IESO LONG LEAD-TIME ENERGY SUPPLY (LLT(E)) REQUEST FOR PROPOSALS

The Independent Electricity System Operator (IESO) is conducting a competitive procurement process to acquire year-round energy generation services from new-build hydroelectric facilities in Ontario. This RFP seeks to procure an aggregate Expected Annual Imputed Production of 1,000 GWh from Long Lead-Time Energy Projects. The selected proponents will be required to enter into a 40-year commitment period Long Lead-Time Energy Supply Contract commencing on the Commercial Operation Date of their respective facilities.

Eligible proponents must be single entities (not joint ventures) with designated team members demonstrating managerial experience across Planning, Developing, Financing, Constructing, and Operating categories on at least one qualifying project. Each proposal must be specific to a single new-build hydroelectric electricity generating facility with a nameplate capacity of at least 1 MW that does not utilize pumped hydroelectric storage and can participate directly in IESO-administered markets. The facility must deliver electricity through its own meter to either a distribution or transmission system in Ontario.

Proposals must demonstrate compliance with all applicable Laws and Regulations, including municipal approvals, environmental assessments, and Indigenous community engagement requirements. Project sites may be located on municipal lands, Indigenous lands, provincial Crown lands, federal Crown lands, or unincorporated territory, each with specific support documentation and approval requirements. Proponents are required to conduct early engagement with applicable municipalities and Indigenous communities and provide evidence of such engagement through prescribed forms.

The procurement process employs a five-stage evaluation methodology: Stage 1 evaluates completeness of submissions; Stage 2 assesses mandatory eligibility requirements; Stage 3 awards Rated Criteria Points for Indigenous Community Participation (up to 6 points available); Stage 4 reviews economic bids using an Evaluated Proposal Price formula that accounts for rated criteria points; and Stage 5 conducts a Deliverability Test to confirm project viability. The evaluation formula incorporates a 0.1 evaluation criteria weighting applied to rated criteria points, with proposals ranked by lowest Evaluated Proposal Price. Proposals are selected for the Offer List based on deliverability status until the Total Target Annual Energy is achieved, with consideration given to provincial and federal Crown land conflicts using spatial shapefiles.

Key dates include RFP release by April 30, 2026; question and comment deadline of June 25, 2026; addenda deadline of July 23, 2026; registration period opening July 30, 2026 with deadline August 13, 2026 at 3:00 P.M. EPT; proposal submission deadline of October 1, 2026 at 3:00 P.M. EPT; and target notification date of March 30, 2027. The contract includes financial guarantees based on imputed revenue models, performance obligations with potential liquidated damages of $150/MW-Business Day for delays beyond the milestone date, and completion security requirements ranging from $20,000 to $35,000 per MW depending on contract phase. Proposals require a registration fee of $500 and proposal fee of $11,300, with proposal security of $20,000 per MW (minimum $300,000, maximum $15,000,000).