Regulation Service RFP

In 2016, the IESO determined the need for an additional 50 MW of regulation service. This 50 MW is incremental to the 100 MW of regulation service that the IESO typically schedules every hour, increasing the scheduled regulation capacity from 100 MW to a range between 150 MW to 200 MW for each hour. The IESO further seeks to develop sufficient market depth to between 250 MW to 300 MW of regulation capacity on an as-needed basis by 2020.

The 2017 RFP for Incremental Regulation Capacity was aimed at obtaining incremental regulation capacity from all manner of technologies, including those that are existing and currently registered in the IESO-administered markets and those that have the ability to register in the IESO-administered markets at a later date.

Through the Regulation RFP process, the IESO offered two contracts, representing ±55 MW of regulation capacity across two new energy storage facilities in Ontario. Further details about the successful facilities are available here.

The Regulation RFP received 42 submissions, representing approximately 350 MW of regulation capacity from a variety of existing and new build facilities, including energy storage and waterpower facilities.

To ensure value for Ontario ratepayers, the Regulation RFP included both an individual project cost cap and an overall procurement cost cap. These caps were $725,000 per megawatt per year and $33,750,000 per year, respectively. The IESO is pleased to note that the weighted average price of all evaluated submissions was less than $350,000 per megawatt per year and the weighted average price of the successful facilities was less than $200,000 per megawatt per year, which is less than 30 percent of the individual project cost cap. This pricing represents one of the largest reductions in per-unit regulation costs since Ontario’s electricity market opened.

The Regulation RFP process was administered by the IESO and overseen by an external fairness advisor. In the fairness advisor’s opinion, robust and transparent public procurement practices were followed throughout the process, and each proposal was carefully reviewed against a list of specific mandatory requirements and evaluated for both technical and pricing components.

Read the news release.


RFP Resources

The following section provides interested parties with the procurement materials. Draft versions of procurement documents are denoted as such, as are any addenda.

The following Prescribed Forms are attached as appendices to the RFP.

Additional program resources are available to assist interested parties in preparing their Proposals and further understand the procurement process.

The following section outlines the timelines related to the Question and Comment Period.

The following section provides interested parties with materials related to the results of the Regulation RFP.

Regulation Data, Related Market Rules and Manuals

Regulation Data, Related Market Rules and Manuals

In the lead-up to the September 2016 regulation RFI, the IESO posted a sample of its regulation signal data. This data assists potential new entrants into the regulation market to assess, test, and simulate various scenarios with an actual sample of the IESO's regulation signal data. The regulation sample data files provide interested parties with an opportunity to analyze various characteristics of the regulation signal such as upward/downward bias, volatility, correlations with other datasets, etc. The data can also be mathematically scaled to fit the range of a prospective facility for testing and evaluation purposes.

Please see the Ancillary Services Market webpage for the complete set of signal samples published to date.

IESO Market Rules governing regulation service

The following sections of the IESO Market Rules contain requirements concerning regulation service:

  • Chapter 4, Appendices 4.2, 4.8, 4.15 and 4.19
  • Chapter 5, Sections 4.4, 4.9, 4.10; Section 12; and Appendix 5.1, Section 1.1
  • Chapter 7, Section 9

Technical description of the regulation signal

Past Procurement-Related Activities
Date Activities Details
 November 27, 2017 Notification to all Proponents and announcement of selected Proposals  
3:00 p.m. on September 28, 2017 (the "Proposal Submission Deadline")  Proposal submission deadline   
September 15, 2017 Proponents' deadline for submitting questions and comments   
September 13, 2017 Final Addenda Posted Details
June 29, 2017 Final Regulation Service RFP materials posted Details
View the documents (.zip)
June 8, 2017 Regulation Service RFP Webinar View Presentation in PDF
View Recorded Presentation
June 1, 2017 Draft Regulation Service RFP View the documents (.zip)
April 25, 2017 Regulation 101 Webinar held View Presentation in PDF
View Recorded Presentation
December 16, 2016 Draft Regulation RFP posted for comment View the document
September 30, 2016 Request for Information (RFI) posted View the document