To meet its growing electricity demand, Ontario must continue its efforts of developing a clean, reliable and affordable supply of electricity through new technologies. Because most of the electricity is consumed the moment it is generated, and the demand fluctuates depending on the hour of the day and time of the year, it is crucial to generate clean electricity through various sources.
According to the Government of Ontario in 2024, the province’s electricity system supports the needs of approximately 5.25 million residential and small businesses, 53,000 commercial consumers, and 1,400 industrial consumers. Although Ontario’s nuclear and hydroelectric fleet can satisfy the needs during low-demand periods (e.g. overnight, weekends, mild spring and fall weather), when demand rises, other types of generation like wind, solar, biomass, and gas are crucial.
Ontario’s annual grid output comes primarily from nuclear energy, contributing approximately 53%, hydroelectric power 25%, wind 8%, solar 0.5%, natural gas about 12.5%, and bioenergy 0.23% as of 2023. Ontario has successfully phased out coal-fired electricity generation since April 2014.
Figure 1: Make up of Ontario’s annual grid output as of 2023
To create a more sustainable and resilient energy system, Ontario will have to foster the collaboration of Indigenous communities, entrepreneurs, and incentivize the private sector to invest more capital. This will support the implementation of new technologies and generate equitable economic growth while improving grid reliability, and mitigating intermittent nature of some renewable sources. Below, we’ve outlined a few of the emerging technologies.
Emerging Technologies
Small Modular Reactors (SMRs): Compact nuclear reactors that produce up to 300 megawatts of electricity per unit, about one-third of a traditional nuclear power reactor. They are characterized by being modular, meaning its components are factory-assembled and transported to location for installation, and they are a fraction of the size of a conventional nuclear power reactor. Ontario’s first SMR is currently being developed in Darlington, and will be connected to the grid by 2027 ahead of operations in 2029.
Clean Hydrogen Production: Processes that generate hydrogen with minimal greenhouse gas emissions, such as electrolysis powered by renewable energy sources, providing a clean fuel for various applications. Atura Power is developing Ontario’s largest low-carbon hydrogen production facility which will produce more than 2,000 tonnes of hydrogen per year using low-carbon intensity electricity sourced from a hydroelectric station on the Niagara River.
Energy Storage Solutions: Technologies that store energy for later use, including batteries, pumped hydro storage, thermal storage, and iron-air batteries, to balance supply and demand and enhance grid reliability. In 2023, Ontario moved forward with the largest energy storage procurement in Canada. The Independent Electricity System Operator (IESO) announced 739 MW of energy storage capacity across seven new projects.
Agrivoltaics: The simultaneous use of land for both agriculture and solar energy production, optimizing land resources by integrating photovoltaic systems with crop cultivation.
Distributed Energy Resources (DERs): Small-scale power generation or storage technologies, such as rooftop solar panels and home batteries, located close to where energy is used, allowing for localized energy production and consumption.
Key Stakeholders in Ontario's Clean Energy Transition
The advancement of clean energy in Ontario will depend on the collaborative efforts of Indigenous communities, startups, and private sector investors.
Indigenous communities actively participate in renewable energy projects, for example the 44 MW Nanticoke Solar Plant, which was built in partnership with the Six Nations of the Grand River Development Corporation and the Mississaugas of the Credit First Nation in 2019. Situated along Lake Erie in Haldimand County, the solar facility was built on the former site of Ontario’s largest coal-fired plant.
New clean technologies and startups will drive the most impact at reducing emissions, however they need the support of private sector investors to get good ideas off the ground. Investment funds like the Toronto based ArcTern Ventures, announced in 2024 their USD $335 Million Fund III Focused on Global Decarbonization. These types of funds are crucial in scaling clean energy projects and infrastructure in Ontario, and Canada, as they have a higher risk tolerance that can help launch new projects which would have struggled raising capital otherwise.
Note: This article is written by Jose A. Jimenez, Partnership & Speaker Coordinator of CEP Toronto and a Research Analyst at ASBB Consulting.
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