Ontario's Energy Sector: Legislation, Growth, and Connectivity Initiatives
Key Ideas
  • Bill 40 introduces mandates for economic growth and hydrogen development in Ontario's energy sector, expanding the role of IESO and OEB.
  • New regulations will set out requirements for data centres connecting to Ontario's electricity grid, ensuring connectivity standards are met.
  • The legislation supports investment in the Hydrogen Innovation Fund, low-carbon hydrogen integration, and a more secure energy system.
  • Bill 40 enhances the powers of OEB's Chief Executive Officer and restricts foreign participants in the energy sector, aiming for a resilient system.
The Government of Ontario introduced the Protect Ontario by Securing Affordable Energy for Generations Act, 2025 (Bill 40) to boost economic growth in the energy sector amid a projected 75% rise in electricity demand over the next 25 years. The bill emphasizes economic growth as a formal objective for the Independent Electricity System Operator (IESO) and the Ontario Energy Board (OEB). Notably, it aims to facilitate the growth of a hydrogen market and economy in Ontario, expanding the IESO's mandate. Bill 40 outlines regulations for data centers connecting to the electricity grid to ensure compliance with specified requirements. It also supports investment in the Hydrogen Innovation Fund, the integration of low-carbon hydrogen, and a more secure energy system by restricting foreign participants. The legislation enhances the role of OEB's Chief Executive Officer and aligns with the government's focus on growth and data center connectivity. Although Bill 40 is at the proposed stage, it sets the direction for Ontario's future energy growth and regulatory landscape.
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