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The perfect storm for Ontario gas generators


Gas generators in Ontario face a market mired in uncertainty, with acceleration to market changes and carbon policies that leave their role and ability to recover costs unclear. Retirements of nuclear facilities coinciding with the transition towards a competitive capacity market will create challenges for gas generators to find their place in an evolving market environment. As the province shifts towards a low-carbon economy, the success of each individual facility will be determined in the reformed energy and capacity markets, impacted by a cap portfolio of cap and trade funded measures pushing or pulling demand forecasts to require more or less natural gas generation. Seizing upon potential opportunities in this changing landscape requires preparation and knowledge of how these markets function both in Ontario and in other Canadian provinces or US states.

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