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.

2022 Annual Acquisition Report

Download the Report

2022 AAR Data Tables

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 second Annual Acquisition Report outlines the steps planned to cost-effectively address supply needs identified in the 2021 Annual Planning Outlook.

The planned actions described in the report demonstrate a move to more competitive approaches to meeting those needs and driving 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.

2022 Annual Acquisition Report Information Session - materials now posted

Minister asks IESO to explore new procurement opportunities and the potential for new energy efficiency programs

The Minister of Energy has asked the IESO to explore new procurement opportunities to address additional needs identified in the 2022 Annual Acquisition Report and report back by July 15, 2022. Similarly, the IESO has been requested to examine and report back by July 29, 2022 with options and analysis for cost-effective additional or expanded CDM programming, which would contribute to meeting electricity system needs, including the growing agricultural greenhouse sector in Southwest Ontario.

Highlights of the 2022 AAR:

  • Capacity needs in the years up to and including 2024 are expected to be met through the planned actions identified in the 2021 AAR, including continued growth of the Capacity Auction, and resources secured through bilateral negotiations.
  • While some of the capacity needs identified in the 2021 APO for 2025 and 2026 are expected to be met through last year’s plans, more supply is needed. 
  • As demand grows, Ontario is seeing the need for new resources. This fall the IESO will be initiating the first in a series of long-term commitment procurements to satisfy reliability needs anticipated in the late 2020s and 2030s.

Possible Solutions for Reliability

 

 

2021 Annual Acquisition Report

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.