Contracts
This page contains information and links energy procurement programs and contract information.
The IESO has entered into a procurement contract with Atura Power for the Brighton Beach Generating Station, as directed by the Minister of Energy on April 27. 2023. This power station, located in Windsor, Ontario, is a natural gas-fired combined cycle facility with a capacity of 541.25 MW and has operated since 2004. The IESO's Annual Acquisition Report identified Brighton Beach as the sole facility in the West of London area capable of addressing reliability requirements, particularly until transmission reinforcements are completed in 2028. By securing this contract, the IESO ensures that the region will have sufficient power supply during periods of peak demand, effectively addressing reliability concerns.
The contract term runs from July 16, 2024, to July 15, 2034 and provides for a facility upgrade that will increase its total capability by 42.5 MW while improving its overall efficiency and reducing the fuel consumed per MWh generated. This increase in capacity will play a crucial role in meeting both the province's overall system adequacy requirements and the specific needs of the local area.
The Amended and Restated Bruce Power Refurbishment Implementation Agreement (ARBPRIA) and other related document can be found at the links below:
- Amended and Restated Bruce Power Refurbishment Implementation Agreement
- First Amending Agreement to the Amended and Restated Bruce Power Refurbishment Implementation Agreement
- Second Amending Agreement to the Amended and Restated Bruce Power Refurbishment Implementation Agreement
- Amended and Restated Bruce Power Sharing in Transfers and Refinancings Agreement
- Bruce Nuclear Generating Station - Key Elements
- News Release
For reasons of commercial confidentiality, certain exhibits related to the Contract have been kept confidential. For example, detailed estimates of component costs are not included in the above documents. If released, this information could influence the costs that Bruce Power's contractors bid for specific projects and jeopardize Bruce Power's commercial position.
Combined Heat and Power Standard Offer Program (CHPSOP) 2.0
The application window for the Combined Heat and Power Standard Offer Program 2.0 (CHPSOP 2.0) closed on January 9, 2015. A list of executed contracts was released in June 2015, and in September of that year, a report examining the procurement was released.
- CHPSOP 2.0 executed contracts (June 26, 2015)
Combined Heat and Power (CHP)
The first procurement of individually negotiated Combined Heat and Power (CHP) projects began November 23, 2010, with a directive from the Minister of Energy authorizing projects greater than 20 megawatts (MW) in capacity.
Over several years, three additional procurements for CHP projects were conducted, resulting in contracts for more than 450 MW of capacity and representing a wide range of technologies, applications, industries and geographic locations.
See documents from:
Clean Energy Standard Offer Program (CESOP)
On November 23, 2010, the Minister of Energy authorized the Clean Energy Standard Offer Program, which was implemented through two separate, but related initiatives.
The Combined Heat & Power Standard Offer Program (CHPSOP) was for distribution connected, natural gas-fired combined heat and power projects of 20 MW or less.
The Energy Recovery Standard Offer Program (ERSOP) applied to distribution connected, energy recovery projects of 20 MW or less.
The procurement of energy storage resources at the IESO began in 2012 with the Alternative Technologies for Regulation (ATR) procurement, in which six megawatts of regulation service was procured from two storage facilities. The energy storage technologies that were brought online provided learning opportunities for both the IESO and their providers.
In 2014, the IESO initiated a competitive energy storage procurement framework that included two consecutive phases for a total capacity target of 50 megawatts. The two-phase pilot procurement supported the province’s efforts to better understand the integration of energy storage into Ontario’s electricity system and market. The results of this procurement are below.
