CCRE Commentary: Renewables-based Distributed Energy Resources in Ontario: A Three-part Series of Unfortunate Truths, Part 3 – Economic Implications of “Made in Ontario”

Wind Turbines with blue sky in the background

Written By: Marc Brouillette

August 26, 2019

 Toronto, Ontario – In Renewables-based Distributed Energy Resources in Ontario: A Three-Part Series of Unfortunate Truths. Part 3 – Economic Implications of “Made in Ontario”author and principle consultant at Strategic Policy Economics (Strapolec), Marc Brouillette, builds on the previous two Commentaries in the three-part series that described how intermittent renewable generation output differ from energy demand patterns in Ontario, potentially increasing ratepayer bills by 10 to 20 percent. The analysis also indicated that there is no mix of wind, solar and storage capable of substantially improving the economics for Ontario ratepayers. In this third Commentary, Marc Brouillette indicates that renewables-based distributed energy resource options also have less favourable economic outcomes for the province compared to nuclear supplied distributed energy storage. Specifically, the required costs would negatively impact the province’s Gross Domestic Product, job creation and trade balance while diminishing Ontario’s electricity cost competitiveness. 

Principal consultant at Strategic Policy Economics (Strapolec), author Marc Brouillette has been advising provincial and federal government ministries, agencies and Crown corporations for more than 20 years. He specializes in technology-based, public-private initiatives in policy-driven regulated environments. Recently, he has been a regular commentator on policy matters related to Ontario’s energy sector. Mr. Brouillette’s in-depth and detailed assessments include Ontario Emissions and the LTEP and Renewables and Ontario/Quebec Transmission System Interties. Marc holds a BASc in Systems Design Engineering from the University of Waterloo and an Honours MBA from the Schulich School of Business. 

The Council regularly publishes the CCRE Commentary which are authored by independent experts and are intended to present fact-based reasoned opinions and points of view about some of the challenging issues facing the energy sector. They are meant to stimulate a broader and more inclusive public forum to help advance a fuller understanding of clean and reliable energy policy options. The opinions expressed in this CCRE Commentary are those of the author and do not represent the views of the CCRE. 

The Council for Clean & Reliable Energy (CCRE) is an organization that provides a platform for dialogue and reasoned analysis on subjects related to energy policy. The Council understands the value of creating a broader and more inclusive public discourse, and during the last decade has facilitated conferences, thought leader roundtables, distributed opinioned publications and shared knowledge and expertise. The Council remains committed to continuing to facilitate debate on the generation, transmission and distribution of clean, affordable and reliable energy with a clear focus on finding effective solutions for Canada and abroad.