Ontario set to begin construction of Canada’s 1st mini nuclear power plant
Ontario Power Generation has been given the green light by Premier Doug Ford’s government to commence construction on Canada’s first small modular reactor (SMR), a cutting-edge nuclear energy technology that will be constructed adjacent to the Darlington power plant.
The SMR is expected to generate 300 megawatts of power, which is ample electricity to meet the needs of approximately 300,000 homes, as per documents from Ontario’s Ministry of Energy and Mines. The plan is to construct four such reactors on the site, with a total project cost of $20.9 billion, to address the projected surge in electricity demand in the province.
The initial reactor is estimated to cost $7.7 billion, inclusive of $1.6 billion for shared infrastructure across the project. Ontario’s Minister of Energy and Mines, Stephen Lecce, emphasized the necessity for increased power supply in the province to support economic stability and sovereignty.
With Ontario’s electricity demand projected to rise by 75% by 2050, the need for additional power sources is evident. The SMR project aims to address this need, with approximately 80% of the project spending allocated to Ontario companies, 15% to European and Asian firms, and 5% to U.S. companies, primarily for GE Hitachi’s BWRX-300 power plant model.
The BWRX-300 is a smaller version of GE Hitachi’s boiling water reactor technology and is set to be a groundbreaking innovation in the nuclear energy sector. Canadian companies involved in the project stand to benefit from potential export opportunities to other countries interested in deploying similar SMRs.
Construction of the first reactor is scheduled to be completed by the end of 2029, with grid connection anticipated in 2030. The Canadian Nuclear Safety Commission has already approved the construction commencement in April.
Ontario Power Generation plans to finance the construction through a combination of cash reserves and debt, with the cost to be recuperated over the project’s lifespan by charging ratepayers for electricity. Despite the substantial investment required, no taxpayer funds are allocated for the project.
The SMR project at Darlington is forecasted to create and sustain 3,700 jobs annually over the next 65 years, generating $13 billion in tax revenue for municipal, provincial, and federal governments. However, some environmental organizations, like Friends of the Earth Canada, express skepticism about the cost-effectiveness of the project compared to renewable energy sources.
As the province embarks on this innovative venture in nuclear energy technology, the focus remains on meeting the escalating electricity demands in a sustainable and cost-effective manner. The integration of SMRs into Ontario’s energy landscape signifies a significant step towards securing a reliable and affordable power supply for the future.