Phase I
Through Phase I of the energy storage procurement (2014), 9 facilities are providing a total of 28.8 megawatts of either regulation service or reactive support and voltage control (RSVC) service to support Ontario’s electricity system. These facilities are listed below:
|
Supplier |
Technology |
Capacity (MW) |
|
Ellwood Energy Storage LP |
Battery |
4.0 |
|
Sault Ste. Marie Energy Storage LP |
Battery |
7.0 |
|
Powin Energy Ontario Storage II LP |
Battery |
2.0 |
|
Powin Energy Ontario Storage II LP |
Battery |
2.4 |
|
Powin Energy Ontario Storage II LP |
Battery |
2.0 |
|
Powin Energy Ontario Storage II LP |
Battery |
2.4 |
|
Hecate Energy Ontario Storage VII LP |
Battery |
2.0 |
|
Guelph Energy Storage LP |
Flywheel |
5.0 |
|
2562961 Ontario LTD |
Hydrogen-Gas |
2.0 |
*Data as of November 27, 2019
Phase 2
Through Phase II of the energy storage procurement (2015), 6 facilities are or will be providing a total of 11.75 megawatts of energy storage capacity to the power grid. These facilities are listed below:
|
Supplier |
Technology |
Capacity (MW) |
|
Ameresco Newmarket Energy Storage Inc. |
Battery – Solid |
2.0 |
|
Ameresco Newmarket Energy Storage Inc. |
Battery – Solid |
2.0 |
|
Elmira Energy Storage, LP |
Battery – Solid |
2.0 |
|
Parry Energy Storage, LP |
Battery – Solid |
2.0 |
|
Baseload Power Corp. |
Battery - Flow |
2.0 |
|
NRStor Goderich CAES L.P. |
Compressed Air |
1.75 |
*Data as of November 27, 2019
Energy Storage Report
The IESO's 2016 technical report on energy storage focuses on the reliability needs of the Ontario power system and the potential for energy storage technologies to address those needs.
See also Energy Storage Advisory Group.
The Minister of Energy, Northern Development and Mines directed the IESO to retain the services of a third party consultant to review targeted generation contracts. The IESO retained Charles River Associates for this review.
The full report, prepared by Charles River Associates, reviews cost-saving opportunities in the management of targeted generation contracts. The review is part of the Ontario government’s efforts to identify opportunities to reduce electricity costs for consumers. The potential cost-lowering opportunities have been assessed and are summarized in this report that has been submitted to the government. The report and its appendices are listed here:
Contract Review Directive Report | Letter to Minister
Appendix 2: Third Party Report
Appendix 3: Letter from the IESO
Appendix 4: Memo from Osler, Hoskin & Harcourt to the IESO
On September 16, 2020, the IESO and Chares River Associates hosted a webinar providing an overview on the approach and findings of the Generator Cost Review Report.
The HCI was developed and implemented pursuant to the May 7, 2009 ministerial direction to allow existing hydroelectric facilities without electricity contracts to obtain 20-year contracts, as well as those facilities which may have already operated for a number of years and wanting to continue their operations.
The direction was amended on January 21, 2013 to cease acceptance of applications for refurbishment, upgrades or expansions of existing facilities currently holding HCI contracts.
The HCI was discontinued pursuant to a February 14, 2020 Order in Council and Minister's Directive.
The Hydroelectric Standard Offer Program (HESOP) began in 2013 following direction from the Minister of Energy on January 21, 2013 and June 26, 2013, and was developed in two separate streams:
- The Municipal Stream applied to new-build waterpower projects larger than 500 kilowatts (kW) that were the subject of an application to the Feed-in Tariff Program submitted before June 5, 2010. This stream had a procurement target of up to 10 megawatts (MW) for projects between 500 kilowatts and 5 MW in size, and a separate procurement target of up to 50 MW for projects that are 5 MW or larger. The application window for the Municipal Stream closed on December 6, 2013.
- The Expansion Stream applied to incremental hydroelectric capacity projects at non-utility generation (NUG) facilities under contract with the Ontario Electricity Financial Corporation, and to incremental hydroelectric capacity projects at facilities under contract with the IESO as part of the Hydroelectric Contract Initiative (HCI). This stream had a procurement target of up to 40 MW and its application window closed on November 3, 2014.
The Industrial Electricity Incentive (IEI) Program was designed to assist in the management of electricity demand - given decreased levels of industrial electricity use since 2007 - by encouraging increased industrial production. This was to be achieved through electricity-based price adjustments for eligible electricity consumption.
