Ontario needs new electricity supply. Over the next 20 years, Ontario needs to rebuild, conserve or replace 25,000 megawatts of generating capacity.

In response to a need identified in the Integrated Power System Plan or by a directive from the government, the Ontario Power Authority (OPA) facilitates investment in new generation through procurement initiatives. It is a credit-worthy counterparty that provides long-term pricing assurance.

Procurement Principles

To the greatest extent possible, the OPA will conduct competitive procurements and commits to conduct procurements that:

• are open, fair and transparent 
• are effective and flexible 
• ensure ratepayer value.

Procurement Process

The OPA has a number of ways to begin and execute the procurement process. Depending on specific requirements, it can issue one or more of the following: 

• Request for Expressions of Interest (RFEI/RFI) to determine organizations interested in providing the required capacity 
• Request for Qualifications (RFQ) to explore which organizations and projects might be in a position to fulfill the identified need. This is to select and shortlist developers that meet certain technical and financial requirements
• Request for Proposal (RFP) to secure specific proposals and contract commitments to fulfill the identified need. As part of developing a proposal, developers will propose and identify a site, prepare engineering work, commence the environmental assessment work and engage the public.

The RFP process will evaluate:

• compliance with mandatory technical and financial criteria 
• evaluation of criteria that assess the feasibility of the project, such as status with respect to provincial and local permits and approvals 
• pricing.

An OPA evaluation team will select the most competitive proposal, and it will be awarded a contract to build and operate the facility.

It is important to note that the OPA is not responsible for:

• choosing the site on which proponents base their proposals, other than specifying electrical interconnection 
• mandating environmental performance, as generators have to comply with existing legislation and regulations 
• directing operation of the generation facility, because generators are incented to sell into the competitive market.