IESO Releases the 2022 Annual Acquisition Report
On April 4, 2022, the Independent Electricity System Operator (IESO) released its second Annual Acquisition Report (AAR). This report builds on the IESO’s 2021 Annual Planning Outlook (APO) which forecasted Ontario’s electricity system needs over the coming two decades and uses this information to inform the design of various procurement mechanisms and targets.
This second AAR builds on a number of tools contained in the Resource Adequacy Framework – notably, in addition to the Capacity Auction, competitive procurement pathways through the Mid-Term Commitment and Long-Term Commitment Requests for Proposal (MT RFP and LT RFP respectively), and bilateral contracting, the IESO has introduced the concept of securing resources through an enhanced capacity auction, incremental facility expansions, and separate expedited procurements.
Importantly, the AAR also sets a tone of urgency given the intensity of needs identified by the IESO, and the tight amount of time available to address those needs to maintain electricity reliability in Ontario.
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