Ontario has entered a period of electricity supply need, driven by economic growth, retirements and refurbishments of power plants and increased electrification of the transportation and manufacturing sectors. New clean electricity generation is needed beginning in 2030 to keep pace with Ontario’s growing economy and to advance grid decarbonization. This new supply will help meet overall energy needs and support the process of eliminating emissions from the electricity system.
The IESO is now moving forward with its next long-term procurement focusing on non-emitting generation, namely wind, hydro, biomass and solar. These resources have the most potential to be built and in service by 2030 to help meet overall needs for energy, and can work in tandem with Ontario’s future battery fleet. Together they will increase reliability while helping to reduce output from natural gas generators and support the process of eliminating emissions from the grid.
Evaluating Procurement Options for Supply Adequacy
December 11, 2023
Report Highlights:
The IESO is planning to acquire 2,000 MW of new energy-producing resources for 2030 through the LT2. Another 1,500 MW is expected to be needed for 2032 and an additional 1,500 MW for 2034.
This staged approach for acquiring new supply will allow for a regular reassessment of needs as time progresses, and for ongoing technological advances to occur that may reduce associated costs.
The IESO’s competitive procurement process is structured to deliver maximum ratepayer value and help ensure that cost-effective proposals will be chosen.
New non-emitting supply will produce energy when demand is low, to be stored by Ontario’s storage fleet and used when it’s needed most. This will allow the province to reduce output from natural gas generators and continue the process of eliminating emissions from the grid.
