Combined Heat and Power Standard Offer Program (CHPSOP) 2.0

 
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The Combined Heat and Power Standard Offer Program 2.0 (CHPSOP 2.0) is being developed to support the efficient use of gas-fired electricity generating facilities that use combined heat and power (CHP) technology. The objective of the CHPSOP2.0 program is to facilitate the increased development of CHP facilities that are up to a maximum capacity of 20 MW in size and that provide thermal energy to operations in the target sectors, specifically: Agricultural Industry Projects and District Energy Projects.

Program Timeline

 

 Activity
Expected Timing*
Draft program documents posted August 13, 2014
Stakeholder session (webinar) September 29, 2014
Comment period closes October 6, 2014
Final documents posted October 2014
Deadline to submit registration form for Expansion Projects November 3, 2014
First Application Window (Revised on 12/11/2014) November 3, 2014 - January 9, 2015

*Dates provided above are non-binding to the OPA, and the OPA reserves the right to amend such dates in its sole discretion. 


June 26, 2015 - CHPSOP 2.0 First Application Window Executed Contracts

The CHPSOP 2.0 procurement for the First Application Window has concluded. The IESO has executed 15 CHPSOP contracts, representing 92MW of efficient combined heat and power capacity.

Stakeholders are reminded that the Second Application Window is postponed until such time as further Minister’s direction is provided. The IESO will report on system needs, lessons learned and recommendations to the Minister of Energy by September 1, 2015.


May 13, 2015 - CHPSOP 2.0 Update

The Second Application Window for CHPSOP 2.0 has been postponed from its expected launch later in 2015. Given the province’s positive supply outlook, the IESO will re-evaluate system needs as well as establish lessons learned from the first procurement under the program. The recommendations from this review will help determine whether to proceed with additional procurements. The IESO will report its recommendations to the Minister of Energy by September 1, 2015. For more information, please see the Minister’s directive issued on April 22, 2015.

In addition, the IESO has completed the application review, prioritization and connection availability screen for the First Application Window of CHPSOP 2.0. Offer Notices have been extended to eligible Applicants.


January 6, 2015 - CHP email address still valid and mailing address for Applications

This CHP website is still valid and can be accessed through IESO.ca under “Interact with IESO” tab  or directly at http://www.powerauthority.on.ca/combined-heat-power-procurement

Application packages are to be mailed to the following address as noted in the CHPSOP 2.0 Rules.

Independent Electricity System Operator
1600 – 120 Adelaide Street West
Toronto, ON M5H 1T1
Attn: CHPSOP 2.0 
 

December 11, 2014 - Program Amendment and Application Window extension  

In consideration of late feedback received from stakeholders, the OPA has modified the Facility Capacity Factor requirements.  Section 2.6(c) of the CHPSOP 2.0 Contract has been revised to reflect this change.  Further details are provided in the CHPSOP 2.0 Addendum.  Updated CHPSOP 2.0 Rules, Contract and Standard Definitions are posted below.  Additionally, the signature block on the Access Rights Prescribed Form has also been updated and Applicants are required to submit the version below. 

In recognition of this change, the Application Window has been extended to 4:00PM EPT on January 9, 2015.  Please note that connection testing for CHPSOP 2.0 is scheduled for mid-Q1.  As such, the OPA does not anticipate the program amendment to delay contract offers from being issued. 

Clarification questions regarding these changes can be sent to CHP@ieso.ca.

The remaining Prescribed Forms are posted below.


November 28, 2014 - Clarity on Behind-the-Meter Projects

The OPA has received comments from stakeholders to suggest that there may be some confusion with respect to the eligibility of Behind-the-Meter (BtM) projects.  For added clarity, BtM projects are not permitted in CHPSOP 2.0.                                                        

Section 2.1(f) of the CHPSOP 2.0 contract provides a limited exception to the prohibition on BtM projects for islanding on a short-term basis due to conditions on the Distribution System or Transmission System (e.g. if outages are anticipated due to lightning storms). In such cases, the OPA retains the right to recover any BtM benefits that accrue during islanding.  Any other islanding or BtM operation is contrary to the terms of the CHPSOP 2.0 Contract, and may result in a Supplier Event of Default and termination of the contract (including the possible forfeiture of Completion and Performance Security and other damages).


November 27, 2014 - Exhibit J Sample Calculation 

The OPA has prepared a sample calculation in excel to assist prospective Applicants in understanding Exhibit J.  


November 17, 2014 - Webinar 

On November 26, 2014, the OPA hosted a technical webinar to provide prospective Applicants with an overview of Exhibit J in the CHPSOP Contract.


November 3, 2014 – Application Window Open 

The CHPSOP 2.0 Application Window is now open. Applications will be accepted until December 19, 2014. Applicants are required to submit complete application packages to the OPA by no later than 4:00:00 p.m. EPT on December 19, 2014. 

Prior to submitting an application to the OPA, applicants are encouraged to review section 3 of the Rules to ensure that the Application Requirements have been met.


