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Ontario Lowering Future Energy Costs

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Ontario Lowering Future Energy Costs

Legislation Would Save $1.9 Billion on New Renewable Projects, Ensure Ontario is in Line with International Trade Obligations

Ontario is introducing legislation to eliminate domestic content requirements for construction of future renewable energy projects. Combined with other measures, this would save ratepayers $1.9 billion on clean, reliable and affordable power over the next 25 years.

The requirements had been put in place as a temporary measure, to help spur the growth of Ontario manufacturers and service firms in the renewable energy industry. Strong growth in the sector means the measure is no longer required.

If passed, the amendment to Ontario's Electricity Act would remove the need for the Minister of Energy to require domestic content requirements be met under the province's Feed-in Tariff (FIT) Program. Eliminating these requirements began earlier this year and legislation is required in order to complete the process. The changes would help ensure Ontario is in line with decisions made by the World Trade Organization. Reduced domestic content requirements, coupled with a reduction in technology prices, would continue to be reflected in lower FIT prices. These lower prices would result in lower rates for consumers.

Providing clean, reliable and affordable power is part of the government's plan to invest in people, build modern infrastructure and support a dynamic and innovative business climate across Ontario.

Quick Facts

  • Ontario’s clean energy initiatives have attracted billions of dollars in new private sector investment, and have contributed to the creation of more than 31,000 jobs across the province.
  • To date, Ontario has more than 18,500 megawatts of renewable energy online or announced to be built.
  • By 2025, 20,000 megawatts of renewable energy, including hydroelectric, will be online. This will represent nearly half of Ontario’s installed capacity.

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“Ontario has a strong renewable energy sector, one that has created over 31,000 jobs and now exports goods and services around the world. Changes included in this legislation will, if passed, save ratepayers $1.9 billion making clean energy more affordable than ever. The strength of the sector means here at home, when Ontario’s renewable energy providers make decisions about what products and services they purchase, we’re confident Ontario suppliers will be competitive and the supplier of choice.”

Bob Chiarelli

Minister of Energy

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