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Ontario Gov Boosts Financial Support for Energy Projects Involving Indigenous Parties

September 8, 2025 by Knowlton Thomas

Ontario is increasing support for energy projects that involve indigenous organizations and communities, the provincial government recently announced.

Specifically, the Province has boosted funding for the Indigenous Energy Support Program by nearly 70% year-over-year to $10 million.

The decision is designed to advance “economic reconciliation,” according to minister of energy Stephen Lecce, who believes that “we are creating real opportunities and building prosperity that will last for generations.”

For decades, indigenous communities in Canada have been notoriously reliant on diesel-generated energy, which remains a barrier to remove as the nation moves toward its goal of a “Net Zero” economy by 2050.

This year’s IESP includes a new funding stream of up to $500,000 to help diesel-reliant Indigenous communities build electricity transmission and generation infrastructure, notes Greg Rickford, Minister of Indigenous Affairs and First Nations Economic Reconciliation.

“This expanded investment ensures Indigenous communities remain key partners in driving Ontario’s energy future,” he remarked. “We are working in lockstep with communities, advancing economic reconciliation and unlocking generational opportunities.”

For example, Indigenous Energy Support Program funding “has been instrumental in helping the Mohawks of the Bay of Quinte develop its solar powered micro-grid system in a newly developed on-reserve subdivision,” according to Chief R. Donald Maracle.

The IESP “continues to be a powerful tool for advancing reconciliation and ensuring Indigenous communities have the support they need to be leaders in the electricity sector,” suggests Lesley Gallinger, who functions as chief executive officer of the Independent Electricity System Operator.

Justin Rangooni, who heads Energy Storage Canada, agrees, stating that “Indigenous-led energy projects will support the expansion of Ontario’s electricity system to meet projected demand, providing more reliable, efficient and equitable energy throughout the province.”

The IESP is part of Energy for Generations, the government’s long-term plan to deliver reliable and affordable energy, while the Integrated Energy Plan lays groundwork for the next 25 years—by which time, electricity demand in Ontario is expected to grow by 75%.

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