Ontario Expands Historic Energy Procurement Plan to Meet Growing Electricity Demand

TORONTO – The Ontario government is ramping up efforts to secure reliable and affordable energy as it responds to surging electricity demand across the province. In a significant move, the province has increased its largest-ever competitive energy procurement target by 50 percent, aiming for up to 7,500 megawatts (MW) of new power generation—enough to meet the energy needs of 1.6 million homes.

The decision comes after the Independent Electricity System Operator (IESO) released an updated forecast projecting a 75 percent rise in electricity demand by 2050. This increase, equivalent to adding the power requirements of four and a half cities the size of Toronto, underscores the urgency of long-term energy planning as Ontario’s population and economy grow.

“Our government is expanding what is already the largest competitive procurement in the province’s history as demand for electricity continues to grow,” said Stephen Lecce, Minister of Energy and Electrification. He emphasized that the plan balances affordability with growth, ensuring costs are kept in check through competitive procurement.

The procurement process, part of the government’s Second Long-Term Procurement (LT2) initiative, will be transparent, technology-agnostic, and focus on securing the most cost-effective energy resources. It will also prioritize protecting agricultural land, fostering Indigenous partnerships, and encouraging development in northern Ontario where local communities support energy projects.

Ontario is expanding our largest competitive energy procurement and securing 50% more affordable power for families, farmers, & businesses across the province.

This expansion will further support development in our rural, remote & northern communities! https://t.co/SOrdvbwiXe pic.twitter.com/vGXcTbjLDe

— Lisa Thompson (@LisaThompsonPC) December 12, 2024

Focus on Innovation and Sustainability

The government has also tasked the IESO with exploring additional measures to enhance Ontario’s energy capabilities. This includes:

• Long-Lead Energy Resources: Assessing options for hydroelectric and long-duration energy storage projects, which require extensive planning and design.
• Small-Scale Generation: Evaluating new programs for smaller solar installations and other localized generation that connect directly to the grid.

These initiatives align with Ontario’s Affordable Energy Future strategy, which integrates nuclear power, natural gas, and other fuels into a cohesive long-term energy plan. Notable efforts include advancing pre-development for Ontario’s first large-scale nuclear project in 30 years at Bruce Power, building small modular reactors at Darlington, and refurbishing the Pickering Nuclear Generating Station.

Powering the Economy

The expanded energy procurement plan is expected to support Ontario’s growing industries, including electric vehicle (EV) manufacturing, battery production, and clean steel projects. The government is also fast-tracking new transmission lines in Southwestern, Northeastern, and Eastern Ontario to meet industrial and residential power needs.

Jaipaul Massey-Singh, CEO of the Brampton Board of Trade, welcomed the announcement, noting its significance for economic growth. “Access to sufficient, sustainable, and affordable energy is not just vital to helping businesses grow, it’s also a key factor in attracting new businesses and investment,” he said.

Keeping Energy Costs Down

The government has committed to expanding energy efficiency programs to help families and businesses reduce electricity usage and lower energy bills. These programs are designed to complement Ontario’s broader energy initiatives, ensuring residents and businesses benefit from sustainable and cost-effective solutions.

With these measures, the province aims to secure a reliable energy future while fostering economic growth and maintaining affordability for Ontarians.