Published plans and annual reports 2024–2025: Ministry of Energy

Ministry overview

Ministry’s vision

A Reliable, Affordable, and Clean Energy System.

The Ministry of Energy’s (ENERGY) vision is to make Ontario strong, healthy, prosperous and open for business by ensuring the continued availability of reliable, affordable and clean energy.

Ministry core commitments and key deliverables

ENERGY sets the legislative and policy framework to ensure all Ontarians have safe, reliable, affordable and clean energy supply, distribution, and transmission, as well as choices in their energy use. ENERGY develops and advises on all aspects of energy policy for Ontario, including electricity, natural gas, petroleum products and low-carbon fuels.

As Ontario continues to be a top destination for investment and job creation, and our population continues to grow, ENERGY works with partners and Indigenous communities to ensure we continue to have cost-effective energy supply, transmission, and distribution systems; to advance innovative solutions and technologies; to promote energy efficiency; and, to power the economy so that Ontario remains Open for Business.

At the same time, the government is keeping costs down for families by ensuring predictability and affordability when it comes to electricity bills for families, Indigenous communities, farms, and small businesses. As part of this commitment, ENERGY provides electricity rate mitigation programs that provide direct relief on eligible customers’ electricity bills, in addition to removing the above-market cost of renewable energy contracts.

ENERGY is also responsible for Government Business Enterprises whose incomes contribute to the fiscal plan. This reflects contributions from Hydro One Limited and the wholly owned Ontario Power Generation Inc. (OPG). It also oversees the Ontario Energy Board (OEB) and the Independent Electricity System Operator (IESO).

Powering Ontario’s Growth

Ontario’s clean electricity grid is a competitive advantage in attracting investments and jobs to the province.

Following years of excess supply, Ontario’s Independent Electricity System Operator (IESO) has forecasted an emerging electricity supply need in 2025-26 that grows through the latter part of the decade as a result of significant economic growth, population growth and electrification and transportation and industry.

In July 2023, the government released Powering Ontario’s Growth: Ontario’s Plan for a Clean Energy Future. It is a pragmatic plan outlining the actions Ontario is taking to meet increasing electricity demand, which invests in the future of nuclear, while keeping costs down for people and businesses. The plan includes new clean electricity generation, storage and transmission lines that will provide families and industries with the reliable, low-cost, and clean power they need. In the near term, natural gas generation will also continue to provide the province with the capacity to meet electricity demand and maintain system reliability.

Ministry programs

ENERGY continues to implement the government’s Powering Ontario’s Growth plan to power economic growth and electrification over the next three decades while maintaining its clean energy advantage. ENERGY’s programs are designed to provide support these initiatives and provide Ontario with the reliable, low-cost, and clean power we need.

The Ministry Administration Program works to achieve ministry and government objectives by providing executive direction, strategic advice and vital corporate services, including communications, strategic human resources, accessibility, French Language Services, information technology and business solutions, legal services, Freedom of Information and Protection of Privacy activities, information and records management, accommodations and facilities management, emergency management, continuity of operations planning, procurement, controllership and accounting, fiscal management, and strategic and resource planning activities.

The Development and Management Program is responsible for developing Ontario's energy policy framework, which is central to the building of a strong and prosperous economy. It provides leadership and support to the energy sector to ensure clean, reliable, affordable, and sustainable energy supply, transmission, and distribution systems. The program supports energy efficiency, grid modernization, and the development of cleaner forms of energy. This program also oversees engagement and consultation with First Nations and Métis on provincial energy sector activities and projects while facilitating the participation of Indigenous communities in the energy sector. The program is also responsible for overseeing a construction loan for the Wataynikaneyap (Watay) Transmission Project.

The Electricity Price Mitigation Program helps Ontarians manage electricity costs. To ensure the province’s continued success in attracting new investments and growing Ontario’s economy, the Ministry remains focused on keeping electricity affordable as demand grows. To keep energy costs down for families, residential customers benefit from the Comprehensive Electricity Plan, the Ontario Electricity Rebate, Ontario Electricity Support Program and other more targeted programs that support the most vulnerable. The Ministry also provides clean and affordable electricity to power businesses through the Comprehensive Electricity Plan, Industrial Conservation Initiative, and other programs.

2024-25 Strategic plan

For the first time since 2005, demand for electricity in Ontario is rising. Economic development including historic investments in electric vehicles and battery manufacturing, together with population growth and electrification, are driving the demand for electricity. ENERGY is acting on many fronts to ensure the province has the electricity it needs to enable the Ontario government’s priorities to power economic growth and electrification. They include generation and procurement, transmission and distribution, efficiency and demand management, integrated energy planning, electricity price mitigation and red tape reduction strategies.

