Ontario Secures New Power Supply at Lower Cost Through Record Procurement
Ontario energy procurement delivers new electricity supply at significantly lower cost for ratepayers
HAMILTON — The Ontario government has secured more than 1,300 megawatts (MW) of new electricity supply through what it describes as the largest competitive energy procurement in the province’s history, with costs significantly lower than previous programs.
The procurement, led by the Independent Electricity System Operator (IESO), approved 14 energy projects across Ontario. The province says the new supply will be enough to power approximately 350,000 homes, with projects expected to come online before May 1, 2030.
Lower costs through competitive procurement
According to the province, the competitive process has resulted in electricity that is 73 per cent cheaper than comparable contracts under the previous government’s Feed-in-Tariff program and 21 per cent lower than the Large Renewable Procurement.
Officials also noted that the pricing compares favourably with other North American jurisdictions, including being 20 per cent lower than Quebec, 14 per cent lower than British Columbia, and 35 per cent lower than New York State.
Energy Minister Stephen Lecce said the procurement reflects a shift toward cost-effective energy planning.
“Ontario successfully completed Canada’s largest competitive procurement bringing online new electricity generation 73 per cent lower than the previous government’s,” Lecce said in a statement.
To keep up with fast rising demand, Ontario successfully completed the provinces’ largest competitive procurement.
The contrast is stark — the Liberals sole-sourced energy contracts 10x above market. @samoosterhoff and I announced IESO competitively selected projects 73% LOWER… pic.twitter.com/NrlImqmiWL
— Stephen Lecce (@Sflecce) April 9, 2026
Meeting rising electricity demand
The announcement comes as Ontario anticipates a sharp rise in electricity demand, projected to increase by up to 90 per cent in the coming decades.
The province says its integrated energy strategy will rely on a mix of power sources, including nuclear, hydroelectric, natural gas, and renewable energy, to maintain grid reliability while keeping costs stable.
In addition to the newly procured projects, Ontario is exploring further long-term energy solutions, including:
- Up to 16,000 MW of new nuclear generation at sites such as Wesleyville, Bruce C and the Darlington New Nuclear Project
- Expansion through the LT2 Capacity Stream, with results expected in summer 2026
- Development of up to 430 MW of new hydroelectric generation in Northern Ontario
Indigenous and municipal partnerships
All 14 approved projects received municipal support and include First Nations partners with at least 50 per cent equity ownership, ensuring economic participation in the province’s energy expansion.
The procurement process also prioritized projects that are Canadian-owned, located on appropriately zoned lands and do not impact prime agricultural areas.
Supporting long-term economic growth
Ontario officials say the new energy supply will play a key role in supporting economic growth, housing development and industrial expansion.
Lesley Gallinger, President and CEO of the IESO, said the procurement demonstrates the benefits of competitive processes in securing affordable energy.
“These 14 projects will position the grid to support economic growth across Ontario into the 2030s and beyond,” Gallinger said.
The procurement is part of the province’s broader Energy for Generations strategy, aimed at ensuring Ontario has the reliable and affordable power needed to remain competitive while supporting long-term investment.
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