Niagara Tunnel Project Essay

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Purpose and need of the project One of the most important energy scenarios in Canada was born in 1922. First, the Sir Adam Beck power generating station was constructed - SAB 1. It was the first station that had been supplied by the Welland River. In Addition, in 1954 it was constructed in order to increase the water supply to two more tunnels about 9 kilometers (5.6 miles) each. And in 2005 Ontario Power Generation (OPG), saw that the Niagara Tunnel Project was a solution for the high demand of energy. It was designed to increase the water flow by 500 cubic meters (17,657 cubic feet) of water per second in the Sir Adam Beck’s turbines, which resulted in an upgrade of 150 megawatt hours of output power. The extra power produced …show more content…

As talked about in detail above in the budget and financing section, the project was administered by the Ontario Electricity Finance Corporation (OEFC). Since this project would affect the general populace by being a clean source of electric power generation, the Niagara tunnel project was publicly financed. Ontario Power Generation (OPG), a company publicly owned by Government of Ontario, fully financed the entire project. Even though the steep price tag of over a billion dollars sounds intimidating, there will be constant revenue coming in to the OPG after the project’s completion. This project will continue generating electricity for over 100 years into the future, with very low maintenance required. With the Niagara tunnel generating 1.5 billion kWh of electricity spread out amongst about 160,000 homes, the OPG will surely be able to see a return on their investment quickly. [10] Although this project encountered the financial difficulty of a global economic crisis starting in 2008, about 3 years after its start, it was still able to not only finish on time, but early. This alone is a strong testament, that the financial planning of this project was good from the start up until the

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