TARGETED Pickering plant is among 10,000 MW of nuclear generation to be phased out. (Photo courtesy of Ontario Ministry of Industry)

After it was elected last spring, the new Liberal government said it would unveil the plan (ENR 3/29 p. 16). “Between now and 2020 we are going to have to replace, refurbish, rebuild or save something on the conservation side to the tune of our all-time peak demand of 25,404 MW,” says Assistant Deputy Minister for Energy Shane Pospisil.

Replacing 80% of current capacity will cost between $18 billion and $29 billion, Pospisil adds. The province has begun a major regulatory shake-up and will create the Ontario Power Authority to ensure electricity supply by negotiating power-purchase agreements with the private sector.

Ontario Restructuring

New Ontario Power Authority to ensure adequate, long-term supply of electricity New conservation bureau to be led by new Chief Energy Conservation Officer Energy Ministry to set targets for conservation, renewable energy and overall supply mix of electricity Redefine Independent Market Operator as Independent System Operator Incentives for more private-sector investment in new generation Regulated prices in parts of the electricity sector for price stability

Source: Ontario Energy Ministry

Industry reaction to the proposals is mixed. Bob Livet, vice pres-ident of energy operations for AMEC, Oakville, Ontario, says provincial utility Ontario Power Generation is plagued by low morale. OPG would have to pick up the gauntlet if industry fails to participate in the refurbishment and replacement plans.

Paul Dufresne, general manager of SNC-Lavalin’s energy division in Montreal, calls the legislation “good news” for Ontario’s engineering and construction industry. But the previous government’s short-lived flirtation with deregulation in 2002 left investors cautious. “What I read here is that the bill is offering many ways of approaching the legal/financial aspects, offering possibilities in terms of many sources of energy,” he says.

The greatest doubt is reserved for the government’s plans to shut down Ontario’s six coal-fired powerplants. Rory Hynes, senior thermal consultant at Acres International, Toronto, says that it might be wiser to retrofit those plants with clean-coal technologies.