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Canadian Energy Perspectives

Large Renewable Procurement II – Final LRP II RFQ Materials Posted

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

On July 29, 2016, the IESO posted the final materials for the Large Renewal Project II (“LRP II”) Request for Qualifications (“RFQ”). Draft materials were posted on June 27, 2016 and the IESO solicited feedback from potential applicants and industry groups. As a result of this consultation, minor changes were included in the final materials for the LRP II RFQ.

As previously noted in detail in our post on July 15, 2016, the two major changes to the LRP II RFQ process are the introduction of the simplified process for LRP I Qualified Applicants (“QAs”) and a procurement target of 50 MW from technological upgrades and optimization of existing renewable facilities. Changes included in the final materials provide greater clarity regarding the application process under the simplified process for LRP I QAs, and the required submission materials for applicants submitting projects for technological upgrades and optimization of existing renewable facilities.

Simplified Process

To be eligible for the simplified process, an applicant must declare that (i) each LRP I Control Group Member is still a Control Group Member of the applicant and (ii) each LRP I designated team member is still a Designated Team Member.

The IESO has provided additional information for this requirement: if an LRP I QA or its Control Group Member(s) underwent an approved change of Control as part of the LRP I Process, it will qualify as an LRP I QA and can submit its RFQ under the simplified process. The applicant must submit the letter issued by the IESO or its predecessor approving the change of Control.

50 MW of Procurement from Existing Renewable Energy Facilities

The IESO has also introduced a new separate form that must be filled out by applicants who will submit technological and optimization projects, namely the Prescribed Form – Technical Upgrades and Optimization Questionnaire. In several of its online webinars, the IESO mentioned that the purpose of this form is to collect information that will assist the IESO in formulating the Request for Proposals (“RFP”) process and project requirements for technological and optimization projects.

The IESO confirmed that the applicant must evidence the Designated Team Member Development Experience for proposed technological upgrades and optimization of existing renewable generation facilities. The IESO received several comments on this issue, where applicants noted that existing generation facilities were operational and they therefore should not be required to re-evidence their development experience. Though the IESO kept this requirement in the final materials, it has included an exception where applicants submitting technological and optimization projects do not need to demonstrate development experience for the entity level.

Applicants are not eligible for the simplified process and will have to proceed through the standard process. The final materials also include a disclaimer, where the IESO reserves the right to make a determination (even if an applicant is deemed a QA), that it is not feasible to procure any additional generation resulting from technological upgrades to and optimization of existing renewable generation facilities.

Comment Period and Next Steps

The LRP II RFQ submission period began on July 29, 2016 and will end on September 8, 2016 at 3:00 p.m. (Eastern Prevailing Time). Successful applicants, who will be deemed QAs, will be notified in November 2016.