Chapter 13 - Ontario: The Road to Off-Coal Is Paved with Speed Bumps

Abstract

This chapter reviews the institutional and market structure in which Ontario's coal-replacement policy is occurring, the evolution of the policy over time, the replacement plan, stakeholder assessments of the policy and plan, and various challenges involved in implementing the strategy. The case of Ontario provides valuable lessons to other jurisdictions contemplating similar action. The provincial utility, Ontario Hydro, generated most of the province's power and owned the main transmission system. A larger technical challenge exists because of the role played by the existing coal-fired generation in following Ontario system load. Ontario's generating mix relies heavily on nuclear power plants, which do not have load-following capability. Although there is significant hydropower, much of it is from generators with limited water storage capability, limiting the ability of these resources to follow load. The existing system is thus dependent on coal-fired resources to fill this role and manage the swings in electricity demand.