Annual Acquisition Report
Operationalizing the Resource Adequacy Framework starts with an articulation of system needs – in terms of quantity, timing, location and level of certainty – as outlined in the IESO’s Annual Planning Outlook as well as in bulk and regional planning studies.
The Annual Acquisition Report (AAR) translates planning and operational information into a series of acquisition requirements. It will signal anticipated targets and acquisition mechanisms to secure services to supply the province’s needs over a variety of time frames.
Over time, the yearly publication of the Annual Planning Outlook and the AAR will provide the marketplace and its participants with predictable sources of information to understand Ontario’s current and forecast needs, along with the proposed activities to satisfy those needs. With readily available information, existing and potential market participants will be better positioned to make investment decisions about potential sources of supply.
2021 Annual Acquisition Report
After years of strong supply, Ontario is now entering a period of growing electricity system needs and actions are needed to ensure the continued reliability of the grid. To address these upcoming supply needs, the IESO’s first Annual Acquisition Report outlines the steps planned to cost-effectively address supply needs identified in the 2020 Annual Planning Outlook.
The planned actions described in the report demonstrate a move to more competitive approaches to meeting those needs and drive down costs for ratepayers. This multipronged approach will provide flexibility to adapt to changing conditions and help facilitate participation from new technologies in the years ahead.
Highlights of the report include:
- Setting capacity targets for the December 2021 Capacity Auction of 1000 MW for the 2022 summer obligation period and 500 MW for the 2022-23 winter obligation period. The target capacity for the 2026 summer obligation period could reach as much as 1800 MW.
- Initiating a medium-term RFP in late 2021 for up to 750 MW with a three-year commitment period beginning in 2026.
- Signalling the IESO’s intent to launch a long-term RFP for at least 1000 MW in late 2022.
The report also looks at some specific reliability concerns where existing generation facilities will need to be secured as there are no other practical options to address immediate needs.