Canada: "Achieving Balance" Ontario's Long-Term Energy Plan 2013

After extensive public and stakeholder consultation, the Ministry of Energy released its much anticipated Long-Term Energy Plan entitled "Achieving Balance" (LTEP). The LTEP is shaped by five principles: cost-effectiveness, reliability, clean energy, community engagement, and an emphasis on conservation and demand management. An Ontario Energy Report will be issued annually to provide the public will an update on changes in supply and demand and on progress in implementation of the LTEP. Highlights of the LTEP include the following:


The Ministry has made cost-reduction a priority. The 2013 LTEP cost and price forecasts are lower than previously forecasted in the 2010 Long-Term Energy Plan:

  • The LTEP expects to reduce previously projected cost increases by $16 billion in the near term (2013 - 2017), and $70 billion in the long-term (2013 – 2030). These cost reductions will be realized even as Ontario keeps its commitment to phase out the last of its coal-fired generation by the end of 2014.

Ratepayers are expected to experience significant electricity bill savings in costs previously projected as a result of: reduced Feed-in-Tariff (FIT) prices, the ability of the Independent Electricity System Operator (IESO) to dispatch wind generation, the amended Green Energy Investment Agreement (the contract with the Korean Consortium (Siemens) was reduced by $3.7 BN) and the decision to defer new nuclear construction. These measures are expected to translate into the following savings compared to projections in the 2010 Long Term Energy Plan projected:

  • Residential customers can expect to pay about $520 less than previously projected over the next five years and $3,800 less to 2030; and
  • Industrial consumers can expect to pay $3 million less than previously projected over the next five years and $11 million less to 2030.

For the Ministry's summary of cost reduction, click here.


The LTEP focuses on conservation and demand response as key elements in the supply mix and the Ministry of Energy will work with its agencies to put conservation first in their planning, approval and procurement processes and will also work with the Ontario Energy Board (OEB) to incorporate conservation into distributor planning processes for both electricity and natural gas utilities. The LTEP includes conservation programs and standards which aim to decrease the need for new supply investments so as to offset the growth in electricity demand over the next 20 years. The IESO is to continue to study the possible benefits of a capacity market where different generation and demand resources compete to address capacity needs.

  • The LTEP includes a conservation target of 30 TWh by 2032 – which is expected to represent 16% of Forecasted Energy Production (TWh) by 2032.

The LTEP seeks to expand Demand Response programs to help achieve a 10% reduction in peak demand by 2025.

The Ministry of Energy also plans to make new financing tools available to consumers starting in 2015, including programs to incent energy efficient retrofits to residential properties. On-bill financing will be made available to help with the upfront cost of energy efficiency retrofits to conserve electricity and natural gas. The LTEP states that the Ministry will work on new conservation initiatives, significantly increase Demand Response capability and give Local Distribution Companies (LDCs) a greater role and more flexibility to address local conditions. A new six-year Conservation and Demand Management Framework will begin in January 2015 which will provide long-term, stable funding for conservation providing certainty to customers and LDCs and provide LDCs with the means to meet their assigned conservation goals.

For the Ministry's summary on conservation and demand management, click here.


Nuclear - is expected to represent 42% of energy production (TWh) (20% installed capacity) by 2025:

  • The LTEP includes plans to defer the construction of two new nuclear reactors at the Darlington Generating Station but will move ahead with nuclear refurbishment at both Darlington and Bruce Generating Stations, beginning in 2016.

Renewable Energy - 20,000 MW of renewable energy will be online by 2025, representing about half of Ontario's installed generating capacity. Targets for wind, solar, bioenergy and hydroelectricity will be reviewed annually as part of the Ontario Energy Report.

  • Wind is expected to represent 11% of energy production (TWh) (15% installed capacity) and Solar PV is expected to represent 3% of energy production (TWh) (8% installed capacity) by 2025.
  • Extending the phasing-in of wind, solar and bioenergy for three years longer than estimated in the 2010 LTEP, with 10,700 MW online by 2021.
  • Hydroelectricity is expected to form 29% of energy production (TWh) (21% installed capacity) by 2025 reaching 9,300 MW.
  • Annual procurement targets of 150 MW and 50 MW for small Feed-in Tariff (FIT) (less than 500 kW) and microFIT (less than 10 kW) respectively, starting in 2014.
  • Competitive renewable energy procurement targets for projects larger than 500 kW are set at:
    • Wind 300 MW for 2014 and 2015;
    • Solar 140 MW for 2014 and 2015;
    • Hydro 50 MW 2014 and 45 MW 2015;
    • Bioenergy 50 MW 2014 and 2015

Capacity not procured in any year would be reallocated to 2016. The Ministry expects to launch this competitive procurement process in early 2014. This competitive procurement process will be dependent on local electricity needs and considerations.

