The Independent Electricity System Operator (IESO) released a report stating that Ontario faces an electricity shortfall within five years. The report includes the Conservative government’s recent cancellation of renewable energy projects.
The IESO forecasts the projected summer peak shortfall will be about 1,400 megawatts in 2023 and 3,500 megawatts later in the decade. The shortfall is primarily the result of closing the Pickering nuclear plant, and refurbishments of the Darlington and Kincardine nuclear plants. The cancellation of 758 renewable projects is also significant.
There are many ways to prevent an electricity supply gap in Ontario:
- import electricity from neighbouring provinces/states
- boost capacity of natural gas plants
- build more renewable plants
Another way to ensure adequate supply is to reduce demand. The IESO report assumes that current demand reduction programs (i.e. Class A and Demand Response) continue and increase considerably over the next 15 years. This is a positive statement ensuring that the ICI Class A program that helps reduce global adjustment costs will continue.
The addition of large-scale battery projects and generators can also boost supply generation locally and assist in reducing peak demands.
The IESO is in the early stages of redesigning the market to reduce the reliance on fixed contracts and introduce competition.
