Ontario Boosts Energy Procurement by 50% to Meet Demands

Ontario, a bustling Canadian province with a population exceeding 15 million, has witnessed significant demographic and economic transformations since the 19th century.

Originally an agricultural area, Ontario has since evolved into a centre of manufacturing and services, fuelled by waves of immigration, industrialisation and urbanisation.

As the number of residents swelled, so did the demand for energy.

Historically dependent on coal, the province has made commendable strides toward cleaner energy.

Completing the phase-out of coal-fired plants by 2014, Ontario now harnesses a mix of nuclear, hydroelectric, renewables, natural gas and biomass resources.

This shift not only underscores Ontario's commitment to sustainability but also establishes it as a leader in the reduction of greenhouse gas emissions within Canada.

Strategies to sustain growing energy demands

The Ontario government recognises the need to augment energy supplies to match its economic growth and the rising demands of its expanding population.

Initially, in August 2024, the government launched a historic energy procurement initiative, aiming to secure up to 5,000MW of energy. Recently, this target was amplified by 50%, escalating the goal to 7,500MW.

This adjustment came in response to a revised forecast, which anticipates that by 2050, Ontario’s electricity demand will surge by 75% — equivalent to powering four and a half additional cities the size of Toronto.

Stephen Lecce, the Minister of Energy and Electrification, articulates the government's proactive approach: "Our government is expanding what is already the largest competitive procurement in the province's history as demand for electricity continues to grow.

"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."

In line with the launch of the second competitive energy procurement, the Ontario government has tasked the Independent Electricity System Operator (IESO) with exploring options for two additional procurements.

This strategy is aimed at maintaining low energy costs for both families and businesses.

Blueprint for an economically feasible energy landscape

Securing new long-term energy sources is just one facet of Ontario’s comprehensive strategy to ensure energy affordability.

The province is also developing its first integrated energy plan and is pushing forward with clean, reliable and affordable nuclear energy solutions.

Moreover, the Ontario government is prioritising new transmission infrastructure projects in Southwestern, Northeastern and Eastern Ontario.

These initiatives are designed to support regional job creators and promote economic development.

To further ease the financial burden on consumers, the expansion of energy efficiency programmes is also on the agenda, which will assist families and businesses in reducing energy consumption and lowering their bills.

Jaipaul Massey-Singh, CEO of Brampton Board of Trade, endorses the government’s initiatives, saying: “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.

"This announcement by the Ontario government will help our province continue to be a premier destination for industry and help our economy grow.”

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