Ontario plans major expansion of electricity grid as demand grows

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CaDCR staff writer

Ontario’s Minister of Energy and Electrification, Stephen Lecce, has unveiled an ambitious vision for the province’s electricity system, aiming not only to accommodate a projected seventy-five per cent increase in demand by 2050 but also to position Ontario as a leading energy exporter.

In a document released Tuesday, Lecce outlined an integrated energy plan that prioritizes the development of a clean, reliable and affordable grid. This follows a recent forecast from the Independent Electricity System Operator (IESO), which indicated that the demand for electricity is rising faster than anticipated due to population growth and the electrification of various industries, including the automotive sector.

Lecce emphasized the importance of diversifying energy sources, stating that while nuclear and hydroelectric power will continue to serve as the backbone of the province’s electricity generation, natural gas will play a crucial role in ensuring reliability during peak demand periods.

Despite a recent decline in the grid’s emissions-free percentage—from ninety-four per cent in 2021 to eighty-seven per cent—the ministry argues that natural gas will support overall emissions reductions as the province works toward broader electrification goals.

“We are well positioned to be an energy superpower,” Lecce remarked in a recent interview. “With existing interties to jurisdictions like Michigan, Minnesota and New York, we aim to increase our role as a net exporter of clean energy.”

The province is already taking steps to enhance its energy infrastructure, including the planning of four small modular nuclear reactors and a potential large-scale nuclear facility. Lecce did not specify further projects but reaffirmed a commitment to competitive procurement processes aimed at minimizing costs.

In addition to expanding generation capacity, Ontario’s government plans to roll out new energy efficiency programs later this year, which will incentivize businesses and households to generate their own power and implement energy-saving renovations.

The introduction of the Affordable Energy Act will pave the way for the first-ever integrated energy plan, focusing on coordinating electricity, natural gas and other energy resources. This legislative initiative aims to support zero-emission nuclear energy, expand energy efficiency programs and enhance electric vehicle charging infrastructure.

Ontario’s ambitious energy strategy is designed not only to meet increasing domestic needs but also to tap into anticipated shortfalls in neighboring jurisdictions that are reliant on less sustainable energy sources. With several agreements in place for small modular reactor technology, Ontario is positioning itself as a leader in energy innovation.

As Ontario gears up for a  significant transformation, the IESO is also developing an export strategy to capitalize on the province’s clean energy capabilities, promising to generate new revenue streams while reducing reliance on coal in interconnected regions.

The anticipated integrated energy plan is set to be rolled out by 2025, marking a pivotal step in Ontario’s journey toward a sustainable energy future.

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