Ontario supports $2B phase of Pickering nuclear refurbishment

Key Takeaways:

• The initial phase includes engineering and design work as well as securing long-lead components that can require years for manufacturing.
• This phase will last through the end of 2024. All the work is anticipated to be completed by the mid-2030s.
• the refurbishment of Pickering is expected to increase Ontario’s GDP by $19.4 billion over the 11-year project period.

The Whole Story:

The Ontario government is supporting Ontario Power Generation’s (OPG) plan to proceed with the next steps toward refurbishing Pickering Nuclear Generating Station’s “B” units (units 5-8). Once refurbished, Pickering would produce a total of 2,000 megawatts (MW) of electricity, equivalent to powering two million homes. 

“With global business looking to expand in jurisdictions with reliable, affordable and clean electricity, a refurbished Pickering Nuclear Generating Station would help Ontario compete for and land more game-changing investments,” said Todd Smith, minister of energy. “The refurbishment of Pickering would create thousands of new jobs and help produce at least another 30 years of safe, reliable and clean electricity to power the next major international investment, the new homes we are building and industries as they grow and electrify.”

OPG will now proceed with the project initiation phase of refurbishment which will last through the end of 2024. The government is supporting OPG’s $2 billion budget for this phase which includes engineering and design work as well as securing long-lead components that can require years for manufacturing. By placing orders in advance with key suppliers, OPG will ensure materials are available when Ontario needs them and help keep costs down. OPG and its business partners will also identify potential Indigenous engagement opportunities in contracting, employment and other economic benefits related to the project.

“With new investments and jobs coming to Ontario and the population growing rapidly, our province needs clean and affordable energy that all communities can rely on,” said Peter Bethlenfalvy, MPP for Pickering-Uxbridge. “To meet this growing electricity demand, we are expanding Ontario’s generation capacity, conducting Canada’s largest clean energy storage procurement, and expanding energy efficiency programs.”

Based on OPG’s preliminary schedule, the refurbishment of Pickering Nuclear Generation Station is anticipated to be completed by the mid-2030s. According to independent preliminary analysis by the Conference Board of Canada, the refurbishment of Pickering is expected to increase Ontario’s GDP by $19.4 billion over the 11-year project period. The project is also expected to create about 11,000 jobs per year. Post-refurbishment operation of the facility is expected to also create and sustain about 6,410 Ontario jobs per year for decades.

“Today’s announcement is a testament to the highly skilled Pickering Nuclear team, whose focus on safety and performance allows the station to reliably power the equivalent of more than two million Ontario homes,” said Ken Hartwick, OPG president and CEO. “Our experience refurbishing Darlington, a highly complex project that remains on time and on budget, will be invaluable as we begin the work necessary so Pickering can continue to help meet the growing electricity demands of this thriving province for another three-plus decades.”

The Independent Electricity System Operator (IESO) concluded that the Pickering refurbishment would provide better overall ratepayer value in terms of costs and risks, when compared against non-emitting generation alternatives.

Ontario will follow a multi-phase approvals process. The project is also subject to regulatory approval by the Canadian Nuclear Safety Commission (CNSC). The CNSC is the federal nuclear regulator responsible for licensing nuclear power plants and overseeing their safe operation in Canada.