Electricity Pricing Optimization for Ontario Pulp Mill

Electricity Pricing Optimization for Ontario Pulp Mill

Aditya Birla Group purchased the Terrace Bay Pulp mill and converted the mill from producing northern bleached software kraft (NBSK) to rayon. This is Aditya’s first dissolving pulp mill in Ontario and third in Canada (two in New Brunswick).

Based on the energy consumption and generation capacities at a retrofitted pulp plant, the client has several options to reduce the rate of the electricity cost by participating in different electricity rate programs offered in Ontario. The options include the Northern Industrial Electricity Rebate (NIER) Program, Industrial Electricity Rebate (IEI) Program Stream 2, and the client may or may not be able to participate in the Ontario Power Authority (OPA) Industrial Accelerator Program (IAP) or the Electricity Purchase Agreement (EPA) depending on the electricity rate program.

EELO Solutions developed an analysis of costs and scenarios to minimize electricity cost as we are familiar with each of the schemes that is available to the client.

Deliverables include:

  • Presented a concise summary on the best electricity price option

  • Developed a robust model of all pricing options analysis

  • Shared knowledge on each electricity pricing option