Regulation Service RFP

The Independent Electricity System Operator (IESO) has introduced the Regulation Service Request for Proposals (RS RFP), a competitive procurement designed to secure additional regulation service for Ontario's electricity grid. Regulation service is a critical ancillary service the IESO uses to balance variability across the power system in real time. Through this solicitation, the IESO will acquire regulation service capacity from eligible generation and storage resources capable of meeting its technical and operational requirements.

Ontario's electricity system is evolving, with increasing electricity demand, the electrification of industrial loads and public transit, and higher amounts of renewable generation in service across the province. These factors are contributing to greater variability in traditional electricity consumption and generation patterns and a correspondingly greater need for regulation service. The IESO's Annual Planning Outlook (APO) forecasts a growing need for additional regulation service over the next several years to support the reliable operation of the power system, and the RS RFP is intended to secure those forecasted needs through competitive means.

Eligible proponents include owners and developers of generation and storage resources that can meet the IESO's technical and operational requirements for regulation service. The procurement is open to a range of eligible technologies, reflecting the IESO's approach to acquiring the resources needed to maintain grid reliability as the province's supply mix changes.

The IESO is conducting stakeholder engagement in connection with the RS RFP, with session details published on the Regulation Service Stakeholder Engagement web page. General enquiries regarding the RS RFP can be directed to RS.RFP@ieso.ca, and interested parties can subscribe for future Regulation Service updates through the IESO's subscribe page. The IESO previously conducted a Regulation RFP in 2017 seeking 50 MW of incremental regulation capacity, which resulted in two contracts for new energy storage facilities that were ultimately terminated before reaching commercial operation.