skip to main content
Back to all blog posts

Posted in: Climate Change / Renewables | Procurement

Apr 8, 2016

Large Renewable Procurement ("LRP") - Take 2 - And Related Procurement Directions From the Minister of Energy

By Corrine Kennedy

On April 5, 2016, the Minister of Energy directed (the "Direction") the IESO to undertake the second phase of the LRP ("LRP II") that was first announced in 2013.

The Direction follows the Independent Electricity System Operator's (the "IESO") recent completion of the first phase of the LRP, which concluded on March 10, 2016 ("LRP I"). We recently discussed the results of LRP I here and here.

LRP I resulted in the announcement of 16 new contracts that procured a total of 454.885 megawatts ("MW") of clean renewable energy capacity. These contracts represent proposed wind, solar and hydroelectric projects in Ontario, many of which featured support from the relevant local communities and/or participation of First Nations and Metis communities. The Ontario government and the IESO have both touted the procurement as having been successful in creating fierce competition among proponents, serving to significantly drive down the price for the electricity procured.

In respect of LRP II, the Ontario government has directed the IESO to procure a maximum of 930 MW of electricity (up to 600 MW of wind, 250 MW of solar, 50 MW of hydroeletricity and 30 MW of bioenergy). Through extensive public consultation and engagement, detailed by the IESO in its March 2016 draft "Stakeholder and Community Engagement Plan," the IESO will build on the momentum and learnings of LRP I to develop, post for comment and finalize the LRP II Request for Qualifications ("RFQ") by August 1, 2016.

Likely to the relief of proponents under LRP I (whether ultimately successful or unsuccessful), the Direction contemplates the possibility that Qualified Applicants (as defined under the LRP I RFQ) may avoid having to requalify under LRP II, subject to the IESO's consideration of the issue.

Following the RFP, the IESO is directed to prepare the LRP II RFP with a view to awarding contracts no later than May 1, 2018.

The Direction also goes on to revoke earlier directions that pointed to a third phase of LRP procurement, shuts down the IESO's ongoing microFIT Program, effective December 31, 2017, and sets the limit on future procurement windows for securing renewable energy capacity under the Feed-in Tariff Program.

Related Blogs

Posted in: Ontario | Energy Policy | Climate Change / Renewables

Insights EnergyInsider
Ontario Publishes Draft Rules for Cap and Trade “Offset Credits” By David Stevens Oct 17, 2017 Ontario’s Ministry of the Environment and Climate Change (MOECC) has published two proposals related to several new or amended regulations to facilitate linkage of Ontario’s Cap and Trade program with California and Quebec (discussed in an earlier post). The September 22nd proposal d...

Posted in: Nova Scotia | Climate Change / Renewables | Facilities | Energy Policy

Insights EnergyInsider
Proposed Amendments to Increase Innovation and Development in Marine Renewable Energy Sector By David Stevens and Rebecca Hines Oct 11, 2017 On October 5, 2017, the Government of Nova Scotia announced that it will amend its Marine Renewable-energy Act to make it easier for tidal technology developers “to assess innovative, lower-cost tidal energy technologies” and bring their technologies to market faster. The amendments are also inte...

Posted in: Energy Policy | U.S. | Climate Change / Renewables

Insights EnergyInsider
U.S. Secretary of Energy Directs Regulator to Assure Cost Recovery for Coal and Nuclear Generators By David Stevens Oct 10, 2017 In late September 2017, the U.S. Secretary of Energy (Rick Perry) issued a Direction and “Notice of Proposed Rulemaking” to the Federal Energy Regulatory Commission (FERC) requiring the establishment of market rules to assure cost recovery for baseload generators. The specific requirement is for ...