highlighted some of the anticipated features of the Ontario
Power Authority's (the "OPA") new
Large Renewable Procurement ("LRP")
process, a competitive procurement system for renewable energy
projects generally larger than 500 kW. Since then, the OPA has
published two new documents which together provide added clarity on
the LRP roll-out.
1. Final Recommendations Report
After sustained community and stakeholder consultations, the OPA
released its Final Recommendations Report for the LRP
process to the Ontario Minister of Energy on February 28, 2014.
This report builds on the OPA's Interim Recommendations, which were initially
revealed in August 2013, as well as the province's recently
released Long Term Energy Plan (which is also discussed
here). The report also summarizes the results of a community
engagement process that included multiple webinars and more than 35
meetings with First Nation and Métis communities, industry
stakeholders and the general public.
Importantly, the report includes key details regarding the
Request for Qualifications ("RFQ") and
the Request for Proposals ("RFP") stages
of the competitive procurement process.
Recommendations for the RFQ stage include requirements
vis-à-vis appropriate financial capacity, appropriate energy
development experience, regulatory approvals, and so on –
details of which are outlined below. As the Ontario Minister of
Energy noted in his follow-up Directive to the OPA on March 31,
2014, the goal behind the revised RFQ criteria is to ensure that
the qualifications of applicants and their respective project teams
are robust enough to minimize the risk that projects fail to reach
Recommendations for the RFP stage include a rated criteria
system (rather than the priority points concept used in the FIT
program) to assess the applicant's development experience,
financial capacity and project and environmental due diligence. The
OPA suggests that RFP stage assessment thresholds under this system
be set above the minimum levels required at the RFQ stage. The OPA
also recommends that the applicant's experience with engagement
of municipalities and other stakeholders become a central feature
of the RFP stage as opposed to the RFQ stage.
Some additional recommendations include:
Projects should encourage Aboriginal and municipal
participation through direct means (e.g. price adders) and indirect
means (e.g. municipal support resolutions and community benefit
Pricing mechanisms that reflect the level of electricity demand
should be considered in addition to the applicant's bid
Interestingly, no explicit limits will be placed on the size of
projects on the assumption that sizing will be indirectly addressed
by way of grid connection limitations and community engagement
2. Draft RFQ Guidelines
The OPA also published draft RFQ guidelines on April 8, 2014. The
comment period for these RFQ guidelines ended on Friday, May 2,
A concise summary of the proposed RFQ criteria, including
submission fees, tangible net worth and applicant and team
experiences, can be found here.
Canada is a constitutional monarchy, a parliamentary democracy and a federation comprised of ten provinces and three territories. Canada's judiciary is independent of the legislative and executive branches of Government.
The Government of Alberta recently announced a number of policy changes that will impact the Alberta Electricity Market, composed of its generators, transmitters, distributors, retailers, electricity consumers and wholesale electricity market.
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