The Electrification Advantage

This report also addresses recommendations in Item 2025.IE26.14 that were referred to the Executive Director, Environment, Climate and Forestry. As it relates to recommendation 1 in 2025.IE26.14, while the Independent Electricity System Operator's (IESO) provincially-developed 2025 Integrated Regional Resource Plan for Toronto is not incompatible with the City's TransformTO Net Zero Strategy Action Plan, the plan alone will not achieve the City's climate goals. This report outlines actions the City is continuing to take, within its authority, that will build on the Integrated Regional Resource Plan by pursuing all cost-effective local energy efficiency, renewable energy and storage options, as well as maximizing local energy conservation/efficiency and local distributed energy resources. This report also outlines the City's actions to improve affordability, air quality, and reduce climate pollution and avoid unnecessary natural gas combustion at the Portlands Energy Centre. These include significantly increasing local distributed energy generation and storage, and through measures that shift electricity demand off-peak, above the minimums outlined in the Independent Electricity System Operator's Integrated Regional Resource Plan, in alignment with the City's 2040 net zero target. As it relates to recommendation 2 in 2025.IE26.14, Toronto Hydro cannot develop a separate electricity plan for the City of Toronto. The electricity sector involves multiple actors, including the Ontario Ministry of Energy and Mines, the Ontario Energy Board, the Independent Electricity System Operator, Ontario Power Generation, Hydro One, and local distribution companies such as Toronto Hydro. The City and Toronto Hydro operate within provincial regulatory and market frameworks and cannot act unilaterally. The report sets out four interconnected advantages of electrification for Toronto: - Energy Security Advantage: Investment in the electricity grid and widespread electrification enables Toronto to be more self-sustaining and resilient in the face of geopolitical challenges; - Economic Growth Advantage: Affordable and reliable electricity supports economic development in cleantech, mixed-use development, clean infrastructure, and transit expansion; - Affordability Advantage: Through thoughtful grid investment and rate design, electrification can reduce overall energy costs for Torontonians; and - Climate Advantage: Electrification is the most effective and scalable pathway to achieving Toronto's Council-adopted TransformTO climate goals. Through coordinated efforts by the City, Toronto Hydro, and The Atmospheric Fund, actions are underway and planned (as outlined in Section 4) to reduce soft costs (e.g., connection timelines), accelerate rooftop and parking lot solar and battery storage (including on City assets), expand demand flexibility and non-wires alternatives, enable low-carbon thermal energy networks (e.g., Enwave's Deep Lake Water Cooling System), and advance provincial and federal collaboration to remove barriers and unlock financing. Ultimately, progress will depend on collaboration with the Government of Ontario, regulators, system operators, and market participants to evolve policies, programs, and planning approaches over time. Progress will be reported through the Annual TransformTO Net Zero Progress and Accountability Report.

2. City Council direct the Executive Director, Environment, Climate and Forestry, in consultation with Toronto Hydro and The Atmospheric Fund, to maximize the use of available federal and provincial funding for electrification, distributed energy resources, and low‑carbon technologies, including facilitating community access to eligible funding programs. 3. City Council direct the Executive Director, Environment, Climate and Forestry, to engage with the Government of Ontario, including the Ontario Energy Board and the Independent Electricity System Operator, on further opportunities to support electrification and distributed energy resources aligned with TransformTO climate objectives. 4. City Council direct the Executive Director, Environment, Climate and Forestry, to report back to the Infrastructure and Environment Committee on progress made on the resolutions adopted by Council as part of this agenda item and other components of The Electrification Advantage through the Annual TransformTO Net Zero Progress and Accountability Report.