Lennox GS Contract Extended to 2029
February 3, 2022
In an effort to secure supply to meet immediate needs in eastern Ontario, the IESO has now completed a transitional contract with Ontario Power Generation for the continued operation of the Lennox Generating Station. Given its location and operational characteristics, Lennox GS plays a critical role in maintaining the reliability of Ontario’s power system and is the only resource available to meet immediate needs in the area.
The 2,160 MW facility will offer 1,657 MW of unforced capacity, as well as quick-ramping supply and other reliability services such as operating reserve. Its location helps to ensure the security of the bulk system by balancing electricity flows across the province, which will be especially important due to the retirement of Pickering nuclear and the refurbishment of Darlington nuclear. Across Ontario's power system, gas generation also supports demand peaks and the intermittency of renewable generation.
The new contract runs from October 1, 2022 to May 1, 2029, which coincides with the end of the first medium-term RFP cycle. By 2029, the IESO anticipates that conditions will be in place to enable broader competition to provide for these reliability needs.