Ontario Energy Plan Looks to Hydropower Development

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Researched by Industrial Info Resources (Sugar Land, Texas)--Ontario's 2017 Long-Term Energy Plan (LTEP) identifies additional development of renewable hydroelectric generation in the province.

Ontario currently obtains about 8,800 megawatts (MW) from 250 generating plants with installed hydroelectric capacity, and could develop an additional 1,000 MW from existing sites and another 1,500 MW from the development of newly assessed sites, according to the Ontario Waterpower Association.

Industrial Info is tracking 11 hydroelectric projects with a total capacity of 460 MW in Ontario, valued at $755 million.

Canada is phasing out coal-fired power generation by 2030 and is looking to replace the lost generation with additional renewable energy, specifically hydroelectric power. According to the National Energy Board's latest long-term energy outlook, renewable electricity accounted for 65.7% of Canada's capacity in 2015. There is a goal for renewable power to make up 90% of the nation's capacity by 2030. Canada is the world's third-largest producer of hydropower.

The northern part of Ontario has abundant waterpower sources. Transmission and distribution projects are being developed to move the electricity to load centers populated by First Nations-dominated towns in the north as well as areas with large populations in the south.

Due to some of the highest prices for electricity in Canada, the Ontario government has introduced the Fair Hydro Plan to reduce electricity bills by 25% on average for residential consumers, small businesses and farms.

Ontario recently signed a seven-year agreement worth C$1 billion (US$790 million) to import up to two terawatt-hours (TWh) of hydroelectric power from Quebec on an annual basis. However, investments in renewable energy in Canada have dropped 46% in two years due to the coming end of Ontario's Feed-in-Tariff program, Large Renewable Procurement (LRPII) program and Quebec's wind energy development targets.

Load growth in Ontario is expected to remain flat during the next decade, according to the Ontario Independent Electricity System Operator (IESO), and renewable developers are not able to acquire power purchase agreements to finance their projects.

Northland Power Incorporated (Toronto, Ontario) is developing four hydropower projects in Ontario valued at $26 million each. For more information, see Industrial Info's reports on the Wapoose, Wahpeestan, Neeskah and Peeshoo projects. All are undergoing market analysis.

Peterborough Utilities Incorporated (Peterborough, Ontario) is developing two hydro projects valued at $12.5 million each. For more information, see Industrial Info's reports on the Buckhorn and Dam 24 projects, which are undergoing feasibility studies and cost estimates.

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