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An Update on the IESO’s LT1 RFP in Ontario

As part of the IESO’s engagement on the Long Term RFP, the IESO hosted a webinar today regarding the LT1 RFP. Consistent with previous announcements, the IESO currently anticipates that it will procure 2,200 MW of capacity under the LT1 RFP (of which 1,600 MW is expected to be storage) and that the LT1 Contracts will have a 20 year term. The IESO outlined the following expected timelines for the LT1 RFP:


  • March – Launch of LT1 RFP
  • Mid-April – Deliverability Test Report
  • May – Issuance of Draft LT1 RFP and Contract
  • Mid-May – Updated Deliverability Guidance Document (including changes to test assumptions and locational preference considerations)
  • July - Preliminary Deliverability Test
  • September – Issuance of Final LT1 RFP and Contract
  • September / October – Conclusion of Preliminary Deliverability Test
  • October / November – Proposal Submission Date


  • Q1/Q2 – Completion of Evaluation and Contract Award

With respect to the Expedited Process, the IESO advised that it expects to conclude such process at some point during May to June of this year. We note that the IESO had previously targeted May 1, 2023 as the target date for contract announcements under the Expedited Process.

The IESO also confirmed that they are not contemplating giving new applicants an opportunity to qualify if they had not previously qualified under the LT1 RFQ (or, if they are currently a contractual counterparty with the IESO, were not eligible to submit a Same Technology Upgrade proposal).

While the IESO indicated that the LT1 RFP and form of Contract will remain largely consistent with the RFP and form of Contract for the Expedited Process, the IESO has proposed that: (a) municipal support resolutions be mandatory and required in advance of proposal submission (and no rating points would be awarded given that such resolutions would be mandatory); and (b) rating criteria for the LT1 RFP is under consideration following review of the Expedited Process submissions and results.

A number of stakeholders expressed concerns during the webinar regarding: (i) the 2024 contract award date (when considering the contemplated May 1, 2027 commercial operation date); (ii) the requirement that municipal support be obtained prior to the conclusion of the deliverability tests; and (iii) process points regarding the deliverability tests and municipal support resolutions. The IESO invited all stakeholders to provide written feedback for their consideration on the foregoing points (and any other concerns).

With respect to future procurements, the IESO advised that it expects to launch the MT2 RFP and the LT2 RFP contemporaneously with the completion of the LT1 RFP process.

A copy of the webinar has been made available by the IESO at the following link:

Our team at McCarthy Tétrault continues to closely follow the development of the IESO's power procurements. Please contact Kerri Lui, Reena Goyal or any other member of the Power Group at McCarthy Tétrault with any questions or for assistance.




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