Ontario Energy Association

Ontario Energy Association

August 17, 2006 17:28 ET

Ontario's Future Electricity Supply-Mix

The Importance of Regulatory Efficiency and Getting an Early Start on Long Lead-Time Projects

Attention: Business/Financial Editor, Environment Editor, Energy Editor, News Editor, Government/Political Affairs Editor TORONTO, ONTARIO--(CCNMatthews - Aug. 17, 2006) - On June 13th, the Ontario Minister of Energy provided direction to the Ontario Power Authority on the development of its Integrated Power System Plan. The Minister's 2025 supply-mix targets included:

* 6,300 megawatts from conservation
* 9,400 megawatts from gas/cogeneration
* 15,700 megawatts from renewables
* 14,000 megawatts from nuclear power

The Ontario Energy Association strongly supports the principle of supply-mix diversification based on a balance among economic, environmental and social impacts. Above all, Ontario's electricity system must remain reliable. Ensuring long-term energy security requires investment not only in energy infrastructure, but in energy diversity as well - a supply mix that minimizes risks and maximizes flexibility.

We support a supply mix plan based on the characteristics and relative costs of different technologies - and achieved through a competitive framework. For example, gas-fired generation can quickly meet Ontario's need for clean intermediate and peaking generation, while other technologies - such as hydro and nuclear - can meet the province's long-term baseload needs.

Renewables also have an important role to play. And increased energy efficiency, fuel-switching and other demand management measures can contribute by reducing the overall need for investment in new generation and transmission.

Key to achieving this balanced supply mix will be regulatory efficiency and an early start on long lead-time projects. Given the lengthy and often challenging regulatory processes involved, planning for new generation capacity must begin early if Ontario is to secure the kind of investment in its electricity system that will be needed over the next 20 years.

For example, today's announcement by Bruce Power that it has filed an application with the Canadian Nuclear Safety Commission - to help the company evaluate new-build and refurbishment options at its Bruce County facility - is an effort to get an early start on what could be a long lead-time project. And the decision to consider all technologies is consistent with the government's stated approach of supporting the best technology, at the best price for ratepayers, and in the best interests of Ontarians.

The 170-member Ontario Energy Association (OEA) is Ontario's premier energy trade organization, representing firms and organizations involved in the transmission and distribution of natural gas, as well as the generation, transmission and distribution of electricity across the province. OEA members together employ about 32,000 Ontarians and last year accounted for about $34 billion in market revenues.

Contacts: Shane Pospisil, OEA President and CEO, and Gregor Robinson, Vice-President, Policy and Government Relations/416-961-2339.
IN: AUTOMOTIVE, ECONOMY, ENERGY, ENVIRONMENT, POLITICS

Contact Information

  • Shane Pospisil
    Primary Phone: 416-961-2339 ext. 227