Ontario's New Renewables Procurement

Earlier today, the Ontario Minister of Energy directed the Independent Electricity Systems Operator (IESO) to undertake the second Large Renewable Procurement (LRP II). Key details regarding LRP II and updates to Ontario’s Feed-In Tariff (FIT) and microFIT programs are set out below. Please contact Travis Allan (travis@demarcoallan.com) or Lisa DeMarco (lisa@demarcoallan.com) if you have questions.

LRP II procurement details

• Total 930 MW of new renewables

• 600 MW wind

• 250 MW solar photovoltaic

• 50 MW hydroelectricity

• 30 MW bioenergy

Available or unallocated capacity from LRP I and LRP II will not be procured by IESO.

Language requiring IESO to undertake a third LRP (LRP III) is revoked, raising doubt as to whether other major renewable procurements will occur in the immediate future.

Key LRP II deadlines

August 1, 2016: IESO to post final RFQ (request for qualifications) document and launch the RFQ Process (prior qualified applicants from LRP I may be permitted to automatically qualify, subject to conditions to be developed by IESO).

May 1, 2018: IESO must have made selections and issue contracts to successful applicants.

FIT 5 (typically 10 kW to 500 kW)

FIT 5 will have a base target of up to 150 MW plus contract capacity available from contract terminations under prior small FIT (greater than 10 kW and up to and including 500 kW) and micro FIT procurements. Key dates:

September 1, 2016: deadline for IESO to post FIT 5 price schedule.

November 1, 2016: deadline to open FIT 5 application window.

microFIT

The Ministry is working on developing a proposal to transition the microFIT program to a net metering initiative. Key dates:

2016: net metering proposal posted for public comment.

January 1, 2017: deadline for microFIT price schedule.

December 31, 2017: deadline for last microFIT applications.