Generation and Procurement

Strategic priority: Nuclear energy projects

Description: As part of Powering Ontario’s Growth plan, ENERGY’s pragmatic and long-term plan to meet Ontario’s energy needs through 2050, ENERGY is supporting investments in several nuclear energy projects. ENERGY provides policy oversight of key nuclear energy projects and initiatives to support government decision-making and ensure that the projects can be delivered in a way that minimizes costs and risks for ratepayers and the province while enhancing the province’s position as a global leader in new nuclear technologies, creating new export opportunities that will drive economic growth.

Intended outcomes: Ensure a reliable supply of electricity this decade through cost-effective and timely delivery of nuclear energy projects while also enhancing economic development opportunities.

Discussion: Nuclear power is emission-free, reliable, and low-cost and currently supplies more than 50% of the power used by Ontarians everyday. The government is leveraging Ontario's world-class nuclear sector to develop the next generation of nuclear power, including grid-scale small modular reactors (SMRs). Ontario’s nuclear advantage better positions the province to compete for international investments, which are increasingly prioritizing access to clean energy, as well as export development opportunities for Ontario’s nuclear sector. Nuclear energy projects are complex and resource intensive. Multi-stakeholder engagement as well as careful upfront planning and preparation is required to ensure project completion within committed budget and schedule and to ensure the best interest of ratepayers. Ministry oversight of nuclear projects ensures that government is able to undertake an informed decision-making process and identify problems early so corrective actions are taken in a timely manner. Other jurisdictions are following Ontario’s lead.

Key programs and initiatives:

• Ongoing oversight of the Darlington refurbishment to secure 3,500 MW of clean, reliable, low-cost power until 2055 with an expectation that the project could contribute $90 billion to Ontario’s GDP and increase employment opportunities across the province.
• Ongoing oversight of the Bruce refurbishments to secure at least 6,550 MW of clean, reliable, low-cost generation capacity over the long-term and enable Bruce Nuclear Generating Station operation to 2064;
• Continued safe operations of Pickering Nuclear Generating Station, with completion of Project Initiation Phase of potential Pickering refurbishment by the end of 2024;
• Completion of planning, preparation and licensing and start of construction to deploy Canada and the G7’s first grid scale SMR at Darlington (300MW);
• Ongoing planning and licensing work on three additional SMR units at Darlington for a total of 1,200 MW;
• Predevelopment work for the first large-scale nuclear build (4,800 MW) in three decades, including a federal Impact Assessment at the Bruce site; and
• Leverage the expertise of OPGand its subsidiary Laurentis Energy Partners to support a new nuclear collaboration agreement with SaskPower.

Strategic priority: Competitive procurements

Description: In October 2022, ENERGY directed the IESO to acquire new electricity generation and storage resources through competitive procurements to ensure the province has the electricity it needs to support economic growth, a growing population and electrification.

Intended outcomes: ENERGY is committed to a procurement framework that ensures Ontario has an affordable, reliable and clean electricity system. This is achieved when resources are procured through competitive processes and in a transparent and cost-effective manner. The first Long-Term procurement (LT1) targeted standalone storage resources of natural gas generation that are scheduled to be operational between 2026 and 2028.

Discussion: The IESO has forecast an emerging electricity supply need in 2025-26 that grows through the latter part of the decade. To fill this forecasted supply gap, the IESO will need to procure electricity products and services from existing and new resources. As Ontario becomes a leader in the batteries of the future by connecting resources and workers in norther Ontario with manufacturing strength of southern Ontario, the procurement of clean energy storage represents the largest battery procurement in Canada’s history. These facilities will support the operation of Ontario’s clean electricity grid by drawing on and storing electricity off-peak when power demand is low and intermittent renewable generation (wind/solar) is high and returning the power to the system at times of higher demand.

Key programs and initiatives:

• Evaluate, award and secure contracts for competitive procurements for new long-term request for proposals.
• Engage in bilateral negotiations to re-contract existing biomass-fired generators.

Transmission and Distribution

Strategic priority: Expanding Ontario's transmission system

Description: Transmission is critical to connecting our vast province to the reliable, affordable, and clean electricity being generated in Ontario. Expanding electricity transmission infrastructure supports economic development opportunities and significantly improves reliability for communities across Ontario.

Intended outcomes: Expansion of the transmission system is key to enhancing Ontario’s clean energy advantage, enabling industrial electrification and growth, and supporting electric vehicle adoption. For remote communities connecting to the grid, transitioning away from diesel as an energy source can also present significant economic and environmental benefits through emissions reductions, enhanced electricity reliability, and economic and partnership opportunities.

Discussion: Early planning for future transmission development is important to ensure that energy is where it is needed at the lowest possible cost and to unlock all regions of our province to future economic growth and clean energy development.

