The generating facility is needed because of robust electricity demand growth in Northern York Region (NYR). OPA planners, with assistance from Hydro One, LDCs, and the IESO, and in consultation with a community-based working group in 2005, developed an integrated solution made up of four components:
Conservation;
Upgrades to the existing Armitage Transformer Station;
A new Transformer Station at Holland Junction; and
Gas-fired generation in NYR.
The implementation of the integrated solution is progressing:
Roughly 17 MW of Conservation has already been acquired, and programs are continuing to obtain more savings;
The Armitage Transformer Station upgrades were completed in 2006;
Hydro One will begin construction of the new Holland Junction transformer station in 2008, and it is expected to be in service by the summer of 2009;
The procurement process for new gas-fired generation is ready to be initiated.
The Conservation and the generation solutions that serve Northern York Region, also help all Ontarians. Northern York Region is one of several areas of the province where local reliability requirements are being addressed with local gas-fired generation. This will help meet the province’s need for peak-demand generation. As well, Conservation in NYR helps meet the provincial-wide target for 1,350 MW of savings by 2010.
How soon is additional electricity supply required for Northern York Region?
It is required now. During peak times, electricity supply in Northern York Region has to be augmented with supply from neighbouring areas with spare capacity because the region cannot supply all its own electricity needs.
What will happen if the gas-fired electricity generating facility does not go ahead?
The alternative is to construct a gas-fired facility elsewhere in the province and build a new transmission line to serve the area of Northern York Region.
Natural gas has a number of benefits as a fuel for power generation. Natural gas-fired generating facilities are reliable and flexible and can operate when the electrical system requires additional supply on short notice. These characteristics make natural gas-fired facilities ideal and vital components of the system.
What other types of electricity generation were considered?
Wind, hydroelectric and nuclear generation were considered but eliminated as not being feasible because no capability was identified in the area or those technologies do not effectively address the particular supply needs of Northern York Region. Solar was not considered because it is not of sufficient scale to meet the need, and current technology makes it prohibitively expensive. Small distributed generation is still being considered where opportunities exist, but it is not expected to meet all of the current needs in Northern York Region.
Why are simple-cycle gas turbines being chosen over the combined-cycle option?
Specific circumstances always determine the best technical solution for each situation. Due to the needs of NYR and Ontario’s system requirements in general, this generator will run only for short periods during times of peak demand. Simple-cycle generation is the most efficient and cost-effective technology for this need. Other gas-fired configurations—combined-cycle and co-generation—need to run for longer periods to achieve better overall efficiency and therefore not well-suited in this case.
Could the plant run more often in order to supply provincial supply shortages?
There is no incentive to operate a peaking plant more than is needed to meet the brief seasonal peaks because of the high cost of natural gas and the fact that these stations are not designed to operate flat-out over extended periods of time. Under normal circumstances, the plant would be called on to operate only after other facilities that are designed to run more frequently are already in service. Under system emergencies, all available resources are used to meet electricity demand.
What is the environmental impact of what you are proposing?
Specific land-use and other environmental impacts will be determined and addressed during the environmental assessment process, once the preferred site is selected. Regulations are dictated and enforced by the Ontario Ministry of the Environment.
However, it should be noted that natural-gas fired generation is one of the cleanest fossil fuel power generating technologies. Compared with other fossil fuels, natural gas emits lower quantities of carbon dioxide and sulphur oxides. Modern gas turbine combustion systems are designed to minimize pollutants.
Could local development of renewable energy offset the need for a new generating facility?
The OPA has a number of programs to promote development of renewable energy. Such projects can offer some relief in Northern York Region. However, the pressing issue in this area is reliability and security of supply and meeting the peak power demands. Renewable energy, such as wind and solar, cannot be relied on to be available when the peak hits. In fact, studies have shown that the reliability of wind power declines markedly in the summer months when peak power demands are at their highest and the incidents of strong wind are at their lowest.
The physical size of an electricity generating facility varies according to the electricity output, configuration of equipment and the space available. Typically a 350 MW simple-cycle natural gas-fired facility would require between one and two hectares--the equivalent of three or four soccer fields or roughly the size of a Home Depot parking lot.
The electricity generating facility, which will be a system resource, will benefit all Ontario electricity consumers, and its costs will be recovered through charges on customers’ electricity bills. Rates to recover the costs of transmission assets such as the Holland Junction TS are paid by local electricity distribution companies and other transmission customers, who then pass these costs onto their customers.
Will more conservation avoid the need for a new natural gas-fired electricity generation facility?
Conservation and demand management play an important role in an integrated solution, but a local natural gas-fired electricity generating facility will still be required to provide long-term electricity supply to Northern York Region. Aggressive conservation programs for the area have already been incorporated into the OPA’s planning and will continue to be required to complement local generation.
Given that the recommendation is for a peaking facility, how many hours in a year will the facility operate?
Typically, a peaking facility would not be expected to operate more than 10% of the time. However, generation facilities across the province are dispatched by the Independent Electricity System Operator (IESO). Peaking facilities are usually the last to be dispatched, corresponding to the times when demand for electricity is the highest. This often occurs during hot summer days when air conditioners are running. The number of hours can vary depending on the weather conditions, demand, and other factors.
Like other industrial facilities, natural gas-fired facilities will emit low levels of noise to some degree. For comparative purposes, the noise levels might be described as the equivalent of a gentle rainfall or a quiet residential area. The facility will be subject to provincial and municipal noise standards.
The OPA, in conjunction with the Independent Electricity System Operator (IESO), establishes how much electricity will be required in a given area. The OPA then develops a plan to respond to those needs—confirming the existing technical infrastructure, examining all the options and recommending specific solutions.
If the solution includes generation, the OPA procurement division will call for proposals from private sector developers to meet the specific need for an electricity generating facility. The procurement takes the form of a Request for Qualifications (RFQ) to determine a short list of participants. This is followed by a Request For Proposals (RFP), which further defines the technical requirements and the evaluation process.
The evaluation is a combination of a qualitative assessment of both the developer and the proposed electricity generating facility, as well as competition on pricing. Only one of the proposals submitted will be awarded a contract.
The RFQ process is open to all participants who meet eligibility requirements of financial strength and development experience. Full details of the procurement process can be found on the OPA website at www.powerauthority.on.ca/gp.
Will communities in the region be able to have further input into the process?
The gas-fired generation solution has been developed with a great deal of input from the Northern York Community—residents, planners, elected officials, local distribution companies, etc. Additional input will be sought during the municipal and environmental approval phases once the preferred proponent has been selected. The OPA selection process is likely to conclude before the end of this year.
The community will have many opportunities to express its opinions over the development period. However, the mandate of the OPA is to choose a proponent that best solves the urgent electricity needs of the Northern York Region—the best technical solution at the lowest cost to Ontario ratepayers.
Isn’t York Region being asked to solve a provincial problem?
No. The Northern York Region is a dynamic, growing community. The region needs the electricity this project will provide. In this case, the solution ensures that both the Northern York Region and the province benefit. The Region is assured of the electricity it needs, when it needs it and the province is able to replace coal-fired generation with cleaner fuels.
Won’t a power plant affect adjacent property values?
It is everyone’s goal to fix Northern York’s electricity challenges, minimizing the impacts on the community. At the same time, it is impossible to predict the specific impacts of specific projects not yet defined. Ultimately, the municipal and environmental approval processes will have significant influence on how a contracted project relates to its surroundings.
