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Ontario government announces largest competitive energy procurement in provincial history

Ontario’s future energy needs will be provided through a combination of biomass, natural gas, hydroelectric, nuclear and other renewable sources. Pictured: Ontario Ministers Stephen Lecce and Rob Flack. Photo Credit: Stephen Lecce/X. 

On Aug. 28, the Ontario government announced the biggest competitive energy procurement in the history of the province. With a primary objective of maintaining a ready supply of affordable and accessible electrical power for personal and commercial purposes, the Ford government is preparing to add as many as 5,000 megawatts of energy to the province’s electrical grid. 

“With energy demand growing rapidly, our government is stepping up by advancing our largest energy procurement in our history,” said Minister of Energy and Electrification Stephen Lecce. “Our ‘all-of-the-above’ energy resource approach will expand access to affordable electricity to families and businesses across Ontario, all while opposing the regressive carbon tax.” 

Ontario’s future energy needs will be provided through a combination of biomass, natural gas, hydroelectric, nuclear and other renewable sources. Some key features of this remarkable undertaking will include the preservation of agricultural lands, enhanced collaboration with Northern Ontario and Indigenous communities, as well as allowing municipalities to have a say on energy projects. 

“This historic plan will deliver the new electricity our dynamic province and growing agricultural sector will need while protecting farmland,” Rob Flack, Minister of Agriculture, Food and Agribusiness shared in celebration of the initiative. “By requiring municipal support resolutions and agricultural Impact Assessments for new energy projects, banning solar farms on prime farmland and crop areas, and promoting new projects in the North, we have secured a four-tier lock to ensure a balance between our energy needs and the needs of our farmers.” 

Lecce argues that the Ford government’s approach differs from those of its Liberal predecessors. 

“Unlike the former government who imposed energy projects on unwilling communities, we are putting municipalities in the driver’s seat as we expand energy generation,” argued Lecce. “We are delivering more affordable and reliable energy while protecting prime agricultural areas.” 

The Ontario government has instructed the Independent Electricity System Operator (IESO) to ensure fiscal prudence and competitiveness throughout the procurement. It has also requested that technology-agnostic energy resources, such as solar and wind, be secured. IESO has been asked to provide potential strategies for accelerating the procurement process, present a procurement design framework no later than Sept. 20, 2024, and contemplate a plan for concluding energy and capacity procurements by Feb. 28, 2026.

 “Our forecasts show that Ontario will need more resources to meet demand as our population and economy grows and continue to electrify,” shared Lesley Gallinger, IESO Chief Executive Officer. “We have been engaging with the sector and communities, and with this accelerated timeline, we are ready to move quickly to secure supply from all eligible technologies.” 

The announcement is particularly significant for Niagara because the regional municipality plays a crucial role in meeting the energy and agricultural needs of the province. 

“As Ontario’s economy grows, the importance of having an abundant supply of clean, reliable and affordable energy in every corner of the province cannot be overstated,” said Sam Oosterhoff, Niagara West MPP and Ontario Associate Minister of Energy and Intensive Industries. 

 “Our province’s industry and workers rely on a dependable electricity grid to keep factories, mines, greenhouses and construction sites going,” Oosterhoff continued. “This is the first step in the province’s forward-thinking plan to procure up to 5,000 megawatts of energy through a series of procurements to help foster economic prosperity and growth across Ontario, including in the Niagara Region.” 

Oosterhoff celebrated how the procurement initiative will preserve Niagara’s immense food production capacity while simultaneously securing the future of energy both locally and provincially. 

“The process will be transparent, competitive and cost-effective to secure technology-agnostic energy areas, like Niagara’s tender fruit lands,” Oosterhoff explained. “Ontario needs more power. This historic procurement will help ensure that Ontario’s families and businesses have access to dependable and cost-effective electricity when they need it.” 

IESO has projected that the development and operation of cutting-edge technologies, expanding manufacturing activity, as well as a rapidly growing population will result in Ontario’s electricity consumption rising by as much as 60 per cent by 2050. Those interested in learning more about IESO can do so at the following link: IESO.

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