
Ontario’s push to electrify its medium- and heavy-duty vehicle (MHDV) sector faces major hurdles, including high infrastructure costs, regulatory red tape, and challenges with electricity rates, according to the Pembina Institute’s recent report.

Although up to 40% of Ontario’s medium-duty vehicles (MDVs) could be electrified by 2027 due to favorable driving distances, declining battery costs, and approaching cost parity with diesel, the current uptake remains slow.
According to the report, 95% of MDVs in Ontario have an average daily driving distance of less than 160 km, and “about half of all MDVs” return to base at the end of the day. These factors make the transition to electricity more feasible.
Despite this potential, just a small fraction of fleet operators in the province currently have electric vehicles in their fleet.
“Averaged across all Canadian provinces, only 5% of fleet operators currently have EVs in their fleet,” the report reads. “In Ontario, this figure is even lower at only 1%.”
In addition, among all of Canada’s public chargers, fewer than 1,500 of the 9,650 charging ports are Level 3 fast chargers that meet the higher electricity demands of electric MHDVs. The report calculates that Ontario will need 8,000 to 10,000 Level 3 ports by 2030 to reach federal zero-emission vehicle targets — five times the current availability.
Deploying charging infrastructure
The report outlines six steps that Ontario fleet operators and charging network providers should follow to establish the necessary charging infrastructure for electric MHDVs.
The first priority for fleet operators is understanding the energy requirements and connecting with local utilities to assess energy needs, as each truck can consume power equivalent to 20 homes annually, the report says.
Next, fleet operators need a clear picture of the total costs involved in setting up chargers. Installation expenses vary from $5,000 to $20,000 for Level 2 chargers and up to $1 million for ultra-fast chargers. While federal subsidies cover half, operators must budget for the remainder to avoid unexpected expenses.

Electricity rates regulated by the Ontario Energy Board (OEB) vary by time of use, so operators should work with utilities to optimize charging schedules, reducing peak-time costs. Selecting the right chargers is equally important to ensure compatibility with fleet needs amid a lack of standardization across charging infrastructure, the report says.
The final step is navigating the regulatory approval process, which involves multiple agencies, including local municipalities, the Ontario Electrical Safety Authority, and local distribution companies. Engaging with these bodies early on is essential to comply with safety and grid requirements and to secure necessary permits without disrupting deployment timelines.
Barriers to deploying the infrastructure
One of the key barriers to deploying this charging infrastructure – other than high purchasing and installation cost – is the general lack of awareness and knowledge about electric MHDVs and their required charging infrastructure among operators.
Although the Pembina Institute says electric MHDVs are rapidly approaching total cost of ownership (TCO) parity with diesel vehicles, many fleet operators remain hesitant due to limited information. This hesitancy is worsened by the lack of accessible information on grid integration and the specific steps required to establish charging stations.
The report cites a survey by Natural Resources Canada that found 40% of Canadian fleets lack a clear understanding of electric vehicle “fueling” methods.

Another obstacle lies in Ontario’s electricity delivery rates, which are unfavorable for public charging stations. High demand charges make it challenging for operators to achieve a sustainable business model, especially as utilization rates remain low for electric MHDVs. The Pembina Institute suggest adjusting these rates to better reflect the needs of public charging station operators could alleviate this issue.
The regulatory landscape and lack of charger standardization, which complicates infrastructure planning for operators, adds even more complexity.
Pembina’s recommendations
To address these issues, the report outlined recommendations for fleet owners, charging stations operators, and regulatory bodies.
For regulators, the Ontario Energy Board (OEB) should provide clear guidance on grid integration for fleets and charging station operators, including a publicly available guidebook covering key contacts, approved charger types, and estimated installation costs. This would address a key barrier: the lack of knowledge about electric MHDVs and grid connection.
To reduce upfront infrastructure expenses, the Ontario government should consider extending the EV ChargeON program (Community Stream). This program, previously aimed at smaller and Indigenous communities, provided significant subsidies and was instrumental in funding public charging stations. Reviving and expanding it could offset installation costs, making infrastructure more accessible. The $91 million program, which offered up to 50-75% of capital funding, was first announced in March 2022 but was discontinued in early 2024.

Lowering electricity rates is another essential measure. “We recommend that the OEB reduce demand charges for public charging stations, particularly where utilization rates are lower than 5%,” the report reads.
“Jurisdictions across North America, including Massachusetts, Wisconsin, New York, and California in the U.S., and Quebec and British Columbia in Canada, have already reduced demand charges for EV charging stations. The reduction could take the form of a 50% rebate, like in New York, or a six-year holiday on demand charges, as done in British Columbia.”
Standardization of charging infrastructure is also critical for fleet operators, who face uncertainty about equipment compatibility. This is why the Pembina Institute suggests that Ontario could partner with the Canadian Standards Association and the Ontario Electrical Safety Authority to set universal standards for chargers, connectors, and payment methods, aligning with U.S. standards to accommodate cross-border fleets.
Meanwhile, fleet operators and charging station providers in the province are urged to engage early with local utilities. This collaboration would allow utilities to plan for grid upgrades needed to meet changing demands, minimizing delays that can arise if grid constraints are only addressed after installation planning is underway.
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