By: Ted Gruetzner
Years ago, the Chief Forecaster for what was then Ontario Hydro told a legislative committee that he viewed electricity the same way Canada’s first Prime Minister viewed scotch: Too much was better than too little.
It’s a logical response to a question that continually plagues the electricity sector: Just how much power do we need? And what should we spend and build to provide it?
Since taking over the role in June 2024, Ontario’s Minister of Energy and Electrification, Stephen Lecce has moved quickly to put his stamp on the Ontario energy world and, in his words, position the province to become an “energy superpower”.
While I don’t know if he’s a drinker, Minister Lecce, gives every indication that he would rather err on the side of having too much electricity than run the risk of not having enough to meet forecast demands. This to me is the prudent approach to power planning.
In recent months the Ontario government has, among other things:
- Passed The Affordable Energy Act, 2024
- Introduced requests for proposals for large amounts of new supply using an “all above” approach that includes hydro, wind and solar and gas, provided there is community acceptance.
- Started refurbishing some of Ontario’s larger hydroelectric stations
- Directed Ontario Power Generation to investigate the option of new stations, including new nuclear, on three OPG owned-properties
- Worked with Bruce Power to develop a new nuclear station on the shores of Lake Huron
- Made it clear that natural gas is, and will continue to be, a major source of energy in the province.
Just before Christmas, Minister Lecce issued a new directive to the Ontario Energy Board that would seem to move the Board from being an independent body to an agency that’s intended to facilitate government planning.
Lecce has also announced an ambitious energy efficiency program that will save consumers money and recognizes the need for a diverse energy supply and customer choice.
And following that, Premier Doug Ford announced what’s been dubbed the Am-Can effort to look at multijurisdictional ways to increase energy trade with the United States.
Yes, there are questions that remain – Total price, impact on consumers and timeframes for new infrastructure among them. But this is also no time to be cautious. It’s clear that Ontario will be competing for new industry. If we build, they may not come. But if we don’t, they almost certainly won’t.
In my view the Ontario government have set a path for a solid energy future.
Their energy policy is aimed at supporting their economic policy, whereas all too often governments either create an energy policy in isolation of their economic policy or use their energy policy to “create” an economic policy.
The Global team has more to say about this but until then please reach out to connect to catch up.
A new year coffee (or scotch) is on me!