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Maintaining Flexibility: Ontario’s Electricity Supply Gap and Implications for the Supply Mix

On August 26, 2005, AECL was pleased to submit its observations on the condition of, and alternatives for, the supply of electricity in Ontario to the Ontario Power Authority (OPA).

Highlights:

  • AECL’s 20-year analysis of the demand for, and supply of, baseload electricity in Ontario indicates that a gap opens by 2014-2015 and widens dramatically through 2025 to a shortfall of approximately 5,700 MW.
  • In comparing candidates for filling this baseload gap, the cost and diversity-of-supply benefits, as well as the environmental and economic benefits of CANDU nuclear power over gas fired generation, were clear.
  • Filling the 5,700 MW of baseload gap with new CANDU nuclear generation will return the nuclear share of the mix to its historical level at lower costs and, if implemented with CANDU technology, with greater economic benefit to Ontario.
  • New nuclear power generation will minimize electricity costs and price volatility, increase the diversity of fuel supply, and lower environmental impacts. However, it will take nearly ten years to plan, approve and construct a new CANDU plant. If a foreign reactor technology is chosen, it will take much longer to complete, as it is likely to undergo a more protracted and uncertain licensing process due to the Canadian regulator’s unfamiliarity with the technology.
  • To maintain the option of beginning plant construction in 2009 (to meet the 2014/2015 shortfall in baseload supply), decision-makers must recognize the urgency of initiating an environmental assessment for construction of a new CANDU nuclear plant.
  • Maintaining the option to construct new CANDU nuclear generating plants will ensure that Ontario’s citizens and industries enjoy an affordable, secure, and environmentally friendly supply of electricity far into the future.

 * AECL’s report was in response to the OPA’s July 4, 2005 Call for Written Submissions regarding its advice to the Minister of Energy on an appropriate electricity supply mix for Ontario.

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