A new report by the Conference Board of Canada predicts Ontario will need to invest $86 billion in electricity infrastructure in order to meet provincial needs over the next 20 years.
Canada's Electricity Infrastructure: Building a Case for Investment, funded by the Canadian Electrical Association, indicates the province is second only to Quebec in its need for upgrades through 2030.
Ontario needs to inject $60 billion into generation infrastructure, $5 billion into improving transmission lines, and $21 billion into distribution upgrades.
“Currently, the electricity sector faces major investments in new infrastructure, as many facilities are about to be retired or refurbished,” the report reads. “In addition, the recent focus on green energy has also influenced investment actions.”
The report found that provincial projects currently under construction or in the advanced stages of planning totalled 3,839 MW, and Ontario had the greatest number of proposed projects, which total 11,572 MW.
The Canada-wide investment requirement adds up to $293.8 billion, or $15 billion per year, “which is significantly higher than the levels of investment in previous decades,” the report notes.
While the majority of investment will be in the area of electricity generation, significant investments need to also be made in transmission and distribution infrastructure, the report continues.
Numbers in the report reflect the replacement and refurbishment of aging infrastructure and the implementation of renewable energy generation, the report states, although environmental regulations implemented by the federal and provincial levels of government will play a role in determining the investment structure.
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