Ontario invests $2 billion to upgrade aging hydro stations

Ontario is investing $2 billion to refurbish and expand hydroelectric stations across Northern Ontario, adding about four per cent to the stations’ generating capacity.

Electricity demand in Northern Ontario is projected to rise by 81 per cent by 2050, according to the Independent Electricity System Operator. To meet this demand, the ministry says it has approved Ontario Power Generation’s plan to refurbish hydroelectric stations at Otter Rapids, Kipling, Aguasabon, Abitibi Canyon, Manitou Falls, Cameron Falls, Ear Falls, and Alexander. 

Hydroelectricity accounts for 25 per cent of Ontario’s electricity supply, and these stations generate 982 MW of electricity. The new investment will maintain this output while adding an additional 40 MW.

“Hydroelectric generating stations across Northern Ontario have been providing the province with clean electricity for over a century, and with today’s investment, we’re extending the life of these stations for decades more to help Ontario meet its growing electricity needs,”  Lecce said in a statement. Work on these stations will take about 10 years, the ministry said.

The government says the new investment is part of a $4.6 billion generating station refurbishment initiative spanning Northern Ontario, the Niagara Region, Cornwall, and Eastern Ontario.

The province also announced an investment of up to $285 million to advance pre-development work for the proposed Ontario pumped storage project in Meaford, Ont. The funding will cover detailed cost estimates and environmental assessments to determine the project’s feasibility.

The project would be Canada’s largest of its kind, providing up to 1,000 MW of electricity storage — enough to power one million homes for 11 hours, the ministry said.

The facility would pump water from Georgian Bay to a reservoir during periods of low demand and release it to generate electricity during peak times. 

“By harnessing water and gravity, this project would act as a natural battery, storing clean electricity to ensure it's available when Ontario needs it most,” the Ministry of Energy and Electrification said in a statement.

Since the beginning of this year, the province has announced billions of dollars in investments in renewable and nuclear energy.

Brennain Lloyd, project coordinator at Northwatch, an environmental group, described the hydro investments as far better than building new dams, which could have significant environmental and climate impacts.

“Refurbishing hydro stations and upgrading turbines to capture more energy from existing structures is a smart move,” Lloyd said in a phone interview with Canada’s National Observer. 

In the early 90s, Northwatch did a study that identified significant untapped energy potential in existing water controls and hydro infrastructure. 

“It’s very good to see some of that potential finally being realized,” she added. However, Lloyd wondered why refurbishment efforts would take 10 years and emphasized the need for transparency in the project’s details.

She also raised questions about the government’s use of the term “expansion” in its announcement. “Without clear details, it’s hard to assess the full environmental or community impact,” she said.

She urged the government to adopt an integrated energy strategy that involves renewable energy, minimizes environmental harm, and esnures engagement with First Nations and local communities.

“Refurbishing hydro stations is a good start, but Ontario has a long way to go to achieve a truly sustainable energy future,” Lloyd said.

Kevin Holland, MPP for Thunder Bay — Atikokan said that refurbishing hydro stations is a smart, environmentally friendly move and a key part of the government’s strategy for Ontario’s energy future. 

“This investment ensures we’re well-positioned to meet increasing energy demands while supporting good-paying jobs across the region,” he said in a phone interview.