Interestingly, the IESO has explicitly described this round of
procurement as a way of testing new storage technologies. This in
part explains the structure of the services contract to be entered
into by storage providers. As outlined in a previous post, rather than laying the foundation for
the long-term financing of a capital intensive project, the
procurement allocated a higher point total to proponents that bid
shorter contract terms and the form of services contract included
several termination rights in favour of the IESO which make the
contract difficult to finance.
Promising Procurement Pipeline:
As readers of this blog will know, the Government of
Ontario's Long Term Energy Plan
("LTEP"), calls for a total of 50 MW of
storage capacity, 35 MW to be procured by the IESO and the balance
of 15 MW to be procured by the OPA. Now that the IESO process is
complete, attention will turn to the OPA. While we still do not
know exactly what form the OPA procurement will take, we can
speculate. If past practice is any guide, it would not follow the
ISEO's ancillary service contract model. Instead it would
follow a model characterised by long term contracts with a minimum
offtake price, similar to the RESOP or Feed-in Tariff programs.
However, given that the IESO and OPA are now slated to merge (as
our colleague George Vegh has discussed here) any predictions about this procurement
process should be taken with a grain of salt.
OSES 2014 Conference:
McCarthy Tétrault had the pleasure of attending the 2014
Offshore Energy Storage Symposium. This was the conference's
inaugural year and it was well attended by participants from all
sectors of the energy community: generation, transmission, research
and government. Windsor University was selected to host the event
largely due to civil and environmental engineering professor Rupp
Carriveau's work with a young company named Hydrostor
on methods to convert energy into compressed air for underwater
storage. Hydrostor's Ontario project will be located off the
Toronto Island and was procured by Toronto Hydro. The
conference's website can be found here.
Please keep following our blog for further news on all matters
related energy storage.
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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