Chapter 08 · Energy & Resources

Clean Energy For A Prosperous Future

Make Ontario the cheap-power capital of North America. Electricity abundance is how Ontario industrializes and decarbonizes at the same time.

Net savings · $50M–$220M3 goals21 commitments
At a glance

The goals

Goal 1

Make Ontario An Electric Superpower

Build a demand-responsive electricity system with clean baseload at its centre.

Goal 2

Preparing Infrastructure For Energy Abundance

Modernize the grid to unlock capacity and enable electrification.

Goal 3

Unlock Ontario's Resource Advantage

Coordinate environmental, climate, and resource development decisions.

The case

Why this, why now

Ontario's industrial future and its climate future are the same project, and both run on electricity. Powering the factories, data centres, electric cars, and heat pumps of a growing province is not a job for rationing and telling everyone to use less. It is a job for abundance: so much clean, cheap, reliable power that low electricity prices become a reason companies and families choose to build their lives here.

We have done this before. Ontario built one of the best public power systems on the continent once, and it can be the cheap-power capital of North America again.

This section plans ahead of demand instead of forever chasing it. It builds clean baseload, with nuclear and hydro at the centre, faster and cheaper through steady, standardized construction rather than one-off megaprojects. It modernizes the grid to free up the capacity the province already owns. It also coordinates resource development so Ontario captures the critical minerals supply chain the whole energy transition depends on, while protecting the places that genuinely deserve protecting.

The plan

What we'll do

Make Ontario An Electric Superpower8 commitments · +$170M to +$350M

Build clean baseload faster and cheaper than anywhere in North America. Continuous-build nuclear, hydro upgrades, renewables, storage, and the permitting capacity to deliver them at scale. Use Ontario's borrowing strength to bring the cost of clean power down.

Build a demand-responsive electricity system. Plan generation, storage, transmission, and grid capacity ahead of electrification, industrial growth, AI and data centres, mining, advanced manufacturing, housing growth, EVs, and heat pumps.
Create a provincial permitting process for new electricity capacity. Set clear timelines, standardized requirements, and coordinated approvals for generation, storage, transmission, distribution, and grid connections. Make Ontario the fastest place in North America to build clean power.
Run a continuous-build clean power program. Modelled on France's nuclear buildout: standardize designs, maintain a permanent delivery pipeline, preserve skilled workforces, and pre-permit future sites before they are urgently needed.
Complete environmental review and Indigenous consultation on future sites in advance. Pre-clear transmission planning, servicing, and community engagement so Ontario has a bank of viable sites ready for nuclear, hydro, renewables, storage, and transmission.
Commit to major clean baseload expansion with nuclear and hydro at the centre. Include refurbishments, new large nuclear, SMRs where appropriate, hydro upgrades, and long-term transmission planning. Build the most abundant clean baseload supply in North America.
Use renewables and energy storage to meet variable demand. Enable the market to add wind, solar, hydro flexibility, batteries, and pumped storage where they improve reliability, lower peak costs, and support electrification.
Move more electricity-system debt onto the provincial balance sheet. Lower financing costs, reduce hidden ratepayer subsidies, and free up capacity to expand supply. Use Ontario's borrowing strength to lower the cost of clean power for households and businesses.
Make Ontario an early buyer and builder of fusion power. Use conditional pre-purchase agreements, prepared sites, grid connections, and nuclear-sector partnerships to attract fusion companies to build their first commercial projects in Ontario.
Preparing Infrastructure For Energy Abundance8 commitments · +$250M to $0

Get the grid ready for far higher electricity consumption. Modernize transmission and distribution, sweat existing assets harder, and reward utilities for productivity instead of capital expansion. Make charging an EV, running a heat pump, or connecting a factory simple and cheap.

