2022
Ontario electricity demand reflects a rebounding economy in 2022
Electricity demand in Ontario grew by 2.8 per cent in 2022, rising to 137.5 Terawatt hours (TWh) as a result of the province’s economic recovery coming out of the pandemic.
The biggest recovery in 2022 came from small businesses, as the return to office and the reopening of many retail stores drove electricity use up by almost seven per cent over 2021. Residential demand held steady over the year while industrial and commercial sectors together saw a consumption increase of roughly four per cent.
Last year’s increase in energy demand was met by a shifting mix of generation types. Output from nuclear facilities was the lowest in almost two decades as a result of ongoing refurbishments and maintenance outages. Natural gas, hydro and wind generation all increased output, with hydro seeing its highest contribution since 2008. Ontario’s wind and gas generation each produced around 10 per cent of total provincial supply.
Electricity consumers – both large and small – also continued to make an important contribution to the system. For example, large businesses participating in the Industrial Conservation Initiative shaved six per cent from the 2022 summer peak demand.
Capacity
Grid-connected capacity in 2022 totalled 38,096 MW.
Capacity Auction
The IESO capacity auction continues to grow, securing 1,430.6 MW of supply for summer 2023 and 1,160 MW for winter 2023-2024. The auction received enrolments totalling more than double the capacity target, demonstrating the diversity of options available as Ontario’s electricity needs grow this decade.
Storage
Storage participated in the IESO-administered markets in 2022 and contributed roughly 8 GWh to the system. This year, the IESO’s Long-Term Expedited procurement is expected to announce up to 2,500 MW of additional battery storage for Ontario’s grid beginning in 2025, marking a major milestone on the province’s pathway to a decarbonized electricity system. Storage facilities with expired contracts are expected to participate in the 2024 Medium-Term RFP for reacquiring existing resources.
Investment in local electricity supply
More and more, local electricity generation and energy management are aiming to contribute to a cleaner and more affordable grid in Ontario. Last year marked the launch of multiple local pilots and programs to support local supply projects. This included the IESO’s $57 million collaboration on local energy projects with the OEB and other organizations, as well as new Save on Energy and Indigenous Energy Support Programs, investing another roughly $4.9 million in community energy development.
Innovation
In 2022, a number of projects supported through the IESO’s Grid Innovation Fund were completed, providing valuable insights. They included:
- The Pumping Energy Savings II Demonstration and Scale-Up Strategy, which demonstrated the case for heat pump retrofits in multi-unit residential buildings. The project resulted in more than 500,000 kWh annual energy savings from three retrofit sites.
- A project at a municipal wastewater treatment facility in London, Ontario, which added hydrogen peroxide to the treatment process and resulted in a net savings of $13,650/month or 3,500 kWh/day.
- A local demand response pilot that created the first major residential battery rental program in Canada, in one of the most densely populated neighbourhoods in Toronto. A a four-hour demand response activation was successfully completed, providing learnings for the future.
Energy Efficiency Savings from Save on Energy Programs
Ontarians continued to reduce their energy use in 2022 by over 850 GWh* by implementing energy-efficient improvements through Save on Energy programs such as the Retrofit program, Small Business Lighting program, Energy Performance Program, and the Energy Affordability program. The electricity saved is equivalent to powering a city the size of Barrie for one year.
Since Save on Energy energy-efficiency programs were first launched more than a decade ago, Ontario has achieved 18 TWh of energy savings, enough to power over two million homes for a year. More than 300,000 residential electricity consumers and businesses have participated in a Save on Energy program.
Ontario’s demand for electricity is expected to grow over the next 10 years and energy efficiency will play an important role in cost-effectively meeting system needs, driving cost competitiveness and promoting customer-driven solutions. The province of Ontario has further proven its commitment to energy-efficiency by giving the IESO a ministerial directive to increase CDM programming by $342 million. As result, new and expanded Save on Energy programs will be launched in 2023.
Demand, Supply and Price
Here is how Ontario’s electricity system performed in 2022:
