Plugging into Savings: A New Incentive-Based Market Can Address Ontario’s Power-Surplus Problem
AbstractAfter years of looming power shortages, Ontario faces instead a periodic problem of excess electricity supply at the same time that new generation capacity is being added. Since Ontario government agencies that purchase power have long-term, fixed-price contracts with many electricity generators, Ontario consumers pay for electricity produced by some generators even when that electricity has little value, particularly during periods of high wind production and low demand.For the long term, the province should create financial incentives for constructing flexible generation capacity.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by C.D. Howe Institute in its series e-briefs with number 120.
Length: 7 pages
Date of creation: Jul 2011
Date of revision:
Publication status: Published on the C.D. Howe Institute website, July 2011
Economic Growth and Innovation; Ontario; Canada; power supply;
Find related papers by JEL classification:
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
- K20 - Law and Economics - - Regulation and Business Law - - - General
This paper has been announced in the following NEP Reports:
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Donald N. Dewees, 2013. "The Economics of Renewable Electricity Policy in Ontario," Working Papers tecipa-478, University of Toronto, Department of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kristine Gray).
If references are entirely missing, you can add them using this form.