Province Launches Largest Competitive Energy Procurement in Ontario History

Procurement will ensure long-term affordability as electricity demand forecasts to rise 60 per cent by 2050

September 13, 2024

TORONTO – The Ontario government is launching the largest competitive energy procurement in the province’s history, focused on generating affordable electricity for families and businesses. This builds on the province’s plan to procure up to 5,000 megawatts (MW) of energy through a series of procurements to help foster economic prosperity and meet the growing demand for clean and reliable energy.

The government announced a plan of action for more affordable energy, supporting Ontario’s diverse supply mix including nuclear, hydroelectric, renewables, natural gas, and biomass. The Second Long-Term Procurement (LT2) will plan future energy initiatives in communities that provide consent while protecting prime agricultural areas, including:

  • Requiring energy project developers to receive municipal support resolutions to ensure local support and consent for new projects.
  • Prohibiting all projects in specialty crop areas and ground-mounted solar in prime agricultural areas to prevent solar farms.
  • Incentivizing projects located in northern Ontario and those which avoid prime agricultural areas, along with a plan to unlock Crown Lands for renewable energy.
  • Incentivizing economic opportunities for projects with or by Indigenous communities on whose traditional territory the projects are proposed. 
  • Requiring Agricultural Impact Assessments for projects that are permitted on all prime agricultural areas.

To advance Ontario’s expanded electricity needs, the IESO is expected to report back with a procurement design framework by September 20, 2024, and consider how to conclude energy and capacity procurements by February 28, 2026. The accelerated timelines will ensure that Ontario can continue to support large-scale investments that require a clean and reliable energy supply to create well-paying jobs across the province.

By launching a competitive procurement framework, the government is ensuring long-term affordability for Ontario’s ratepayers and businesses. This procurement also builds on the government’s recent procurement of nearly 3,000 MW of new battery storage projects ranging from five to over 400 MW in capacity.

“Our forecasts show that Ontario will need more resources to meet demand as our population and economy grows and continues to electrify,” said Lesley Gallinger, Chief Executive Officer of the Independent Electricity System Operator. “We’ve 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.”

Learn more: https://news.ontario.ca/en/release/1004981/province-launches-largest-competitive-energy-procurement-in-ontario-history

Media Contact

Nadia Hansen

Constituency Scheduler, Stakeholder Relations, Event Manager

Dawn Gallagher Murphy, MPP Newmarket—Aurora
nadia.hansen@pc.ola.org

416-553-2471