Ontario Power Generation
Reducing Carbon Dioxide Emissions
OPG is Reducing CO2 Emissions from Coal
OPG is making the transition to a lower carbon future. We are investing in hydro and nuclear generation which has virtually no emissions, improving energy efficiency, studying the use of natural gas and biomass in our coal-fuelled generating stations and expanding our biodiversity efforts.
In addition we are making significant reductions in CO2 emissions from coal in a manner consistent with government direction. Our strategy will achieve the required reductions in emissions while making sure our coal units are available to meet peak electricity demand.
If required OPG will use a CO2 emission price adjustment to the price of coal generated electricity so it is replaced by other generation in the broad regional electricity market. It should be noted that the price adjustment is not an automatic pass through to the customer due to a variety of factors including interaction with interconnected markets.
Effective March 17, 2009 OPG reduced the CO2 emission adder from $1.00 per tonne to $0.00 per tonne. This change reflects our forecast for significantly reduced demand for coal-fuelled generation and associated CO2 emissions. The reduced demand is primarily due to lower electricity demand associated with weakened economic activity. The forecast is revisited on an ongoing basis and will be revised as required.
Additional information on this initiative can be found via the links below.
The provincial government shareholder declaration and shareholder resolution setting out the requirement to reduce CO2 emissions can be viewed by clicking below:
- Shareholder Declaration and Resolution (May 2010)
As a result of the Shareholder’s Resolution and the Order in Council(s)/Regulation(s) pertaining to CO2 emissions reductions, payments may be required to assure the reliability and availability of the Lambton and Nanticoke Generating Stations in their current condition. The Ontario Electricity Financial Corporation (OEFC) and OPG have entered into an agreement to ensure these stations receive sufficient revenue to recover their actual costs, and ensure OPG will continue to economically maintain these stations for supply adequacy and system reliability following the implementation of CO2 emissions targets/caps.
Environmental Policy
Download our environmental policy statement.
SD Report
Our 2010 Sustainable Development Report is now available for download.