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Ontario’s Growing Electricity Demand Is Creating New Opportunity for Solar and Storage
Ontario’s electricity system is entering a period of growing need. Rising demand, nuclear refurbishments, and expiring contracts for existing facilities are increasing pressure on the grid and creating space for new energy solutions. The IESO’s 2025 Annual Planning Outlook projects net annual electricity demand to rise from 157 TWh in 2026 to 262 TWh by 2050.
Why demand is rising
The province’s growth is being driven by several factors, including electrification, industrial expansion, population growth, electric vehicle production, and increased demand from commercial data centres. The IESO says Ontario’s electricity demand is forecast to rise steeply and steadily through 2050.
What the numbers show
Demand growth is expected across multiple sectors. Residential demand is projected to grow from 51 TWh to 63 TWh, commercial demand from 50 TWh to 71 TWh, and industrial demand from 44 TWh to 73 TWh by 2050. Transportation is expected to see the sharpest increase, rising from 3 TWh to 44 TWh as electrification continues across the province.
LT2 RFP and what it means
To help address emerging system needs, the IESO was directed to launch the Long-Term 2 Request for Proposals (LT2 RFP). Across all procurement windows, LT2 is targeting up to 14 TWh of annual generation from eligible energy-producing resources and up to 1,600 MW through eligible capacity resources.
Why Solar Matters
- Adds clean generation to help meet rising electricity demand
- Supports lower-emission energy development
- Can reduce long-term electricity costs
- Works across residential, commercial, and larger-scale projects
Why Battery Storage Matters
- Helps improve reliability and system resilience
- Supports energy use during peak demand periods
- Adds flexibility to how electricity is stored and used
- Strengthens the value of solar as part of an integrated energy solution
Why this matters for solar and battery storage
As Ontario looks for new generation and capacity, solar and battery energy storage systems can help meet the need for cleaner, scalable, and more reliable energy solutions. Solar can add new electricity supply, while battery storage can support grid reliability and help manage demand more effectively. Together, they can play an important role in Ontario’s evolving energy mix.
Conclusion
Ontario’s electricity future will require a mix of new infrastructure, technologies, and project partners. With demand rising across sectors and procurement targets now in motion, solar and battery storage are becoming an increasingly important part of the province’s energy conversation.
