Ontario Tackles Energy Demand by Introducing Affordable Energy Act
November 7, 2024
New legislation will help keep energy costs down as province expands the grid
The Ontario government is introducing legislation that would, if passed, enable the implementation of the province’s first-ever integrated energy plan which will ensure the entire energy sector is aligned behind the government’s pro-growth agenda. The Affordable Energy Act would also prioritize zero-emissions nuclear energy as the province’s grid expands, support the government’s significant expansion of energy efficiency programs to help families save money, help get more electric vehicle (EV) chargers built and reduce “last-mile” connection costs for electricity infrastructure.
“Energy demand is increasing quickly and our government will deliver the province’s first integrated energy plan to ensure we build for the future, with a focus on keeping energy rates affordable,” said Stephen Lecce, Minister of Energy and Electrification. “The Affordable Energy Act lays the groundwork for large-scale energy expansion, more affordable homes, expanded energy efficiency programs and more – all focused on saving families their hard earned money. That is why we have and will continue to vigorously oppose the punitive Carbon Tax.”
Ontario’s Affordable Energy Future: The Pressing Case for More Power outlines the challenges facing the province as demand for energy continues to rapidly grow, as well as the government’s all-of-the-above approach to meet this demand. The implementation of that vision starts with legislative changes through The Affordable Energy Act that would:
- Establish the Province’s First Integrated Energy Plan: Introduce a new framework for integrated energy planning that would coordinate all energy resources, including electricity, natural gas and other fuels to ensure energy remains affordable.
- Prioritize Nuclear Power in Generation Build Out: For the first time in legislation the province will prioritize the role of reliable, affordable and zero-emissions nuclear power generation to meet future increases in demand.
- Expand Energy Efficiency Programs to Save Families Money: Ahead of the government introducing a significant expansion of energy efficiency programs to save families and businesses money the government is expanding the mandate of the Ontario’s Independent Electricity System Operator (IESO) so they can deliver programs to help even more customers reduce costs and emissions.
- Get More EV Chargers Built: Supporting the adoption of EVs by providing EV charging companies with a regulatory environment that supports and enables further deployment of EV charging stations.
- Reduce Costs for Last Mile Connections: Provide government with new regulation-making authority that would work to ensure more timely and cost-effective electricity system connection for new homes and industry.
According to Ontario’s Independent Electricity System Operator, 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. There is also continued demand for other fuels including gasoline and natural gas, that currently play a critical role in powering vehicles, heating homes and attracting new jobs in manufacturing, including the automotive industry and agriculture.
“Over the past six years our government has restored our province’s clean and affordable energy advantage,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. “This is enabling unprecedented investments from electric vehicle and battery manufacturing to critical minerals and green steel.”
The Affordable Energy Act and Ontario’s Affordable Energy Future build on significant initiatives already underway to meet the needs of the province for the next decade and beyond, including:
- The Largest Competitive Procurement in Ontario’s History – Advancing competitive procurement for new energy resources to meet Ontario’s growing energy needs.
- Nuclear Energy – Advancing reliable, affordable and clean nuclear power through pre-development work at Bruce Power, four small modular reactors at Darlington and supporting Ontario Power Generation’s plan for refurbishing the Pickering Nuclear Generation Station.
- New Transmission Infrastructure – Designating and prioritizing transmissions 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 that would build on the government’s $342 million expansion of existing energy efficiency programs which are helping families and businesses reduce their electricity use so they can save money on their energy bills.
- Additional Competitive Procurements – A successful re-contracting of existing resources at about a 30 per cent discount and planning more competitive procurements for non-emitting electricity resources including wind, solar, hydroelectric, and bioenergy.
Quick Facts:
- The Independent Electricity System Operator’s forecasted demand stems primarily from Ontario’s rapid increase in population, new manufacturing facilities, advanced technologies like artificial intelligence (AI) data centres, the electrification of industry, and the charging energy required for electric vehicles.
- Under the IESO’s current mandate they were limited in their ability to deliver broad-based energy efficiency programs, such as a limitation on serving customers who used natural gas or other fuels for home heating. This legislation would expand their mandate and allow them to help more customers save money.
- Ontario’s first Integrated Energy Resource Plan would be launched, if approved, in 2025.
Related Story
Ontario Ready to Meet the Challenge of Soaring Energy Demand
On October 22, the Ontario government released Ontario’s Affordable Energy Future: The Pressing Case for More Power, outlining the challenges facing the province as demand for energy continues to rapidly grow, as well as the province’s path to managing this demand. The government also announced it would release the province’s first-ever Integrated Energy Plan with a generational horizon out to 2050, which will ensure the entire energy sector is aligned behind the government’s pro-growth agenda to reduce costs and province-wide emissions.