The program is now closed. It ran from November 2012 to December 2014, and was divided into three streams, which are described below:
- Stream 1: For industrial consumers that were willing to operate an industrial facility and undertake a large capital investment in technologies, products or processes that were not being used or produced in Ontario at the time. There were no Stream 1 participants in the IEI Program.
- Stream 2: For existing industrial consumers in Ontario that were willing to expand their existing, or build a new, industrial facility. There are no longer any Stream 2 participants in the IEI Program.
- Stream 3: For new and existing consumers in Ontario that were willing to build a new eligible facility or expand their existing eligible facility, and would carry on an activity classified within specific NAICS Canada 2012 sectors. Note that Stream 3 expanded eligibility to certain other energy-intensive sectors.
The Large Renewable Procurement (LRP) was a competitive process for procuring large renewable energy projects generally larger than 500 kilowatts.
The LRP was a component of Ontario’s ongoing commitment to building a cleaner and more sustainable energy system, and represented a key step in the province’s 2025 target for renewable energy to comprise about half of Ontario's installed capacity.
Large Renewable Procurement I
The first LRP process began early in 2014 and concluded in April, 2016, with the execution of 454.885 megawatts (MW) of new wind, solar, and waterpower contracts.
LRP I consisted of both a Request for Qualifications (RFQ) and a Request for Proposals(RFP) stage. During the LRP I RFQ stage 42 applicants were qualified based on their ability to meet a set of mandatory requirements.
The IESO received 103 proposals in response to the LRP I RFP, and executed 16 LRP I Contracts with successful applicants.
Large Renewable Procurement II
The second process, LRP II, began with an extensive stakeholder engagement component beginning in late March, 2016, and was followed by the launch of the LRP II Request for Qualifications (RFQ) process in July.
Then, on September 27, 2016, the Minister of Energy announced the suspension of the LRP II, and the RFQ process was cancelled.
Lennox GS Contract Extended to 2029
In an effort to secure supply to meet immediate needs in eastern Ontario, the IESO has now completed a transitional contract with Ontario Power Generation for the continued operation of the Lennox Generating Station. Given its location and operational characteristics, Lennox GS plays a critical role in maintaining the reliability of Ontario’s power system and is the only resource available to meet immediate needs in the area. The 2,160 MW facility offers quick-ramping supply and other reliability services such as operating reserve. Its location helps to ensure the security of the bulk system by balancing electricity flows across the province.
The new contract runs from October 1, 2022 to May 1, 2029, and will complement broader competitive acquisition mechanisms being put in place to address future reliability needs.
The Ministry of Energy issued a directive on November 23, 2010, to negotiate for new contracts with the owners or operators of the non-utility generators (NUGs) where these would have cost and reliability benefits to Ontario electricity consumers. A list of the eligible NUG facilities was included in Appendix A of the directive.
The IESO engaged with NUGs individually regarding this initiative. Details regarding NUG facilities that were re-contracted can be found in the NUG Framework Assessment report.
On January 27, 2022, the Minister of Energy directed IESO to enter into a procurement contract with Atlantic Power Corporation for Calstock Generating Station (biomass). The term of the contract runs from April 1, 2022 to March 31, 2027.
The Northern York Region area is growing rapidly with new businesses, homes, roads, schools and neighbourhoods. As a result, electricity demand in Northern York Region is expected to grow by more than three percent annually for the next 10 years.
Upgrades to the electricity system in the southern part of York Region took place in 2004; however, there have been no major improvements in the northern part since the 1990s.
In September 2005, the OPA submitted a report to the OEB after several months of extensive study and consultation. The OPA’s report recommended a multi-stage plan to meet the region’s electricity requirements and ensure an affordable, reliable, and secure electricity serve. The plan was built on several key elements, including:
- Conservation
- Upgrades to the existing Armitage Transformer Station
- A new transformer station at Holland Junction
- New generation located in the area.
The OPA strives for openness and transparency in its consultation process. Ontarians can help us to ensure we have a reliable, sustainable and affordable supply of electricity in the future.
