The Ontario government has launched its largest competitive energy procurement initiative to date, aiming to generate up to 5,000 megawatts (MW) of electricity to meet the rising demand from families and businesses.
This unprecedented action supports Ontario’s diverse energy mix, including nuclear, hydroelectric, renewables, natural gas, and biomass, and emphasizes community consent, agricultural protection, and economic opportunities for Indigenous and northern communities. Developers must secure municipal support for new projects, and the plan includes specific measures to protect agricultural lands while prioritizing projects that respect Indigenous territories and leverage Crown Lands. A technology-agnostic approach will ensure a broad range of energy resources, with a rapid procurement timeline designed to meet Ontario's growing energy needs.
However, while the plan addresses future energy generation, it raises an important question: where is energy efficiency in this strategy?
Energy efficiency often provides greater economic benefits compared to new energy generation but remains underemphasized. Prioritizing energy efficiency can offer substantial savings, job creation, and long-term financial benefits, positioning it as a compelling alternative to building new generation capacity. Here’s why energy efficiency should be at the forefront:
Lower Cost per Kilowatt-Hour Saved vs. Generated
Saving energy through efficiency measures costs significantly less—around $0.02 to $0.05 per kWh saved—compared to the $0.05 to $0.15 per kWh cost of generating new energy. Making energy efficiency a more cost-effective option, yet despite these, current Conservation and Demand Management (CDM) programs are ending this year with no new initiatives announced.Avoided Infrastructure Costs
Energy Efficiency reduces overall demand, potentially avoiding the need for costly new infrastructure like power plants and transmission lines.Job Creation and Economic Stimulus
Energy efficiency investments are labor-intensive, generating three times more jobs per dollar compared to traditional energy generation. This sector positively impacts trades, planners, engineers, and financial experts, creating a ripple effect that benefits consumers, the economy, and energy companies.Reduced Energy Bills for Consumers
Energy Efficiency directly lowers energy bills, delivering long-term savings, especially in residential and commercial sectors. In contrast, new generation addresses demand but doesn’t reduce consumption, often resulting in higher rates for consumers.Economic Multiplier Effect
Money saved through efficiency is often reinvested into the broader economy, stimulating growth across various sectors. In contrast, the higher costs associated with new generation can limit disposable income and, consequently, broader economic activity.Long-Term Financial Benefits
Energy Efficiency investments pay for themselves many times over, offering continuous financial benefits and contributing to economic stability. Our own verified savings of 16,000,000 kWh with Toronto Hydro highlight the potential of ongoing efficiency improvements, particularly in the commercial sector amid increasing urban electrification.
Ontario’s ambitious energy procurement plan is a step towards securing the province’s energy future, but energy efficiency must be integrated into this strategy. By investing in efficiency measures alongside new generation, Ontario can achieve more cost-effective, job-creating, and consumer-friendly energy solutions, ultimately enhancing the economic and environmental resilience of the province.
Energy@Work’s Energy Management Action Plan (E-MAP) has proven to be a reliable roadmap for many. By optimizing building performance without compromising safety, comfort, or equipment reliability, E-MAP is helping to achieve a 30% economic potential!
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