What is the IESO LT2(c-1) RFP procurement?
As described in the Annual Planning Outlook published on the IESO’s website in March 2024 (https://www.ieso.ca/Sector-Participants/Planning-and-Forecasting/Annual-Planning-Outlook) one of the mechanisms intended to support the IESO’s resource adequacy initiatives is the Long-Term 2 Capacity Services Request for Proposals (the “LT2(c) RFP”), which is intended to acquire capacity services to meet system reliability needs from New Build resources representing up to a total of 1.6 GW of targeted contracted capacity. As set out in the directive of the Ontario Minister of Energy and Mines issued to the IESO pursuant to subsection 25.32 of the Electricity Act dated November 28, 2024, as amended (the “Ministerial Directive”), the LT2(c) RFP is to be comprised of multiple procurement windows, each set out in distinct requests for proposals. This Long-Term 2 Capacity Services (Window 1) Request for Proposals (the “LT2(c-1) RFP”) is the first such procurement of the LT2(c) RFP.
Why is Natural Gas generation important?
“The IESO recommends that a diverse set of resources, which would include a significant investment in battery storage, balanced by natural gas capacity and other forms of non emitting generation, be included in these procurements to ensure reliability and affordability. The IESO is confident that a maximum target of 1,500 megawatts (MW) of new natural gas capacity will address short-term energy needs and contribute to the province’s longer-term energy transition. Without a limited amount of new natural gas in the near term, the IESO would be reliant on emergency actions such as conservation appeals and rotating blackouts to stabilize the grid. Recommendations on the future role of natural gas will be included in the Pathways to Decarbonization report to be released later this year.”
From IESO Resource Eligibility Interim Report, October 7, 2022, Public: Resource Eligibility (ieso.ca)
How will new Natural Gas generation impact the emissions?
On December 13, 2024 the Government of Canada published Clean Electricity Regulations: SOR/2024-263 under the Canadian Environmental Protection Act, 1999, which, among other things, require natural gas-fired facilities with commissioning dates after 2027 and which do not utilize eligible carbon capture and storage systems, to meet the emissions standards for Greenhouse Gas set out therein by 2035. The Project will implement a GHG Abatement Plan to comply with the Clean Electricity Regulations under the Canadian Environmental Protection Act, 1999 to meet the emissions standard for Greenhouse Gas, or any new Laws and Regulations of the Government of Ontario restricting actual Greenhouse Gas emissions that may come into force in the future.
Who is responsible for environmental assessment?
OntAgri Power Cogeneration Inc. is responsible to complete the Class Environmental Assessment (Class EA) in accordance with the Ontario Environmental Assessment Act (EAA) for certain classes (groups) of projects that have predictable and manageable environmental effects. The process involves studies such as Natural Heritage review, Cultural Heritage review, Archeology review, Noise impact review and others as required. More on the Class EA process can be found on Hydro One website: Class EA for Minor Transmission Facilities (hydroone.com)
The Project will not be built on any water crossings and it does not intersect any forests or woodlots. There is no impacts foreseen on water and other natural resources.
What does the project construction process look like?
The Project involves several phases of project construction, from the initial site investigation, site preparation, MV substation construction, cogeneration facility construction, testing and commissioning, site acceptance, energization. The project site perimeter will be established and secured by fencing and signage in place. The project site will be monitored by security cameras. The overall construction process will last approximately 2 – 2 ½ yrs.
Is there a community engagement process in place?
OntAgri Power Cogeneration Inc. has developed a Community and Indigenous Engagement Plan that can be accessed from this website. OntAgri Power Cogeneration Inc. will engage with local property owners, Indigenous communities, Government agencies and members of the public to gain better understanding of their priorities and interests and how to effectively address these during the Project’s development, construction and operation stages. Recommendations or comments from all the stakeholders will be documented, responded to as appropriate, incorporated into project documentation, and integrated into project development. Public Information session will be scheduled and posted on this website. The meeting minutes will be published and posted on this website.
Direct Economic Benefits will include job creation, tax revenue, supporting local business and community benefits agreement.
Social Benefits will include improving health, education, and overall wellbeing through charitable donations, scholarships and contributions to local events and recreational infrastructure.
Indigenous communities will have opportunity for direct economic-social benefit such as employment, subcontracting, project specific training and education in connection with the Project.
Local Reliability of electricity supply will be improved through the potential reduction of outages due to extreme weather conditions. Natural gas generation provides electricity system with flexibility, reliability and security as other non-emitting forms of electricity supply is developed.
Work with local distribution companies like Essex Power Corporation’s affiliate, Essex Energy, to manage assets.
Collaborate with local academic institutions and first nations to create high-demand, high-skill training and career opportunities.