Largest competitive energy procurement in Ontario’s history

Source: | · ENVIRONMENT JOURNAL · | December 19, 2024

Source: Rodan Energy Solutions

The Ontario government is expanding the largest competitive energy procurement in the province’s history by 50 per cent to meet soaring energy demand. The government has increased the target for the procurement from 5,000 megawatts (MW) to up to 7,500 MW to ensure Ontario has the reliable and affordable electricity it needs to power the building of new homes, businesses and communities.

Since the procurement was first announced, Ontario’s Independent Electricity System Operator (IESO) has released an updated electricity demand forecast which now shows the province will need 75 per cent more electricity by 2050, the equivalent of adding four and a half cities the size of Toronto to the grid. To meet this growing demand, the government directed IESO to begin the government’s Second Long-Term Procurement (LT2) and implement the increased procurement target.

“Our government is expanding what is already the largest competitive procurement in the province’s history as demand for electricity continues to grow,” said Stephen Lecce, Minister of Energy and Electrification. “This expanded procurement will deliver enough power for 1.6 million homes, which is critical as our population and economy continue to grow. Unlike the former government which allowed hydro rates to soar, we are keeping costs down by planning ahead and using competitive procurement.”