Resource Adequacy Framework in Action: Second Medium-Term Request for Proposals Complete
May 15, 2025
Making best use of existing electricity supply and using competition to drive down costs will be critical to supporting Ontario’s economic growth. On Friday, May 9, the IESO concluded its second medium-term procurement, offering new five-year contracts to 28 existing facilities across Ontario and securing 3,002 MW of capacity from a diverse mix of energy and capacity projects.
The Medium-Term 2 Request for Proposals (MT2 RFP) ensures resources with contracts expiring between 2026–2029 will continue to contribute to the reliability of the grid into the 2030s. The results include competitive prices for resources, allowing for investments and upgrades at gas facilities that will extend their life at a price that is 65 per cent lower than building a new facility. Projects under the energy stream, including almost 1,000 MW of wind generation, were procured at a cost that is approximately 21 per cent lower than their previous contracts.
With Ontario’s electricity demand forecast to grow by as much as 75 per cent by 2050, the results of this competitive procurement demonstrate how the IESO’s Resource Adequacy Framework continues to cost-effectively meet Ontario’s growing electricity needs. The second long-term procurement, the LT2 RFP, begins later in 2025 with annual intakes through 2029.