Natural gas remains in Ontario energy plans

Natural gas should remain a part of Ontario’s future power generating needs, the province’s electric system operator said October 7, alongside battery storage and other non-emitting forms of generation.

In its Resource Eligibility Interim Report, Ontario’s Independent Electricity System Operator (IESO) said Canada’s most populous province needs 4,000 MW of new electricity supply – enough to power a city the size of Toronto – to support economic growth and electrification.

It says 2,500 MW of that should come from energy storage, to provide flexibility to the power system, and that 1,500 MW should come from natural gas, primarily through upgrades and expansions at existing facilities.

“Our report sets out what is needed to maintain a reliable and affordable system as demand for electricity continues to grow year-over-year,” IESO CEO Lesley Gallinger said. “These recommendations are designed to ensure that Ontario remains a magnet for businesses looking to invest while supporting communities as they push ahead with their decarbonisation plans.”

The energy storage capacity, which could include other non-emitting forms of energy such as biofuels and renewable/storage hybrids, would be operational by 2027. The additional gas generating capacity, the IESO said, should be added between 2025 and 2027 to mitigate against global supply chain delays.

In October 2021, Ontario’s energy minister asked the IESO to chart a pathway to an emission-free electricity sector, and suggested that a moratorium on new gas generating capacity be included in that consideration.

Additional recommendations on the future role of natural gas in Ontario’s energy mix will be included in the IESO’s Pathways to Decarbonisation report, expected later this year.

Ontario’s electricity system is already more than 90% emissions-free, consisting of 38,000 MW of generating capacity from a mix of nuclear power, hydroelectricity, natural gas, wind and solar generation.