As directed by the Ontario government, the Independent Electricity System Operator (IESO) has secured 640 megawatts (MW) of new electricity capacity via three projects chosen under the capacity stream of the second long-term request for proposals (LT2).
In a news release, the provincial government noted that the three selected projects – awarded two-decade contracts, with commercial operations expected to commence by May 1, 2030 – will offer enough capacity for around 640,000 homes during peak electricity demand periods.
Lesley Gallinger, IESO president and chief executive officer, said the three new energy storage projects will address the electricity demand in Ontario in the 2030s and beyond.
“By advancing the largest competitive energy procurement in Ontario’s history, we’ve already secured new clean energy capacity to reliably and affordably power hundreds of thousands of homes and businesses,” said Sam Oosterhoff, Ontario’s associate minister of energy-intensive industries, in the news release.
Lower-cost electricity
According to the Ontario government, through the three chosen projects, Ontario procured capacity at a weighted average price significantly lower than the capacity resources obtained in IESO’s recent competitive procurements.
In its news release, the provincial government emphasized that the cost for the new battery storage capacity resources will be:
- 36 percent lower than that of the battery storage procured in relation to the expedited first long-term request for proposals (E-LT1)
- 16 percent lower than that of the battery storage procured in connection with the first long-term request for proposals (LT1)
“The competitive LT2 procurement process is driving down costs while securing the energy Ontario needs to continue creating jobs, attracting more investment, and protecting Ontario’s electricity system – for generations,” Oosterhoff said.
The Ontario government shared that the LT2 procurement, via its energy and capacity streams, has secured more than 1,750 MW of new electricity supply to power approximately 920,000 homes through 16 projects across the province.
The provincial government noted that the first window of the LT2 procurement has wrapped up with the end of the capacity stream. Over the next few years, the IESO plans to open submission windows for numerous requests for proposals under the LT2 umbrella to secure resources to fulfill system needs.
The Ontario government expects electricity demand to rise by as much as 90 percent by 2050.