Ontario Pulls Plug on Procurement of Nearly 1,000 MW of Renewable Capacity

In September 2016, the Ontario Ministry of Energy suspended the second round of the Large Renewable Procurement (LRP), a competitive bid process designed to secure large renewable energy resources.

Key Details

  • The action halts the procurement of 600 MW of wind, 250 MW of solar, 50 MW of hydroelectricity, and 30 MW of bioenergy
  • The decision follows a report from the Independent Electricity System Operator noting there is no immediate need for additional generation supply
  • The Ministry of Energy expects the action will save up to $3.8 billion in electricity system costs relative to the most recent Long-Term Energy Plan Forecast; residential customers are expected to save an average of C$2.45 per month on electricity bills
  • The five wind, seven solar, and four hydroelectric facilities (totaling 455 MW) approved in the first round of the LRP will proceed
  • Ontario expects to begin stakeholder consultations and develop a new long-term energy plan to be released in 2017

Implications

Grid operators will need to manage the addition of zero carbon generation with the need to optimize existing generation capacity. Consequently, the presence of ample generation capacity could dampen the growth of renewables, especially in markets with low load growth.

Additional Resources
Ontario Energy Ministry: Ontario Suspends Large Renewable Energy Procurement
Toronto Star: Ontario Government Scraps Plan for $3.8 billion in Renewable Energy Projects
ReNews: Ontario Halts Renewable Round

This report is part of the Clean Tech & Sustainability Minute series. To view all featured Minutes, please click here.

View More

Contributing Authors

Paul Quinlan Clean Tech Manager

Welcome to ScottMadden!

Sussex Economic Advisors is now part of ScottMadden. We invite you to learn more about our expanded firm. Please use the Contact Us form to request additional information.