Nuclear cost to double in Ontario

Proposed Ontario SMR

From Renew Economy

The main power utility in the Canadian province of Ontario has put in a request to nearly double the price of payments its receives for nuclear power, in order to cover the cost of maintenance, upgrades and new projects.

Ontario Power Generation has asked the local regulator – the Ontario Energy Board – to increase the payments for nuclear power to $C207 a megawatt hour ($A222/MWh) [$US150/MWh] from January, 2027, nearly double what it received ($C111.61/MWh) in 2025.

Nuclear accounts for more than half of the generation in Ontario, which is often held up by nuclear advocates as a shining light for Australia to follow, but it faces massive expenses in coming years as it refurbishes its aging nuclear fleet, and embarks on a program to build four small modular reactors.

The first of these SMRS are expected to be delivered in the early 2030s, and the total cost is currently put at more than $C21 billion. But more money, nearly $C27 billion, is to be spent on refurbishing four existing reactors at Pickering, and yet more on other nuclear upkeep costs.

The huge investment in nuclear is raising concerns among environmental groups and also major energy users, which include steel makers and car companies such as Ford and Toyota.

The Association of Major Power Consumers in Ontario, says its members are facing “skyrocketing” electricity prices, including a 165 per cent rise in the next three years.

AMPCO president Brad Duguid blames the rising cost of nuclear, and also the heavy price of gas generation which is being used to fill the gap caused by the refurbishment of the old nuclear plants, some of which are scheduled to be offline for three years.

“Over the next seven to 10 years, we’re seeing significant increases in the market energy rates to make up that difference,” he told the Globe and Mail.

“We’re talking about increases in the range of 165 per cent for the market rate over the next three years alone. That’s untenable. That’s an absolute threat to the competitiveness of our industrial sector and the hundreds of thousands of jobs it supports.”

Retail customers are also suffering. Residential power prices jumped 29 per cent in October, although they were partially offset by an increase in government rebates.

The cost of those rebates – which are used by the government in Ontario, as they are in nuclear dependent France, to hide the true cost of nuclear – have jumped to $C8.5 billion a year. Other costs are incorporated in general government debt, critics note.

“This application really confirms that these projects are among the most expensive ways to meet our need for electricity,” said the Ontario Clean Air Alliance, which supports renewables and opposes the nuclear expansion.

“We could expand solar, wind and storage at a fraction of the cost and avoid seeing our power bills go through the roof.

“The Premier’s buddies in the nuclear and gas industries may like his plan for an old school electricity system built around eye-wateringly expensive mega projects. But the people of Ontario are now in for some serious sticker shock.

See also First SMR in a G7 country