How does this game work?

Click picture for clearer view

From a reader:   I picked this up in the Globe & Mail today and was trying to make sense out of it but am having difficulty. 

EDF Trading North America has 20 MWs of Solar in Ontario (according to the NEB announcement) meaning if the sun was out 24 hours per day for 365 days) would only produce 175,000 MWs.   Yet they want to export 920,000 MWs of “firm energy”.   How does that work?

Could they buy at spec from IESO on an hourly basis and export power that OPG get 4.3 cents for and resell into the US?   They would be taking the market risk but it might look like a good deal to them if they obtained a future contract to cover, they may even be able to cancel out that risk.
Sounds like a pretty good deal for them, eh?   Will the OPA be petitioning as an interested party?  So they can sell us solar power at $40 per MW and buy from IESO at an hourly price of say $35 per MW and sell it to a US buyer at say $80/100 per MW.  So how do we get in this game?
EDF stands for Électricité de France (EDF) which is the world’s largest utility company with €66.34 billion in revenues in 2009.  Both EDF Trading and EDF Energies Nouvelles Canada are part of EDF.

EDF Trading North America, LLC

By an application dated June 14, 2010, EDF Trading North America, LLC (the “Applicant”) has applied to the National Energy Board (the “Board”), under Division II of Part VI of the National Energy Board Act (the “Act”), for authorization to export up to 920 000 MWh of firm energy per year and 470 000 MWh of interruptible energy per year for a period of 10 years. Although the Applicant does not own or operate a power system and does not have any generation or transmission facilities in Canada, the Applicant’s affiliate, EDF Énergies Nouvelles Canada, owns a 20 MW solar generation facility located in Arnprior, Ontario. Additionally, EDF Énergies Nouvelles Canada has an interest in Saint-Laurent Énergies Inc., which intends to develop five wind-powered electricity-generation facilities in Quebec with a total capacity of 954 MW, a 20 MW solar electricity generation project in Elmsley, Ontario, and a 20 MW solar electricity generation project in St. Isidore, Ontario.

The Board wishes to obtain the views of interested parties on this application before issuing a permit or recommending to the Governor in Council that a public hearing be held. The directions on procedure that follow explain in detail the procedure that will be used.

1. The Applicant shall deposit and keep on file, for public inspection during normal business hours, copies of the application at its offices located at 4700 W. Sam Houston Parkway, N., Suite 250, Houston, Texas, 77041, 281-781-0333 (telephone), 281-781-0360 (fax), and provide a copy of the application to any person who requests one. A copy of the application is also available for viewing during normal business hours in the Board’s library, at 444 Seventh Avenue SW, Room 1002, Calgary, Alberta T2P 0X8.

2. Submissions that any party wishes to present shall be filed with the Secretary, National Energy Board, 444 Seventh Avenue SW, Calgary, Alberta T2P 0X8, 403-292-5503 (fax), and served on the Applicant by August 3, 2010.

3. Pursuant to subsection 119.06(2) of the Act, the Board shall have regard to all considerations that appear to it to be relevant. In particular, the Board is interested in the views of submitters with respect to
(a) the effect of the exportation of the electricity on provinces other than that from which the electricity is to be exported;
(b) the impact of the exportation on the environment; and
(c) whether the Applicant has
(i) informed those who have declared an interest in buying electricity for consumption in Canada of the quantities and classes of service available for sale, and
(ii) given an opportunity to purchase electricity on terms and conditions as favourable as the terms and conditions specified in the application to those who, within a reasonable time of being so informed, demonstrate an intention to buy electricity for consumption in Canada.

4. Any answer to submissions that the Applicant wishes to present in response to items 2 and 3 of this notice of application and directions on procedure shall be filed with the Secretary of the Board and served on the party that filed the submission by August 19, 2010.

5. For further information on the procedures governing the Board’s examination, contact the Secretary of the Board at 403-299-2714 (telephone) or 403-292-5503 (fax).


7 thoughts on “How does this game work?

  1. Interesting thoughts:

    How about selling power to IESO at $800 per MWH, (Solar Power) then buying it back at say $35 per MWH.

    Got that? Sell quantity ONE to IESO. Buy back say 22.9 for the same price you sold one — then make a profit on selling it to a third party — maybe at 25% more — maybe at two or three times the price.

    This would be a good deal if I understand it correctly. Especially when you consider that the $800 came out of taxpayer/consumer pocket when you (yep! YOU!) paid for subsidized solar power.

    How do we the citizen say no to this madness? Or is this a case where wiser heads will prevail — especially if they want to cut a deal with a buddy. Kinda Like Mike you-know-who!

  2. We are now beginning to see the true “inside” dealings with renewable energy with all the wheeling and dealing that comes with it………on the heels of this scam will be the Trading of Carbon Credits which is also prone to massive criminal activities!

    It was never about having a “renewable supply of non polluting energy in our mix……it was always the $$$$ to be made off the landowners of Ontario.

    I go back to CANWEA’s Vision 2025 and in their mandate they state on page 12,I believe, that with Renewable Energy, Ontario will become a power supply for the USA and like the Oil Sands, Ontario will be a leader in the export of power at a lucrative price to our “neighbours” to the south!

    What wasn’t mentioned of course was the fact that Ontario Rural Landowners would all just be forced to either like it or lump it…………in other words “to Hell with the Nimby’s”!

  3. Contracts with the U.S. put a demand on our power system that has to be delivered or penalties will result. Reliability of green power supplies is not a feature anyone will defend or can provide a honest promise of delivery. The power sold to the U.S. will be whatever power is available and that most likely will be taken from our reliable base load or peak capacity if needed, which means short falls for Ontario or building of new reliable capacity. Relying on selling green power for less than cost is an idiot move that is foolish at best as everyone knows green does not deliver when needed. With any analysis done to consider true costs this will not benefit Ontario. Sweet deal for U.S.

  4. OTTAWA — Canada’s spy chief said on Monday he regrets “any distress” that might have been caused by his remarks on foreign influence over Canadian politicians.

    But Richard Fadden, director of the Canadian Security Intelligence Service, said he stands by his “general message” that foreign interference poses a threat to Canada.
    – – – – – – – –

    No Kidding….

  5. Having trouble understanding Energy Re-Sale and Energy speculation?

    Just GOGGLE it!

    “Google just announced that it will be selling energy on the spot market, through a deal to purchase 114 megawatts of wind power from NextEra Energy Resources for the next 20 years.

    Google is presenting the deal — from its energy arm Google Energy — as part of its drive to become carbon neutral, rather than an investment, but this move puts Google solidly in the energy business.

    Google says that 114 megawatts “is enough to supply several data centers.” Too bad Google doesn’t have any data centers located close enough to the Iowa wind farm to use the energy. Instead, Google will sell the power on the spot market.

    Since Google is purchasing 20 years worth of power “at a predetermined rate”, this amounts to speculation in the energy market.”

    Don’t you feel just warm and fuzzy all over now?

  6. Makes you kinda want to get into the electrical energy resale market just to recoup the taxes You’re paying to support this shell game, doesn’t it?

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