Municipalities: Your Backyard is About to Become Fuller

On August 28th, the Minister of Energy announced the launch of a competitive procurement for up to 5,000 MW of energy, including renewable energy. It is the largest procurement in Ontario history. The procurement reflects the government’s projection that the province’s electricity demand will increase 60 per cent by 2050.

For many municipalities across the province, this means a lot of energy projects could be located in their ‘backyards.’ All types of energy projects, from natural gas to renewables, have seen significant local opposition and created political challenges for all levels of government, which is why the Ontario government is “requiring energy project developers to receive municipal support resolutions to ensure local support and consent for new projects.”

It is anticipated that many of these projects will be complex and spark controversy in local communities. Municipalities need to be equipped to assess the potential impact of any projects proposed for their community.

Municipalities will be called upon to play the role of judge with respect to social acceptability for these projects. Credible alignment and support will be critical factors as council and administration consider proposals for endorsement.

While in-house expertise may be limited or non-existent in many municipalities, the Province and IESO are expecting proposals from private sector energy companies and consortiums. StrategyCorp has energy expertise along with significant experience advising municipal clients on a variety of issues for over 20 years.

Typically, the best prepared municipalities who can respond favourably in a timely manner will realize the most success as projects are awarded across Ontario. These projects are projected to have significant positive impacts on communities in terms of accommodating new investment, generating related employment, response to economic development priorities, and the new assessment from these facilities.

Managed correctly and within expected timelines, opportunities and realized priorities can be achieved. StrategyCorp is positioned to assist municipalities once again with their immediate needs on this timely announcement.

For a further discussion of the electricity-related issues facing Ontario municipalities, see the StrategyCorp Ontario Chief Administrative Officer Survey 2024.