Ontario’s bold plans for energy have made headlines in recent months as the province prepares to meet growing requirements, and that includes challenging the proposed Clean Energy Regulations (CER) outlined by the federal government.
On December 2, The Minister of Energy and Electrification, Stephen Lecce, shared a statement requesting the CER be amended to address findings from an analysis conducted by Ontario’s Independent Electricity System Operator (IESO). According to IESO, “implementing the CER as currently proposed would necessitate at least $35 billion in additional costs to Ontario’s electricity consumers by 2050,” including a $132 to $168 annual increase to the average household’s electricity bill starting in 2033.
Stephen Lecce, Minister of Energy and Electrification.
Minister Lecce raised concerns over increasing costs while trying to maintain affordability to foster widespread electrification, stating, “there are far more cost-efficient ways to reduce emissions.”
According to IESO’s 2025 Annual Planning Outlook (APO), demand for electricity in the province is projected to increase by up to 75 per cent by 2050. This is a 15 per cent increase from the 2024 APO, and will be driven primarily by industrial and commercial sectors, including data centre growth, the needs of an increasing population and electrification.
Ontario is prepared to meet this challenge through an “all-of-the-above” approach to energy planning and procurement.
Minister Lecce did not mince words when establishing Ontario’s approach in the October 2024 Affordable Energy Future report, stating the provincial government will choose a “pro-growth agenda … including nuclear, hydroelectricity, energy storage, natural gas, hydrogen and renewables, and other fuels, rather than ideological dogma that offers false choices and burdens hardworking people and business with a costly and unnecessary carbon tax.”
As home to three of the four existing plants in Canada, Ontario is a leader in nuclear power generation, supplying more than 50 per cent of the province’s electricity and approximately 15 per cent of Canada’s electricity.
Ontario will continue to develop its nuclear capacity, reporting “shovels in the ground to prepare for the largest expansion of nuclear energy on the continent with the first small modular reactor (SMR) in the G7 as we upgrade and refurbish reactors at Darlington, Pickering and Bruce Power to safely extend their lifespan, all on-time and on-budget.”
On Nov. 18, 2024, Minister Lecce proved he does indeed mean business when it comes to Ontario’s nuclear advantage, announcing the refurbishment of Darlington Unit 1 was completed five months ahead of schedule. This marks a significant milestone in the provincial plan to address rising energy demands, as the unit is now set to deliver 875 megawatts of reliable, affordable energy over the next 30-plus years — enough to power 875,000 homes.
Nuclear and hydroelectricity are considered the “backbone of Ontario’s clean energy system”, providing ongoing, zero-emissions baseload power. However, the Affordable Energy Future report also clearly underscores the importance of natural gas, highlighting its role as the “province’s insurance policy, providing reliability on the hottest and coldest days of the year when other resources like wind and solar are not available.”
With that in mind, Ontario announced the Long-Term 2 RFP in August, the largest competitive energy procurement in the province’s history. This will procure up to 5,000 megawatts of energy (enough for five million homes) using a diverse mix of sources to ensure access to clean and reliable energy while fostering economic prosperity.
These announcements, which promise to prioritize job protection and affordability for Ontario families and businesses, have been underscored by an unwavering commitment to community engagement and Indigenous representation.
“As we prepare for the largest expansion of electricity generation over thirty years, our government is embracing an important opportunity for economic reconciliation among First Nations communities and workers,” said Greg Rickford, Minister of Indigenous Affairs and First Nations Economic Reconciliation. “By working together with Ontario Power Generation, we are ensuring that First Nations communities are not just part of the conversation, but active participants in shaping a prosperous, sustainable energy future.”
Ontario is currently developing its first integrated energy resource plan, to be released in early 2025, which will detail actions and policy steps necessary to meet growing demands while keeping the province’s system affordable and reliable.