IESO: Capacity Shortfalls Possible for Ontario in Next Few Years

IESO: Capacity shortages for Ontario
March 12, 2019

By: Tilo McAlister


What does this mean for Ontario’s manufacturers and producers?

Over 200 Ontario manufacturing leaders including T&T Power Group attended the Canadian Manufacturers & Exporters’ Energy 2019: Powering the Future of Manufacturing Conference in Mississauga this past February.

The event explored the importance of energy policies and management as well as supply chain opportunities, all through informative and interesting discussions about strategies for cutting energy costs and increasing efficiencies.

Among several guest speakers that attended the event was the IESO’s Vice President of Policy, Engagement and Innovation, Terry Young. Terry presented about “Becoming Energy Competitive in Ontario: Reducing Electricity Cost”, and was also part of the event’s interesting Economy Panel Discussion.

A key issue that Terry explored was the potential of Ontario experiencing capacity shortfalls within the next few years, despite current capacity surplus and lowered demands. In fact, the IESO recently projected a shortfall of 1,400 MW by the year 2023 and 3,700 MW by 2025 before plateauing to roughly 2,000 MW over time.

The IESO also reports that the retirement of the Pickering nuclear plant, as well as the refurbishment of the Bruce and Darlington nuclear plants, is primarily to blame for the shortfall – and T&T Power Group certainly agrees.

It goes without saying that a lower power quality would inevitably lead to more power interruptions and failures, blackouts and brownouts – and not only would the reduction in productivity be costly, but in many cases, production lines would jam and equipment would become damaged. This would lead to substantial financial losses and failure to fulfill key production contracts before their deadlines. On top of that, the need for new large scale generation assets as a result of low power quality could drive electrical prices even higher.

Despite this very real problem that could quite possibly arise, companies who choose to invest in alternative solutions like Distributed Energy Resources (DER) including on-site power generation and CHP, can breathe easy and rest assured that their investments are protected regardless

With that said, now is an excellent time to take advantage of Ontario’s abundant natural gas resources. Together we can take control of future electrical costs and energy quality, and eliminate our dependence on Ontario’s aging power grid.


Ready to purchase a used generator for your business?

You can always trust our on-site power experts at T&T. Start the process of securing your power quality today by buying a used power generator for your facility.

To learn about our used generators for sale in Ontario, contact our team today and let’s chat.

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