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PETER SUTHERLAND SR GENERATING STATION POWERS NORTHEAST ONTARIO

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PETER SUTHERLAND SR GENERATING STATION POWERS NORTHEAST ONTARIO

On the Abitibi River in northeastern Ontario, the Peter Sutherland Sr. Generating Station (GS) powers 25,000 homes and businesses with renewable waterpower. The development was a partnership between Ontario Power Generation (OPG) and Coral Rapids Power: a wholly-owned company of the Taykwa Tagamou Nation (TTN). The development is named after a respected elder from TTN. The $300-million project was completed in 2017.

On the Abitibi River in northeastern Ontario, almost two years of construction and eight years of planning have culminated in a new hydroelectric station capable of powering 25,000 homes and businesses with clean, renewable, and affordable power.

The 28-megawatt (MW) Peter Sutherland Sr. Generating Station (GS), located about 80 kilometres north of the town of Smooth Rock Falls on the New Post Creek, went into service on April 2017, well ahead of its scheduled 2018 target. In addition, the $300- million project stayed on budget.

That’s a testament to the solid planning and execution between OPG and its partner in the  development,  Coral  Rapids  Power, a wholly-owned company of the Taykwa Tagamou Nation (TTN). The development, which is named after a respected elder from TTN, has already had a positive impact on the First Nation community.

“We had about 50 TTN members working on the project at one point or another, which was significant for our First Nation partner,” said Paul Burroughs, Project Director at OPG. “They were part of the project team working to help make this a success.”

As part of the project agreement, Coral Rapids Power has a one-third ownership in the facility, meaning they will receive a share of profits from the station and be a partner for life over the 90 or so years the plant  is expected to operate. As TTN’s first foray into hydro development, the project took several decades to get off the ground before the First Nation agreed to partner with OPG in 2007 as part of a past grievances settlement. Construction of the station began in 2015.

Construction work on the Peter Sutherland Sr. Generating Station

The project provides the TTN community with a long-term investment opportunity and a sustainable economic base. Further, it provides spinoff benefits for the entire northeast region.

“The relationship we’ve built with OPG is based on a foundation of respect, trust, and all working toward a common goal,” said Wayne Ross, President of Coral Rapids Power. “There have been many benefits from this project for our community, including good-paying jobs, transferable skills and a long-term revenue stream.”

In addition, approximately $53.5 million in subcontracts were awarded to TTN joint- venture businesses during the construction phase of the station.

“The partnership is about creating a lifelong relationship with the First Nation,” said Burroughs.

The project has created skilled jobs and unique learning opportunities benefitting TTN members who will pursue work in a range of different career fields. Labour needs included engineers, equipment operators, labourers, drillers, cement workers, ironworkers, electricians, welders, carpenters, and camp support services.

At the peak of construction, there were about 220 workers employed on the project, many of whom reside in the local community.

“Our partnership is about more than just megawatts,” said Mike Martelli, President, Renewable Generation. “It’s also about creating skilled jobs and ongoing revenue that will benefit this community for years to come.”

In addition to the direct employment opportunities, existing local businesses and the regional economy benefitted from contracting work, as well as local project purchasing and expenditures. The estimated sales multiplier associated with the project is $1.50 – that is for every dollar expended an additional $0.50 was spent in northern Ontario.

The new station is operated by OPG’s northeastern operations control room in Timmins and is maintained by technicians located at a nearby work centre at Abitibi Canyon.

Inside the completed Peter Sutherland Sr. Generating Station

Peter Sutherland Sr. GS is the latest asset in OPG’s clean energy portfolio, which includes successful joint ventures with other First Nations. In early 2015, OPG and the Moose Cree First Nation celebrated the completion of the Lower Mattagami Hydroelectric Project, northern Ontario’s largest hydroelectric project in 50 years.

Ontario’s 58 northeastern hydroelectric facilities provide a clean, renewable, and reliable source of power to Ontarians year- round. Their combined capacity is over 3,000 MW.

Thanks to Todayville for helping us bring our members’ stories of collaboration and innovation to the public.

Click to read a foreward from JP Gladu, Chief Development and Relations Officer, Steel River Group; Former President and CEO, Canadian Council for Aboriginal Business.

JP Gladu, Chief Development and Relations Officer, Steel
River Group; Former President & CEO, Canadian Council for Aboriginal Business

Click to read comments about this series from Jacob Irving, President of the Energy Council of Canada.

Jacob Irving, President of Energy Council of Canada

The Canadian Energy Compendium is an annual initiative by the Energy Council of Canada to provide an opportunity for cross-sectoral collaboration and discussion on current topics in Canada’s energy sector.  The 2020 Canadian Energy Compendium: Innovations in Energy Efficiency is due to be released November 2020.

 

Click below to read more stories from Energy Council of Canada’s Compendium series.

INDIGENOUS CONSULTATION AND ENGAGEMENT AT CANADA’S ENERGY AND UTILITY REGULATORS

COASTAL GASLINK PIPELINE PROJECT SETS NEW STANDARD WITH UNPRECEDENTED INDIGENOUS SUPPORT AND PARTICIPATION

Hydro-Québec takes partnerships, environmental measures and sharing of wealth to new levels

Read more on Todayville.

 

The Energy Council of Canada brings together a diverse body of members, including voices from all energy industries, associations, and levels of government within Canada. We foster dialogue, strategic thinking, collaboration, and action by bringing together senior energy executives from all industries in the public and private sectors to address national, continental, and international energy issues.

