Breaking into the utility market

The wind energy industry in Canada must displace competition from government protected conventional energy industries if it is to gain a market position. This hypothesis is discussed for the case of Ontario, where the provincial utility has historically focused on nuclear, large hydro, and coal-fired sources. It is alleged that the utility has consistently underestimated costs for conventional energy sources and overestimated those for renewable sources such as wind power. Research by a coalition of environmental groups is cited to show that avoided generation costs in Ontario range from 8 cents/kWh for off-peak periods to a high of 12 cents/kWh during peak periods. At these values, even the utility's high cost estimates of $1,890-$2,600/kW for wind turbines and wind farms indicates cost effectiveness. Estimates of the added costs of conventional energy developments (the costs of environmental impacts not taken into account in conventional utility accounting) range from 1.1 cents/kWh for gas combined cycle cogeneration to 4.4 cents/kWh for existing coal-fired plants. By taking this kind of information to public hearings on energy developments, the wind energy industry can help establish new standards for evaluating conventional energy technology