Ontario Increasing Support for Indigenous Energy Projects

August 26, 2025

The Ontario government is increasing the Indigenous Energy Support Program (IESP) by $10 million, a 66 per cent increase over last year, bringing the province’s total annual investment in the IESP to $25 million. This investment is an important part of the government’s plan to protect Ontario by strengthening Indigenous leadership in the sector and funding community-led energy projects that will ensure the province has the affordable, secure, clean and reliable energy needed to build a more competitive, resilient and self-reliant province.

“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. From equity in transmission projects to cutting-edge technologies like battery storage, we are creating real opportunities and building prosperity that will last for generations.”

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. This support will help these communities transition away from diesel-powered generators, providing families with clean, affordable and reliable power while protecting the environment. Expanded eligibility this year also gives Indigenous communities the ability to partner on innovative projects and emerging technologies such as battery storage.

“This expanded investment ensures Indigenous communities remain key partners in driving Ontario’s energy future — from planning and innovation to equity partnerships in major projects,” said Greg Rickford, Minister of Indigenous Affairs and First Nations Economic Reconciliation and Minister Responsible for Ring of Fire Economic and Community Partnerships. “We are working in lockstep with communities, advancing economic reconciliation and unlocking generational opportunities.”

Ontario’s Integrated Energy Plan lays the groundwork for the next 25 years, including a commitment to expand support for Indigenous energy projects. The increased IESP is administered by the Independent Electricity System Operator (IESO) and supports initiatives such as energy planning and development, skills training, and promoting energy knowledge and awareness in Indigenous communities. Across Ontario, Indigenous communities are increasingly taking equity positions in major transmission and generation projects – including five new transmission lines – representing a significant step toward greater economic inclusion in the province’s energy future. Since 2022, the Ontario government has taken action to support the development of eight transmission lines that are eligible for 50/50 equity partnership with Indigenous communities.

“The Indigenous Energy Support Program funding has been instrumental in helping the Mohawks of the Bay of Quinte (MBQ) develop its solar powered micro-grid system in a newly developed on-reserve subdivision (Flat Street),” said Chief R. Donald Maracle, Mohawks of the Bay of Quinte. “With the support of the IESP, MBQ was able to engage professional services that will allow us to make informed decisions on future energy projects. Also, MBQ has been able to hire a full-time Community Energy Champion to update and lead our Community Energy Plan and provide education and training to our community members in clean energy solutions.”

With Ontario’s electricity demand expected to grow by a record 75 per cent by 2050, new supply and transmission projects present an opportunity to advance economic reconciliation. IESP projects create good-paying jobs, attract investment, promote economic growth and ensure Indigenous communities have the support they need to be leaders in the electricity sector.

The IESP is part of Energy for Generations, the government’s long-term plan to deliver reliable, affordable and secure energy to power Ontario’s future. Backed by record investments in energy infrastructure, our integrated approach is giving Indigenous communities, municipalities, businesses and industry partners the confidence to invest, grow and build here in Ontario. With a clear path forward, the plan is not only meeting the demands of today, but it is protecting jobs, supporting workers and powering economic growth for generations to come.

Quick Facts

Applications for funding are now open and more information can be found here. The deadline to apply is October 3, 2025.
In 2024, $15 million in IESP funding was available to Indigenous communities and organizations. The program supported a total of 97 projects from 58 Indigenous communities.
Energy for Generations builds on the 2024 vision paper Ontario’s Affordable Energy Future: The Pressing Case for More Power that received 136 submissions to the public consultation from Indigenous communities, municipalities, utilities, stakeholders and the public.
The enhanced IESP also marks a major step forward in delivering on the government’s off-diesel strategy.

Quotes

“In today’s economy, two of the most critical resources for any community are access to reliable energy—and the people with the skills to manage it. It’s encouraging to see our government taking real steps to ensure First Nations communities are not only connected to Ontario’s energy future but are empowered to lead it—through local generation, transmission, and long-term capacity building.”

– Ric Bresee
MPP for Hastings-Lennox and Addington

“The Indigenous Energy Support Program 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. The IESO looks forward to continuing to work with our Indigenous partners on energy projects that serve community needs and the needs of the broader electricity system.”

– Lesley Gallinger
President and CEO, Independent Electricity System Operator

“Energy Storage Canada welcomes today’s announcement from the government of Ontario, increasing the funding for the province’s Indigenous Energy Support Program (IESP) by $10 million, and expanding the program’s eligibility to include emerging technologies such as battery energy storage systems (BESS). 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. First Nations partnerships have been fundamental to the development of Ontario’s energy storage industry. We’re pleased that today’s announcement will support the continued growth of our industry, while providing a critical opportunity to advance economic reconciliation for Ontario’s Indigenous communities.”

– Justin W. Rangooni
President & CEO, Energy Storage Canada

“Investing in reliable, clean energy and partnering with Indigenous communities is key to getting things built in Ontario. Today’s announcement provides more opportunities for advancing economic reconciliation and clean economic growth. Building energy projects and technologies here at home, in collaboration with Indigenous partners, will create a more affordable, reliable and resilient power system, bringing Ontario closer to its goal of becoming a clean energy superpower.”

– Jason Clark
VP, Government Relations, New Economy Canada

Additional Resources

Information about applying for the Indigenous Energy Support Program

Energy for Generations: Ontario’s Integrated Plan to Power the Strongest Economy in the G7

Ontario Working in Partnership with Northern First Nations to End Reliance on Diesel Fuel