The Independent Electricity System Operator (IESO) needs to delay its vendor qualification process to Aug. 23 because it received a huge influx of proposals from companies looking to supply Ontario with enough energy as some nuclear plants wind down operations.

The Crown corporation sent a notice to stakeholders earlier this week with an update on the process. It was supposed to let the qualified applicants know their status on July 20.

"The IESO received submissions from more than 70 applicants who identified over 900 potential projects, demonstrating global interest in the investment potential of Ontario’s growing electricity sector," the update said.

"As a result of this high volume of interest, the IESO requires additional time to conclude its (request for qualification) evaluation beyond July 20 which will have an impact on the balance of the procurement schedule."

There are two separate, but related, processes going on at the same time: a long-term request for proposal (RFP) for a project that can deliver 2,500 megawatts for a minimum of four consecutive hours (10,000 megawatt-hours), to be completed by May 2027 at the latest, and an "expedited process" for a project that can deliver somewhere between 500 to 1,000 megawatts (2,000-5,000 megawatt hours) by May 2025, also capable of running for at least four consecutive hours.

The delay pushes back almost all the other steps in the process.

The final RFP for the expedited process will now be posted on Nov. 1, instead of Oct. 1. Submissions are due on Dec. 20, instead of Nov. 1, and the contract will be awarded on Feb. 28, 2023.

The long-term RFP will be posted on Jan 30, 2023, instead of Dec. 15. Submissions are due July 2023, and the contract will be awarded in October 2023, both of which haven't changed from the initial timeline.

Energy Minister Todd Smith was pleased with the result, even though the process is slightly delayed.

"This significant interest in meeting Ontario’s energy needs will support strong competition and help deliver cost-effective results for ratepayers. I look forward to the IESO’s update on the Request For Qualifications on Aug. 23," Smith said.

The IESO won't say who the 70 applicants are or provide details on the "over 900 potential projects" the applicants identified.

The IESO is currently engaged in a years-long process to figure out how to supply Ontarians with enough energy in the late 2020s as demand on the grid is expected to rise with economic growth and increased electric vehicle uptake, and nuclear plants are either shut down or refurbished.

Nuclear currently supplies about 60 per cent of Ontario's electricity needs.

Ontario Power Generation (OPG) is shutting down the Pickering nuclear plant in 2024, and the Darlington nuclear plant has three of four reactors under refurbishment until 2026.

The Darlington plant supplies upwards of 20 per cent of Ontario's electricity, according to OPG, while the Pickering plant is responsible for about 14 per cent.

Bruce Power's Unit 3 reactor is also in need of repairs, which will start in February 2023 and be finished by 2026. Unit 6 is also in the midst of repairs. The Bruce plant supplies some 30 per cent of Ontario's electricity.

The IESO is currently looking to determine which vendors are qualified to provide the electricity, after which it'll issue the formal RFPs.

The Crown corporation wants at least a 20-year lease for the long-term project, with the potential to go longer if the project can come online before May 2027. For the expedited process, the IESO is looking for a 22-year base term.

Large number of submissions delays IESO qualification process

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