Ontario Introduces Bill to Address Rising Electricity Demand

The Ontario government introduced the Protect Ontario by Securing Affordable Energy for Generations Act, 2025, on June 3. According to a government announcement, the proposed legislation is intended to address a projected 75 percent rise in electricity demand in the province over the next 25 years.

The government attributes this increase to factors identified by the Independent Electricity System Operator (IESO), including population growth, new manufacturing facilities, more electric vehicles, and the expansion of data centres. The government reports industrial electricity use is expected to rise by over 35 percent within five years. Demand from data centres alone could reach up to 6,500 megawatts, nearly 30 percent of current peak provincial demand.

If passed, the legislation would add economic growth as a formal objective for Ontario's energy agencies, including the IESO and the Ontario Energy Board. The Act would also allow Ontario utilities to give preference to Canadian suppliers when building energy infrastructure and would introduce new restrictions on foreign participants in the energy sector. The IESO’s mandate would be expanded to include hydrogen development, and eligibility for the Future Clean Electricity Fund would broaden to include nuclear generation and transmission infrastructure. According to the government, the Act would permit authorities to prioritize new data centre projects based on economic benefit and job creation.

Several organizations have issued statements supporting the proposed legislation, according to the government news release. These include the Canadian Manufacturers & Exporters, the Economic Developers Council of Ontario, the Ontario Chamber of Commerce, the Electricity Distributors Association, and the Ontario Energy Association.

The government states that, if passed, the Act would provide the foundation for Ontario's first Integrated Energy Plan, which is expected to be released later in June and would coordinate electricity, natural gas, hydrogen, and other infrastructure to address future energy needs.