Regulation Service RFP

Through this Request for Proposals (RFP), the IESO is seeking to procure incremental regulation capacity that will give the IESO the ability to schedule an additional 50 MW of regulation service.

2017 RFP for Incremental Regulation Capacity

The IESO has determined the need for an additional 50 MW of regulation service, which is incremental to the 100 MW of regulation service that the IESO typically schedules every hour. This RFP is aimed at obtaining incremental regulation capacity from all manner of technologies. Facilities eligible to participate in this RFP include 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.

The IESO is seeking to expand the breadth of the regulation service market in Ontario and has the goal to expand its capability to schedule regulation. This will be achieved by increasing the scheduled regulation capacity from 100 MW to a range between 150 MW to 200 MW for each hour, and developing sufficient market depth to schedule between 250 MW to 300 MW of regulation capacity on an as-needed basis by 2020.

Regulation Service RFP Updates

This section will be updated on an ongoing basis with relevant events and timelines for the Regulation Service RFP. Interested parties are encouraged to check back regularly for any changes to timelines or procurement updates.


November 28, 2017

Results of the 2017 RFP for Incremental Regulation Capacity

The IESO announced today that two contracts have been offered in response to the 2017 Request for Proposals for Incremental Regulation Capacity (Regulation RFP). These two contracts represent ±55 MW of regulation capacity across two new energy storage facilities in Ontario.

The Regulation RFP received 42 submissions by the submission deadline of September 28, 2017, representing approximately 350 MW of regulation capacity from a variety of existing and new build facilities, including energy storage and waterpower facilities.

Further details about the successful facilities are available here.

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.

All inquiries related to the Regulation RFP may be sent to RegulationRFP@ieso.ca.

Read the news release here.

Details Date
Release of final RFP and final Contract June 29, 2017
IESO's deadline for issuing Addenda to final RFP and final Contract September 13, 2017
Proponents' deadline for submitting questions and comments September 15, 2017
Proposal submission deadline 3:00 p.m. on September 28, 2017 (the "Proposal Submission Deadline")
Notification to all Proponents and announcement of selected Proposals November 27, 2017

Interested parties are encouraged to subscribe to the Regulation Service RFP email distribution list at www.ieso.ca/subscribe.

All inquiries pertaining to the procurement must be emailed to RegulationRFP@ieso.ca. No other form of communication regarding the Regulation Service RFP will be accepted by the IESO.

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

In the lead-up to the September 2016 regulation RFI, the IESO posted a sample of its regulation signal data. This data will assist 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. As of July 22, 2016, a complete calendar year of sample data is now available in across two sample files as follows:

Download: Signal sample: Concatenated Sample for the period from June 24, 2015 to December 31, 2015 (13MB)

Download: Signal sample: Concatenated Sample for the period from January 1, 2016 to June 30, 2016 (14 MB)

Download: Descriptor of the sample data, revised July 22, 2016

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 Activities

Date Activities Details
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

Subscribe

To subscribe to the email distribution list to receive updates and information relating to the Incremental Regulation Capacity RFP, including addenda, webinars and other communications, please register here.