Canada: Ontario Launching New Competition for Renewable Energy Projects

Ontario is continuing to secure a clean energy future by launching a second phase of the competitive Large Renewable Procurement (LRP) process.

Working with the Independent Electricity System Operator (IESO), a Request for Qualifications process will be issued by August 1, 2016 for 930 megawatts (MW) of renewable energy from solar photovoltaic, wind, hydroelectric and bioenergy sources, following engagement with stakeholders, municipalities and Indigenous communities.

The province will continue to ensure renewable energy procurement encourages the selection of projects with local support and competitive prices, as well as projects with First Nation and Métis participation. Based on the results of the first phase of the LRP (LRP I), it is expected that $3.3 billion in LRP costs will be removed relative to the 2013 Long-Term Energy Plan (LTEP) forecast, saving the typical residential electricity consumer an average of $1.67 per month on their electricity bill over the forecast period.

The next phase of the Large Renewable Procurement (LRP II) will ensure Ontario remains a global leader in clean energy development. Since 2003, Ontario’s clean energy initiatives have attracted billions of dollars in private sector investment and it is estimated that they have generated over 42,000 jobs in the clean technology sector. There are more than 30 solar and wind manufacturers operating in communities across the province.

Building a safe, clean, reliable and affordable energy system is part of the government's economic plan to build Ontario up and deliver on its number one priority to grow the economy and create jobs. The four-part plan includes investing in talent and skills, including helping more people get and create the jobs of the future by expanding access to high-quality college and university education. The plan is making the largest investment in public infrastructure in Ontario's history and investing in a low-carbon economy driven by innovative, high-growth, export-oriented businesses. The plan is also helping working Ontarians achieve a more secure retirement.

Quick Facts

• The Large Renewable Procurement (LRP), which replaced the large Feed-In Tariff (FIT) program, covers renewable energy projects generally larger than 500 kilowatts (kW) and was designed to strike a balance between community engagement and achieving value for ratepayers.
• In March 2016, the IESO offered contracts to 16 successful LRP proponents, for a total of almost 455 MW of renewable energy capacity. Of the 16 projects that received contracts, 75 per cent received support from local municipalities.
• For LRP Phase II, Ontario has set targets of up to 600 MW of wind, up to 250 MW of solar photovoltaic, up to 50 MW of hydroelectricity and up to 30 MW of bioenergy.
• The IESO engagement process will include surveys, webinars and meetings with industry associations, municipal associations and Indigenous communities. Further engagement opportunities will take place during the LRP II RFQ and RFP phases.