Northern York Region Request For Proposals (RFP)
NYR RFP - October 29, 2008 - Addendum #2
NYR RFP – October 3, 2008 - Addendum #1
Northern York Region Contract – October 3, 2008
OPA Receives Six Proposals for Northern York Region Generating Facility - November 7, 2008
Northern York Region Request For Qualifications (RFQ)
The Oneida Energy Storage Facility is a 250 MW, 1,000 MWh Lithium-lon based energy storage project located in Haldimand County that will provide capacity, energy and operating reserve services to Ontario's power grid. The project was developed by NRStor Inc. and Six Nations of the Grand River Development Corp.
On February 3, 2011, the Minister of Energy directed the Ontario Power Authority (OPA) to proceed with a pilot program to sell, track and audit the sale of a limited number of environmental attributes (EAs) from OPA contracted renewable energy facilities. A link to the Directive can be found below.
On January 28, 2011, the OPA hosted a stakeholder session to introduce this topic and request stakeholder feedback. See the Stakeholder Session presentation.
Renewable Energy Supply I (RES I)
On June 24, 2004, the Ministry of Energy (as it then was) issued a request for proposals for the procurement of 300 MW of new electricity supply derived from renewable energy sources. This resulted in the execution of ten Renewable Energy Supply Contracts (RES I Contracts) by the Ontario Electricity Financial Corporation from energy sources including wind, hydro-electric, landfill and digester gas.
On November 7, 2005, the Ontario Power Authority (as it then was) was issued a Ministerial direction to effect the assumption of the ten RES I Contracts.
RES I is not an active procurement and this web page remains for informational purposes only.
The following RES I program documents are available for download below:
- RES I Contract
- Addendum 1 to RES I Contract
- Addendum 2 to RES I Contract
- Addendum 3 to RES I Contract
- RES I Request for Proposals (RFP)
- Addendum 1 to RES I RFP
- Addendum 2 to RES I RFP
- Addendum 3 to RES I RFP
Renewable Energy Supply II (RES II)
On June 17, 2005, the Ministry of Energy (as it then was) issued a request for proposals for the procurement of up to 1000 MW of new electricity supply derived from renewable energy sources. Nine proponents were selected to supply renewable energy from sources including wind and hydro-electric.
On November 16, 2005, the Ontario Power Authority (as it then was) was issued a Ministerial direction to enter into Renewable Energy Supply Contracts with each of the nine selected proponents.
RES II is not an active procurement and this webpage remains for informational purposes only.
The following RES II program documents are available for download below:
- RES II Contract
- Addendum 1 to RES II Contract
- Addendum 2 to RES II Contract
- Consolidated Final RES II Contract
- RES II Request for Proposals (RFP)
- Fairness Commissioners Report RES II Contract
Renewable Energy Supply III (RES III)
On August 22, 2008, pursuant to a Ministerial direction dated August 27, 2007, the Ontario Power Authority (as it then was) issued a request for proposals for the procurement of up to 500 MW of new electricity supply derived from renewable energy sources. Six proponents were selected to supply renewable energy from wind energy sources and the Ontario Power Authority entered into Renewable Energy Supply Contracts with each of the six selected proponents.
RES III is not an active procurement and this webpage remains for informational purposes only.
The following RES III program documents are available for download below:
- RES III Contract
- RES III RFP and Addendum 1 to RES III RFP
- Addendum 2 to RES III RFP
- RES III Fairness Report
The Renewable Energy Standard Offer Program (RESOP) was launched in November 2006 following a March 21, 2006 Ministerial directive. RESOP was designed to encourage and promote greater use of renewable energy sources including wind, waterpower, biomass, and solar, from smaller generating projects that would be connected to an electricity distribution system in Ontario.
RESOP is not an active procurement and this webpage remains for informational purposes only.
