Ontario to procure 5,000 MW of energy to meet future demand
Ontario will be soliciting bids for new energy projects with the goal of adding some 5,000 megawatts to the electricity grid to meet demand in the coming decades, new Energy Minister Stephen Lecce said Wednesday.
Lecce says the government is “energy agnostic” and the new procurement will be a mix of natural gas, hydroelectric, renewables, nuclear and biomass. The minister said the procurement will be necessary for the future of the province.
“We will need at least 60 per cent more energy by 2050. The province needs more energy to grow our economy,” Lecce said at the announcement in King City, Ont.
Lecce said Ontario needs more energy to keep up with population growth, and to power electrification of industry and the rise of artificial intelligence, which requires massive amounts of electricity. The province’s electricity demand is expected to grow by about two per cent each year, but could be even higher depending on electrification within the broader economy.
To put the 5,000 megawatt figure in perspective, the refurbished Pickering nuclear plant is expected to produce 2,000 megawatts — or roughly enough to power two million homes.
How the procurement will happen is still to be determined. The Independent Electricity System Operator — a Crown corporation responsible for operating Ontario’s electricity market — will develop a framework for the process by Sept. 20, according to a news release. Under that framework, the procurements should conclude by Feb. 28, 2026.
Lecce says energy companies must get municipal support in order to proceed and there will be protections for prime agricultural areas. Ground-mounted solar farms will be banned entirely on prime agricultural land, he said.
“[We] will ensure local communities’ voices are respected [and] our agriculture and food industries are protected when it comes to any future affordable energy expansion,” Lecce said.
Province looking at variety of energy sources
According to the release, the province will be looking at a variety of energy sources during procurement, including wind and solar.
In 2019, Premier Doug Ford defended his party’s decision to tear up hundreds of renewable energy deals, a move that his government has acknowledged cost taxpayers more than $230 million.
“If we had the chance to get rid of all the wind mills, we would,” Ford said at the time.
But more recently, the Ford government has taken a U-turn on renewable energy, and is now poised to oversee the biggest expansion of green energy the province has seen in nearly a decade.
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