Province awards 14 projects as electricity demand expected to surge and long-term energy expansion plans accelerate
Ontario has approved 14 new electricity generation projects through what the province says is the largest competitive power procurement in its history, securing more than 1,300 megawatts of new supply in a move the government says will provide enough electricity to power about 350,000 homes.
The procurement, administered by the Independent Electricity System Operator (IESO), forms part of the province’s broader strategy to meet rapidly rising electricity demand while keeping rates affordable for households and businesses. New generation from the projects is expected to come online before May 1, 2030.
The Ministry of Energy and Mines said the competitive procurement process delivered prices 73 per cent lower than those under the former government’s Feed-in-Tariff program and 21 per cent below prices achieved through Ontario’s previous Large Renewable Procurement.
Government Positions Procurement as Cost-Control Measure
Ontario Energy and Mines Minister Stephen Lecce said the procurement demonstrates the province’s strategy of using competitive bidding to secure lower-cost electricity as demand increases.
“To keep up with fast rising demand, Ontario successfully completed Canada’s largest competitive procurement bringing online new electricity generation 73 per cent lower than the previous governments,” said Stephen Lecce, Minister of Energy and Mines. “Ontario’s Integrated Energy Plan is focused on keeping power flowing and costs down, with shorter term renewables, storage, and natural gas bridging the gap as we expand nuclear and hydro over the medium term. A pragmatic all-of the-above strategy that has positioned Ontario as the best and most stable jurisdiction for electricity in North America.”
The province said electricity demand could rise by as much as 90 per cent in coming decades, driven by population growth, housing development, industrial expansion and electrification across sectors.
Ontario has been expanding its long-term electricity strategy through investments in nuclear, hydroelectric, natural gas, energy storage and renewable generation, positioning the latest procurement as part of a broader effort to maintain grid reliability while managing costs.
Indigenous Partnerships and Municipal Support Required
According to the province, all 14 successful projects received municipal support and include First Nations partners holding at least 50 per cent equity ownership.
The government said the ownership requirement is intended to ensure Indigenous communities share directly in the economic benefits associated with new energy infrastructure development.
Projects were also subject to criteria including Canadian ownership requirements, protection of prime agricultural land and location restrictions limiting development to lands already zoned for industrial energy use.
Associate Minister of Energy-Intensive Industries Sam Oosterhoff said the procurement reflects the province’s dual focus on reliability and economic development.
“Today’s announcement shows that Ontario is taking decisive action to secure our energy future,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. “By bringing new generation online through a transparent, competitive process, we are not only keeping electricity reliable and affordable for families and businesses but also creating good-paying jobs and supporting Indigenous communities as true partners in growth. This is how Ontario leads, combining innovation, strong partnerships, and homegrown energy to power our province for decades to come.”
IESO Says Competition Lowered Procurement Costs
Lesley Gallinger, president and chief executive of the IESO, said the procurement met its target by leveraging market competition to secure renewable supply at lower prices.
“Today’s announcement reinforces that our competitive approach to procurement is delivering cost-effective results as we expand Ontario’s electricity system to meet future demand,” said Lesley Gallinger, President and CEO of the Independent Electricity System Operator. “Through the first LT2 energy window, we met our procurement target by leveraging robust competition to secure renewable supply at lower prices for ratepayers. These 14 projects will position the grid to support economic growth across Ontario into the 2030s and beyond.”
The procurement is part of Ontario’s Long-Term 2 (LT2) energy procurement framework, launched in August 2024. The province later expanded the LT2 target to as much as 7,500 MW as it seeks additional generation and capacity resources.
Broader Energy Expansion Continues
While the newly awarded projects address near-term supply needs, the government is also pursuing longer-term generation investments, including plans to explore up to 16,000 MW of new nuclear generation through projects at Wesleyville, Bruce C and small modular reactors at the Darlington New Nuclear Project.
Ontario is also supporting development of up to 430 MW of new hydroelectric generation in Northern Ontario and expects additional procurement results from the LT2 Capacity Stream in summer 2026.
The province has argued that competitive procurement marks a departure from earlier energy contracting practices prior to 2018, which it says relied heavily on sole-sourced agreements that increased electricity system costs.
Outlook
The newly procured renewable energy projects have been awarded 20-year contracts and must reach commercial operation by May 2030.
As Ontario prepares for a sharp rise in electricity demand over the next two decades, the province is betting that a combination of competitive procurements, expanded nuclear generation and broader grid investments will be sufficient to support economic growth while containing power prices.
The latest procurement results provide an early test of that strategy as Ontario attempts to balance affordability, reliability and decarbonization amid one of the most significant electricity demand expansions in the province’s history.