Nuclear at heart of Ontario growth plans

Thursday, 31 October 2024

The 2024 Ontario Economic Outlook and Fiscal Review: Building Ontario for You was released by Minister of Finance Peter Bethlenfalvy, who said the province's fiscal position had improved since the 2024 Budget which was released in March. The minister said the province - which is supporting both nuclear new-build and the refurbishment of existing units - will "continue investing responsibly to support Ontario’s growth and rebuild Ontario’s economy to make our province the best place to live, work and raise a family".

Nuclear already provides more than 50% of the province's power, and Ontario is building on its "nuclear advantage" to meet growing electricity demand, the review says. The government is working with Ontario Power Generation (OPG) to start planning and licensing for three additional small modular reactors (SMRs) at the Darlington New Nuclear project, in addition to the first phase plant, for which site preparation is already under way. It is also working with Bruce Power on pre‐development work for the first large‐scale nuclear build in more than three decades in Canada.

The Ontario government is also supporting OPG's plans to refurbish units 5-8 at the Pickering nuclear power plant, as well as ongoing refurbishment projects at OPG's Darlington and Bruce Power's Bruce plants.

It has also introduced the Ontario Sustainable Bond Framework, enabling Green Bonds to fund environmentally beneficial projects, including nuclear energy.

Supply chain
 

"Ontario’s expansion of nuclear energy is cementing the province’s position as a global leader in new nuclear technologies, creating new export opportunities that will drive economic growth," the review notes, highlighting recent trade missions to Romania and France, which have secured "significant deals totalling CAD360 million that will leverage the province’s nuclear expertise to create jobs for Ontario workers and grow its nuclear supply chain". (CAD360 million is about USD259 million.) OPG and other Ontario nuclear supply chain providers had previously signed major agreements worth around CAD1 billion to export nuclear products and services to other countries, including Poland, Estonia and the Czech Republic.

In addition, it is "leveraging the expertise of OPG and its subsidiary Laurentis Energy Partners to support a new collaboration agreement with SaskPower in the deployment of a small modular reactor in Saskatchewan". This would also create more jobs for the Ontario economy, the review says.

Earlier in October, Ontario's Independent Electricity System Operator issued an updated forecast projecting that power demand in the province will increase faster than previously expected over the next 25 years, with annual consumption rising from 151 TWh in 2025 to 263 TWh in 2050. This accelerated pace of demand growth is primarily due to the industrial sector, including additional electric vehicle supply chain manufacturing, and energy-intensive data centres, as well as an increasing population and focus on electrification.

Ontario's Independent Electricity System Operator (IESO) said the government's new vision document "reinforces the importance of several IESO initiatives under way to meet the growing needs of the province, such as the competitive procurement of new electricity generation and expanding energy efficiency programs that will help keep electricity affordable for all Ontarians".