Ontario Generating More Energy to Meet Soaring Demand

The Ontario government has asked Ontario Power Generation (OPG) to begin discussions with Indigenous, community and municipal leaders on its existing sites in Port Hope, Haldimand County and St. Clair Township to determine community support for all types of new energy generation, including nuclear, to meet Ontario’s soaring demand for electricity.

According to Ontario’s Independent Electricity System Operator (IESO), the province’s demand for electricity is forecast to increase by 75 per cent by 2050, the equivalent of adding four and a half cities the size of Toronto to the grid. While the province is already on track to meet demands through 2035 with major projects already announced, including Canada’s first small modular reactor and the largest competitive energy procurement in Ontario’s history, the province will need 16,000 additional megawatts (MW) of generation, in addition to new transmission to meet demand in 2050.

“Our government is leading the largest expansion of electricity generation in more than thirty years,” said Stephen Lecce, Minister of Energy and Electrification. “To meet soaring energy demands, we’re working with communities to plan ahead and build for our future so that we can generate more power that is reliable and affordable for our families today and tomorrow. Our plan will ensure we keep energy bills down and the power on for generations to come.”

As Ontario’s largest energy generator, OPG owns properties across the province. Three of these sites – Wesleyville in Port Hope, Nanticoke in Haldimand County and Lambton in St. Clair – are already zoned for electricity generation, have proximity to transmission, and are located in Southern Ontario, within regions experiencing significant growth.

Early community engagement is a critical part of the province’s approach to new energy generation. These early conversations with communities will include how they would be supported and the potential benefits, including:

• Equity participation for Indigenous communities in generation projects;
• The creation of a new fund with up to $50 million for municipal host communities across the three sites to support community infrastructure investments and attraction of co-located industry;
• Additional municipal property taxes related to new generation stations and co-located companies; and
• Associated jobs and economic development for municipalities and Indigenous communities from new generation, co-located industries, and supply chain spending.

“As we prepare for the largest expansion of electricity generation in over thirty years, our government is embracing an important opportunity for economic reconciliation among First Nations communities and workers,” said Greg Rickford, Minister of Indigenous Affairs and First Nations Economic Reconciliation. “By working together with Ontario Power Generation, we are ensuring that First Nations communities are not just part of the conversation, but active participants in shaping a prosperous, sustainable energy future. This is a critical moment to build a stronger, more inclusive economy where Indigenous communities are positioned to thrive alongside all Ontarians.”

“OPG places great importance on ensuring strong relationships and partnerships with our potential host communities, neighbours, and Indigenous Nations on whose traditional territory we operate,” said Ken Hartwick, OPG President and CEO. “Our strong record of safely building and operating generating facilities, including nuclear, will continue into any new generation opportunities OPG may pursue. We look forward to meeting with municipalities and Nations to understand their perspectives and aspirations for their communities.”

Developing options for new energy generation is just one part of Ontario’s Affordable Energy Future, the government’s vision as it plans for rising energy demand, which includes:

• Energy Planning – Developing the province’s first integrated energy plan, including all energy resources, such as electricity, natural gas, and other fuels to ensure the province’s energy needs are met in a coordinated and long-term manner.
• Nuclear Energy – Advancing clean, reliable, and affordable nuclear power through pre-development work at Bruce Power on the province’s first large-scale nuclear build in 30 years, four small modular reactors at Darlington and supporting OPG’s plan for refurbishing the Pickering Nuclear Generation Station.
• New Transmission Infrastructure – Designating and prioritizing transmission lines in Southwestern, Northeastern and Eastern Ontario that will power job creators, including EV and EV battery manufacturing and clean steel production.
• Keeping Costs Down – Launching new energy efficiency programs on January 1, 2025, which build on the government’s $342 million expansion of existing energy efficiency programs which are helping families and businesses reduce their electricity usage and save money on their energy bills.
• Additional Competitive Procurements – Launching the largest competitive procurement of clean energy resources in the province’s history in addition to successfully re-contracting existing capacity resources at about a 30 per cent discount.

Quick Facts

Quotes

“We commend the Ontario government’s forward-thinking vision and are proud to collaborate on creating resilient and thriving communities across the province. Consulting engineering firms play a pivotal role in Ontario’s energy transition, contributing expertise to energy planning, execution, and innovation. From sustainable mining practices that enable energy storage solutions, to modernizing transmission infrastructure and advancing new generation projects including renewables and nuclear, our industry is deeply embedded in building a sustainable energy future.”

– Andrew Hurd
Executive Director, Association of Consulting Engineering Companies – Ontario

“Ontario’s commitment to expanding energy generation and advancing nuclear development is crucial as we prepare for the increased energy demands of the future. We’re strengthening Canada’s position as a clean, reliable, affordable energy leader by engaging communities and leveraging sites like Port Hope, Haldimand County, and St. Clair. OCNI is proud to support these initiatives and to represent the Canadian nuclear supply chain as we work together to shape the future sustainable energy.”

– Brian Fehrenbach
Interim President and CEO, Organization of Canadian Nuclear Industries (OCNI)

“Ontario is at a crossroads of energy demand, and building new energy generation is critical to powering our future. The Ontario Chamber of Commerce has long called for improved community buy-in for new energy infrastructure projects. By bringing stakeholders together and focusing on local benefits, we can drive economic growth while building public and business confidence.”

– Daniel Tisch
President and CEO, Ontario Chamber of Commerce

“If we are going to meet Ontario’s climate and clean energy goals for the future, we need to dramatically increase our generation of emission-free power. The Society is pleased to see the province looking to leverage its existing publicly-owned assets and properties in order to more rapidly and efficiently meet our generation needs. As a union that represents thousands of workers at OPG and in the energy sector across the province, we look forward to working with the province as we build new generation to meet our long-term electrification goals.”

– Michelle Johnston
President, Society of United Professionals

“The large carbon-free energy expansion required to meet Ontario’s electricity demand will take a well planned and coordinated build strategy spanning several decades. The sites at Lambton, Nanticoke and Wesleyville provide access to both the workers and infrastructure that will be required for the energy expansion. Community engagement is a crucial part of the strategy that builds on Ontario’s world class carbon free electricity assets and know-how. The right energy choices and investments made today will have a profound impact on carbon emission reductions, energy security, and economic growth in Ontario for generations to come.”

– Jeff Parnell
President, Power Workers’ Union

Source: The Government of Ontario