Key programs and initiatives:

• Continued support for the Watay Project by ensuring there is a sufficient annual allocation towards the project’s loan facility. The Project is nearing completion and will connect 16 remote First Nations to the grid, helping them to transition away from diesel for electricity generation.
• Engage with other remote First Nations interested in reducing their reliance on diesel fuel for electricity generation.
• Work with IESO to identify new transmission opportunities to better connect northern and southern Ontario as well as the Greater Toronto Area.
• Continue to support southwestern Ontario’s energy needs with the planning, development, and construction processes for five transmission line projects in the region.
• Continue to support the new transmission lines identified in the Powering Ontario’s Growth plan in northeastern Ontario, to facilitate green steel making.
• Continue to support growth in Eastern Ontario and the Ottawa with the development of a new transmission line between Peterborough and Durham Region.

Energy Efficiency

Strategic priority: Enhancing energy efficiency programs and other initiatives to meet rising electricity demand help families and businesses keep costs down.

Description: ENERGY and its agencies are continuing to enhance energy efficiency programs and other initiatives to keep costs down and meet rising demand, including electrification. In the summer of 2023, ENERGY launched a public and stakeholder consultation, including targeted outreach to Indigenous communities on the scoping of future energy efficiency and conservation frameworks.

Intended outcomes: Through cost-effective energy efficiency programs, ENERGY will continue to provide customers with tools to manage their energy costs and help defer the need to build and operate new energy infrastructure.

Discussion: Efficient electrification will be important to minimize the impacts to the electricity system. Energy efficiency and other demand-side management initiatives, including distributed energy resources, can help customers mitigate upward electricity demand and cost pressures and help reduce reliance on carbon-intensive fuels.

• Post-2024 Electricity Energy Efficiency Framework: This includes consideration of how a new framework could look beyond a four-year timeframe, promote electrification and distributed energy resources (DERs), support LDCs in delivering energy efficiency and demand management programs, and co-ordinate electricity and natural gas energy efficiency programming.
• Increasing the Value of Energy Reporting and Benchmarking Programs:
  • Explore how the BPS and large building energy reporting and benchmarking programs could help organizations to inform and measure progress against energy and climate goals.

Integrated Energy Planning

Strategic priority: Integrated energy planning

Description: Building the clean energy infrastructure necessary to power Ontario’s future is a complex undertaking that requires the highest level of strategic energy planning and coordination. ENERGY will continue to make progress in advancing integrated energy planning in a way that maximizes economic opportunities, supports cost-effective decisions and the growing demand for clean energy. Early work included the creation of the Electrification and Energy Transition Panel (EETP), commissioning the independent Cost-effective Energy Pathways Study and directing the OEB to consult and report back on options to modernize it’s regulatory framework.

Intended outcomes: Announce next steps toward integrated energy planning process in 2024. Success in implementing an effective integrated energy plan will require close coordination with energy sector agencies, key partner ministries, as well as consultation with the public and industry stakeholders, and engagement of Indigenous communities and organizations.

Discussion: In January 2024, ENERGY released the final report of the EETP titled “Ontario’s Clean Energy Opportunity.” The report includes 29 key recommendations and key principles to ensure Ontario has the energy planning instruments required to enable job creation, growth and a competitive investment environment. 

Key programs and initiatives:

• Continue to support the implementation of the EETP’s final report recommendations and develop an integrated energy planning process.
• Work with the OEB to strengthen Ontario’s resiliency to extreme weather.
• Work with the OEB to support distribution system innovation.
• Complete the Cost-Effective Energy Pathways Study.
• Continue supporting low carbon fuels, including through the Hydrogen Innovation Fund, where, the Ontario government is investing $13.4 million in 15 new projects that will help integrate hydrogen into the province’s electricity grid.
• Continue to support the Clean Energy Credit (CEC) registry to enhance the clean electricity grid's competitiveness and job attraction. Proceeds from CEC sales, directed to the Future Clean Electricity Fund, will preserve and expand the province's clean energy advantage, attracting investments in electric vehicle and battery manufacturing, clean steel, and other sectors.

Strategic priority: Support reliable and affordable home heating through the Natural Gas Expansion Program

Description: Natural Gas Expansion Program (NGEP) funds expansion of natural gas distribution infrastructure in rural, northern, and Indigenous communities.

Intended outcomes: To help families keep energy costs down and move off higher-emitting fuel sources including propane and home heating oil, the Ontario government is responding to calls from communities who are asking for access to natural gas. NGEP was designed to assist the expansion of gas infrastructure to provide access to an economical fuel source in rural, northern, and Indigenous communities for families, businesses and farmers while reducing emissions.

Discussion: Access to affordable options for home heating remains a priority for the government. In 2023, ENERGY conducted a significant public consultation process to gather feedback on the performance of NGEP to date and inform options for a potential future phase.

Key programs and initiatives:

ENERGY continues to implement Phase 1 and Phase 2 of the Natural Gas Expansion Program:

• Phase 1 is comprised of 8 projects spanning 16 communities, with $54.91M in funding. Six of the eight projects are complete.
• Phase 2 is comprised of 28 projects spanning 43 communities, with $226.54M in funding.

All projects are required to have applied for leave to construct (where necessary) no later than December 31, 2025.

