Ontario Energy Plan

The Ontario government has released an updated Long-Term Energy Plan designed to set the course for a clean energy revolution that will create thousands of new jobs in Ontario while cleaning up the air the citizens of Ontario breathe. The government’s 20-year energy plan, Building Our Clean Energy Future , calls for essential investments to keep the lights on in homes, businesses, schools and hospitals by creating a balanced mix of clean power sources and shuts down all dirty smog-producing coal plants. The Plan calls for: Closing all coal units by 2014 and fast-tracking the closure of two more coal units in 2011, three years ahead of schedule; Creating 50,000 jobs in Ontario’s growing clean energy economy; Increasing Ontario’s power supply from renewable sources like wind, solar and bio-energy to 13 per cent by 2018, up from 3 per cent today; Building the largest expansion in hydroelectric power in almost 40 years with projects to get more power from Niagara Falls and the Lower Mattagami River; Securing clean and reliable nuclear power as a baseload for half of Ontario’s power supply; Moving forward immediately with five priority transmission projects to bring more clean power online, to serve changing demand, and to ensure reliability; Reducing costs for consumers and making our power system more efficient through conservation, saving 7,100 MW of power.

Residential and small business electricity bills are forecasted to increase by 3.5 per cent annually over the next 20 years. That’s the price for keeping the lights on, says a Press Release issued with the Plan. Industrial rates are forecasted to increase by 2.7 per cent annually over the same timeframe.

The government is helping Ontarians with the costs of turning on more clean power and turning off dirty smog-polluting coal plants by: Taking 10 per cent off monthly electricity bills for families, farms and small businesses starting January 1, 2011, under the proposed Ontario Clean Energy Benefit; Moving the Time-of-Use off-peak period for electricity to 7 p.m. which will provide an additional 10 hours every week in the lowest cost period: Helping seniors and low- and middle-income Ontarians through a proposed expansion to the Energy and Property Tax Credit, providing up to $900 back, and up to $1025 for eligible seniors; Helping large industrials and manufacturers conserve energy, save on electricity costs and increase their competitiveness through the Industrial Conservation Initiative, starting in January 2011. Key features of the plan are as follows: Demand will grow moderately (about 15 per cent) between 2010 and 2030. Ontario will be coal-free by 2014.

Eliminating coal-fired generation from Ontario’s supply mix will account for the majority of the government’s greenhouse gas reduction target by 2014. Two units at the Thunder Bay coal plant will be converted to gas and Atikokan will be converted to biomass. Two additional units at Nanticoke will be shut down in 2011.

The government is committed to clean, reliable nuclear power remaining at approximately 50 per cent of the province’s electricity supply. To do so Ontario will rebuild what it can, and replace it can’t. Units at the Darlington and Bruce sites will need to be modernized and the province will need two new nuclear units at Darlington.

Investing in refurbishment and extending the life of the Pickering B station until 2020 will provide good value for Ontarians. Ontario will continue to grow its hydroelectric capacity with a target of 9,000 MW. This will be achieved through new facilities and through significant investments to maximize the use of Ontario’s existing facilities.

Ontario will undergo the largest hydroelectric expansion in almost 40 years through the Niagara Tunnel and Lower Mattagami projects. Ontario’s target for clean, renewable energy from wind, solar and bioenergy is 10,700 MW by 2018 (excluding hydroelectric) - accommodated through transmission expansion and maximizing the use of the existing system. Ontario will grow the clean energy economy through the continuation of clean energy programs like the Feed-in Tariff (FIT) and microFIT.

Natural gas generation for peak needs will be of value where it can address local and system reliability issues. Natural gas will support the increase in renewable sources over time and supplement the modernization of nuclear generators. Combined Heat and Power is an energy-efficient source of power and the OPA will develop a standard offer program for projects under 20 MW.

Ontario will proceed with five priority transmission projects needed immediately for reliability, renewable energy growth, and changing demand. Future Plans will identify more projects as they are needed. Ontario is a leader in conservation and the government will continue to increase and broaden its targets to 7,100 MW and reduce overall demand by 28 terawatt-hours (TWh) by 2030.

Over the next 20 years, estimated capital investments from both private and public sectors totalling $87 billion will help ensure that Ontario has a clean, modern and reliable electricity system. Measures outlined in this Plan will help create and sustain jobs and investments in Ontario’s growing clean energy economy. Residential bills are expected to rise by 3.5 per cent per year over the next 20 years.

Industrial prices are expected to rise by 2.7 per cent per year over the next 20 years. The government is proposing an Ontario Clean Energy Benefit to give Ontario families, farms and small businesses a 10 per cent credit on their electricity bills for five years. To help families, Ontario will move the Time-of-Use off-peak period for electricity to 7 p.m. which will provide an additional 10 hours every week in the lowest cost period.

Seniors and low- and middle-income Ontarians will benefit from the expanded Ontario Energy and Property Tax Credit, which will provide up to $900 back annually, and up to $1,025 for eligible seniors. The href=”http://www.mei.gov.on.ca/en/pdf/MEI_LTEP_en.pdf#page=4” target=”_blank”>Executive Summary and href=”http://www.mei.gov.on.ca/en/energy/” target=”_blank”>key chapters of the plan are available here. href=”http://www.mei.gov.on.ca/en/pdf/MEI_LTEP_en.pdf” target=”_blank”>The full plan is also available for download .