Natural Gas/Combined Heat and Power (CHP) – is expected to represent 12% of energy production (TWh) (23% installed capacity) by 2025. The Ontario Power Authority (OPA) will undertake targeted procurements for CHP projects that focus on efficiency or regional capacity needs and there will be a new program aimed at greenhouse operations, agri-food and district energy. The LTEP states that the government will not require new natural gas procurement to fill province-wide needs over the near term but natural gas will still be an essential element of Ontario's flexible electricity system. Ontario's natural gas fleet may fill energy needs during the nuclear refurbishment period.


The LTEP notes that the Ministry has directed the OPA to negotiate new contracts with NUGs as their existing contracts expire but only if the new contracts result in cost and reliability benefits for Ontario's electricity consumers. The LTEP states that the new NUG contract structure is intended to reduce NUG costs and NUGs contribution to surplus baseload generation.


As part of the government's focus on innovation, storage technologies will be included in procurement processes by the end of 2014 starting with 50 MW. The new competitive procurement process for renewable projects greater than 500 kW will consider proposals that integrate energy storage with renewable generation.

For the Ministry's summary of the supply mix, click here.


Hydro One is to begin planning new bulk transmission for the area west of Thunder Bay and to work with Infrastructure Ontario on cost-effective procurement processes. Upgrades and investments necessary to improve reliability and support growth will also be undertaken as needed around the Province. Connecting remote First Nation communities to transmission in northwestern Ontario will continue to be a priority for the Ontario government working with the Federal government.


As noted above, LDCs will play an important role in the conservation and demand response initiatives announced in the LTEP. The LTEP references the Distribution Sector Review Panel report as having identified the potential for significant savings and recommending consolidation of LDCs and notes that, as a result, "the government expects that LDC will pursue innovative partnerships and transformative initiatives to drive efficiencies that will result in ratepayer savings." No changes to the transfer tax and taxation of LDCs were included in the LTEP.


The Ministry will continue to encourage First Nation and Métis participation in transmission and renewable energy projects including launching the following programs:

  • Aboriginal Transmission Fund;
  • Aboriginal Energy Partnerships Program and Aboriginal Community Energy Plans;
  • Feed-in-Tariff program to encourage Aboriginal involvement in renewable energy projects; and
  • Aboriginal Loan Guarantee Program;

For the Ministry's summary of First Nation and Métis involvement, click here.

The LTEP also makes connecting remote northwestern First Nation communities to the electricity grid a priority including the construction of:

  • a transmission line to Pickle Lake;
  • the New East-West Tie;
  • Northwest Bulk Transmission Line; and
  • connecting 25 Remote First Nation Communities that are not connected to the grid.

For the Ministry's summary of northwestern Ontario energy needs, click here.


The Ministry will adopt all of the recommendations from the IESO – OPA joint report entitled: "Engaging Local Communities in Ontario's Electricity Planning Continuum" focusing on:

  • reaching out to local communities early and often so that they may participate in the planning of their region's energy needs;
  • linking local and provincial planning;
  • give greater consideration to local priorities in the siting of generating facilities; and
  • focus on enhancing community education and energy programs.


The Ministry will encourage Ontario Power Generation (OPG), Hydro One, the IESO, the OPA and OEB to develop business plans and efficiency targets to reduce agency costs. The LTEP is silent as to any future merger of the OPA and the IESO which had been previously proposed by the Ministry.

The government will encourage its wholly-owned corporations, OPG and Hydro One, "to explore new business lines and opportunities inside and outside Ontario." In his recent directive to the OPA to establish a competitive procurement process for renewable generation over 500 kW, the Minister stated that OPG would be able to participate in such a process.

For the Ministry's summary of regional planning, energy policies and initiatives, click here.


The revised LTEP reflects the government's goals to cut costs across the electricity sector, to scale back procurement of new generation while continuing to support renewables, to continue to emphasize conservation and demand management, to consult with regional and local governments and support the involvement of First Nations and Métis in the electricity sector. With the release of the LTEP, the government has tried to balance the various forces at play in the Ontario electricity sector while reducing projected electricity cost increases for residential and industrial consumers.

About BLG

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

Similar Articles
Relevancy Powered by MondaqAI
Dale & Lessmann LLP
In association with
Related Topics
Similar Articles
Relevancy Powered by MondaqAI
Dale & Lessmann LLP
Related Articles
Related Video
Up-coming Events Search
Font Size:
Mondaq on Twitter
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
Email Address
Company Name
Confirm Password
Mondaq Topics -- Select your Interests
 Law Performance
 Law Practice
 Media & IT
 Real Estate
 Wealth Mgt
Asia Pacific
European Union
Latin America
Middle East
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions