Ontario Unveils Historic Energy Procurement Plan to Power Growing Economy

TORONTO — In a landmark move, the Ontario government has announced the largest energy procurement initiative in the province’s history. Aimed at generating affordable electricity for both families and businesses, this ambitious plan is set to secure up to 5,000 megawatts (MW) of energy through a series of competitive procurements. This comes at a time when Ontario’s energy demands are rapidly increasing, driven by a growing population and a booming economy.

The initiative marks a significant step in the province’s broader strategy to ensure a diverse and sustainable energy supply. The Second Long-Term Procurement (LT2) will prioritize projects that garner community support while safeguarding prime agricultural lands. The government’s “all-of-the-above” approach includes a mix of nuclear, hydroelectric, renewables, natural gas, and biomass energy sources.

Empowering Communities and Protecting Farmland

One of the cornerstone policies of the new plan is a requirement for energy developers to obtain municipal support for any new projects. This move is designed to give local communities a decisive role in the approval process, addressing concerns about previous administrations imposing projects on unwilling municipalities.

In a bid to protect Ontario’s valuable farmland, the plan also prohibits energy projects in specialty crop areas and bans ground-mounted solar farms on prime agricultural land. Additionally, the government is incentivizing projects located in Northern Ontario and those that avoid encroaching on agricultural areas. A new policy to unlock Crown Lands for renewable energy projects is also in the works.

So honoured to join Minister @Sflecce & my provincial colleagues today in announcing the largest competitive energy procurement in Ontario’s history. Our plan will expand our clean, reliable, & affordable energy system, ensuring a more sustainable future for all Ontarians. pic.twitter.com/Gxzdqo54XB

— MPP Logan Kanapathi (@LoganKanapathi) August 28, 2024

The plan includes incentives for energy projects developed with or by Indigenous communities, particularly those located on traditional territories. This initiative aims to create economic opportunities while respecting Indigenous rights and promoting environmental stewardship.

Furthermore, Agricultural Impact Assessments will be required for any projects proposed on prime agricultural lands. This requirement is designed to minimize the environmental impact and ensure that energy development does not come at the expense of Ontario’s agricultural heritage.

Accelerating Ontario’s Clean Energy Future

The Independent Electricity System Operator (IESO) has been tasked with creating a transparent and competitive procurement framework that includes a wide range of technologies, such as wind and solar, while explicitly protecting agricultural lands. The IESO is expected to present this framework by September 20, 2024, with energy procurements to be concluded by February 28, 2026.

This historic procurement initiative builds on the government’s recent acquisition of nearly 3,000 MW of new battery storage projects. These projects, with capacities ranging from five to over 400 MW, are a testament to Ontario’s commitment to a clean and reliable energy grid.

The government’s broader vision includes advancing nuclear energy projects, prioritizing new transmission infrastructure, and launching energy efficiency programs by January 1, 2025, to help families and businesses reduce their electricity usage and save on energy bills.

Advancing the largest energy procurement is just one part of the government’s plan to meet growing energy demand and reduce emissions by expanding Ontario’s clean, reliable, and affordable energy grid. This includes:

• Nuclear Energy: Advancing clean, reliable, and affordable nuclear power through major pre-development work at Bruce Power, the addition of small modular reactors at Darlington, and supporting plans to refurbish the Pickering Nuclear Generation Station.
• New Transmission Infrastructure: Designating and prioritizing transmission lines in Southwestern, Northeastern, and Eastern Ontario to support job creators, including EV and EV battery manufacturing and clean steel production.
• Keeping Costs Down: Launching new energy efficiency programs on January 1, 2025, and expanding existing programs to help families and businesses lower their energy bills.
• Additional Competitive Procurements: Re-contracting existing capacity resources at a discount and planning additional procurements to secure both existing and new energy resources.

As Ontario moves forward with this unprecedented energy procurement plan, the province is poised to meet the challenges of a growing economy and a rapidly changing energy landscape, ensuring a sustainable, affordable, and reliable energy future for all Ontarians.