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.
NATIONAL ENERGY BOARD
APPLICATION TO EXPORT ELECTRICITY TO THE UNITED STATES
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).