Ontario Government Launches Energy Procurement Initiative
The Ontario government has announced the launch of its largest competitive energy procurement in the province's history. This initiative aims to generate affordable electricity to meet the growing demand, which is expected to rise by 60% by 2050. The procurement will focus on a mix of energy sources, including nuclear, hydroelectric, renewables, natural gas, and biomass.
The so-called Second Long-Term Procurement will involve several measures to ensure community consent and protect prime agricultural areas. These measures include requiring energy project developers to receive municipal support resolutions, prohibiting projects in specialty crop areas, and incentivizing projects in northern Ontario and those avoiding prime agricultural areas. Additionally, the government plans to unlock Crown Lands for renewable energy projects and incentivize economic opportunities for projects involving Indigenous communities.
The Independent Electricity System Operator is expected to report back with a procurement design framework by September 20, 2024, and conclude energy and capacity procurements by February 28, 2026. They forecast that Ontario will need more resources to meet the growing demand as the population and economy continue to grow and electrify.
