IESO Long-Term 2 RFP

The Independent Electricity System Operator (IESO) is conducting a competitive procurement to acquire approximately 3,000 GWh of annual energy supply from new build electricity generating facilities. This is the first window (LT2(e-1)) of a multi-window Long-Term 2 Energy Supply procurement process. Eligible projects must be new build electricity generating facilities with a nameplate capacity equal to or larger than 1 MW (with natural gas-fired facilities capped at 45 MW maximum), able to achieve commercial operation and register in IESO-administered markets.

Proponents must demonstrate team member experience in planning, developing, financing, constructing, and operating qualifying projects. Each proposal must be specific to a single Long-Term Energy Project and submitted by a single legal entity (no joint ventures). Selected proponents will be required to enter into a Long-Term 2 Energy Supply Contract (LT2(e-1) Contract) with a commitment period from the Commercial Operation Date through April 30, 2050. The contract utilizes an imputed revenue model with monthly payments based on contract capacity, production factors, and market revenues.

Key submission requirements include a $11,300 proposal fee (per proposal, inclusive of HST), proposal security ranging from $500,000 to $15,000,000 (at $35,000 per MW of contract capacity), and completion of multiple prescribed forms covering proponent information, access rights, municipal/indigenous support confirmations, and economic bid statements. Proposals must address land use requirements including restrictions on specialty crop areas and prime agricultural areas (with limited exceptions for non-rooftop solar and other project types subject to agricultural impact assessment components).

The evaluation process consists of five stages: Stage 1 (completeness review), Stage 2 (mandatory requirements including team experience and project eligibility), Stage 3 (rated criteria including indigenous participation levels, location in northern zone, and agricultural area avoidance), Stage 4 (economic bid evaluation with price ranking), and Stage 5 (deliverability assessment). Rated criteria points can range up to 12 points total, with evaluation of proposals incorporating both non-price factors and pricing considerations. Canadian-status proponents receive a 2% pricing advantage in the evaluated proposal price calculation.