On May 7 the Independent Electricity System Operator announced that it would be updating a set of rules affecting a key program for CHP (Combined Heat and Power). The Process and System Upgrade Program (PSUP) had been a vehicle used by some proponents of CHP projects, designed to help achieve certain IESO energy efficiency objectives. In late 2017, the Ontario government announced that after June 30 2018, it would stop accepting applications for gas-fired CHP under this program.
The IESO’s May 7 update of the PSUP rules has confirmed its plans to scale back cash flowing to new gas-fired CHP development, but left doors open for other types of CHP where significant efficiency gains are likely. For example, biomass fired CHP and CHP based on waste heat recovery will continue to qualify under the program. All new applications must use the new application process and projects that have already submitted an application under the previous rules may request to convert to the new process.
For more information, interested parties may review the document titled “Conservation First Framework LDC Tool Kit FINAL v2.0 April 6, 2018” and refer to the section on the saveONenergy Process & Systems Upgrades Program. Applicants will also need to use the associated “program application workbook.”