CanREA welcomes launch of Ontario’s expanded new procurement

The Canadian Renewable Energy Association (CanREA) welcomes Ontario’s ministerial directive to the Independent Electricity System Operator (IESO), launching the province’s highly anticipated Second Long-Term Procurement (LT2), as announced today by Minister of Energy and Electrification Stephen Lecce.

CanREA is particularly pleased that the LT2 procurement is now targeting up to 7,500 MW, an increase of 50% since it was first announced in August. The procurement represents the first time in nearly ten years that the wind and solar industry will have an opportunity to propose new projects in Ontario.

“Canada’s wind, solar and energy storage industry is excited to welcome the Government of Ontario’s expanded LT2 electricity procurement. Together with local community and Indigenous partners, our members are ready to compete for the opportunity to provide affordable, reliable and clean electricity to Ontario families and businesses,” said Vittoria Bellissimo, President and CEO, CanREA.

LT2 is a competitive procurement for new electricity generation resources through annual intake windows over the next four years (2025-2028). This approach provides developers and investors with more certainty and multiple opportunities over the four-year period to put forward clean energy projects that will help Ontario become an energy superpower. The LT2 energy stream will procure up to 14 terawatt-hours (TWh) of new energy-producing resources and the LT2 capacity stream will procure up to 1,600 MW of new capacity resources.

“Today’s announcement is great news for the renewables industry and great news for Ontario. The province needs much more power, and renewables and energy storage will contribute significantly to meeting this need,” said Eric Muller, CanREA’s Ontario Director, who was on site for the announcement, accompanied by the Vice-Chair of CanREA’s Board of Directors, Adam Rosso (Senior Vice President of Development, North America, Boralex Inc).

“This procurement also presents tremendous opportunities for Indigenous communities, farmers, landowners and rural municipalities to participate in, and benefit from, significant new investments in wind, solar and energy storage,” said Muller, as all project proposals will be required to secure local municipal support, and projects with Indigenous equity ownership will receive additional rated criteria points in the procurement process.

Responsibly sited wind, solar and energy storage projects will generate tens of billions in private sector investment across the province.

Over the past year, CanREA has been actively working with government and the IESO to set the stage for this procurement. CanREA will continue to engage with government ministries and agencies on permitting, siting and land-use rules and regulations to ensure that the procurement results in the lowest-cost, highest-benefit outcomes for Ontarians.

In addition to the LT2 procurement announcement, the Ontario Government directed the IESO to report back by April 30, 2025 on a proposal for a local small generation program that would help extend contracts for existing small-scale electricity projects and support the development of new ones, like smaller solar installations that connect directly to local utility grids.

Quotes
“Canada’s wind, solar and energy storage industry is excited to welcome the Government of Ontario’s expanded LT2 electricity procurement. Together with local community and Indigenous partners, our members are ready to compete for the opportunity to provide affordable, reliable and clean electricity to Ontario families and businesses.” —Vittoria Bellissimo, President and CEO, Canadian Renewable Energy Association (CanREA)

“Today’s announcement is great news for the renewables industry and great news for Ontario. The province needs much more power, and renewables and energy storage will contribute significantly to meeting this need. This procurement also presents tremendous opportunities for Indigenous communities, farmers, landowners and rural municipalities to participate in, and benefit from, significant new investments in wind, solar and energy storage.” —Eric Muller, Ontario Director, Canadian Renewable Energy Association (CanREA)