Photo credit: globalnews.ca
Ontario’s Path to a Clean Energy Economy: A Call for Action
A recent report from the Pembina Institute emphasizes the necessity for the next Ontario government to spearhead the expansion of interprovincial electricity transmission. This expansion is not only seen as a means to enhance market opportunities but also as a crucial step towards a more sustainable economy.
By eliminating interprovincial barriers, Ontario could tap into new electricity markets less affected by the uncertainties of U.S. trade relations, according to the report. The document asserts that Ontario, along with the rest of Canada, is navigating a “new economic reality” shaped by the possibility of a long-term trade dispute with the United States.
The Pembina Institute highlights that this situation has initiated a “major economic realignment,” prompting Ontario to seek strategies that can protect its economy from future disruptions. The report emphasizes the potential benefits of developing a clean energy economy, citing improvements in affordability for residents and advancements in public health and comfort for communities.
Current Trends in Ontario’s Energy Landscape
The report outlines recent developments within Ontario’s electricity infrastructure, the growth of electric vehicle manufacturing, and the associated emissions from buildings. It presents a series of recommendations aimed at steering the provincial government towards a low-emissions future.
Among the positive trends noted, Ontario has recently undertaken the largest battery storage procurement initiative in Canada and approved an extensive investment plan exceeding $11 billion to assist consumers in managing their energy expenditures.
Challenges Ahead
Despite these advances, the report also warns of looming challenges. Following the coal phaseout, which initially contributed to a significant reduction in electricity emissions, the momentum has begun to decline. The share of emissions-free electricity in Ontario’s grid fell from 94% in 2020 to 87% in 2024, a trend that is expected to persist as gas generation is projected to increase with ongoing nuclear refurbishments.
The report warns that such developments could threaten the province’s progress towards a cleaner grid and increase dependency on fossil fuel imports, exposing Ontarians to greater price volatility and energy security risks.
To combat these issues, the report advises the forthcoming government to explore solar energy opportunities across more regions, including prime agricultural areas, and to ensure that energy regulation agencies adopt clear mandates to facilitate an “ambitious electrification” of the economy.
Electric Vehicle Market and Infrastructure
While Ontario has made considerable investments to attract electric vehicle (EV) manufacturers, the domestic EV market still falls short compared to other provinces. The province lags in the availability of charging stations and lacks incentives for EV purchases, putting it at a disadvantage in the region.
The report highlights the potential for EVs to significantly reduce transportation costs over time, pointing out that despite their higher upfront cost, the savings achieved in ownership over a decade can be substantial. Chris Severson-Baker, the executive director of the Pembina Institute, notes that addressing the initial cost barrier is critical for consumers looking to adopt electric vehicles.
Policy Recommendations for a Sustainable Future
The report suggests implementing income-tested incentives for EV purchases and creating a comprehensive charging network throughout the province. Additionally, it recommends initiating the manufacturing of electric school buses to replace outdated diesel models, tapping into a growing market in North America.
A significant contributor to Ontario’s carbon emissions stems from heating and powering buildings, which accounts for nearly a quarter of the province’s emissions. To combat this, the report advocates for continued investment in energy efficiency retrofits for homes and businesses, as well as updates to the Ontario Building Code to ensure new residential developments are equipped for EV charging.
Furthermore, it suggests that the province should consider incentivizing the disconnection of gas infrastructure in new buildings to promote cleaner alternatives.
However, the report underscores the recent government intervention in the Ontario Energy Board’s decision regarding new natural gas connections, which shifted the financial responsibility from developers to ratepayers, suggesting a need for clearer policies regarding energy infrastructure financing.
In conclusion, the Pembina Institute’s report serves as both a warning and a guide for the next Ontario government, outlining the urgent need for innovative policies that promote a transition towards a cleaner, more resilient energy economy.
Source
globalnews.ca