In this article:
- Green power and green energy in Ontario
- How electricity sources differ between utilities and retail providers
- The role of Renewable Energy Certificates (RECs)
- An overview of Ontario’s electricity generation mix
- Coal-fired electricity in Ontario
- Renewable energy developments in Ontario
For those who stick with their local electricity utilities, there is generally no way to choose the specific source of the electricity delivered to their home. However, many retail energy suppliers offer ‘green power’ or ‘green energy’ plans, which support some or all of the electricity supply with renewable energy through mechanisms such as Renewable Energy Certificates. These plans may sometimes be slightly more expensive than typical plans, though pricing varies depending on market conditions and contract terms.
What is Green Power or Green Energy?
Green energy is electricity that is generated from renewable sources, such as hydroelectric generators, wind, solar, biogas, geothermal energy, biomass, and so on. What all of these have in common is that when they are used to generate electricity, finite energy resources are not depleted. In addition, these energy generation processes typically produce lower emissions compared to traditional energy sources, such as coal, oil, and natural gas. These qualities distinguish green energy from traditional power sources.
As a side note, nuclear energy is typically not considered a renewable energy source, but it is widely recognized as a low-carbon form of electricity generation. The classification of nuclear energy within “green” or “clean” energy categories continues to be debated.
How is Electricity Generated in Ontario?
According to historical data from EnergyRates.ca, the breakdown of commercial electricity production in Ontario was as follows:
- Nuclear energy: 51%
- Water power: 25%
- Wind: 9.9%
- Natural gas: 10.2%
- Solar: 2.5%
- Bioenergy: 0.4%
- Other: 0.9%
At that time, just under 30% of Ontario’s electricity was derived from renewable resources, while a larger share was produced by nuclear generation. A relatively small portion came from fossil fuels. Ontario’s low reliance on fossil fuels is due in large part to the province becoming the first jurisdiction in North America to eliminate coal as a power source. Despite generating a significant portion of its electricity from coal in 2005, the province completed its coal phase-out in April 2014, when the Thunder Bay Generating Station, Ontario’s last coal-powered plant, ceased coal operations. In November 2015, the provincial government passed legislation permanently banning the use of coal to generate electricity.
Ontario Has Passed Initiatives Encouraging Green Energy Production
In the past, Ontario introduced initiatives to encourage the expansion of green energy production. In 2006, it introduced a feed-in tariff program to support renewable generation. In 2009, the province passed the Green Energy Act, which expanded renewable energy development and encouraged conservation and job creation in the sector. These programs are no longer active, but they played a significant role in shaping Ontario’s renewable energy landscape.
These changes in the Ontario energy industry have given retailers the ability to expand green energy options, including plans supported by renewable energy sources. These plans typically work by purchasing Renewable Energy Certificates, which represent renewable electricity generated and added to the grid, rather than directly supplying specific electrons to a consumer.
Key takeaways:
- Consumers cannot choose the exact physical source of their electricity, but can support renewable energy through options like RECs.
- Green energy comes from renewable sources and generally produces lower emissions than fossil fuels.
- Ontario significantly reduced emissions by phasing out coal-fired electricity by 2014
- Historical policies like the Green Energy Act helped expand renewable energy in the province.
- Green energy plans offered by retailers are typically supported through Renewable Energy Certificates rather than direct energy supply.
