Ontario Increases Energy Procurement Target to 7,500 MW

The Ontario government has announced an expansion of its energy procurement initiative, increasing the target from 5,000 megawatts (MW) to 7,500 MW. This expansion is part of the Second Long-Term Procurement (LT2) strategy, which aims to meet the growing electricity demand projected by the Independent Electricity System Operator (IESO). The IESO forecasts a 75% increase in electricity needs by 2050, equivalent to adding four and a half cities the size of Toronto to the grid.

The procurement process is designed to be transparent and competitive, focusing on securing technology-agnostic energy resources, including wind and solar. The initiative also includes measures to protect prime agricultural areas and promote projects in Northern Ontario. Municipal support resolutions are required for new projects, ensuring local consent and support.

The government has tasked the IESO with developing a procurement design framework by September 20, 2024, and aims to conclude energy and capacity procurements by February 28, 2026. This accelerated timeline is intended to support large-scale investments and create jobs across the province.

Additionally, the government plans to incentivize economic opportunities for projects involving Indigenous communities and to unlock Crown Lands for renewable energy development. The procurement builds on a recent acquisition of nearly 3,000 MW of new battery storage projects, marking a significant step in Ontario's energy strategy.