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They’ve got plenty… Ontario suspends large renewables procurement


September 27, 2016
By Anthony Capkun


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September 27, 2016* – Ontario just announced it will immediately suspend the second round of its Large Renewable Procurement (LRP II) process and the Energy-from-Waste Standard Offer Program, halting procurement of over 1000MW of solar, wind, hydroelectric, bioenergy and energy-from-waste projects.

“The Canadian Wind Energy Association is shocked and extremely disappointed,” said CanWEA’s president, Robert Hornung, in a statement. “CanWEA is concerned that halting procurement […] at this time will negatively impact Ontario’s ability to meet its climate goals while remaining competitive in a rapidly changing global economy.”

This decision is expected to save up to $3.8 billion in electricity system costs relative to Ontario’s 2013 Long-Term Energy Plan (LTEP) forecast, says the province, adding the typical residential electricity consumer will save an average of about $2.45/month on their bill, relative to previous forecasts.

On September 1, the Independent Electricity System Operator (IESO) provided the Minister of Energy with the Ontario Planning Outlook, and advised the province “will benefit from a robust supply of electricity over the coming decade to meet projected demand”.

Hornung added the suspension represents a “missed opportunity to mitigate the risks and uncertainties associated with the costs and timing of the Pickering Generating Station operating licence extension, Ontario’s ambitious nuclear refurbishment plan, and the uncertainty of supply from outside of the province”.

Informed by the Ontario Planning Outlook, the province says consultations and engagements will begin this fall with consumers, businesses, energy stakeholders and Indigenous partners regarding the development of a new LTEP, scheduled to be released in 2017.

* Updated with CanWEA information.