IESO LONG-LEAD-TIME CAPACITY SERVICES (LLT(C)) REQUEST FOR PROPOSALS

The Independent Electricity System Operator (IESO) is issuing a competitive Request for Proposals to procure up to 800 MW of year-round capacity services on a Maximum Contract Capacity basis from Long-Lead-Time (LLT) Capacity Projects. No more than 200 MW may be procured from projects utilizing Class II Long Duration Energy Storage (LDES) Technology. Selected proponents will enter into a 40-year Long-Lead-Time Capacity Services Contract commencing on the Commercial Operation Date of their Electricity Storage Facility.

Eligible LLT Capacity Projects must be New Build Electricity Storage Facilities with a minimum Nameplate Capacity of 10 MW, directly connected to Ontario's Distribution or Transmission System, capable of continuously delivering Contract Capacity for at least 8 consecutive hours during Qualifying Hours (16 consecutive hours on up to 5 business days per calendar week, 07:00 to 23:00 EST). Projects must use Eligible LDES Technology as their sole means of storing and delivering electricity. Proponents must demonstrate Team Member Experience with at least two Designated Team Members having managerial authority across Planning, Developing, Financing, Constructing, and Operating of at least one Qualifying Project. For Class II LDES Technology projects, proponents must demonstrate additional managerial experience in Planning and Developing of a Same Technology Qualifying Project.

Proposals must include evidence of Indigenous and Municipal Support where applicable, access rights documentation for crown lands, compliance with agricultural land designations, and a Supply Chain Disclosure Plan. Proposal submissions include a non-refundable Proposal Fee of $11,300 CAD per proposal, plus Proposal Security ranging from $300,000 to $15,000,000 depending on Maximum Contract Capacity ($20,000 per MW).

The evaluation process consists of five stages: Stage 1 (Completeness Requirements), Stage 2 (Mandatory Requirements), Stage 3 (Rated Criteria - Indigenous Participation and duration of capability to deliver capacity), Stage 4 (Economic Bid Statement and pricing evaluation using an Evaluated Proposal Price formula incorporating Rated Criteria Points), and Stage 5 (Deliverability Assessment). Selected Proponents will be required to maintain Completion and Performance Security throughout the Contract term, with amounts varying by project phase ($20,000-$35,000 per MW).