers actually got back $22,700 more than we paid for IWT generation but too bad it wasn’t the full 24 hours as its much cheaper when the wind isn’t blowing!
*Guaranteed “first to the grid” rights.