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Energy

Ontario's rivers make it rich in hydroelectric energy. In 2009, Ontario Power Generation generated 70 percent of the province's electricity, of which 51 percent is nuclear, 39% is hydroelectric and 10% is fossil-fuel derived. By 2025, nuclear power is projected to supply 42%, while fossil-fuel-derived generation is projected to decrease slightly over the next 20 years. Much of the newer power generation coming online in the last few years is natural gas or combined-cycle natural gas plants. OPG is not, however, responsible for the transmission of power, which is under the control of Hydro One.

Despite its diverse range of power options, problems related to increasing consumption, lack of energy efficiency and ageing nuclear reactors, Ontario has been forced in recent years to purchase power from its neighbours Quebec and Michigan to supplement its power needs during peak consumption periods. Ontario's basic domestic rate in 2010 was 11.17 cents per kWh; by contrast. Quebec's was 6.81. In December 2013, the government projected a 42 percent hike by 2018, and 68 percent by 2033. Industrial rates are projected to rise by 33% by 2018, and 55% in 2033.

The Green Energy and Green Economy Act, 2009 (GEA), takes a two-pronged approach to commercializing renewable energy; first, it aims to bring more renewable energy sources to the province; and secondly, it aims to adopt more energy-efficiency measures to help conserve energy. The bill envisaged appointing a Renewable Energy Facilitator to provide "one-window" assistance and support to project developers to facilitate project approvals.

The approvals process for transmission projects would also be streamlined and (for the first time in Ontario) the bill would enact standards for renewable energy projects. Homeowners would have access to incentives to develop small-scale renewables such as low- or no-interest loans to finance the capital cost of renewable energy generating facilities like solar panels.

Ontario is home to Niagara Falls, which supplies a large amount of electricity to the province. The Bruce Nuclear Generating Station, the second largest operational nuclear power plant in the world, is also in Ontario and uses 8 CANDU reactors to generate electricity for the province.

Ontario had the most wind energy capacity of the country with 4,900 MW of power (41% of Canada's capacity).