On July 21, 2016, the IESO hosted a discussion on the portion of
the Large Renewable Procurement II ("LRP
II") process pertaining to technological upgrades and
optimization of existing renewable facilities. This discussion
provided potential applicants with an opportunity to provide
comments and feedback to the IESO as to the types of technologies
that should be included in the LRP II process, procurement
considerations for such technologies and contractual
Prescribed Form – Technical Upgrades and
The Prescribed Form for Technical Upgrades and Optimization is
required for applicants submitting an RFQ for a technological
upgrade and optimization project. The form requires the applicant
to provide extensive information regarding the proposed project,
the technology used and potential pricing.
Several concerns were raised about this Prescribed Form,
including questions as to why this Prescribed Form is only required
for technological upgrade and optimization projects. Some
participants noted that the requested information was extensive and
suggested that the deadline for submission should be extended.
Others noted that the information requested would be more suitable
for the LRP II RFP phase.
The IESO indicated that this Prescribed Form will only be used
for data collection and will not be used to assess an applicant
during the LRP II RFP phase. The IESO has significant data
(including data regarding appropriate pricing) for certain types of
renewable projects, such as wind and solar, but lacks information
for technological upgrade and optimization projects. The IESO
indicated that it will use the collected data to help determine the
appropriate requirements for the LRP II RFP phase.
Consultation Process and Community Engagement
Some participants inquired about the consultation process
between the IESO and the Ministry of the Environment and Climate
Change ("MOECC") and, in particular,
noted that specific software upgrades could require additional
environmental permitting and community engagement. The IESO
indicated that community engagement is an important part of the
process and that it would be unreasonable to not require any
community engagement for a project change, even if such change is
limited to a software upgrade. The IESO also mentioned that they
are currently engaged in ongoing consultations with the MOECC and
that the IESO's ultimate selection of the technologies that are
eligible for this portion of the LRP II procurement will impact
Existing PPAs and Transmission Constrained Areas
Certain participants inquired about their existing power
purchase agreements ("PPAs") with the
IESO. The IESO noted that each PPA is different and contains
nuances that will need to be considered. The IESO did indicate that
it would consider (i) suggestions regarding appropriate PPA terms
and (ii) concerns raised by an applicant who does not believe that
its proposed technological upgrade and optimization can be made
under the project's current PPA.
The IESO also addressed questions regarding the submission of
projects from transmission constrained areas and advised that the
standard LRP II capacity evaluation would apply, since this
procurement is part of the LRP II process.
LRP II RFQ Materials and Process
As previously noted, the LRP II RFQ materials will be posted
online on July 29, 2016. The LRP II RFQ process will launch on
August 1, 2016. Question and comment periods will be held between
August 1 and August 19, 2016. The deadline for Qualification
Submissions is September 1, 2016. These dates are subject to change
and will be finalized once the final LRP II RFQ documents are
available. For additional information, please refer to the
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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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