Toronto: Ontario’s latest power procurement process, the Clean Energy Standard Offer Program, covering Combined Heat and Power and other forms of clean energy under 20 MW, was released on May 6. Up to 150 MW worth of small scale cogeneration and energy recovery projects are anticipated in four major urban areas, as a result of the program. “This will be an important contribution to the efficiency and balance of Ontario’s power grid,” says APPrO Executive Director Jake Brooks. “Small scale cogeneration is able to make use of opportunities for energy efficiency that are difficult to realize in any other way, while securing jobs and economic development on a local level.” Possibly the slowest of Ontario’s procurement processes to be developed and released, the initiative began with a letter of instruction from the Minister of Energy on August 18, 2005, and wound its way through a number of iterations over the intervening years.
“This is one procurement process that the industry is fully prepared for,” said Brooks. APPrO has been an active supporter of the program since its inception and APPrO members have consulted extensively with the OPA on the design and general outlines of the program. The OPA thanked “all stakeholders who invested time and effort in providing input and advice for the design of the program.” Applications will be accepted until June 30, 2011.
There are two streams for the CESOP:
• Combined Heat & Power Standard Offer Program (CHPSOP) – a standard offer program for distribution connected, natural gas-fired combined heat and power projects that are 20 MW or less.
• Energy Recovery Standard Offer Program (ERSOP) – a standard offer program for distribution connected, energy recovery projects that are 20 MW or less.
The OPA has a separate procurement program underway for large scale cogeneration, which is now nearing release in its latest form, known as CHP 4. At press time the date for the release of the final RFP contract had not been set, but the OPA said it intended to issue a Final RFP and Final Draft Contract after an information session on June 7.
On November 23, 2010, the Ontario Power Authority received a directive from the Minister of Energy authorizing the procurement of Combined Heat and Power (CHP) projects of 20 megawatts of capacity or less through a standard offer program that is limited to cost-effective projects located in areas of the province where they can be accommodated in the local distribution system and where there are local benefits. For general information on the initiative, visit http://www.powerauthority.on.ca/update-chpcesop.
See also “OPA consulting to finalize CESOP,” IPPSO FACTO, April 2011 and “CESOP rides again,” IPPSO FACTO, February 2011. Details of the draft CESOP contracts, rules and definitions were posted on the OPA website in March. Current documentation, including application forms, can now be found at http://www.powerauthority.on.ca/clean-energy-standard-offer-program.