Hydroelectric Development in the Far North
Although mineral exploration in the Ring of Fire has dominated the first wave of development pressure in Ontario’s Far North, waterpower may soon be next.
Policy constraints, as well as remoteness, have prevented the development of northern waterpower resources to date. In response to First Nations’ concerns about the flooding of large areas, the government made commitments in the 1990s restricting new waterpower development in the Far North. These commitments have been incorporated into the Ministry of Natural Resources’ (MNR’s) Waterpower Site Release Policy, which is currently under review.
However, in recent years, the government has moved aggressively to expand the role of renewable energy in meeting the province’s electricity needs. In 2006, the government directed the Ontario Power Authority (OPA) to increase Ontario’s renewable energy capacity (including hydropower) to 15,700 MW by 2025. The OPA’s original plan proposed acquiring almost 1,800 MW from new hydro projects in the Far North, at locations where development is currently restricted due to the policy commitments noted above. The OPA’s plan did note that “further public review and debate will be required respecting the release of such sites.” While this plan was never approved, the OPA has subsequently introduced a Feed-in Tariff program that guarantees a 40-year above-market price for hydro projects smaller than 50 MW, providing another impetus for new hydro generation.
The Far North Act, 2010 now adds another policy wrinkle. The Act sets the stage for land use planning that allows First Nations and the Ontario government jointly to make choices about whether these waterpower sites should be developed. The Act prevents new waterpower developments until a community based land use plan is in place. However, the Minister of Natural Resources may issue an order permitting development to proceed in advance of a community based land use plan in certain circumstances, if the councils of First Nations in the area are supportive.
Environmental Concerns
Development of major waterpower sites would likely require some flooding of the surrounding land, which raises several environmental concerns. Hydropower is often promoted as a carbon-free source of electricity. However, greenhouse gases (GHGs) are emitted from newly flooded land, as carbon previously stored in the soil is released to the atmosphere as carbon dioxide or methane (which is a much more potent GHG). This is of particular concern because much of the Far North is covered by peatlands that have among the highest soil carbon levels in the world. Hydroelectric dams would also affect fish in the Far North by altering spawning habitat, introducing barriers to migration, and contributing to higher levels of mercury pollution. These effects would be especially detrimental to the lake sturgeon (Southern Hudson Bay/James Bay population), which is listed as a species of special concern under Ontario’s Endangered Species Act, 2007. Previous hydro development in northeastern Ontario has contributed to reducing the sturgeon’s historical range.
In recognition of the environmental consequences of waterpower development, the Far North Science Advisory Panel recommended to the Minister of Natural Resources that, while smaller run-of-river projects designed to meet Far North community energy needs should be encouraged, the existing moratorium on large projects (which prohibits hydroelectric development projects larger than 25 MW in most of the Far North) should be maintained. The Minister has not formally responded to the panel’s report.
Perhaps the government’s new Long-Term Energy Plan (released in November 2010) signals a more cautious approach to waterpower development in the Far North. It notes that “large-scale [hydro] projects, usually in remote locations, are not economically feasible at this time due to high capital and construction costs. Transmission, engineering, and environmental factors are also challenges. However, due [to] the importance of hydroelectric generation, Ontario will continue to study Northern hydro options over the period of the Plan.”
ECO Comment
The ECO believes that hydro development in the Far North should be approached cautiously. The province’s energy policy should not be allowed to compromise proper land use planning in the Far North. The ECO believes that it will be imperative for MNR to take a strategic perspective and consider how potential development could affect the province’s ecological goals for the Far North region as a whole.
When assessing the environmental impacts of specific potential hydro projects, the ECO suggests that an important element of the analysis should be an estimate of the net life cycle GHG emissions, including emissions due to land flooding. Results likely will be quite site specific, depending on soil conditions, the amount of land flooded, and the amount of energy generated. This analysis will ensure that Ontarians do not end up paying a premium price for power from projects that do not support the objective of the Far North Act, 2010 to preserve the carbon storage function of the Far North.
For ministry comments, please see Appendix C.
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| This is an article from the 2010/11 Annual Report to the Legislature from the Environmental Commissioner of Ontario. |
Citing This Article:
Environmental Commissioner of Ontario. 2011. "Hydroelectric Development in the Far North." Engaging Solutions, ECO Annual Report, 2010/11. Toronto: The Queen's Printer for Ontario. 20-21.
