The Ontario government is undertaking its largest-ever energy procurement, aimed at providing affordable electricity for households and businesses. This initiative is part of a broader plan to secure up to 5,000 megawatts (MW) of energy through multiple procurement efforts, aimed at boosting economic growth and addressing the increasing demand for clean and reliable power. The plan emphasizes a diverse energy portfolio, incorporating nuclear, hydroelectric, renewable sources, natural gas, and biomass. The Second Long-Term Procurement (LT2) will oversee future energy projects, ensuring community consent and protecting prime agricultural lands.
Ontario’s Minister of Energy and Electrification, Stephen Lecce, emphasized that this initiative, the largest in the province’s history, is crucial for expanding access to affordable electricity across Ontario, while also opposing the carbon tax. The procurement process, directed by the Independent Electricity System Operator (IESO), is expected to be transparent, competitive, and cost-effective, encompassing various energy technologies, including wind and solar. The IESO is tasked with expediting the procurement process, with a design framework due by September 2024 and the goal of concluding the procurement by February 2026.
This initiative builds on recent government efforts, including the procurement of nearly 3,000 MW of new battery storage projects. The IESO projects that by 2050, Ontario’s electricity consumption will increase by 60%, driven by population growth, new manufacturing facilities, technological advancements like AI data centers, industry electrification, and the energy needs of electric vehicles.
The Canadian Renewable Energy Association (CanREA) praised the announcement, viewing it as a crucial step toward the LT2 procurement of 5,000 MW of new electricity resources by 2034, including wind and solar. CanREA’s president, Vittoria Bellissimo, expressed enthusiasm for the procurement, highlighting the industry’s readiness to deploy new, cost-effective, and reliable renewable energy projects across Ontario.
