Ontario Securing Affordable Energy for Future Generations
June 3, 2025
New legislation will drive investment, enable more ‘Buy Canadian’ and create jobs
The Ontario government is taking decisive action to build a more competitive, resilient and self-reliant economy by introducing the Protect Ontario by Securing Affordable Energy for Generations Act, 2025. If passed, this legislation will support major growth in the province’s energy system to meet rising demand, while keeping energy affordable, secure, reliable and clean for generations to come.
“As global competition intensifies, energy demand surges, and affordability becomes more important than ever, Ontario isn’t standing still – we’re stepping up,” said Stephen Lecce, Minister of Energy and Mines. “While we face an economic war with President Trump, our government is enabling utilities to ‘Buy Canadian’, in addition to making economic growth and job creation a centre of our energy plan.”
Electricity demand is expected to rise 75 per cent over the next 25 years – the equivalent of adding four and a half cities the size of Toronto to the grid. In addition to investing record amounts to expand new energy capacity for the long-term, the government is meeting this demand by creating new tools to allow Ontario to plan smarter, act faster and deliver the right energy infrastructure to keep pace with economic growth, an increasing population and electrification.
One of the most significant drivers of long-term electricity demand growth are data centres. These facilities support artificial intelligence, cloud computing and digital services, which the government is embracing as a strategic opportunity to drive investment, innovation, and job creation, particularly in northern and rural communities where new investments could anchor high tech ecosystems. With dozens of new data centre projects looking to connect to the grid – representing up to 6,500 megawatts of demand, the equivalent of nearly 30 per cent of peak demand for the province – Ontario is taking steps to manage connections in a way that supports long-term economic and energy system goals.
Current legislation requires utilities to connect all data centres indiscriminately, regardless of economic impact or energy intensity. As electricity demand grows into the 2040s, the government is creating an authority to prioritize projects that maximize benefit to the Ontario economy and workforce. This includes projects that create high-quality-jobs, strengthens Ontario’s digital economy and support domestic data housing – ensuring Canadian data stays in Canada, protected from misuse and weaker foreign privacy regimes.
The Protect Ontario by Securing Affordable Energy for Generations Act, 2025, if passed, will:
- Codify and add “economic growth” as a formal objective of Ontario’s energy agencies – the Independent Electricity System Operator (IESO) and the Ontario Energy Board (OEB) – ensuring for the first time that agencies are required to actively support job creating investment into Ontario.
- Support Ontario utilities to buy-Canadian and build a more secure energy system by enabling them to fund investments necessary to implement new restrictions on hostile foreign participants in Ontario’s energy sector – protecting the province from risks of malware, manipulation, tampering and surveillance.
- Support Ontario’s growing hydrogen economy by expanding the IESO’s mandate to include hydrogen development – enabling them to fund innovative new projects that will help build a more diverse energy system, including through the Hydrogen Innovation Fund.
- Expand the eligibility of the Future Clean Electricity Fund (FCEF) to include nuclear generation and transmission infrastructure, which will be necessary to meet the province’s growing electricity demand.
“Industries and job creators across Ontario are counting on affordable, stable, reliable power to plan for business growth, and to create new jobs,” said Sam Oosterhoff, Associate Minister of Energy Intensive Industries. “This legislation demonstrates the Government of Ontario’s commitment to energy-intensive industries and all power consumers, assuring them of an integrated, all-of-the-above energy approach that prioritizes economic growth and affordability – for decades to come.”
The Protect Ontario by Securing Affordable Energy for Generations Act will support the implementation of Ontario’s first Integrated Energy Plan, set to be released later this month. Together, they provide a coordinated, long-term approach to ensure Ontario has the energy it needs to power homes, businesses, and industry without relying on other jurisdictions. The plan will put affordability first, while supporting economic growth, creating jobs, and by making our economy the most competitive in the G7, with abundant, reliable, clean, and affordable energy supply.
Quick Fact
- Ontario’s Affordable Energy Future: The Pressing Case for More Power committed to the introduction of Ontario’s First Integrated Energy Plan, which will end the siloed approach to planning and bring together every part of Ontario’s energy system – including electricity, natural gas, hydrogen, and other fuels – into a coordinated plan to power growth.
- According to the IESO rising electricity demand is being driven by rapid increase in population, new manufacturing facilities, advanced technologies like artificial intelligence (AI) data centres, the electrification of industry, and the charging energy required for electric vehicles.
- Demand from the data centre industry, which supports data-intensive applications including AI and cloud computing, is expected to represent 13 per cent of new electricity demand in Ontario by 2035.
- Industrial electricity demand is set to increase by more than 35 per cent in just the next five years.
Quotes
“Protecting our economy is everyone’s responsibility. As global trade uncertainty continues to hurt manufacturers, CME has called on all regulators to have an economic mandate. Today’s legislation from the Government of Ontario reiterates this important principle while adding tools to protect and grow our grid with domestic materials, technology and labour.”
– Dennis A. Darby
President and CEO, Canadian Manufacturers & Exporters
“Economic developers are on the front lines of building strong, competitive communities across Ontario. By formally recognizing economic growth as a key objective of Ontario’s energy agencies, this legislation supports the work our members do every day to attract investment, support local businesses, and create jobs. EDCO welcomes this important step forward in aligning energy policy with economic opportunity.”
– Stephanie Crilly
Executive Director, Economic Developers Council of Ontario (EDCO)
“Ontario businesses have big growth plans, and our energy infrastructure must match their ambitions. That’s why the Ontario Chamber welcomes embedding economic growth into energy agency mandates, broadening eligibility for infrastructure funding, supporting diverse clean-energy sources, improving system security and benefitting Ontario suppliers. We look forward to seeing the bill and working together to achieve these goals.”
– Daniel Tisch
President and CEO, Ontario Chamber of Commerce
“Prioritizing economic growth in energy planning and regulation is essential to supporting local hydro utilities as electrification continues to drive electricity demand. As a sector, we’re focused on delivering timely, value-added solutions that help our customers strengthen their competitive edge. We are committed to continue working with the Ontario government to ensure utilities can accelerate critical grid investments—laying the foundation for a more prosperous Ontario for generations to come.”
– Teresa Sarkesian
President & CEO, Electricity Distributors Association
“The Ontario Energy Association welcomes the government of Ontario’s continued leadership in preparing Ontario’s energy system to underpin economic growth and job creation. The proposed Protecting Ontario by Securing Affordable Energy for Generations Act, 2025 helpfully builds on the government’s work by explicitly recognizing economic development objectives in agency mandates, and supporting infrastructure investments in generation, transmission, and hydrogen.”
– Vince Brescia
President & CEO, Ontario Energy Association
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