Strategic priority: Readying the electricity grid for electric vehicle integration

Description: ENERGY continues to work collaboratively with partners to prepare the electricity grid for EV. In response to ministerial direction, the OEB continues its work through the Electric Vehicle Integration initiative to assist it in determining what actions they should take to ensure the efficient integration of EV into the transmission and distribution systems. 

Intended outcomes: To create the right conditions to ensure the electricity system is ready for charging infrastructure and that the charging infrastructure deployed can help reduce the impact of EV on the grid. 

Discussion: Ontario’s historic investments in EV and battery manufacturing reflect the province’s economic competitiveness and will help build our reputation as a leader in clean transportation solutions. ENERGY is working to ensure our grid is prepared to charge electrified transportation. This means leading the way by addressing potential barriers to EV charging and developing a coordinated, government-wide projection for EV uptake, and collaborating with partner ministries on transportation electrification such as MTO, as they implement the EV ChargeON program.

Key programs and initiatives:

• Implementing the Electric Vehicle Charging Connection Procedures (EVCCP), to streamline the connection process and provide consistency and clarity across the province.
• With the OEB, launch a new reduced electric vehicle charging rate consultation process, recognizing stakeholder concerns around disproportionately high demand charges that can act as a barrier to EV infrastructure deployment.
• Gathering stakeholder insights on the potential benefits and mechanisms for providing publicly available capacity information about the distribution system in order to enhance grid transparency, support efficient grid management, and facilitate informed decision-making by stakeholders.

Strategic priority: Fuel price monitoring

Description: ENERGY monitors and reports on fuel prices (e.g., gasoline, diesel, natural gas) on an ongoing basis.

Intended outcomes: Coordinate policy initiatives and provide strategic advice on fuel supply and pricing issues and keep the public well informed.

Discussion:  Fuel price monitoring assists in evidence-based policy making by providing reliable information on fuel prices. There are some limitations in publicly available pricing information for emerging fuels markets (e.g., renewable natural gas and hydrogen) and unregulated fuel market costs (e.g., propane).

Key programs and initiatives:

• Continued fuel price monitoring to provide publicly available information on retail gasoline, diesel, and other transportation fuels across 19 Ontario fuel markets on the government website.

Electricity price mitigation

Strategic priority: Electricity price mitigation

Description: To ensure the province’s continued success in attracting new investments and growing Ontario’s economy the government remains focused on keeping electricity affordable as demand grows. To keep costs down for families and businesses, ENERGY offers a number of customer programs and initiatives. 

Intended outcomes: To maintain electricity price stability and increase electricity affordability for Ontario families and businesses and attract economic investment to the province.

Discussion: At a time when inflation and the Bank of Canada interest rates are high and everyday costs are up, the government is keeping costs down for families. While the economic situation remains challenging, Ontario continues to invest in key public services and lay out a path to a balanced budget without raising taxes or fees. Through investments and relief measures, the government aims to help with keeping costs down and making life more affordable for people. To keep costs down for families, residential customers benefit from a number of programs, rebates and rate relief measures, including increased support in 2024-25 for targeted support mechanisms for Ontario’s most vulnerable. ENERGY also provides these programs for business customers, as a result, Ontario electricity rates are priced at or below the rates in neighbouring Great Lakes States providing a clear clean energy advantage for economic investments.

Key programs and initiatives:

• The Ontario Electricity Rebate (OER) is a transparent on-bill rebate, provided to eligible residential, farm and small business consumers. Effective November 1, 2023, the OER is providing eligible consumers with an 19.3% rebate from the province on the subtotal of their electricity bill.
• As of January 1, 2021, large and mid-sized industrial and commercial consumers are automatically benefitting from lower electricity bills. Through the CEP, the government is funding the above-market costs associated with more than 33,000 non-hydro renewable energy contracts. In 2024, industrial consumers are forecast to see savings of about 13% on their bills, while mid-sized commercial consumers could see savings of about 16% on their bills. Actual savings can depend on location and consumption.
• Eligible rural customers who face higher electricity delivery charges benefits from the Distribution Rate Protection (DRP) and Rural or Remote Electricity Rate Protection (RRRP). These programs provide on-bill relief for eligible customers of certain prescribed LDCs. These programs are automatically applied to the bills of eligible consumers.
• The Ontario Electricity Support Program (OESP) helps eligible low-income consumers by providing a monthly on-bill credit. Credit amounts range from $35 to $75 per month based on household size and income. Enhanced credit amounts, from $52 to $113 per month, are available for customers who are Indigenous, use electric heat or rely on approved energy-intensive medical devices.
  • On March 1, 2024, the government broadened the eligibility for OESP by increasing the program’s income eligibility thresholds. The new thresholds reflect Statistics Canada’s 2020 Low-Income Measure, making thousands of additional Ontario households eligible for electricity bill supports.
• The Northern Ontario Energy Credit (NOEC) helps eligible low-to-middle-income northern residents manage energy costs. For 2024, qualifying individuals can receive up to a maximum of $180; families (including single parents) can receive up to a maximum of $277.
• The First Nations Delivery Credit (FNDC) provides a 100 per cent credit for delivery or service charges for eligible on-reserve First Nations residential customers of licensed electricity utilities.
• In November 2023, the government announced an increase of $5 million for the Independent Electricity System Operator (IESO) Indigenous Energy Support Programs, bringing the total annual investment up to $15 million.
  • The IESO awarded funding for 93 projects from across 58 Indigenous communities in 2023, which will help promote Indigenous leadership in the electricity sector. These Indigenous Energy Support Programs help ensure that Indigenous communities can fully leverage opportunities in the electricity sector that can create significant, long-term economic benefits.
• In February 2024, the government introduced Bill 165 – the Keeping Energy Costs Down Act, 2024. The legislative amendments in Bill 165 are intended to keep housing costs down and support fair and informed decision-making at the OEB to foster affordable communities and ensure a reliable energy supply.

