Province Aims to Advance Economic Reconciliation and Transition Diesel-Dependent Communities

DESERONTO – ENERGY NEWS — “Advancing economic reconciliation is essential to Ontario’s energy future and our government is backing it with action, investment and results,” said Stephen Lecce, Minister of Energy and Mines. “As we build the energy infrastructure our growing province needs, Indigenous communities are not just rights-holders — they are partners and leaders.”

The Ontario government is increasing its annual investment in the Indigenous Energy Support Program (IESP) by $10 million, bringing total yearly funding to $25 million.

The move represents a 66 per cent increase over last year and is part of Ontario’s long-term plan to strengthen Indigenous partnerships, expand clean energy solutions, and build a more competitive and self-reliant economy.

New Funding Streams and Opportunities

This year’s expanded IESP introduces a new funding stream of up to $500,000 to help diesel-reliant Indigenous communities build local electricity transmission and generation infrastructure. The goal is to reduce dependence on diesel-powered generators, lowering costs, cutting emissions, and ensuring families have reliable, affordable, and clean power.

The program also expands eligibility, giving Indigenous communities the ability to partner on innovative projects, including battery storage systems and other emerging clean energy technologies.

“Ontario is working in lockstep with communities, advancing economic reconciliation and unlocking generational opportunities,” said Greg Rickford, Minister of Indigenous Affairs and First Nations Economic Reconciliation and Minister Responsible for Ring of Fire Economic and Community Partnerships.

Indigenous Leadership in Ontario’s Energy Future

The IESP, administered by the Independent Electricity System Operator (IESO), supports projects such as:

• Energy planning and development

• Skills training

• Community engagement and awareness programs

Across Ontario, Indigenous communities are increasingly taking equity positions in major transmission and generation projects — including five new transmission lines eligible for 50/50 Indigenous ownership. Since 2022, the province has supported the development of eight transmission lines, each with opportunities for Indigenous equity participation.

Local success stories are already taking shape. For example, the Mohawks of the Bay of Quinte used IESP funding to advance their solar-powered microgrid system and hire a full-time Community Energy Champion to lead clean energy planning and education.

Meeting Ontario’s Growing Energy Needs

Ontario’s electricity demand is expected to grow by 75 per cent by 2050, driven by population growth, electrification, and industrial development. By investing in Indigenous-led energy projects now, the province says it is ensuring:

• Good-paying jobs in construction and energy development.

• Investment and economic growth in Northern, rural, and remote communities.

• Greater equity and leadership roles for Indigenous partners in shaping the province’s energy future.

Quick Facts

• Applications for 2025 IESP funding are now open until October 3, 2025.

• In 2024, $15 million in IESP funding supported 97 projects from 58 Indigenous communities.

• Entrepreneurs and communities can access up to $500,000 for projects, including diesel reduction, clean energy planning, and emerging technologies.

• The program supports the province’s off-diesel strategy and builds on Ontario’s 25-year Integrated Energy Plan.