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Canadian Energy Perspectives

Large Renewable Procurement II – IESO Webinar re: Upgrades of Existing Facilities

Posted in Energy – Renewable, Alternative and Clean, Independent Producers, Ontario Independent Electricity System Operator, Power
Kerri LuiBrianne Paulin

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 considerations.

Prescribed Form – Technical Upgrades and Optimization

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 such consultations.

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 following link: