September 27, 2016
Decision Will Reduce Electricity Costs for Consumers
Ontario will immediately suspend the second round of its Large Renewable Procurement (LRP II) process and the Energy-from-Waste Standard Offer Program, halting procurement of over 1,000 megawatts (MW) of solar, wind, hydroelectric, bioenergy and energy from waste projects.
This decision is expected to save up to $3.8 billion in electricity system costs relative to Ontario’s 2013 Long-Term Energy Plan (LTEP) forecast. This would save the typical residential electricity consumer an average of approximately $2.45 per month on their electricity bill, relative to previous forecasts. No additional greenhouse gas emissions are being added to the electricity grid.
On September 1, 2016, the Independent Electricity System Operator (IESO) provided the Minister of Energy with the Ontario Planning Outlook, an independent report analyzing a variety of planning scenarios for the future of Ontario’s energy system. The IESO has advised that Ontario will benefit from a robust supply of electricity over the coming decade to meet projected demand.
Informed by the Ontario Planning Outlook, consultations and engagements will begin this fall with consumers, businesses, energy stakeholders and Indigenous partners regarding the development of a new Long-Term Energy Plan, which is scheduled to be released in 2017. As part of this plan, Ontario remains committed to an affordable, clean and reliable electricity system, including renewables.
Ontario has established itself as a North American leader in clean energy development, attracting billions of dollars in private sector investment and generating over 42,000 jobs in the clean technology sector. The province has about 18,000 MW of wind, solar, bioenergy and hydroelectric energy contracted or online and the electricity supply is now over 90 per cent emissions-free.
Responsible management of Ontario’s electricity system is part of the government’s economic plan to build Ontario up and deliver on its number-one priority to grow the economy and create jobs. The four-part plan includes helping more people get and create the jobs of the future by expanding access to high-quality college and university education. The plan is making the largest investment in hospitals, schools, roads, bridges and transit in Ontario’s history and is investing in a low-carbon economy driven by innovative, high-growth, export-oriented businesses. The plan is also helping working Ontarians achieve a more secure retirement.