Hydro One is the lead company in the GTA engaged in developing, building, operating and maintaining electricity transmission facilities, with 97% ownership of the transmission network in Ontario.

Toronto Hydro, the region’s largest distribution company, is North America’s second largest electrical utility after the Los Angeles Department of Water & Power. Collectively, the 14 electricity distribution companies employ over 3,000 people.

Direct Energy is one of 23 companies in the GTA engaged in the business of selling and buying electrical power on the wholesale market, as well, 24 companies in the GTA are engaged in the business of buying or selling retail electrical power.

The GTA is also home to an expanding fuel sector, including production and distribution of aviation fuel, home heating fuel, biodiesel and natural gas, one of the largest segments of the fuels sector. Located in the GTA, and one of two Gas Distribution Companies in Ontario, Enbridge Gas Distribution is one of the fastest growing natural gas companies in North America, serving over 1.7 million residential, commercial and industrial customers.

Traditional Sectors

Companies that provide technologies and service to control, treat, manage and dispose of waste by-products generated from economic activities. Company focus will include waste management, remediation, water and waste and water water infrastructure and air pollution control.

Expanding Sectors

Companies focused on preventing, reducing, reusing and recycling of waste by-products. This segment includes renewable energy, energy efficiency and alternative fuels.

Emerging Sectors

Within the environment sector, the Study found that the GTA is well positioned for future investment with new and emerging opportunities in the following key clusters: Hydrogen Fuel Cells, Renewable Energy Technology, Demand Side Management, Engineering & Consulting, Water & Wastewater Management Systems, and integrated Waste Management.

Short Term
Opportunities

* Demand Side Management

* New Generation

* District Energy

* Water & Wastewater
   Management Systems

* Renewable Energy

Emerging
Opportunities

* Energy From Waste

* Hydrogen Fuel Cells

* Advanced Transportation
  Systems

* Integrated Waste Management

* Climate Drainage Prevention
   Solution

In the energy sector, opportunities exist in eight key areas, while in the environment sector, business investment opportunities can be identified in seven key areas:

The GTA’s competitiveness in the EN2 sector and in particular, the emerging business opportunities that exist, depend on key enablers that define the viability and timelines for specific investment and business opportunities. These key enablers include:

Key enablers, combined with the fact that the GTA is one of North America’s most populous and prosperous regions, present potential investors with attractive business opportunities. Over the next 8 years, the requirement for new electricity supply in Ontario represents a $15 Billion(Cdn) investment. As well, investment required to replace, operate and maintain Ontario’s water and wastewater facilities is estimated at over $50 Billion(Cdn) over the next decade.

Innovation

The Greater Toronto Area is an ideal place to undertake research and development with significant federal and provincial tax incentives in the form of R&D tax credits. The GTA offers a critical mass of scientific talent and world-class research facilities, with one of the largest concentrations of industry and public R&D expenditure in all of Ontario.

Innovation in the Greater Toronto Area

• With 622 patents in 2003, Toronto ranks 13th in the world.
• Nominated as one of the top 7 intelligent communities in the world.
• Awarded the Top City Region of the Future by FDI Magazine, U.K.
• Home to major private laboratories such as the IBM Toronto Software Lab and Bell University Laboratory.
• University of Toronto ranked as Canada’s top research-intensive university: 6 Nobel Prize-winning graduates.
  
  

Through the Ontario Centres of Excellence (OCE), Ontario provides over $50 million a year to bring together universities, industry and government for the successful application of innovative science and technology to profitable new businesses. The latest such center is the GTA’s Centre for Energy.

The Centre for Energy was established to help build better energy markets and systems that integrate new technologies, by moving laboratory discoveries quickly into the marketplace. The Centre for Energy will:

• Accelerate the development of new energy technologies
• Help integrate new technologies into the energy system, and
• Help industry develop information systems to manage energy markets

Emerging technologies like fuel cells, nanotechnology, biotechnology and others will be some of the strongest growth areas in the coming years. To accelerate the commercialization of new technologies and materials, Ontario has committed $1.63 billion (Cdn) in funding to support research, commercialization and cluster development.

GTA environmental technology leaders include companies like Hydrogenics Corporation – specializing in fuel cell power modules, Biox Corporation – producer of fuel-grade biodiesel, and Lightyear Technologies Inc. and Nett Technologies Inc.- leaders and innovators in air emissions reduction systems and pollution control products for the internal combustion engine.

Benchmarking the GTA

A key component of the study evaluated the GTA as an Energy & Environment investment destination, benchmarked against ten global jurisdictions who were identified as competitors to the GTA in attracting EN2 investment. The survey assessed EN2 investment location criteria and Quality of life indicators. The results of the survey were used to develop a Value Proposition for EN2 investment in the GTA.

Respondents to the survey highlighted these GTA characteristics as outstanding business enablers. GTA EN2 companies clearly believe the GTA has the right ingredients to enable business.

These Factors Would Enhance EN2 Business Opportunities	% of Respondents
Geographic Proximity to Customer		80%
Availability of Professionals & Support Services		70%
Access to Good Managerial Talent		70%
Access to Scientific and Engineering Talent		90%

The GTA is Strong in These Factors	% of Respondents
Geographic Proximity to Customer		70%
Availability of Professionals & Support Services		70%
Access to Good Managerial Talent		70%
Access to Scientific and Engineering Talent		90%

The GTA Ranks As One of the Top Regions as a Location for EN2 Business
The GTA is perceived to be as good as or better than its competitor jurisdictions in offering geographical proximity to customers
The GTA is perceived to be as good as its competitor jurisdictions in the availability of business professionals and support services

Sources: Gartner Lee/Delphi Survey Response

Greater Toronto Area - EN2 Investment Value Proposition

The GTA is Canada’s economic engine and one of North America’s most populated centers. Market conditions and the regulatory framework are aligning rapidly to create attractive investment opportunities.  The GTA’s investment value proposition in energy and environment include:

• A strong market demand fueling EN2 business opportunities
• Governments at all levels are formulating consistent EN2 policies and regulations
• The GTA’s business support framework is highly rated by companies that are successful in the EN2 business and is comparable to those in competitive jurisdictions
• The GTA’s Quality of Life is better than most competitive jurisdictions
• Strong, well-positioned niche companies in the GTA that are testimony to the fact that EN2 sector is established, growing and innovative