Reducing Red Tape

Strategic priority: Burden reduction

Description: ENERGY will continue to look for opportunities to contribute to the government-wide effort to reduce burden and streamline program delivery across government.

Intended outcomes: ENERGY will continue to reduce Regulatory Compliance Requirements from its 2018 baseline as well as regulatory costs.

Key programs and initiatives: ENERGY is also overseeing OEB progress towards its target of reducing burden by 5% from 2018 to March 2026 as well as pursuing its own priority initiatives to drive red tape reduction within its programs and frameworks.

Detailed financial information

Table 2: Combined Operating and Capital Summary by Vote

For additional information, see:

• Expenditure Estimates
• Ontario Budget
• Public Accounts

Contact: energy@ontario.ca

Agencies, Boards and Commissions (ABCs)

Independent Electricity System Operator (IESO)

The IESO manages real-time operations of Ontario’s power grid system by balancing supply of and demand for electricity, designing and procuring delivery of conservation and demand management programs, planning for the province’s future energy needs and designing a more efficient electricity marketplace to support sector evolution. The IESO's is a not-for-profit corporate entity established in the Electricity Act, 1998. Its fees and licences to operate are set by the Ontario Energy Board.

Ontario Energy Board (OEB)

The OEB is the independent regulator of the province’s electricity and natural gas sectors. It oversees Ontario’s energy utilities to ensure the public interest is served.

The OEB's mandate and powers are set out primarily in three statutes — the Ontario Energy Board Act, 1998; the Electricity Act, 1998 and the Energy Consumer Protection Act, 2010, and the regulations made under these statutes. Other statutes, such as the Statutory Powers and Procedure Act, 1990, also inform the OEB's authority.

The OEB's annual operating expenses are consolidated onto the ministry’s financial records. Its operations and activities are fully funded by its regulated stakeholders in the gas and electricity sectors, under the cost-assessment authority in Ontario Regulation 16/08 (Assessment of Expenses and Expenditures) of the Ontario Energy Board Act, 1998.

Ministry organization chart

• Minister of Energy
  • Deputy Minister Energy
    • Communications Service Branch
    • Legal Services
    • Corporate Services Division
      • Corporate Services Branch
      • Strategic HR and Business Solutions Branch
    • Energy Supply Policy Division
      • Electricity Policy, Economics & System Planning Branch
      • Fuels Policy & Liaison Branch
      • Nuclear Supply Branch
    • Conservation & Renewable Energy Division
      • Conservation & Energy Efficiency Branch
      • Renewables, Integration & Distributed Energy Resources Branch
      • Conservation Programs & Partnerships Branch
    • Strategic, Network & Agency Policy Division
      • Energy Networks & Indigenous Policy Branch
      • Distribution & Consumer Assistance Policy Branch
      • Governance, Strategy & Analytics Branch
      • Policy Coordination & Outreach Branch

Annual Report

Generation and Procurement

Strategic priority: Nuclear projects oversight

Description: To support economic growth and electrification, a steady source of baseload power is needed. Nuclear provides an emissions-free, reliable, affordable and clean baseload of electricity to our grid.  ENERGY provides policy oversight of key nuclear energy projects and initiatives to support government decision-making  and ensure that the projects can be delivered on time and on budget, while minimizing costs and risks for ratepayers and the province and maximizing economic benefits for Ontario.

Intended outcomes: Ensure a reliable supply of electricity this decade through cost-effective and timely delivery of nuclear energy projects while also enhancing economic development opportunities.

