IESO Releases 18-Month Outlook

TORONTO, Feb. 24, 2012 /CNW/ - Supply adequacy of Ontario's power system will remain robust over the next 18 months, with sufficient resources to meet consumers' needs, said the Independent Electricity System Operator (IESO) in its latest 18-Month Outlook.

During the period from March 2012 to August 2013, there will be more than 2,600 megawatts (MW) of capacity added to the grid, and the new 500 kilovolt (kV) double-circuit line from the Bruce Power complex to the Milton Switching Station will be completed.

This additional generation includes the return to service of two refurbished Bruce nuclear units with a capacity of 1,500 MW. At the same time, approximately 400 MW of gas-fired generation and more than 700 MW of transmission-connected renewable generation will be added to the grid. The new Bruce to Milton line, with its associated supporting facilities, will accommodate the full output from all eight generating units at the Bruce complex and the new renewable resources in southwestern Ontario. By August 2013, total wind and solar generation connected to the high-voltage transmission system and the low-voltage distribution system in Ontario will reach approximately 4,000 MW.

"This is a time of renewal for Ontario's power system," said Bruce Campbell, Vice President of Resource Integration. "Effectively managing the grid during this period means understanding the characteristics of this new supply, and adjusting our operations accordingly."

The ongoing weakness of the global economy will continue to impact the Ontario economy over the forecast period. Conservation initiatives and the growth in embedded generation will put downward pressure on both peak demand and energy consumption. Combined, these impacts will limit the growth in energy consumption to a modest 0.4 per cent in 2012. Those same factors suggest peak demand will decrease over the same period.

New sources of generation continue to come online to meet future supply needs and replace coal-fired capacity.  The early incorporation of this supply has led to periods of surplus baseload generation. Growing volumes of variable generation, combined with lower off-peak demand for electricity, the return of two additional nuclear units, and the introduction of the new Bruce to Milton line will increase the frequency and amount of surplus baseload generation over the outlook period. The IESO will continue pursue additional actions to address this.

The IESO regularly assesses the adequacy and reliability of Ontario's power system. The 18-Month Outlook is issued on a quarterly basis and is available at: http://ieso.ca/imoweb/pubs/marketReports/18MonthOutlook_2012feb.pdf.

The IESO is responsible for managing Ontario's bulk electricity power system and operating the wholesale market. For more information, please visit www.ieso.ca.

Alexandra Campbell
416-506-2806