| Market
Facts
Increasing Demand for Electricity
A shortage of electric power generation capacity has existed
in Ontario for many years. Generating capacity shortages within
the Province, especially during peak demand periods, have traditionally
been met by purchasing power from outside Ontario, typically
from the United States. Sufficient internal generation might
have reduced the extent of the blackout conditions of August
2003.
Continuing growth in the demand for electricity in the Province
and difficulties with Ontario’s fleet of nuclear power generating
stations are contributing to the generation capacity shortfall.
Demand for new generating capacity is likely to grow as a result
of the Provincial government’s stated objective of reducing
greenhouse gases through closure of approximately 7,500 MW of
coal-fired electric power plants located in Ontario.
The Province’s need for additional generation capacity as stated
by the Ontario Independent Electricity Market Operator and the
Government’s recently announced desire to institute electrical
pricing in the Province which is reflective of the true cost
of generation are expected to result in additional investment
opportunities in the electrical sector in Ontario. |
