Increase in Ontario electricity costs driven by nuclear power

Ontario's electricity rates are going up again after the latest agreement with ratepayer and industry groups. This time there is no hiding the fact that it is expensive nuclear power that is driving the increases.

For years, the Ontario government has maintained the convenient fiction that it has been renewable energy that has driven costs up. As renewables - whether hydro, wind or solar - are now among the cheapest electricity generation options, that is no longer going to fly.

Refurbishment of outdated nuclear plants and additional maintenance costs on others are the main drivers for this latest increase. Nuclear costs from 2027 to 2031 are projected to be almost double those from 2022 to 2026. A much smaller increase will result from refurbishment to some hydro dams. The report notes, however, that hydro costs are less than a quarter of nuclear costs per megawatt of power produced.

The nuclear lobby is still very powerful [sic] in Ontario, exemplified by all those full-page ads in major newspapers. But it is, and has always been, an expensive option. I doubt many people will be paying attention to news reports like this one, but if they were, they would have a better understanding of just how expensive.