Ontario has cancelled a C$1.2bn ($1.18bn) natural-gas-fired power plant to be built by TransCanada Corp in Toronto because of adequate power supplies in the region.
Ontario Ministry of Energy and Infrastructure stated that demand and supply changes have made it clear that the proposed plant is no longer needed.
"A transmission solution can ensure that the growing region will have enough electricity to meet future needs," the ministry said.
TransCanada has also acknowledged the cancellation of construction and said that it will discuss issues regarding the payments the company was entitled to.
TransCanada had signed a 20-year power-supply contract with the Ontario Power Authority to build the 900MW plant in Oakville, Toronto, in 2009 to replace polluting coal-fired plants.