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Long-Term Power Purchase Agreements and the Benefits and Costs of Exported Electricity to Domestic Consumers in Ontario

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Title: Long-Term Power Purchase Agreements and the Benefits and Costs of Exported Electricity to Domestic Consumers in Ontario
Author: Mitchnick, Scott
Department: Department of Food, Agricultural and Resource Economics
Program: Food, Agriculture and Resource Economics
Advisor: Mitchnick, Scott
Abstract: The purpose of this thesis is to interpret through an economic framework the debate within the public literature surrounding the benefits and costs of exported electricity from Ontario caused by payments to producers through procurement contracts and revenue regulation. When accounting for different contract/regulated payment mechanisms, it is shown to be theoretically possible that exports may benefit, cost, have no effect or cause some mix of these three in any given market clearing hour depending on several factors. A comprehensive overview of the different payment mechanisms used to pay producers between 2005 and 2016 is conducted to identify different producer payment mechanisms over time. These are used to calculate export benefits and costs over this time period. Exports from Ontario were found to be a net-cost in all years but 2010. This trend is driven by increasing exports, decreasing spot market prices and changes in payment mechanisms for certain producers.
URI: http://hdl.handle.net/10214/14360
Date: 2018-10
Rights: Attribution-NoDerivatives 4.0 International


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Attribution-NoDerivatives 4.0 International Except where otherwise noted, this item's license is described as Attribution-NoDerivatives 4.0 International