Ontario Adds New Power 73 Per Cent Lower Than Former Government

As part of its plan to protect Ontario, the government is taking the next step to deliver the affordable, reliable, and clean energy the province needs to build homes and power the most competitive economy in the G7. In August 2024, the province launched the largest competitive public procurement to secure new power in Ontario’s history. The Independent Electricity System (IESO) has executed on that direction competitively procuring more than 1,300 megawatts (MW) of new electricity supply by approving 14 projects across the province. Each successful project received strong municipal support and includes First Nations partners that have 50 per cent or greater equity ownership, ensuring communities share directly in the economic benefits of growth, with new generation coming online before May 1, 2030.

Unlike the former government, Ontario is following the Auditor General’s recommendation on competitive procurements resulting in a 73 per cent cost reduction for ratepayers when compared to the previous Feed-in-Tariff contracts and 21 per cent lower than the Large Renewable Procurement (LRP). These results have proven more affordable than similar procurements in comparable jurisdictions across North America, including 20 per cent less than Quebec, 14 per cent less than British Columbia, and 35 per cent less than New York State.

“To keep up with fast rising demand, Ontario successfully completed Canada’s largest competitive procurement bringing online new electricity generation 73 per cent lower than the previous governments,” said Stephen Lecce, Minister of Energy and Mines. “Ontario’s Integrated Energy Plan is focused on keeping power flowing and costs down, with shorter term renewables, storage, and natural gas bridging the gap as we expand nuclear and hydro over the medium term. A pragmatic all-of the-above strategy that has positioned Ontario as the best and most stable jurisdiction for electricity in North America.”

With electricity demand projected to increase by as much as 90 per cent, the province is taking decisive action now to bring new power online and keep it affordable for families and businesses. Ontario continues to attract investment because of its long-term integrated energy plan anchored by around-the-clock nuclear power supported by other sources such as natural gas, hydroelectricity, and renewables. Together, this mix will strengthen the grid’s reliability while leveraging the full value of Ontario’s nuclear fleet.

The 14 successful projects will deliver enough energy to power around 350,000 homes. The projects were selected with robust criteria, including sole Canadian ownership, no impact on Prime Agricultural Areas and being located on lands that are already zoned for industrial energy projects.

“Today’s announcement shows that Ontario is taking decisive action to secure our energy future,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. “By bringing new generation online through a transparent, competitive process, we are not only keeping electricity reliable and affordable for families and businesses but also creating good-paying jobs and supporting Indigenous communities as true partners in growth. This is how Ontario leads, combining innovation, strong partnerships, and homegrown energy to power our province for decades to come.”

Before 2018, the former government locked the province into expensive, sole-sourced contracts, often as high as 10x above market rates that drove up costs for families and businesses. Today, Ontario is using transparent, competitive, and technology-agnostic procurements to secure the lowest-cost power for ratepayers from available technologies. By relying on competition, the government is delivering affordable electricity in the short-term as the province builds out other medium and long-term solutions such as:

• Exploring up to 16,000 megawatts of new nuclear generation at Wesleyville, Bruce C and the small modular reactors at the Darlington New Nuclear Project
• Expanded generation through the LT2 Capacity Stream, with results anticipated in summer 2026
• Supporting up to 430 MW of new hydroelectric generation in Northern Ontario

“Today’s announcement reinforces that our competitive approach to procurement is delivering cost-effective results as we expand Ontario’s electricity system to meet future demand,” said Lesley Gallinger, President and CEO of the Independent Electricity System Operator. “Through the first LT2 energy window, we met our procurement target by leveraging robust competition to secure renewable supply at lower prices for ratepayers. These 14 projects will position the grid to support economic growth across Ontario into the 2030s and beyond.”

Advancing competitive procurements supports the government’s plan to protect Ontario and is a key part of Energy for Generations, the government’s long-term approach to ensuring the province has the reliable, affordable power it needs to be energy secure and drive economic growth. The government’s integrated approach and record-setting investments in energy infrastructure are also providing the certainty needed for Indigenous communities, municipalities, businesses and industry partners to invest confidently in Ontario’s future.

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