Ontario Ready to Meet the Challenge of Soaring Energy Demand
October 22, 2024
Province prioritizing energy affordability for families and businesses as it plans for continued growth
On October 22, the Ontario government released Ontario’s Affordable Energy Future: The Pressing Case for More Power, outlining the challenges facing the province as demand for energy continues to rapidly grow, as well as the province’s path to managing this demand. The government also announced it would release the province’s first-ever Integrated Energy Plan with a generational horizon out to 2050, which will ensure the entire energy sector is aligned behind the government’s pro-growth agenda to reduce costs and province-wide emissions.
“Ontario’s energy policy will literally determine the success of our province, today and for the next generation,” said Stephen Lecce, Minister of Energy and Electrification. “Unlike previous governments that pursued siloed and short-term decision making that led to skyrocketing energy rates, our government will introduce the province’s first integrated energy plan that will avoid the consequences of bad planning and ensure we have the affordable energy we need to power new homes, attract investment and create jobs.”
According to Ontario’s Independent Electricity System Operator, the province’s demand for electricity is forecast to increase by 75 per cent by 2050, the equivalent of adding four and a half cities the size of Toronto to the grid. There is also continued demand for other fuels like gasoline and natural gas, that currently play a critical role in powering our vehicles, heating our homes and attracting new jobs in manufacturing, including the automotive industry and agriculture.
“Just like our great grandparents built the first hydroelectric dams at the turn of the century, our grandparents who launched the build out of our nuclear fleet in the 1960’s, it will be our generation and our government that builds for our children and grandchildren,” continued Minister Lecce. “Our competitive all-of-the-above approach will deliver more affordable power to our families – with non-emitting nuclear energy as our anchor – to keep costs and emissions down without a costly and unnecessary carbon tax.”
Ontario’s Affordable Energy Future outlines the challenges and priorities that must be addressed in the government’s first-ever integrated energy plan to ensure the province continues to make new investments, including:
- Integrated Planning for Growth: Ontario’s plan needs to coordinate all energy resources, including electricity, natural gas and other fuels, to ensure that the province’s energy needs are anticipated and met in a coordinated and long-term manner, anchored by the largest expansion of non-emitting nuclear energy on the continent.
- Affordability: Ontario’s plan needs to anchor energy affordability as a main driver in planning decisions by driving savings through competition, unlike previous governments that were driven by ideology.
- Ontario’s Alternative to a Carbon Tax: Ontario’s plan will never include a carbon tax. Instead, Ontario will meet its emission reduction targets with affordable and clean power that supports families and businesses to move away from higher emitting sources of energy.
- Reducing Costs for Families Through Energy Efficiency: Ontario’s plan needs to provide ways to reduce energy consumption in addition to generating more power. The government will act on this priority ahead of an integrated energy plan by launching a significant expansion of energy efficiency programs on January 1, 2025.
- Ontario as an Energy Superpower: Ontario’s plan needs to build on its competitive advantage and export clean energy and technology to the world, where it is in the best interests of Ontarians to drive revenue and jobs to our province.
This integrated plan will outline the total energy required by 2050, the financial investments to deliver on the need through the province’s all-of-the-above approach to energy planning to reduce costs and province-wide emissions. The government intends to introduce legislation that would, if passed, support the implementation of this new energy plan and position the province to support electrification and energy affordability while competing for international investments which are looking for jurisdictions that provide access to clean, reliable electricity.
“Six years ago, the people of Ontario put their trust in us to end the previous government’s failed and ideologically driven energy experiments that burdened hardworking people and businesses with billions of dollars of bad deals,” said Sam Oosterhoff, Associate Minister of Energy Intensive Industries. “We got to work quickly on fixing the hydro mess. As a result, renewed access to clean and affordable energy has put Ontario back on the map for growing industries, but this is only driving demand for even more energy.”
To inform the province’s first integrated energy plan, the government has launched a consultation and engagement process with the public, Indigenous communities and other groups. These engagements will build on electricity generation and transmission announcements already announced as part of the province’s Powering Ontario’s Growth plan, including:
Additional Competitive Procurements – A successful re-contracting of existing resources at about a 30 per cent discount and planning more competitive procurements for non-emitting electricity resources including wind, solar, hydroelectric, and bioenergy.
Ontario’s Largest Competitive Energy Procurement – Advancing competitive procurement for new energy resources to Ontario’s growing energy needs.
Nuclear Energy – Advancing reliable, affordable and clean nuclear power through pre-development work at Bruce Power, four small modular reactors at Darlington and supporting Ontario Power Generation’s plan for refurbishing the Pickering Nuclear Generation Station.
New Transmission Infrastructure – Designating and prioritizing transmissions lines in Southwestern, Northeastern and Eastern Ontario that will power job creators including EV and EV battery manufacturing and clean steel production.
Quick Facts:
- Increasing electricity demand stems primarily from Ontario’s rapid increase in population, new manufacturing facilities, advanced technologies like artificial intelligence (AI) data centres, the electrification of industry, and the charging energy required for electric vehicles.
- The province will need nearly 2,200 MW of electricity for EV supply chain companies by 2050, the equivalent of 2.2 million homes.
- Industrial electricity demand is set to increase by 50 per cent in just the next five years.
- Ontario’s first Integrated Energy Resource Plan will be launched in 2025.
Quotes:
“Having attracted over $44 billion in automotive investments from both domestic and international companies over the last four years, Ontario has become a leading jurisdiction in the global production and development of EVs and EV battery materials. As we look to build upon this success, visions like Ontario’s Affordable Energy Future will play an important role in maintaining our province’s competitive business environment and fostering on-going opportunities for our highly skilled workforce now and into the future.”
