In April 2024, the Canadian Centre for Economic Analysis (CANCEA) released a report which took a deep dive into the economic and social benefits of the Ontario Pumped Storage Project (Project). The report revealed a number of positive key findings that we are pleased to share with you.

You can read a summary or the full report here: Made-in-Ontario Pumped Hydro Storage

Job creation 

The Project will generate roughly 41,000 jobs, with 66% from full-time positions, and 1,700 construction jobs during the 4-year peak construction period. Overall, $6.8 billion is the projected contribution to the economy, with more than 60% of employment benefits impacting more rural regions.

Over the next 50 years, this $6.8 billion investment into the economy would see 90% of the activity remain in Ontario and that includes $3.9 billion in wages.

Rural economies are not left out, in fact they would feel the greatest impact. Of the total employment and GDP benefits, 61% and 65%, respectively, are in rural regions.

Built in Ontario, by Ontarians

Of the total economic contribution of $6.8 billion in GDP for Canada, $3.4 billion stems from activity directly generated by the construction and operations of the Project, $2 billion in indirect economic activity related to regional supply chains, and the remaining $1.4 billion is associated with induced economic activity—the activity supported by the additional spending generated by the Project.

More than 90% of the economic activity occurs in Ontario, with 30% of the total remaining in the local regions of Grey, Bruce, and Simcoe.

The Project will be built using provincial and national supply chains with 83% remaining in Canada of which 92% stays in Ontario. This ensures that Canadians and Ontarians are put first, with over 110,000 Ontarians benefiting.

Taxation 

The Project is expected to generate over $1.7 billion in taxation revenues for federal and provincial governments during the construction and operations phase. In particular, the federal and provincial governments can expect $1 billion and $680 million, respectively, from income, corporate, and consumption taxes.

Social and community benefits

Of the 37,000 households benefited, 20,700 are in rural regions and the majority of benefited households are couples with children.

The Project can help address affordability challenges with a third of the jobs created  anticipated to be filled by those under 35. This demographic is the most likely to be facing housing affordability pressures. As most jobs created will be in skilled sectors with generally higher incomes, these jobs have the potential to improve the affordability of affected households. 

There is a projected $450 million in social value contributions from the Project. This signifies a considerable improvement in regional well-being over the current levels experienced by Ontarians. 

Balancing our electricity supply

Ontario’s electricity system often generates surplus energy, primarily from renewable and nuclear sources, during times of low demand (nights and weekends). As we move to decarbonize our electricity grid, this must be complemented by storage technologies. This way we can reduce our reliance on emissions-producing generation and help Ontario meet its growing electricity demand.