Editor,
When the Department of National Defence (DND) reached an agreement with TC Energy (TransCanada Pipeline) to lease its land for a pumped storage plant (PSP), many were disappointed by the decision. However, the project is far from approved and has a long way to go before it can become a reality.
The proposed PSP will pump 20 million cubic meters of water per day from Georgian Bay to an uphill, man-made reservoir in the Niagara Escarpment, located on DND land. The water will generate electricity on its downhill return to the bay. It will use 30% more energy than it generates (that’s enough to power the city of Barrie) per day. The project will cost $4.3 billion to generate 1,000 MW of power.
The Independent Electricity System Operator (IESO)
At present, TC Energy is trying to secure a long-term contract with the IESO (Independent Electricity System Operator), to build and operate the PSP. The IESO is the Crown corporation responsible for operating the electricity market in the province, and without this contract, TC Energy is likely to walk away from the project.
The IESO works through a gate decision process when evaluating a project. At the end of Gate 1, they concluded that “TCE’s proposal did not provide sufficient value to Ontario’s electricity consumers.”
That said, the Minister of Energy has asked the IESO to advance the project (along with two other pump storage projects) to Gate 2. The request specifically states, “Should the proponents of these projects make significant improvements to the ratepayer value of the projects including through improved financing, I will consider moving it beyond Gate 2.”
TC Energy’s proposal does not provide the value to Ontario. It is, after all, only a savings of $11/person/year, less than what you would save if you changed a single incandescent bulb with an LED.
Pumped Storage Projects Under Review by the IESO
The other pumped storage project being considered by the IESO that was advanced to Gate 2, the Marmora PSP, is a closed-loop system located at an abandoned mine site. This PSP will revitalize a brownfield site and enhance the environment.
In contrast, TC Energy is proposing an open-loop system that will harm the pristine land and waters of the Niagara Escarpment and Georgian Bay. Every night it will draw 20 million cubic meters of water from Georgian Bay, along with everything that lives within. They claim they have ‘mitigated’ this harm in their design. But mitigate merely means to lessen the gravity of an offence or mistake. Their design will still harm the aquatic ecosystem within the bay.
Battery Storage Project Advanced to Long-term Contract by the IESO
IESO entered into a 10-year energy contract for the Oneida Battery Storage project. IESO advanced the Oneida project to Gate 3 at the same time that it rejected TC Energy’s proposal at Gate 1. This demonstrates the economic and technological viability of battery storage. The capital cost for the Oneida project is approximately $500,000/MWh, in comparison with a capital cost for TC Energy’s PSP which is closer to $600,000/MWh. Oneida is also 95% to 98% efficient, while the Georgian Bay PSP is only 70% efficient (it uses 30% more energy than it generates).
Other benefits of a battery storage facility include:
- It can be built along existing transmission lines where it is most needed and doesn’t require a long transmission corridor or underwater line
- It won’t destroy the lands and waters of the Niagara Escarpment and Georgian Bay
- It won’t kill fish
- It won’t endanger the lives of those living below a man-made reservoir
The IESO has until January 2023 to complete their Gate 2 evaluation. Send your comments to Todd Smith, Minister of Energy todd.smithco@pc.ola.org as well as your local MP and MPP.
Bruce Rodgers, Environmental Consultant
