How Electricity Projects are Developed in Your Municipality
What the IESO Does
Informing and Involving
The IESO engages with communities to raise awareness about emerging energy needs and the options to meet them. Through dedicated engagements and resources, the IESO is available to offer expertise and provide important context on the electricity system, Ontario’s growing demand and individual procurements.
Forecasting
Forecasts of future electricity demand across the province and specific regions are prepared on a regular basis, informed by input with local businesses, constituents and municipalities. The IESO also publishes an Annual Planning Outlook, providing a long-term view of Ontario’s electricity needs.
Planning
Determining how to meet future electricity needs involves identifying:
- What types of infrastructure and projects are needed
- When will they be needed
- Where are they needed on the system
- How should these projects be acquired
Securing Future Energy Supply
The IESO launches programs or competitive RFPs to secure contracts for new or existing generating facilities. RFPs are evaluated based on cost, service life, type of generation, reliability and level or community support.
Contract Award
Following extensive evaluation of the proposals received, the IESO will award contracts to the successful proponents.
Commercial Operation
The IESO confirms the new facility’s readiness and connects the new supply to the grid.
Once a facility has been built and tested, the IESO balances the demand for power and the supply of electricity in Ontario’s wholesale electricity market.
What Developers Do
Engaging with Municipalities
Developers engage with municipalities about their project proposals, seeking to build support by answering questions and addressing concerns such as safety, environmental impacts and decommissioning costs. This may also involve establishing community benefit agreements.
Analyzing Feasibility
Conducting preliminary investigations can help developers determine whether a project is viable and which site would be the most suitable.
Municipalities select sites driven by the IESO’s procurement design, technical considerations, policy, and partnerships.
Proposal Submissions
Developers submit their proposals to the IESO for evaluation, including evidence of a municipal council support resolution.
Approvals and Permits
Before construction, successful projects must obtain:
- environmental and regulatory approvals
- grid connection approvals
- permits for new road and other infrastructure
- a negotiated community benefit agreement if applicable
Commercial Operation
Once a facility has been built and tested, the owner participates in Ontario’s wholesale market and can start providing electricity to the grid.
What Municipalities Do
Engaging with the IESO
Municipalities inform the IESO about regional and bulk plans, and provide input on design components such as community engagement and municipal support requirements.
Engaging with the Developer
Municipalities engage with developers and may provide municipal support for the purposes of project eligibility through the IESO’s long-term procurements.
To ensure informed decision making, municipalities confirm adequate community engagement from the developer (e.g. safety, land use impacts, etc.)
Municipalities may develop energy projects as a developer or partner, if applicable. They may also lease municipally owned properties for renewable projects to generate revenue or other benefits for the community, if applicable.
Responding to Local Community
Municipalities respond to questions from local residents and businesses about proposed projects and communicate their rational for decisions.
Supporting Project Development
Municipalities provide the necessary building and road permits for project construction. They also consult with relevant Ministries on local planning and permitting approvals as required.
Under the Planning Act, municipalities may assume approvals for projects, including Official Plan, zoning by-law amendments, or site plan controls.
What Indigenous Communities Do
Participating in IESO Engagements
Indigenous communities provide input on key design components such as community engagement, Indigenous support requirements, equity partnerships, etc.
Engaging with the Developer
Indigenous communities provide unique knowledge about local environments and cultural heritage, ensuring that procurement decisions consider environmental sustainability and respect for cultural values. They also review projects and provide attestation from a natural person with authority to bind, such as Indigenous communities attesting to the status of such lands proposed for a project.
Engaging with Chief and Council
Indigenous communities host an open house to provide members of the community an opportunity to ask questions about the proposed project and/or partnership, if necessary.
To get involved or ask questions, please contact communityengagement@ieso.ca.