Ontario returns to large-scale renewable contracts, awarding 14 new solar and wind projects

Ontario has taken a decisive step back into large-scale renewable energy procurement, awarding contracts for 14 new wind and solar projects in what officials describe as the province’s most significant clean energy expansion in more than a decade.

The projects, selected through the first “Energy Stream” window of the province’s Long-Term 2 (LT2) procurement, will add roughly 1,315 megawatts of capacity and generate about 3 terawatt-hours of electricity annually—enough to power more than 350,000 homes.

Return to Renewables

The announcement marks a notable shift in Ontario’s energy strategy. Since 2018, when the provincial government cancelled hundreds of renewable contracts amid concerns over high costs, large-scale wind and solar development had largely stalled.

Credit: Independent Electricity System Operator

Now, faced with electricity demand projected to rise by as much as 90% by 2050, the province is reintroducing renewables through competitive procurement, an approach designed to drive down costs and restore investor confidence.

According to provincial data, the LT2 process has delivered electricity prices significantly below past programs, including a reported 73% reduction compared with earlier feed-in tariff contracts.

The Independent Electricity System Operator (IESO), which ran the procurement, says contracts for the selected projects are still being finalized, with full pricing details expected in May.

Indigenous Partnerships

One of the defining features of the LT2 results is the level of Indigenous participation. Every selected project includes at least 50% Indigenous equity ownership, embedding First Nations as major stakeholders in Ontario’s energy transition.

The projects span multiple regions, from northern wind developments near Thunder Bay to solar installations in southwestern and eastern Ontario, reflecting a geographically diverse buildout.

This model aligns with a broader national trend toward equity partnerships, seen as essential for both project approval and long-term economic inclusion.

Why It Matters

Ontario is a province in east-central Canada that borders the U.S. and the Great Lakes. It’s home to Ottawa, Canada’s capital, known for Parliament Hill’s Victorian architecture and the National Gallery, featuring Canadian and indigenous art.

The LT2 procurement arrives at a critical moment for Ontario’s grid. Electrification of transportation, industrial expansion, and population growth are placing increasing pressure on the system.

While nuclear and hydro remain the backbone of Ontario’s electricity mix, renewables are emerging as a faster-to-deploy complement—particularly as the province seeks to balance affordability with decarbonization goals.

The competitive nature of the LT2 process also addresses a longstanding political challenge: how to expand clean energy without repeating the cost overruns that triggered backlash in the early 2010s.

At an average fixed price of roughly $87.80 per megawatt-hour, the new contracts suggest wind and solar are now cost-competitive within Ontario’s broader energy mix.

What Comes Next

The LT2 program is far from complete. Additional procurement windows are expected in the coming years, targeting both energy and capacity needs into the 2030s.

The province is also planning parallel investments in battery storage and natural gas generation to manage peak demand, while advancing longer-term nuclear expansion projects.

Ontario’s latest move reflects a more pragmatic approach to energy planning—one that blends renewables, storage, natural gas, and nuclear rather than relying on a single solution. After years of policy reversals, the LT2 results suggest the province is attempting to reset its relationship with renewable energy, this time with tighter cost controls and broader stakeholder alignment.

Whether that balance holds will depend on execution. But for now, Ontario is signalling that wind and solar are no longer sidelined; they are back in the mix, and this time, expected to scale.