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

Last Updated: December 5 2013
Article by Linda Bertoldi and Robert Eeuwes

Most Read Contributor in Canada, September 2016

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.

In association with
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
Check to state you have read and
agree to our Terms and Conditions

Terms & Conditions and Privacy Statement (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

Use of

You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). 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 & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.


Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd 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 or performance of information available from this server.

The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.


Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.

Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

If you do not want us to provide your name and email address you may opt out by clicking here .

If you do not wish to receive any future announcements of products and services offered by Mondaq by clicking here .

Information Collection and Use

We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to with “no disclosure” in the subject heading

Mondaq News Alerts

In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.


A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

Log Files

We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.


This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

Surveys & Contests

From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.


If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.


This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to

Correcting/Updating Personal Information

If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to

Notification of Changes

If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

How to contact Mondaq

You can contact us with comments or queries at

If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at and we will use commercially reasonable efforts to determine and correct the problem promptly.