Ontario Power Authority Seeks Combined Heat and Power; Plans for More Energy Storage

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Ontario has issued a solicitation for up to 100 MW of combined heat and power projects, and is accepting applications beginning November 3 and running through December 19.

The Ontario Power Authority  will allot contracts for up to 75 MW of CHP for the agricultural industry and 25 MW for district energy projects. It seeks the projects under what is known as its Combined Heat and Power Standard Offer Program 2.0 or CHPSOP 2.0.

Projects can be no larger than 20 MW and must be grid connected.

The OPA will make monthly payments to winners under long-term contracts. Payments will be determined based on the revenue requirements of a reference virtual power plant minus estimated market revenue-.

For their part, project developers must be willing to make the necessary investments in their facilities, satisfy the connection, metering, verification and other requirements, and bear certain ongoing costs and risks of operation and maintenance, according to the request for proposals.

Read about the role combined heat and power and district energy play in microgrids. Download The Energy Efficiency Microgrid, our latest Think Microgrid report.

The province puts strong value on the heat component of CHP plants, and looks upon electricity as a byproduct. Applicants must demonstrate that projects can achieve a useful heat output percentage of no less than 30 percent annually, starting after the third contract year.

Ontario also looks for projects that support economic development while reducing carbon dioxide emissions.

The RFP was issued as part of the province’s plan to secure 150-MW of CHP, as set out in its 2013 energy plan. To that end, the OPA plans a second CHP solicitation next year for projects totaling 50 MW.

Ontario has been aggressive in developing CHP over several years. The OPA issued four competitive procurements and two standard offer programs for small-scale CHP since 2005, which resulted in 420 MW of capacity from CHP projects, according to the energy plan.

The authority also has issued a request for qualifications for energy storage, with applications due November 21.The OPA hopes to secure 16 MW of a variety of energy storage technologies, as part of a total 50 MW commitment. It secured the initial 34 MW in July. The RFQ does not seek specific projects, but is meant to qualify applications for a future energy storage RFP.

The CHP application materials are here.  The energy storage RFQ materials are here.

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About Elisa Wood

Elisa Wood is the chief editor of MicrogridKnowledge.com. She has been writing about energy for more than three decades for top industry publications. Her work also has been picked up by CNN, the New York Times, Reuters, the Wall Street Journal Online and the Washington Post.