The following RESOP program documents are available for download below:
The following RESOP prescribed forms are available for download below:
The IESO has developed the Small Hydro Program, at the direction of the Minister of Energy, to re-contract the province’s small hydroelectric facilities with capacities up to (and including) 10 megawatts. Facilities that are eligible for the program include those that have an existing contract with the IESO (that expires before 2043), those that are uncontracted, and those that have an existing contract with the Ontario Electricity Financial Corporation.
The Small Hydro Program provides value for ratepayers by sustaining existing clean renewable energy facilities in Ontario. The Program provides a reasonable revenue stream to enable these facilities to continue operating.
As the application period is open-ended, there is no deadline for eligible facilities to apply. All contracts under the Small Hydro Program run through April 30, 2043.
SHP-Prescribed Forms (.zip)
Replacement Power Supply for Southwest GTA
Toronto, ON (October 9, 2009) - The OPA has signed a contract with TransCanada Energy Ltd. to design, build and operate a 900 megawatt (MW) electricity generating station in Oakville over a 20-year term, which will provide a new, cleaner source of electricity for the growing southwest Greater Toronto Area. This new natural gas power plant will maintain local supply reliability and replace the coal-fired Lakeview generating station, helping Ontario become the first jurisdiction in the world to replace dirty coal from its electricity generation mix. The Southwest GTA RFP procurement process has now concluded.
Toronto, ON (Sept. 30, 2009) - The Ontario Power Authority announced today it will sign a contract with TransCanada Corporation to design, build and operate a 900 megawatt (MW) electricity generating station in Oakville to provide a new, cleaner source of electricity for the growing southwest Greater Toronto Area. This new natural gas power plant will maintain local supply reliability and replace the coal-fired Lakeview generating station, helping Ontario become the first jurisdiction in the world to eliminate dirty coal from its electricity generation mix.
The new power plant will operate during peak periods and be up and running by Dec. 31, 2013. Emission standards for the new plant are 70 percent tougher than what is currently required by the Ontario Ministry of the Environment. TransCanada will meet or exceed these standards, through the use of gas turbines that are among the most efficient available.
In addition to the tougher emission standards, the government of Ontario today announced a clean air plan for the southwest GTA in response to community concerns about air quality. As well, Ontario’s Chief Medical Officer of Health, after a review requested by Peel Public Health, has concluded that there is no evidence there will be negative impacts on the health of southwest GTA residents with the addition of a natural gas-fired power generation facility in the region.
TransCanada estimates the capital cost of the plant at $1.2 billion — all of which will be financed privately, at no risk to Ontario consumers. It will create approximately 600 construction jobs over about 28 months. There will also be significant local spending on goods and services including supplies during construction and throughout the 20-year operation of the project as well as food and lodging. Municipal taxes are estimated to exceed $1 million annually. About 25 permanent jobs will be created to operate and maintain the facility.
“This new plant will meet local needs for a reliable supply of electricity, strengthen Ontario’s overall system, while performing far above Ontario’s stringent air emission standards,” said Colin Andersen, chief executive officer of the Ontario Power Authority. “The selection process was fair and objective. TransCanada provides the best value and has the experience, expertise and capacity to deliver the project on time and on budget.”
The selection of TransCanada to build and operate the natural gas-fired power plant followed a rigorous competitive procurement process involving four proponents. The successful proponent was chosen through a multi-stage evaluation by an independent team that examined each proposal’s ability to meet the requirements laid out in the procurement process. Its gas turbines and duct burners will be equipped with dry low NOx combustion technology and utilize selective catalytic reduction to effectively control emissions. And, the facility will be designed with silencing equipment to mitigate any noise impacts.
TransCanada strives to be a good neighbour in every community where it operates. The Portlands Energy Centre (in-service) and the Halton Hills Generating Station (under construction) are examples of their local facilities operating in harmony with the community. Both plants have established Community Liaison Committees to work with the community and address local issues.
TransCanada’s community investment program focuses on five areas: education, environment, health, human services, and civic initiatives. TransCanada will welcome the opportunity to participate in community projects that fit in these areas. TransCanada will also work with the community and key stakeholders to ensure the development of the new power plant in Oakville includes their input.