Pursuant to a new directive, the IESO will enter into negotiations with OEFC contracted Non-Utility Generators (NUGs) to incentivize facilities to operate in a manner “better aligned with system needs.” A central objective appears to be reducing the emission of greenhouse gases using new or replacement contracts that reduce the incentive for thermal NUGs to operate as baseload generators.
The December 16 directive also amended the FIT 5 procurement target and directed the IESO to cease accepting applications under the FIT Program by December 31, 2016. The IESO was directed to use the Conservation Fund to support Ontario Energy Board pilot projects for new pricing models and non-price tools. The IESO will also deliver certain Province-Wide Distributor CDM Programs and undertake a pay-for-performance pilot program under the Industrial Accelerator Program. Click here to view the directive.