There is no denying the Global Adjustment (GA) fee has done a great deal of good for Ontario. As an environmentally-focused company, the team at Spark Power applauds the Ontario government’s elimination of coal-based power generation and investment in green generation projects, which may not have been accomplished had the GA not been introduced in 2005.
But that’s not to say that the GA hasn’t come at a significant cost to commercial and industrial consumers. In 2013, the GA was estimated to have accounted for 70%[1] of consumers’ electricity rates in our province. It’s no wonder why, then, that Ontario manufacturers pay 4 to 5 times[2] more for electricity than similar companies in the U.S.
Buffalo, N.Y., has been advertising cheap power and tax breaks in an attempt to attract Ontario manufacturers to move south of the border – a circumstance that both the Ontario government and local workforce would rather avoid. In an effort to help industrial consumers lower their energy costs, the Ontario Ministry of Energy introduced the Industrial Conservation Initiative (ICI). Qualifying businesses considered within “Class A” standing are able to pay the GA based on their percentage contribution to the top 5 peak hours in Ontario over a year.
Additional Savings for “Class A” Consumers
While the ICI has been extremely successful in helping industrial consumers lower energy costs, there is ample opportunity for Class A consumers to reduce their costs even further through peak shaving- the act of lowering consumption during peak periods.
For Spark Power, we approach peak shaving with a two-pronged solution: Energy Awareness and Energy Storage.
Are you Aware?
It’s impossible to reduce or alter consumption without first gaining an understanding of consumption patterns. For large enterprises, there is an inherent challenge in gaining comprehensive insight into electricity usage across an entire operation. We introduced our Energy Aware program specifically to deliver innovative and results-oriented solutions to our customers.
By providing clients with a 360-degree awareness of the factors that affect power infrastructure, and identifying the areas in which your power infrastructure is impacting your bottom line, the Energy Aware program is able to point your company to new savings opportunities that you may not have previously been aware of.
Innovative Energy Storage
One of the most exciting methods we are now working with to assist our clients in reducing energy costs is energy storage. Through implementing an energy storage strategy, we are able to reduce our clients’ fuel expenses by 25%, and emissions by up to 30%. Working with our partners, we can deliver customized solutions for peak shaving, power transient management, frequency regulation, and energy arbitrage.
In short, we draw power from the grid during low demand periods, and integrate this power with your electrical utility, generator(s), and renewable energy assets to enhance the performance and reliability of power supply while lowering costs.
Benefits
- Peak load management in milliseconds, as compared to far longer generator wait times
- Maximize fuel efficiency and engine responsiveness through optimal power delivery
- Store overflow power for later use
- Reduce maintenance, engine wear, and black smoke
- Automated power management decisions deliver instant results
- Stabilize voltage and frequency for improved power quality
The Future of Energy Intelligence
Through our Energy Aware and energy storage solutions, our customers are able to capture every energy reduction opportunity available to them, 365 days a year. To learn more about Spark Power’s unique approach to energy spend reduction, contact our team today.
Footnotes
[1] CTV News, “Energy Board Refuses Call to Clarify Global Adjustment on Hydro Bills”, http://barrie.ctvnews.ca/energy-board-refuses-call-to-clarify-global-adjustment-on-hydro-bills-1.3200165
[2] Globe and Mail, “Ontario Drives Manufacturers Away with Overpriced Electricity”, http://www.theglobeandmail.com/report-on-business/economy/ontario-drives-manufacturers-away-with-overpriced-electricity/article14854752/