Non-carbon emitting resources to provide input as part of IESO plan to renew electricity marketplace
— Photo courtesy The Canadian Press/Colin Perkel
The Independent Electricity System Operator (IESO) released today a Request for Information (RFI) on non-carbon emitting resources (non-emitting resources), as part of its work to renew Ontario's wholesale electricity markets.
The Market Renewal Program represents the most significant suite of reforms since the current market was launched in 2002. These changes will improve the way electricity is priced, scheduled and procured to meet current and future energy needs reliably, competitively, and at the lowest cost.
"The information gathered in this RFI will help inform how the IESO will integrate non-emitting resources in the new marketplace cost effectively," said Leonard Kula, the IESO's Chief Operating Officer and VP, Planning, Acquisition and Operations. "These resources are an important part of the market because they are already playing an increasingly more significant role in the electricity supply mix in Ontario. We already know that non-emitting resources, with their significant contributions to the province's low carbon future, have the potential to satisfy a broad range of electricity system needs."
When the electricity market opened almost 16 years ago the province's electricity was supplied by large centralized power plants, including those powered by coal. Since then, coal facilities have been retired, resources connected to the distribution system increased, new technologies emerged, and significant investments were made in resources such as hydro, nuclear, wind, solar and bioenergy. As a result, over 95 per cent of the electricity generated in Ontario in 2017 was emissions free.
The Minister of Energy, Glenn Thibault noted, "This RFI will help us better understand the barriers facing different resource types. Gathering information on potential non-emitting supply resources will inform our system operator's Market Renewal initiative. Fundamental changes to Ontario's electricity markets through Market Renewal will result in up to $5.2 billion in cost savings over a 10 year period – through addressing market inefficiencies, better use of existing assets, making operability changes, and introducing annual capacity auctions."
The RFI will be issued in two parts. Phase one, issued today, is about understanding non-emitting resource technologies and how they participate in Ontario's current and future market. Phase two, to be issued at the end of the summer, will be informed by the information received in the first phase and will be more technical in nature, requesting more detailed information on project development, project economics and additional considerations.
The outcomes of the RFI will inform the work of the IESO's Non-emitting Resources Subcommittee to effectively incorporate these resources into the design of the new marketplace, as well support other related initiatives at the IESO.
The RFI can be found on the IESO's website.
About the IESO
The IESO manages the province's power system so that Ontarians receive power when and where they need it. It plans and prepares for future electricity needs and works with its partners to guide conservation efforts.
For more information on the IESO and the Market Renewal Program, please visit www.ieso.ca.
