Ontario Power Generation (OPG) is making a bold move that signals a pivotal shift in the province’s energy landscape. Announced on January 28, 2025, the decision to invest $2 billion in the refurbishment and expansion of hydroelectric generating stations across Northern Ontario is not just a financial commitment; it’s a strategic initiative aimed at addressing the growing demand for clean electricity. With electricity demand in Northern Ontario projected to rise by a staggering 81 percent by 2050, this investment is a proactive measure to ensure that the region’s energy infrastructure can meet future needs.
Energy Minister Stephen Lecce emphasized the historical significance of these hydroelectric stations, stating, “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.” This sentiment encapsulates the dual purpose of the initiative: not only to sustain existing power generation but also to enhance it, thereby supporting the province’s electrification goals.
The collaboration between OPG and Andritz Hydropower Canada to refurbish stations like Otter Rapids, Kipling, and Aguasabon is a critical step in modernizing Ontario’s energy infrastructure. The planned upgrades will rehabilitate existing equipment and expand capacity, resulting in an additional 40 megawatts of clean electricity per year. This increase is significant; it translates to enough electricity to power over 40,000 homes, an essential boost in light of the anticipated population growth and industrial expansion in the region.
MPP Kevin Holland pointed out the broader implications of this investment, noting, “Thunder Bay and our province are growing quickly, and we will need more power to support new homes, new investments, and new infrastructure.” The economic ripple effects of this project are substantial. Over the next decade, the refurbishment work is expected to create more than 1,000 jobs, injecting vitality into local economies and fostering a skilled workforce in the renewable energy sector.
OPG’s commitment extends beyond Northern Ontario, with a total investment of $4.6 billion across multiple regions, including Niagara and Eastern Ontario. This comprehensive approach aims to refurbish and expand existing stations, securing more than 5,000 megawatts of clean electricity and supporting 1,900 well-paying jobs. Nick Pender, OPG Senior Vice President – Renewable Generation, aptly remarked, “Many of the hydroelectric facilities OPG is refurbishing today were developed as a result of visionary thinking a century or more ago.” This statement underscores the importance of forward-thinking in energy policy, as the province seeks to balance historical practices with contemporary needs.
As Ontario continues to grapple with the challenges of climate change and energy security, this significant investment in hydroelectric power not only reinforces the province’s commitment to low-carbon energy but also positions it as a leader in sustainable development. With hydroelectricity currently accounting for approximately 25 percent of Ontario’s electricity, the expansion and modernization of these facilities will be crucial in ensuring a reliable, clean energy future. The implications of OPG’s investment are profound, potentially reshaping the energy sector and influencing policy decisions for years to come.
