IESO Long Lead-Time RFP

The Independent Electricity System Operator (IESO) is issuing a Request for Proposals to competitively procure up to 600-800 MW of year-round capacity services on a Maximum Contract Capacity basis from Long-Lead-Time (LLT) Capacity Projects. This RFP is issued pursuant to a Ministerial Directive from the Ontario Minister of Energy and Mines and is intended to address emerging electricity system needs driven by increasing demand, the refurbishment of nuclear generating units, and expiring contracts for existing facilities.

Eligible projects must be new-build Electricity Storage Facilities with a Nameplate Capacity of at least 50 MW that are directly connected to either a Distribution System or Transmission System in Ontario. Projects must utilize Eligible Long-Duration Energy Storage (LDES) Technology, including Class I technologies (Compressed Air Energy Storage or Pumped Hydroelectric Storage) or Class II technologies (Liquid Air Energy Storage or Pumped Thermal Energy Storage). Selected Proponents will be required to enter into a Long-Lead-Time Capacity Services Contract with the IESO for a commitment period commencing on the Commercial Operation Date and expiring on the 40th anniversary thereof.

Proponents must demonstrate Team Member Experience through at least two Designated Team Members who collectively have experience in Planning and Developing at least one Same-Technology Qualifying Project and Financing, Constructing and Operating at least one Qualifying Project. Proposals must be submitted electronically to LLT.RFP@ieso.ca by the Proposal Submission Deadline at 3:00 P.M. EPT. A Proposal Fee of $11,300 (inclusive of HST) must be submitted with each proposal, along with Proposal Security ranging from a minimum of $350,000 to a maximum of $15,000,000 depending on the Maximum Contract Capacity.

The evaluation process consists of five stages: Stage 1 (Completeness Requirements), Stage 2 (Mandatory Requirements), Stage 3 (Rated Criteria evaluation), Stage 4 (Review of Economic Bid Statement with price ranking based on Fixed Capacity Payment), and Stage 5 (Deliverability Assessment). Proposals will be ranked based on their Evaluated Proposal Price, calculated using a formula that incorporates the proposed Fixed Capacity Payment and Rated Criteria Points. Selected Proponents must execute the LLT(c) Contract within 20 Business Days of the Contract Receipt Date and will have their Proposal Security converted to Completion and Performance Security.