In what can only be seen as very good news for both domestic and
international renewable energy industry participants, on June 27,
2016, the Ontario's Independent Electricity System Operator
(the 'IESO') released its draft Large
Renewable Procurement Request for Qualifications (the
'LRP II RFQ') and related prescribed forms
for stakeholder review and comment. Stakeholders can provide
feedback on the draft LRP II RFQ until July 14, 2016.
There are five key changes in this second round of large
renewable energy procurement:
Prohibited Communications and Non-Collusion
Requirements: The revisions this time around endeavour to
clarify the point that the IESO does not wish to preclude
communication for the purposes of participating in public
stakeholder engagement initiatives undertaken by the IESO or the
government. The modified wording in this section also seeks to make
it clear that the IESO does not wish to prevent proponent
engagement with Indigenous Communities.
Procuring upgrades to and/or optimization of Existing
Generation Facilities: In June 2016, the Minister of Energy
directed the IESO to explore opportunities to procure additional
generation from technological upgrades to, and optimization of,
existing facilities. Applicants wishing to propose upgrades must
now submit a qualification submission pursuant to the process
outlined in the LRP II RFQ. This creates an interesting opportunity
for existing renewable energy plant operators.
Qualification Submission Requirements: The
Qualification Submission Requirements have been modified to require
only two hard copies and one electronic version.
Confidentiality: The requirements have been clarified
to advise all RFQ proponents that they are expressly authorizing
the release of information.
Evaluation Process: The IESO has established two
distinct processes for evaluating qualification submissions. The
Evaluation Process follows a directive made by the Minister of
Energy to the IESO in April 2016, aimed at automatically qualifying
LRP I applicants as eligible for the LRP II RFP. There are now two
distinct processes :
The Simplified Process: This is only available for LRP I
qualified applicants. The completeness requirements and mandatory
requirements relating to the newly introduced Simplified Process
are as outlined in the LRP I RFQ.
The Standard Process: This is available to all those not using
the Simplified Process, as well as those interested in qualifying
for technological upgrades and optimization. The Standard process
outlined in the LRP II RFQ is essentially the same as in the LRP I
Based in Toronto, Ontario, Gowling WLG's Renewable Energy
Team is intimately familiar with Ontario's LRP process and with
the power regulatory and procurement environs in Ontario more
generally. We continue to advise numerous clients on project
development and finance across the province. Working with
specialist teams in Toronto, Ottawa, Kitchener-Waterloo and
Hamilton, Gowling WLG can help guide you through the legislative,
regulatory and policy framework that governs renewable energy
sector in Ontario. For more information on the Ontario LRP process,
or structuring renewable projects in Ontario or other Canadian
markets, please contact Thomas J. Timmins, Graham Darling or Laura
Gowling WLG looks forward to participating in Solar Canada,
being held in Toronto between 5 and 6 December 2016, where the
Gowling WLG Renewable Energy Team will be in attendance.
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