– Vic Fedeli
Minister of Economic Development, Job Creation and Trade
“The Association of Power Producers of Ontario (APPrO) strongly supports the vision released by Energy and Electrification Minister Stephen Lecce to significantly expand power production in the province to keep pace with growing consumer demand. By focusing on long term planning using reliability, affordability, and sustainability as its cornerstones, together we will maximize the potential of continuing Ontario’s Clean Energy Advantage to help advance the energy transition and fight climate change.”
– Colin Anderson
President and CEO, Association of Power Producers of Ontario (APPrO)
“As we conclude manufacturing month, this is a welcome announcement. Knowing energy will be there, at the right price, must be central to Ontario’s industrial advantage for decades to come. We applaud Minister Lecce’s low carbon, low-cost approach articulated in the Energy Vision announced today.”
– Dennis A. Darby
P.Eng., ICD.D, President & CEO, Canadian Manufacturers & Exporters
“Ontario’s Energy Vision is a pivotal step towards a sustainable future. By prioritizing affordability and energy efficiency, we will make progress toward meeting emissions targets while also empowering businesses to invest and create jobs. The Electricity Distributors Association supports local hydro companies playing an essential role in this comprehensive approach to secure Ontario’s transition to a low carbon future.”
– Teresa Sarkesian
President & CEO, Electricity Distributors Association
“As a key economic driver, Ontario’s energy system must be reliable, affordable and sustainable. That’s why the Ontario Chamber of Commerce welcomes the government’s long-term, integrated planning. To be successful, Ontario must leverage its diverse energy mix, ensure predictability for business and investors, drive energy efficiency, incentivize behavioural change by consumers and businesses, and meet our climate goals – all while keeping costs down. By positioning Ontario to meet its energy needs with 90% clean electricity, this plan promises economic benefits for generations to come.”
– Daniel Tisch
President and CEO, Ontario Chamber of Commerce
“Affordable and stable energy supply is critical to Ontario’s future and all sectors of the economy, including homebuilders, rely on this approach to fully deliver for Ontarians. The government’s integrated Energy Plan will place Ontario in the best position possible to meet our energy demands in the years to come as the province manages continuing and significant growth.”
– Richard Lyall
President, Residential Construction Council of Ontario (RESCON)
“Ontario’s energy grid is a critical part of not only our communities, but our competitive economic advantage. Today’s announcement of the first-ever Integrated Energy Plan will provide important momentum and a comprehensive, coordinated energy framework with a generational vision, helping to connect homes and businesses faster through to 2050. On behalf of ACEC-Ontario’s 140 member companies employing over 27,000 professionals, we congratulate Minister Lecce, Premier Ford and the Ontario Government for their vision and leadership in securing Ontario’s reputation as a leading energy powerhouse in Canada and across North America. We look forward to Engineering Ontario Forward on important initiatives that will benefit communities and industries across the province.”
– Andrew Hurd
Executive Director, ACEC-Ontario
“OCNI fully supports the Ontario government’s vision for a long-term, integrated energy plan focused on affordability, energy efficiency, and sustainable growth. This approach reinforces Ontario’s leadership in global energy and highlights nuclear’s essential role in meeting future demands. We’re confident that through strong partnerships and innovation, Canada’s nuclear supply chain will continue to deliver clean, reliable energy for years to come.”
– Brian Fehrenbach
Interim President & CEO, Organization of Canadian Nuclear Industries (OCNI)
“We commend the Minister of Energy and Electrification on prioritizing affordability for ratepayers when planning to meet the unprecedented increase in demand for electricity. With more than 3 GW of energy storage to be connected before the end this decade, storage will continue to provide critical flexibility and help optimize the system, ensuring affordability and reliability for Ontario. Energy Storage Canada and its members look forward to working with Minister Lecce and the sector in meeting tomorrow’s energy needs.”
– Justin W Rangooni
Executive Director Energy Storage Canada
“On behalf of the Labourers International Union of North America (LiUNA) and our over 120 000 members across Ontario, we applaud Minister of Energy and Electrification, Stephen Lecce, and the Ford government for prioritizing clean, reliable and affordable energy for today and for our future. As Canada’s largest building trades union, LiUNA Members stand ready to continue supporting the infrastructure necessary to fuel Ontario’s economy and sustain our province as a global economic powerhouse and a world leader in clean energy.”
– Joseph Mancinelli
International Vice President, Canadian Director, Regional Manager of Central and Eastern Canada, LiUNA
“We welcome the government’s recognition of the urgent need to move forward with a comprehensive, all-hands on deck approach to energy planning, essential to ensuring Ontario businesses have the needed supply of clean energy—including nuclear and natural gas—to meet our economic and population growth projections. Our economic ambitions depend on getting our energy mix right—businesses will choose to invest and grow in Ontario based on access to energy that is clean, reliable, and competitively priced in North America. Toronto Region Board of Trade and our members look forward to continuing to bring the important voice of business and industry to the table as the government moves forward with its plan.”
– Giles Gherson
President and CEO, Toronto Region Board of Trade
“CanREA applauds the Ontario government’s vision and commitment to affordable, reliable and clean electricity. Ontario’s Affordable Energy Future will drive savings through competition. CanREA’s members are ready to deliver the cost-effective, scalable and flexible wind, solar and energy-storage solutions Ontario customers need.”
– Vittoria Bellissimo
President and CEO, Canadian Renewable Energy Association (CanREA)
“AMPCO supports the Government in its ongoing efforts for affordable electricity and supporting our world class energy efficient industries in Ontario. AMPCO further supports removing punitive carbon taxes from our clean electricity system.”
– Mark Passi
Chair, Board of Directors, AMPCO
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