The displacement impacts of wind power electricity generation: Costly lessons from Ontario

Abstract

The displacement impacts of wind power generation on other generation technologies are estimated for Ontario. In addition, their annual financial benefits, costs, and international stakeholder impacts are measured. For every 100 MWh generated, almost 53 MWh of gas output is displaced, and 19 MWh of power is exported. Due to inadequate storage capacity hydro power generation is reduced by 23 MWh. Ontario on average loses about 859 million USD annually from having wind power generation in the system, while the US gains approximately 10 million USD through electricity exported from Ontario. Wind power generation has produced an estimated 109 million USD of benefits by reducing CO2 emissions in the US and Ontario through displacing thermal generation. Comparing the environmental benefits with the net cost to consumers shows the promotion of wind power generation to be largely a waste of Ontario's resources.