Ontario launches energy procurement, focusing on clean energy sources

TORONTO — The Ontario government has initiated its largest competitive energy procurement to date, aiming to secure up to 5,000 megawatts (MW) of energy. This effort is part of a broader plan to provide affordable electricity and meet the rising demand for clean and reliable energy.

The plan supports a mix of nuclear, hydroelectric, renewable, natural gas, and biomass energy sources. To ensure local support for new projects, developers must obtain municipal support resolutions. Additionally, projects are prohibited in specialty crop areas and prime agricultural land, including ground-mounted solar farms.

The plan also includes incentives for projects located in northern Ontario and those involving Indigenous communities, as well as measures to unlock Crown Lands for renewable energy. Agricultural Impact Assessments will be required for any projects permitted in prime agricultural areas.

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

“We are putting municipalities in the driver’s seat as we expand energy generation. We are delivering more affordable and reliable energy while protecting prime agricultural areas,” Lecce added.

“This historic plan will deliver the new electricity our dynamic province and growing agricultural sector will need while protecting farmland,” said Rob Flack, Minister of Agriculture, Food, and Agribusiness.

“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’ve secured a four-tier lock to ensure a balance between our energy needs and the needs of our farmers,” Flack added.

The Independent Electricity System Operator (IESO) is responsible for creating a procurement design framework by September 20, 2024, and concluding the procurement by February 28, 2026. The procurement process is intended to be transparent, competitive, and cost-effective, covering various energy technologies.

The government’s broader plan also includes significant investments in nuclear energy, such as new small modular reactors and refurbishments of existing facilities. New transmission lines are being prioritized to support industries including electric vehicle manufacturing and clean steel production. Additionally, new energy efficiency programs will be launched, expanding on existing initiatives. The government is also planning further competitive procurements to secure both existing and new energy resources.