Progress/results achieved:

• In July 2023, Darlington Unit 3 refurbishment was completed within budget and 169 days ahead of schedule, following which OPG commenced the fourth and final Darlington refurbishment (i.e., Unit 4);
• In September 2023, Bruce Unit 6 was completed within budget and ahead of schedule;
• In March 2024, OPGcompleted the early phase works (e.g., site grading, service roads, on-site utilities) for the first Darlington SMR unit on time and on budget;
• In October 2023, Bruce Power notified the Impact Assessment Agency of Canada and the Canadian Nuclear Safety Commission of its intent to commence the Impact Assessment process for potentially adding up to 4,800 MW of new nuclear generation on the Bruce site (i.e., Bruce ‘C’); and
• In early April 2024, a Minister’s Directive was issued to the IESO to enter into a funding agreement with Bruce Power for sharing and recovery of costs incurred for undertaking the Bruce ‘C’ Impact Assessment.
• OPGand other Ontario nuclear supply chain providers have already signed major agreements valued at approximately $1 billion to export nuclear products and services to other countries, including Poland, Estonia and the Czech Republic.

Strategic priority: Competitive procurements

Description: In October 2022, ENERGY directed the IESO to acquire new electricity generation and storage resources through competitive procurements to ensure the province has the electricity it needs to support economic growth, a growing population and electrification.

Intended outcomes: ENERGY is committed to a procurement framework that ensures Ontario has an affordable, reliable and clean electricity system. This is achieved when resources are procured through competitive processes and in a transparent and cost-effective manner.

Progress/results achieved:

• The Independent Electricity System Operator reported that its competitive processes had secured:
  • 2916 MW of new battery storage from - ranging from 5 to 390 MW in size and representing significant economic interest from Indigenous communities.
  • The acquisition of 706 MW of new natural gas generation and existing facilities to maintain grid reliability.
  • Up to 286 MW in efficiency upgrades at existing natural gas facilities coupled with contract that will see the facilities produce less emissions for every megawatt of power produced.
  • The highest capacity to date (roughly 1,400 MW) through the annual capacity auction.          

Transmission and distribution

Strategic priority: Expanding Ontario’s transmission system

Description: Ontario is in the process of reinforcing and expanding its transmission network in the province to ensure businesses and residents, including remote First Nation communities, have access to a reliable power supply. Bolstering transmission infrastructure will also support the province’s emerging electric vehicle (EV) battery industry and expand the mining sector to leverage our critical mineral wealth.

Intended outcomes: To ensure businesses and residents, including remote First Nation communities, have access to a reliable power supply and support economic growth and electrification in the province.  For remote communities, removing reliance on costly and unsustainable diesel generation is also a key outcome. Transmission line expansion, per kilometer of line is a KPI for ENERGY.

Progress/results achieved:

• The Wataynikaneyap Power (Watay) Project is currently under construction and will add 1,745 km of new transmission lines from Dinorwic to Pickle Lake and further north to connect 16 First Nation communities to the grid. As of March 2024, Ontario has advanced over $1.05B to support the project’s construction with 1,673 km of line completed.
• On April 16, 2024, Hydro One and its partner First Nations received approval from the OEB for Leave To Construct to build and operate the Waasigan Transmission Line, the $1.2 billion infrastructure will further support northwest Ontario's clean energy future needs.
• Progress was made on five transmission projects in southwestern Ontario. For the Chatham to Lakeshore line, Hydro One started construction on June, 2023, and is on track to be completed a year ahead of schedule. The St. Clair line is currently undergoing an environmental assessment and is on track to be in-service by 2028. In March 2023, Hydro One initiated public consultations on the two Longwood to Lakeshore lines. The first phase of this project is on track for its 2030 in-service date. IESO continues to assess the scope and need date of the second phase, as well as the Windsor to Lakeshore line. These actions have helped enable ~$11.1 billion in new investments in the region, including NextStar’s large-scale EV battery manufacturing plant in Windsor and Volkswagen’s first North American EV battery plant in St. Thomas.
• In October 2022, the IESO published its Northeast Bulk Plan and recommended three transmission reinforcement projects in the Northeast to be in-service for 2029 and 2030. The three transmission lines include two southern lines (Mississagi to Third Line and Mississagi to Hanmer) and one northern line (Wawa to Porcupine). Following summer consultations in 2023 with stakeholders and Indigenous communities, the Ministry issued OICs and a Directive to designate Hydro One as transmitter for the southern lines and prioritize these lines. The Ministry is currently evaluating proposals for the northern line based on multiple interested transmitters.

Energy efficiency programs

Strategic priority:Providing tools for customers to lower the cost of their energy bills and to contribute to a clean, reliable and affordable energy system (for 2023-24).

Description: Regulatory changes to provide greater customer choice in how customers can manage their electricity use through net metering participation.

A. Program - Net metering framework: Net metering is a billing arrangement between a customer and their LDC, in which a customer can install renewable generation to generate electricity for their own use and offset their electricity consumption from the grid to lower their electricity bills. The customer receives bill credits for any electricity conveyed to the grid at times when electricity generated exceeds the customer’s use.