October 29, 2014 – Release of Final Documents

Final versions of the CHPSOP 2.0 program documents are now available for download:

Applicants are encouraged to review section 4.3(c) of the CHPSOP 2.0 Rules and also reference the TAT and circuit tables provided below.  

Parties interested in pursuing an Expansion Project are required to register with the OPA no later than November 3, 2014 and pay a registration fee of $500. The registration fee is non-refundable regardless of whether an Application is submitted. If an Application is submitted, the registration fee will be credited towards the Application Fee. Download the registration form.

The OPA would like to thank stakeholders who submitted feedback on the draft program documents.   

In response to the comments received on the draft program documents, the OPA has prepared a frequently asked questions document.

The Application Window is scheduled to open on November 3, 2014.


 

October 6, 2014 – Registration for Expansion Projects

As detailed in Section 2.3(d) of the draft Program Rules, those parties interested in pursuing an Expansion Project are required to register with the OPA no later than November 3, 2014, and pay a registration fee of $500, which fee is inclusive of HST. The registration fee is non-refundable regardless of whether an Application is submitted. If an Application is submitted, the registration fee will be credited towards the Application Fee.

Download the Prescribed Form.


September 29, 2014- Planned Station Developments contract language

For stakeholder review and comment, the OPA is posting draft contract language related to Planned Station Developments, as a supplement to the draft CHPSOP 2.0 Contract posted on August 13, 2014.

Planned Station Upgrades are new stations or upgrades to existing stations that are expected to be completed prior to the applicable Milestone Date for Commercial Operation that the OPA may take into account in determining whether the Transmission System and Distribution System has the necessary resources to connect a Project, as provided in Section 4.3(c) of the CHPSOP Rules.

Click here to review the draft language. 


September 16, 2014 - Webinar

On September 29, 2014 the OPA hosted a webinar for interested stakeholders to learn more about CHPSOP 2.0.


August 13, 2014 - Release of draft program documents

The following draft program documents are available for review and comment: 

The OPA along with the IESO, applicable Transmitters or LDCs will determine whether there are sufficient connection resources to accommodate the connection of the Project.  Applicants are encouraged to review section 4.3(c) of the draft CHPSOP 2.0 Rules and also reference the TAT and circuit tables provided below.  

Feedback on the draft documents can be submitted in writing to CHP@ieso.ca until October 6, 2014. Stakeholder feedback will be taken into consideration in drafting the final program documents. The First Application Window will be from November 3, 2014 to December 19, 2014 as noted in the above table. 

CHP Generating Facilities with CHP I or CHPSOP 1.0 contracts are eligible to apply for Expansion Projects.  Parities interested in pursuing an Expansion Project are required to submit a registration form to the OPA no later than November 3, 2014. A final registration form will be posted after the end of the comment period. For more details, reference section 2.3 of the draft CHPSOP 2.0 Rules.  

Webinar

The OPA will be hosting a webinar to provide an opportunity for interested stakeholders to learn about the procurement process, ask questions and provide the OPA with feedback. Webinar details will be posted shortly and those who have subscribed for updates will be notified by email. 


July 29, 2014 - CHPSOP 2.0 Update

CHPSOP 2.0 is currently under development and more information will be posted on this webpage as it is available. For information on past CHP procurements, please visit the Clean Energy Standard Offer Program (CESOP) archive web page.  

Questions or comments can be sent to: CHP@ieso.ca.


April 3, 2014 - CHPSOP 2.0 Directive

The OPA received a directive from the Ministry of Energy on March 31, 2014 to develop a new standard offer procurement program to be known as Combined Heat and Power Standard Offer Program 2.0 (CHPSOP 2.0).


March 18, 2014 - CHP Recommendations Report 

Following the release of the updated Long‐Term Energy Plan (LTEP), Achieving Balance, the Minister of Energy provided direction to the Ontario Power Authority (OPA) on December 16, 2013, to engage with stakeholders and report back “on the most appropriate and efficient means by which the OPA could design a targeted procurement program for Combined Heat and Power projects.”

In response, and building on previous Combined Heat and Power (CHP) initiatives, the OPA launched a stakeholder engagement process, which included a webinar, meetings with key stakeholders and an opportunity for stakeholders to provide written comments. The OPA received stakeholder feedback and prepared a report with recommendations, which was submitted to the Minister of Energy on February 28, 2014.

See the full report.


December 16, 2013 - Development of Potential Procurement Program for Target Sectors

On December 16, 2013, the Minister of Energy provided direction to the Ontario Power Authority (OPA) to engage with stakeholders and report back by the end of February 2014 on the most appropriate and efficient way for the OPA to design a targeted procurement program for Combined Heat and Power (CHP) projects. CHP projects for greenhouse operations, agri-food facilities, and district energy projects were identified as being primary candidates for future CHP procurements.

Ontario’s Long-Term Energy Plan, released on December 2, 2013, identified the procurement of future CHP projects as a way to promote more efficient natural gas-fired generation and address regional capacity issues. The Plan sets out the government’s intention to consider future procurements that focus on efficient CHP applications and locations with regional capacity. For more information on the stakeholder engagement activities that the OPA undertook please see the Stakeholder Engagement Archives.