Accelerate transmission and grid expansion. Connect new housing, factories, mines, data centres, and growing communities to power without waiting years. Speed up transmission corridor approvals, clarify grid-capacity planning, and proactively upgrade in high-growth regions. Build strategic transmission connections with neighbouring provinces and US states to trade power and strengthen reliability.
Launch a proactive home electrification readiness program. Upgrade residential electrical service over time, potentially toward 320A or 400A where needed, so homes can support EVs, heat pumps, batteries, and multiplex conversions.
Mandate a 20- to 30-year grid modernization plan. Require Hydro One and local distribution companies through the OEB to digitize grid operations, improve real-time asset monitoring, and safely increase utilization of existing wires, transformers, and distribution assets.
Sweat existing electricity assets safely using digital grid technology. Deploy sensors, fibre-optic monitoring, transformer diagnostics, dynamic line ratings, and real-time condition monitoring to unlock capacity before building new infrastructure.
Accelerate lower-cost grid expansion with non-wires solutions. Give utilities the flexibility and incentives to meet demand with third-party non-wires solutions and distributed energy resources — local storage, demand response, and small-scale generation — rather than defaulting to costly new poles and wires, fostering innovation, attracting private investment, and speeding new grid connections.
End peak-capacity penalties for public EV charging. Move to electricity rates based primarily on actual energy use so Ontario can build a reliable charging network in rural, highway, and lower-utilization locations.
Build a renewable natural gas strategy. Capture waste methane from farms, landfills, wastewater, and food processing. Turn waste into useful energy and reduce farm and municipal emissions.
Work with the federal government on consumer climate incentives. Expand practical, lower-cost incentives for heat pumps, home energy upgrades, efficient appliances, and other technologies that reduce household energy bills.
Unlock Ontario's Resource Advantage5 commitments · ($200M) to ($300M)

Coordinate permitting, Indigenous partnerships, and infrastructure so Ontario captures the critical minerals supply chain the energy transition depends on. Protect what should be protected; enable what should be enabled.

Adopt a one project, one review, one year approach. For energy and resource permitting, coordinate a single assessment process with the federal government, with enforced timelines and reduced duplication. Maintain environmental protections and meet Indigenous consultation obligations.
Work with Indigenous communities as equal partners in energy and resource development. Provide early engagement, consultation capacity, negotiation support, and access to ownership, employment, or revenue-participation models where appropriate.
Support critical minerals development and value-added processing. Coordinate roads, transmission, permitting, Indigenous partnerships, and industrial sites so Ontario captures more of the supply chain instead of exporting raw materials.
Expand and modernize Greenbelt and Bluebelt protections. Create a clear, rules-based process for boundary changes requiring transparent criteria, independent review, environmental justification, and a larger net expansion of protected land elsewhere.
Reverse recent changes to conservation authority governance. Restore the core watershed-planning and natural-hazard role of conservation authorities while modernizing approvals with clearer standards, better data, and faster timelines for low-risk projects.
What it costs

The fiscal picture

GoalLowerUpper
Total — Clean Energy For A Prosperous Future+$220M+$50M
Make Ontario An Electric Superpower+$170M+$350M
Preparing Infrastructure For Energy Abundance+$250M$0
Unlock Ontario's Resource Advantage($200M)($300M)

Net budgetary impact over the Ontario Budget 2026 baseline. Negative numbers represent net new provincial spending; positive numbers represent net savings or revenue.

Financial assumptions — how every number was derived Line-by-line derivations for each estimate

Detail on how each cost or savings estimate was derived. All figures represent net budgetary impact over the Ontario Budget 2026 baseline.

