While good progress has been made towards decarbonizing Ontario's electricity grid, forecasts show a widening gap between energy supply and demand over the next two decades. Previous investments in nuclear and hydro infrastructure have established the province as a clean electricity powerhouse with an electricity grid that is 89% emissions-free. However, gas generation is forecast to account for about 25% of Ontario's electricity supply by 2030 due to rising demand and a short-term dip in nuclear generation during planned refurbishments.
To maintain its clean energy advantage, Ontario will need to meet growing demand without investing capital in new gas generation or increasing production from existing gas facilities. With careful forethought, Ontario can modernize its grid to enable new technologies and approaches that will help address increasing electricity demand without compromising the province's primarily emissions free grid. To achieve this, the legislative and regulatory frameworks that govern the provincial electricity system will need to be updated.
This report examines how Ontario's electricity regulation frameworks could evolve to address growing demand and enable grid modernization. We offer recommendations for the provincial government, the Ontario Energy Board (OEB), and the Independent Electricity System Operator (IESO). This is part of a series that identifies opportunities for regulatory reform to advance decarbonization across Canada.