Key programs and initiatives:

• Amendments to the following three regulations were made to enhance customer choice for net metering customers, facilitate innovation and make net metering more accessible to customers:
• O. Reg. 393/07 (Smart Metering Entity) to support a centralized billing solution for distributors to bill net-metered customers according to their choice of pricing plan;
• O. Reg. 679/21 (Community Net Metering Projects) to remove administrative burden for participating demonstration projects by enabling credit sharing across all participating accounts; and
• O. Reg. 389/10 (General) to clarify contractual cancellation provisions to remove unintended financial risk to third party generators. 
• Regulatory changes have all come into force:
• In January 2024, OEB indicated that all distributors have enabled their RPP net-metered customers to switch to their choice of price plan, except for one. The OEB is working with that remaining distributor to better understand their implementation challenges and explore potential approaches.
• In January 2024, ENERGY received an executed community net metering agreement from the proponents of the authorized demonstration project (West 5 in London Ontario). This milestone indicates that proponents can begin billing and operating as a community net metering demonstration project.
• In January 2024, changes came into effect to clarify that contract cancellation provisions do not apply to third party generators entering into retail contracts as part of power purchase agreements with low-volume customers participating in net metering. These types of net metering arrangements improve access to participate in net metering by removing financial barriers of the upfront capital costs of installing a renewable generation system.

B. Program - The Clean Home Heating Initiative (CHHI): is a pilot program to support the installation of hybrid heating systems with smart controls by providing homeowners with incentives of up to $4,500. Phase 2 of the program supported homeowners in London, Peterborough, Sault Ste. Marie, and St. Catharines, as well as expand the pilot to Barrie, Pickering, Ajax, and Whitby.

Participation in CHHI will help families save money on their energy bills and reduce their emissions, while building capacity within Ontario’s heat pump and smart control manufacturers, distributors, and contractors for offering low-carbon heating solutions in Ontario.

ENERGY will apply the learning from CHHI to support new energy efficiency programs in the new year. Families eligible for the Energy Affordability Program can already access heat pumps if identified by a free energy-needs assessment.

Progress/results achieved:

• The expansion of the program will result in installations of heat pumps with smart controls in approximately 1000 more households, in addition to the nearly 500 households served through Phase I of the initiative.

C. Program - Electricity Energy Efficiency Framework: In summer 2023, ENERGY solicited broad feedback from stakeholders and the public on the future of Ontario’s electricity energy efficiency programming (also known as Conservation and Demand Management or CDM). This voluntary Environmental Registry of Ontario (ERO) posting ran for 60 days – from July 22 to September 24, 2023.

Progress/results achieved

• 44 organiz2222ations, including municipalities, Indigenous organizations, associations, LDCs, industry, advocacy organizations, and academic/think tank institutions provided their feedback.
• Many stakeholders expressed support for a new CDM model, including:
  • An “enduring” CDM model where program planning and funding are more predictable over extended periods of time.
  • Complementary role of distributed energy resources (DER) and beneficial electrification (BE).
  • Increasing LDC involvement in regional system energy planning process and in CDM program implementation.
  • Streamlining of program offerings and continued delivery and improvement of CDM measures targeted towards low- and moderate-income customers.

D. Program - Ultra-Low Overnight (ULO) Price Plan: On May 1, 2023, the government launched the ULO price plan as part of its plan to provide consumers with more ways to keep costs down, save money and take control of their energy bills.

Progress/results achieved:

• As of November 1, 2023, all LDCs were required to begin offering to their customers.
• As of February 2024, all utilities except for one have begun offering the plan, with the outstanding LDC (Chapleau Hydro) to be incorporated with Hydro One, which is offering ULO to its customers.

E. Program - Streamlining of Energy and Water Reporting and Benchmarking Program (EWRB): EWRB requires Broader Public Sector (BPS) and private building owners (50,000 square feet and larger) to report their building’s energy and emissions data by July 1 each year to ENERGY. These programs help building owners identify energy efficiency opportunities, set investment priorities and measure progress using benchmarking data. ENERGY initiated steps in 2023-2024 to streamline and modernize the energy reporting and benchmarking programs.  Steps taken to date for the large building EWRB program are estimated to save up to three hours for each eligible building owner and save up to 2,400 hours of administrative burden and approximately $82,500 in compliance costs annually.

Progress/results achieved:

• Effective January 1, 2024, the ministry removed the requirement for eligible large building reporters to submit supporting documentation when seeking an exemption from reporting, via amendments to Ontario Regulation 506/18: Reporting of Energy Consumption and Water Use.
• Move to use the industry-standard online energy reporting platform, ENERGY STAR Portfolio Manager, which has been used for Ontario’s large building energy reporting and benchmarking program. This change was made to the BPS energy reporting program via a new regulation, O. Reg. 25/23, which came into force February 23, 2023.
• Collaboration with Natural Resources Canada to integrate the Green Button energy data communications standard in the Portfolio Manager energy reporting and benchmarking platform.

F. Program - Green Button Implementation: Green Button is a data standard that allows residential and business customers to access their energy usage data in a common format.