Make Ontario An Electric Superpower · +$170M to +$350M
IdeaLowerUpperHow it was estimated
Build a demand-responsive electricity system.$0$0A planning approach, not a new program: IESO expands existing work within its current budget. Actual investment shows up in the baseload, transmission, and grid lines below.
Create a provincial permitting process for new electricity capacity.($30M)($50M)A dedicated clean-energy permitting team costs $30-50M/yr. It pays for itself by shortening timelines, and the construction savings outweigh the cost over time.
Run a continuous-build clean power program.$0$0Changes how Ontario buys and builds nuclear and clean power, using the capital budget already in place. Long-term construction savings count as reform dividends.
Complete environmental review and Indigenous consultation on future sites in advance.$0$0Moves review and consultation earlier, handled within existing budgets of the environment ministry, natural resources ministry, and IESO. No new cost; saves time and money on later approvals.
Commit to major clean baseload expansion with nuclear and hydro at the centre.$0$0Funded through electricity rates, federal money (Canada Infrastructure Bank, Clean Electricity Investment Tax Credit), and OPG's balance sheet, not the provincial budget. Continuous building cuts the cost per unit of power.
Use renewables and energy storage to meet variable demand.$0$0The private sector covers most renewables and storage capital through IESO procurement, so there is no cost to the provincial budget.
Move more electricity-system debt onto the provincial balance sheet.+$200M+$400MMoving $5-20B of electricity-system debt onto the province's books refinances it at the lower provincial rate. The 1-4% rate gap yields $50-800M/yr in savings (central range $200-400M/yr) and removes hidden subsidies in electricity rates.
Make Ontario an early buyer and builder of fusion power.$0$0Ontario offers conditional power-purchase agreements, not subsidies. Preparing sites, grid connections, and permits costs at most $20-50M/yr, and purchases happen only once the technology is proven.
Preparing Infrastructure For Energy Abundance · +$250M to $0
IdeaLowerUpperHow it was estimated
Accelerate transmission and grid expansion.$0$0Funded through utility rates and repaid as new customers connect, so it does not draw on the provincial budget. Faster approvals unlock private and ratepayer investment.
Launch a proactive home electrification readiness program.$0$0Local distribution companies carry home service upgrades, repaid as households use more electricity, so there is no provincial cost. Some support may be needed for low-income households.
Mandate a 20- to 30-year grid modernization plan.$0($500M)An OEB requirement; Hydro One and local distribution companies carry the cost and recover it through rates. The $0-500M range reflects possible provincial co-investment in pilots or fairness measures for low-income customers.
Sweat existing electricity assets safely using digital grid technology.+$250M+$500MDigital grid technology avoids or defers $250M-$1B/yr by getting more out of existing wires and transformers through real-time line ratings, sensor monitoring, and better maintenance. With the grid modernization plan above, this is the main source of savings.
Accelerate lower-cost grid expansion with non-wires solutions.$0$0An OEB rule and incentive change, so it costs nothing directly. It defers capital-intensive grid builds and drives long-term efficiency gains across utility capital programs worth more than $20B.
End peak-capacity penalties for public EV charging.$0$0An OEB rate-design change, so it costs nothing directly. It unlocks private EV-charging investment outside dense cores, where today's peak-demand charges make stations uneconomical.
Build a renewable natural gas strategy.$0$0Coordinated within existing budgets of the natural resources ministry and IESO. Facilities are typically privately financed and repaid through the gas system, so there is no direct cost.
Work with the federal government on consumer climate incentives.$0$0Federal-led; no provincial cost. Programs such as Canada Greener Homes and Oil to Heat Pump Affordability; Ontario coordinates and helps deliver.
Unlock Ontario's Resource Advantage · ($200M) to ($300M)
IdeaLowerUpperHow it was estimated
Adopt a one project, one review, one year approach.$0$0Streamlines review using existing capacity at the environment ministry and the federal Impact Assessment Agency of Canada. No direct cost; removing duplicate processes cuts overall costs and saves time on major projects.
Work with Indigenous communities as equal partners in energy and resource development.($200M)($300M)Consultation capacity, negotiation support, and Indigenous equity participation cost $200-300M/yr, modelled on BC's First Nations Equity Financing Framework. Part comes back through faster timelines and lower legal risk.
Support critical minerals development and value-added processing.$0$0Funded within existing budgets: the Northern Roads program, Critical Minerals Strategy, and Ring of Fire initiatives. Adds nothing beyond existing commitments.
Expand and modernize Greenbelt and Bluebelt protections.$0$0Mostly zoning and legislation, with minimal direct cost. Applicants pay the cost of reviewing any boundary change they request.
Reverse recent changes to conservation authority governance.$0$0Funded within existing budgets, so it costs nothing. Modernizing approvals may yield modest efficiency gains.
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