Northwest energy plan will supply First Nations, industry

A plan to provide up to 26 remote Northern Ontario communities with electrical power is becoming a reality.

Energy Minister Bob Chiarelli spent Wednesday morning touring the Ontario Power Generation control centre in Thunder Bay and spoke about the power initiatives underway for the North. He referred to the 2013 long-term energy plan, which projected $2.6 million in supply, transmission and generation of power for Northwestern Ontario and said what will be "transformational" is the partnerships that will be formed between the private sector and First Nations.

"That's the way to go in the future - engaging First Nations and bringing together partnerships. We are very excited about that," he said.

Chiarelli projects a five- to six-year process that involves getting approval from the Independent Electricity System Operator (IESO), putting the funding in place and building the transmission lines.

"In this day and age, to have those communities still on dirty, expensive diesel is unacceptable," he said.

Chiarelli also spoke about the future of Ontario Power Generation, emphasizing that clean, emission-free energy is the way to go.

He said the refurbishing of the Darlington nuclear plant and the extension of the Pickering plant is good for the economy and there will be "thousands" of jobs created by that initiative.

Chiarelli said there is a long-term future for nuclear power.

"It's reliable, it's got an impeccable record of service and safety as well," he said.

The Ontario Power Generator operation in Thunder Bay helps to manage 11 power stations and generates $80 million for the local economy.

"It's very significant for the economy and it's certainly very strategic now for clean, reliable energy. Water power and nuclear power are clean and it has to be that way in the future because of the challenges of carbon," he said.

Last year the auditor general slammed the decision to convert Thunder Bay's OPG power plant to biomass wood pellets. But the transition occurred for a few million dollars ensuring the plant remained open as a "peaking" plant for reserve energy.

"You have to be ready for the highest level of demand that can happen at anytime," said Chiarelli. "I was very pleased to see that the Northwest task force on energy supported the decision we made and responded to the auditor general's report saying that it was the right decision for us to have made."

As for challenges ahead, Chiarelli said they are manageable.

"Power is directly connected to the economy and it's very important that we have sufficient power generation, supply and capacity in Northwestern Ontario for pulp and paper and mining," he said.

Although the commodities market is hurting, Chiarelli says the level of investment in the mining sector has been dramatic.

"We have to be very closely connected with the industry to make sure they will have power when and where they need it."