Ontario looks to buy 50 per cent more energy to meet growing demand

Ontario plans to buy more energy to meet increasing demand across the province.

Making the announcement today (Dec. 11) in Brampton, Minister of Energy and Electrification Stephen Lecce said the government is expanding the largest competitive energy procurement in the province’s history by 50 per cent.

Lecce said the government is increasing the target for the procurement from 5,000 megawatts (MW) to up to 7,500 MW.

Energy procurement is the process of sourcing energy from suppliers.

According to the provincial government, 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, which Lecce said is the equivalent of adding four and a half cities the size of Toronto to the grid.

“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.”

Lecce said the procurement process will be transparent, competitive, and technology-agnostic to secure the lowest cost energy resources.

“Access to sufficient, sustainable, and affordable energy is not just vital to helping businesses grow, it’s also a key factor in attracting new businesses and investment,” said Jaipaul Massey-Singh, CEO, Brampton Board of Trade. “This announcement by the Ontario government will help our province continue to be a premier destination for industry and help our economy grow.”