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Federal government’s emission-reduction plan will cost Canadian workers $6,700 annually by 2030—while failing to meet government’s emission-reduction target

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From the Fraser Institute

By Ross McKitrick

The federal government’s plan to reduce greenhouse gas emissions will impose significant costs on Canadians—while also failing to meet the government’s own emission-reduction target, finds a new study published today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

“The government’s plan will significantly hurt Canada’s economy and cost workers money and jobs,” said Ross McKitrick, professor of economics at the University of Guelph, senior fellow at the Fraser Institute and author of The Economic Impact and GHG Effects of the Federal Government’s Emissions Reduction Plan through 2030.

The government wants to reduce greenhouse gas (GHG) emissions to 40 per cent below 2005 levels by 2030. To meet this target, the government has enacted a series of policies including the federal carbon tax, clean fuel standards and various other GHG-related regulations such as energy efficiency requirements for buildings,
fertilizer restrictions on farms, and electric vehicle mandates.

The study finds that these combined policies will only reduce GHG emissions by an estimated 57 per cent of the government’s 2030 emission-reduction target.

And crucially, by 2030 these policies will:

• reduce Canada’s GDP by 6.2 per cent
• cost $6,700 per worker annually
• reduce employment in Canada by 164,000 jobs

“This poorly-designed plan, which will worsen the current downward trends in productivity and income, will reduce emissions but at a cost many times higher than the government’s estimated benefits,” McKitrick said.

  • The federal government has set a GHG emissions reduction target of at least 40% below 2005 levels by 2030, equivalent to 38.5% below 2022 levels.
  • This report examines proposed policies aimed at achieving these goals and evaluates their potential impact, aiming to address the gap left by the federal government’s lack of efforts in this matter.
  • The paper uses a peer-reviewed macroeconomic model to assess the federal government’s Emissions Reduction Plan (ERP), including carbon pricing, Clean Fuel Regulations, and other regulatory measures such as EV mandates.
  • It is estimated that the ERP will reduce Canada’s GHG emissions by about 26.5% between 2019 and 2030, reaching approximately 57% of the government’s 2030 target, leaving a substantial gap.
  • The implementation of the ERP is expected to significantly dampen economic growth, with a projected 6.2% reduction in Canada’s economy (i.e., real GDP) compared to the base case by 2030.
  • Income per worker, adjusted for inflation, is forecasted to stagnate during the 2020s and decrease by 1.5% by 2030 compared to 2022 levels.
  • The ERP costs $6,700 per worker annually by 2030, which is more than five times the cost per worker compared to the carbon tax alone.
  • Overall, while the federal ERP will contribute to reducing GHG emissions, it falls short of meeting the 2026 or 2030 targets and imposes significant economic burdens on Canadian households. Additionally, due to the high marginal cost of many regulatory measures, the ERP plan is costlier than it needs to be for what it will accomplish.

Adobe PDF Read the Full Report

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Here’s why your plane ticket is so expensive

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From the Fraser Institute

By Alex Whalen and Jake Fuss

While the strike by WestJet mechanics lasted only a few days, many Canadian air travellers faced long delays and cancelled flights. More broadly, according to the Canadian Transportation Agency, customer complaints have hit an all-time high.

Yet many dissatisfied travellers likely don’t realize that Ottawa heavily contributes to their frustrations. Let’s look at the various ways federal policies and laws make air travel worse in Canada.

First, federal laws insulate Canada’s airlines from competition. Foreign airlines are subject to highly restrictive  “cabotage” laws which, for example, dictate that foreign airlines cannot operate routes between Canadian cities. At the same time, foreign investors are forbidden from owning more than 49 per cent of Canadian airlines. By restricting international participation in the Canadian air travel market, these laws both deprive Canadian consumers of choice and insulate incumbent airlines from competition. When consumers have more choice, incumbents have a greater incentive to improve performance to keep pace with their competitors.

Second, a wide array of taxes and fees heavily influence the cost of airline tickets in Canada. Airport improvement fees, for example, average $32.20 per departing passenger at airports in Canada’s 10 largest markets. In contrast, airport improvement fees in the United States cannot exceed $4.50. And last year the Trudeau government increased the “air travellers security charge” by 32.85 per cent—this fee, which now ranges from $9.94 to $34.82 per flight, is higher in Canada than the U.S. across all flight categories. On the tax front, in addition to fuel taxes including the federal carbon tax, the federal excise tax on unleaded aviation gasoline in Canada is 10 cents per litre compared to 6.9 cents per litre in the U.S. And the U.S., unlike Canada, does not apply sales taxes to aviation fuel.

Third, air travel is a heavily regulated sector. Federal legislation generates thousands of provisions airlines must follow to operate legally in Canada. Of course, some regulation is necessary to ensure passenger safety, but each regulation adds administrative and compliance costs, which ultimately affect ticket prices. To lower the cost of air travel, the federal government should reduce the regulatory burden while maintaining safety standards.

Lastly, the ownership model of Canada’s airports results in a yearly transfer of rent to the federal government. The federal government used to own Canada’s national system of airports until they were transferred to private not-for-profit corporations in the early 1990s. However, these airports must still pay rent to the federal government—nearly half a billion dollars annually, according to the Canada Airports Council. As with the other examples listed above, these costs are ultimately passed on to consumers in the form of higher ticket prices.

While a precise estimate is difficult to obtain, various government policies, taxes and fees comprise a large share of the cost of each airline ticket sold in Canada. With complaints from travellers at all-time highs, the federal government should reduce the regulatory burden, increase competition, and lower fees and taxes. Policy reform for air travel in Canada is long overdue.

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