Ontario Government Introduces Legislation on Rising Electricity Demand and Economic Growth
The Government of Ontario introduced the Protect Ontario by Securing Affordable Energy for Generations Act, 2025 on June 3. According to the Independent Electricity System Operator (IESO), electricity demand in the province is projected to increase by 75 percent over the next 25 years due to factors including population growth, new manufacturing facilities, data centres, advanced technologies, and increased electrification.
The proposed legislation is intended to set new objectives for Ontario’s energy agencies in response to rising demand. This is relevant to residents as it could impact how energy resources are managed and how new developments, such as data centres, affect local energy systems and priorities in coming years.
If passed, the act would add “economic growth” as a formal objective for both the Independent Electricity System Operator and the Ontario Energy Board. According to the Ontario government, this would require the agencies to support job-creating investment in Ontario. The act would also give utilities authority to prioritize projects identified by the government as most beneficial to the provincial economy. The government noted that current law requires utilities to connect all data centres regardless of economic impact, but the proposed changes would allow for prioritization based on economic considerations.
The proposed legislation includes provisions allowing utilities to invest in domestic supply chains by introducing new restrictions on foreign participants in Ontario’s energy sector. According to the government, these restrictions are meant to address risks such as malware or tampering. The act would also broaden the IESO’s mandate to support Ontario’s hydrogen sector, which would enable the Hydrogen Innovation Fund to be used for hydrogen-related energy projects.
Another element of the bill would expand eligibility for the Future Clean Electricity Fund to include nuclear generation and transmission infrastructure. The IESO projects that demand from data centres will represent 13 percent of new electricity demand in Ontario by 2035, and that industrial electricity demand will increase by more than 35 percent in the next five years.
The government stated that the act is linked to the forthcoming release of Ontario’s first Integrated Energy Plan, which will coordinate electricity, natural gas, hydrogen, and other fuels.
Individuals and organizations quoted in the government’s announcement as supporting the legislation’s objectives included Dennis A. Darby of Canadian Manufacturers & Exporters, Stephanie Crilly of the Economic Developers Council of Ontario, Daniel Tisch of the Ontario Chamber of Commerce, Teresa Sarkesian of the Electricity Distributors Association, and Vince Brescia of the Ontario Energy Association.