Progress/results achieved:

• On November 1, 2023, 55 energy utilities in Ontario have successfully implemented Green Button providing energy usage data in Green Button format to ~ 5.4 M electricity customers and ~3.85 M natural gas customers.
• ENERGY continues to work closely with OEB to catalyze the marketplace to develop innovative applications and services for Ontario customers by providing them with more ways to keep costs down, save money and take control of their energy bills.

G. Program - Efficiency Standards Amendments: ENERGY amended Ontario Regulation 509/18, Energy Efficiency – Appliances and Products, under the Electricity Act, 1998, The amendment introduces rolling incorporation with NRCan efficiency standards for 24 space and water heating products. Through the rolling incorporation approach, Ontario efficiency standards for these products will be automatically updated whenever NRCan revises or updates their standards for these products.

Progress/results achieved:

• The amendment was approved and took effect January 1, 2024.
• Reduced red tape, streamlined the regulation for product manufacturers.
• Approximately 175 manufacturers may benefit from the proposed regulatory changes, resulting in $25,132 savings in administrative costs per year for the industry.

H. Program - The Municipal Energy Plan (MEP) Program: MEP is a voluntary program open to all Ontario municipalities through which municipalities can receive funding to develop an energy efficiency plan. The MEP program has two streams:

• Stream 1 provides successful applicants with 50 percent of eligible costs, up to a maximum of $90,000 to develop an energy plan.
• Stream 2 provides successful applicants with 50 percent of eligible costs, up to a maximum of $25,000 to enhance or update an existing energy plan.

Progress/results achieved:

• Since inception, 48 applications representing 61 municipalities^{footnote 3[3]} across Ontario have been approved for funding under the program.
• Funding allocated for the 2023-24 to support the MEP program was $616,500.00.

Integrated Energy Planning

Strategic priority: Fuel price monitoring

Description: ENERGY monitors and reports on fuel prices (e.g., gasoline, diesel, natural gas) on an ongoing basis. This helps coordinate policy initiatives and provide strategic advice on fuel supply and pricing issues.

Intended outcomes: Policy makers, ministry officials and the public are informed and aware of fuel prices, pricing trends and associated developments.

Progress/results achieved: For 2023-24, the government has continued its long-standing fuel price monitoring. This initiative provides publicly available information on retail gasoline, diesel and other transportation fuels across 19 Ontario fuel markets on the government website.

Strategic priority: Readying the electricity grid for electric vehicle integration

Description: In response to ministerial direction, the OEB continued its work through the Electric Vehicle Integration initiative to determine what actions should be taken to ensure the efficient integration of EV into the transmission and distribution systems.

Intended Outcome: Enabling the electricity sector to take advantage of the opportunities EV present, supporting adoption and electrification in a way that addresses red tape and barriers while protecting electricity customers, addressing system needs, and supporting decarbonization.

Progress/results achieved:

• In February 2024, the OEB released the Electric Vehicle Charging Connection Procedures (EVCCP), mandating LDCs under the OEB's Distribution System Code for connecting public charging facilities serving multiple EV and commercial fleet charging stations to the distribution system.
  • Ivy Charging Network completed installation at 20 ONroute locations, installing over 69 level 3 fast-chargers, offering charging speeds up to 150 kW, delivering up to a 100 km charge in approximately 10 minutes.
• The OEB made significant progress in reviewing demand charges and their design to appropriately allocate costs; as well as in establishing requirements related to EV connections.
• ENERGY undertook a legislative review to identify and address legislative and/or regulatory barriers for EV charging which could discourage the EV charging industry and make its operation uneconomic.

Electricity price mitigation

Strategic priority: Electricity price mitigation

Description: At a time of increased costs, the last thing Ontario families should be worried about is if they can afford to keep their home warm. This is why, to help those who need it the most manage their electricity bills, the government continues to provide targeted electricity bill relief for eligible low-income households and on-reserve First Nation consumers, as well as eligible rural or remote customers. This is in addition to the on-bill Ontario Electricity Rebate for all eligible residential customers.

Intended outcomes: To maintain electricity price stability and increase electricity affordability for Ontario families and businesses and attract economic investment to the province.

Progress/results achieved: Ontario continues to keep energy costs down which has helped the province land historic investments and is making it easier for industries to grow and electrify. Ontario’s rate mitigation programs are also helping families keep energy costs down. As of March 1, 2024, the government is keeping electricity costs down for even more Ontarians by expanding the eligibility for the Ontario Electricity Support Program (OESP).

Reducing Red Tape

Strategic priority: burden reduction

Description: ENERGY contributed to the government-wide effort to reduce burden and streamline program delivery across government.

Intended outcomes: ENERGY is overseeing OEB progress towards its target of reducing burden by 5% from 2018 to March 2026.

Progress/results achieved:

• As of Q3 2023-24, ENERGY has reduced Regulatory Compliance Requirements by approximately 11% from its 2018 baseline. ENERGY has also reduced regulatory costs by $7.88M since 2018 and saved 2,782 hours in compliance time (this KPI tracked for the first time in Q3 2023-2024).