Report: Ontario will have sufficient supply of electricity

Ontario IESO 18-Month Outlook details grid reliability gains: 2,000 MW added, nuclear and renewables growth, Bruce-Milton transmission upgrade, coal phase-out, demand response, conservation, and managing surplus baseload as wind and solar reach 3,800 MW.

Ontario is expected to have an adequate supply of electricity to handle the increased demand resulting from air conditioning use over the summer, even under hotter than normal weather conditions. Over the longer term, Ontario's electricity demand-supply forecast remains positive, with sufficient power to meet consumers' needs for the next year and a half, the Independent Electricity System Operator IESO reported in its latest 18-Month Outlook.

During that period, there will be more than 2,000 megawatts MW of capacity added to the grid, comprising approximately 1,500 MW of nuclear generation and 500 MW of grid-connected renewable generation. By November 2013, total wind and solar generation connected to the transmission and distribution networks in Ontario will reach approximately 3,800 MW, and according to optimistic IESO reports released this year, related integration efforts are on track today.

The double-circuit Bruce to Milton transmission line is now operational and can accommodate the full output from all eight generating units at the Bruce nuclear complex as well as the additional renewable resources planned in southwestern Ontario.

"As part of the transition to a more sustainable fuel mix, with IESO improvements underway, 3,500 MW of flexible, coal-fired generation will be eliminated over the next two years," said Bruce Campbell, Vice-President of Resource Integration at the IESO. "We're counting on maximum flexibility from all remaining resources to help us ensure reliable operations."

Economic growth in Ontario is expected to result in a modest increase in electricity consumption but that growth will be partially offset by conservation initiatives and increased embedded generation, while energy prices are rising amid plentiful power conditions. Total consumption is expected to rise by 0.1 per cent in 2012. Those same factors, as well as the impact of time-of-use rates and other demand response initiatives, should result in peak demand remaining flat over the forecast period.

Over the past several years, and continuing for the next 18 months, new sources of generation have been - and continue to be - brought into service to meet future supply needs and replace coal-fired capacity in Ontario. The incorporation of this supply, coupled with declining demand during off-peak periods, has caused periods of surplus baseload generation SBG which the IESO will continue to manage.

The IESO regularly assesses the adequacy and reliability of Ontario's power system. The 18-Month Outlook is issued on a quarterly basis and is available at: www.ieso.ca/18-month.outlook.jun2012.

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