If you worry about government spending, it is easy to criticize the Ontario Government’s recent announcement to refurbish four nuclear reactors at the Pickering Nuclear Plant, located east of Toronto. The estimated price tag is a staggering $26.8 billion.
But price isn’t all that has to be considered.
First of all, Ontario needs more energy. The Independent Electrical System Operator (IESO) has forecast that demand will grow by 75 per cent in the next 25 years. A growing population, increased use of electric cars, two new electric vehicle battery plants in southern Ontario, the steel industry’s transition to clean production methods and new power guzzling artificial intelligence data centres are all contributing to demand. When finished, this project will provide power for two million more homes.
Secondly, nuclear has proven to be a dependable source of energy. It now provides 50 per cent of our base power needs. It can’t be reliably replaced with wind, solar or battery storage. Hydro electric sources are maxed out and increasing the use of natural gas contributes to greenhouse gases, widely believed to contribute to climate change.
Thirdly, the project will provide a badly needed economic boost for the province, as its major industries struggle to survive the Trump tariffs. The project will generate nearly 37,000 jobs during refurbishment and support 6,700 highly skilled jobs during the plant’s operations.
More than 90 percent of the project cost will be spent in Canada and Ontario, supporting local businesses. It is estimated that the project will increase Canada’s GDP by $41.6 billion.
Another benefit of the Pickering plant, often overlooked, is its production of “Cobalt-60,” the life-saving medical isotope used around the world in cancer treatment, sterilization of medical equipment and food products. This could double production.
More dependable power is also needed if the province is to continue attracting new business investment. In the words of Goldy Hyder, president and CEO of the Business Council of Canada, “clean, reliable and affordable baseload power drives growth, attracts investment and creates a competitive economy.”
So will it be worthwhile? Ontario Energy and Mines Minister Stephen Lecce was able to line up a long list of stakeholders who were more than ready to support the project, from business leaders and nuclear industry representatives to union heads and local municipal leaders.
Even the Opposition leaders’ usual criticisms were somewhat muted. NDP Leader Marit Stiles was happy to support the creation of more jobs, but she worried about the impact of the project costs on future electricity rates.
It is a valid concern. Ontario consumers are partially protected from rate hikes by the Ontario Electricity Rebate program but that too, costs taxpayers money. This year, it is expected to cost $7 billion just to save consumers around $36 on their residential bills.
As Green Party Leader Mike Schreiner noted “when we talk about not having enough money for affordable housing or for health care, education or social services, part of it’s being driven by the fact that so much money is being spent on electricity subsidies.”
It is a pricey gamble. But the province needs more power if it expects to finance the increased economic growth that will increase government revenues to pay for more services. And nuclear has proven a reliable source. Time will tell.
Janet Ecker is a former Ontario Finance Minister, Minister of Education, Minister of Community and Social Services and Government House Leader in the governments of Premier Mike Harris and Premier Ernie Eves. After her political career, she served as the founding CEO of the Toronto Financial Services Alliance, a public-private partnership dedicated to building Toronto region into an international financial centre. She currently sits on a number of corporate and non-profit boards, agencies and advisory committees.
Ms. Ecker received the Order of Canada for her public service contributions and was recognized as one of the “Most Influential People in the World’s Financial Centres” by Financial Centres International. She also received a “Canada’s Most Powerful Women: Top 100 Award” from the Women’s Executive Network and the Richard Ivey School of Business, among other awards. She is also one of the founders of Equal Voice, a national, multi-partisan organization working to elect more women.
