7,500 Megawatts of New Energy Resources Will Support Growing Population and Help Keep Electricity Costs Down
BEAMSVILLE – The Ontario government is expanding the largest competitive energy procurement in the province's history by fifty percent to meet soaring energy demand. The government has increased the target for the procurement from 5,000 megawatts to up to 7,500 Megawatts to ensure Ontario has the reliable and affordable electricity it needs to power the building of new homes, businesses and communities.
Since the procurement was first announced, Ontario’s Independent Electricity System Operator has released an updated electricity demand forecast which now shows the province will need seventy-five percent more electricity by 2050, the equivalent of adding four and a half cities the size of Toronto to the grid. To meet this growing demand, the government directed Independent Electricity System Operator to begin the government’s Second Long-Term Procurement and implement the increased procurement target.
"As Ontario's economy grows, the importance of having an abundant supply of clean and reliable energy in every corner of the province cannot be overstated," said Sam Oosterhoff, MPP for Niagara West.
"Our province's industry and workers rely on dependable electricity grid to keep factories, mines, greenhouses, and construction sites going. This expansion of procurement will ensure the work underway to expand our province's energy grid will continue to be powered by clean, reliable, and affordable electricity for years to come."
"Our government is expanding what is already the largest competitive procurement in the province's history as demand for electricity continues to grow," said Hon. Stephen Lecce, Minister of Energy and Electrification.
"This expanded procurement will deliver enough power for 1.6 million homes, which is critical as our population and economy continue to grow. Unlike the former government which allowed hydro rates to soar, we are keeping costs down by planning ahead and using competitive procurement."
Consistent with previous direction, the process for the Second Long-Term Procurement will be transparent, competitive, and technology-agnostic to secure the lowest cost energy resources. The process will also protect prime agricultural areas, promote Indigenous partnerships, and encourage development in Northern Ontario, where there is local community support.
Alongside the launch of the Second Long-Term Procurement, the government has asked the Independent Electricity System Operator to report back on options to run two additional procurements as part of the government's all-of-the-above approach that is leveraging every resource to keep energy costs down for families and businesses, including:
Options for a procurement of long-lead energy resources, including hydro and long-duration energy storage, recognizing the benefits of these unique resources that require more time to design and build.
- Options for a program to re-contract existing and acquire new-build small-scale electricity generation, such as smaller solar installations, that connect directly to the province's distribution system.
Procuring new long-term energy generation is just one part of Ontario’s Affordable Energy Future, the government's vision as it plans for rising energy demand.
Quick Facts:
Ontario's electricity system is among the cleanest in the world, powered by a diverse supply mix including nuclear, hydroelectric, renewables, natural gas and biomass.
The Second Long-Term Procurement will secure new electricity resources through two streams, including an energy stream which will secure up to fourteen terawatt-hours of new energy resources, and a capacity stream which will secure up to 1,600 megawatts of new capacity resources.
Resources must be able to start commercial operations by May 1, 2034. All procured resources will be offered twenty-year contracts, awarded annually between 2026 and 2029. Contracts will only be offered to projects with local community support, empowering municipalities by maintaining their decision-making authority throughout the procurement.
Through recent competitive procurements, the Ontario government secured nearly 3,000 megawatts of new battery storage capacity, including the largest battery storage procurement in Canada’s history.
- The Independent Electricity System Operator has forecast that by 2050, Ontario's electricity consumption will rise by seventy-five per cent. This demand stems primarily from Ontario's rapid increase in population, new manufacturing facilities, advanced technologies like Artificial Intelligence data centres, the electrification of industry, and the charging energy required for electric vehicles.
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