Backgrounder – Energy Storage
Request for Proposal
Ontario’s Long-Term Energy Plan provided for 50 MW of energy storage to be procured by the end
of 2014. As part of that commitment, an energy storage procurement framework, jointly submitted
by the IESO and Ontario Power Authority (OPA), was supported by the Minister of Energy.
The procurement framework is designed to allow a diverse portfolio of storage technologies in order
to learn about the various services that storage solutions can provide, the value of these investments
in operations and how storage can best be integrated into Ontario’s electricity markets.
Under Phase I of the procurement framework, the IESO has issued a Request for Proposal (RFP) to
procure up to 35 megawatts of grid energy storage from a number of different technologies that can
provide ancillary services, and possibly provide other grid services, such as transmission congestion
relief or energy time-shifting.
The IESO will be hosting a Briefing Session to answer stakeholder questions about this RFP on
March 24, 2014.
The IESO is seeking responses from a broad range of grid energy storage technologies so that it can
determine how best to integrate different grid energy storage facilities into the operation of the
IESO-controlled grid and to assess their capabilities at both the bulk transmission and distribution
levels. The technologies must be capable of absorbing grid energy, storing it and then injecting the
energy back into the electrical grid. A diversified portfolio of technologies will also allow the IESO
to gain insights into the evolution and future integration of these technologies in Ontario’s
electricity markets.
Some examples of storage technologies are, but not limited to, pumped hydro, compressed air
energy storage, stationary batteries, flywheels, and thermal.
Although it is anticipated that additional services can be provided, as a mandatory requirement,
selected respondents must be able to provide regulation service, or reactive support and voltage
control (RSVC) service. The projects must be located in Ontario and directly connected to the
transmission or distribution system.
The procurement has been divided into four project envelopes to allow proponents to provide
regulation service and RSVC service. Respondents may submit multiple projects; however, the
applicable project envelope must be identified.
The four project envelopes are designated for:
 transmission-connected resources in uncongested areas - Southern Ontario
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transmission-connected resources in uncongested areas - Northern Ontario
transmission-connected resources in congested areas
distribution-connected projects supplying grid services
The contract terms for selected vendors will be relatively short in order to minimize the contractual
commitment and allow these devices to participate in new or revised market mechanisms that the
IESO may implement to integrate energy storage on an enduring basis.
Interested parties should refer to the Energy Storage Request for Proposal for detailed technical
obligations and specific project envelope requirements. Specific questions about the RFP should be
directed to RFP Coordinator.
Key Dates:
RFP release date
March 12, 2014
Deadline for registration for Briefing Session
3:00 pm March 20, 2014
Briefing Session
March 24, 2014
Respondent’s deadline for submitting questions
3:00 pm April 10, 2014
IESO deadline for issuing Addenda and
Definitive Contracts
April 17, 2014
Respondent’s deadline for submitting Intent to
Participate Form and Non-Disclosure Agreement
(if not previously submitted)
3:00 pm April 22, 2014
RFP Closing Date (Respondent’s deadline for
submitting a Proposal)
3:00 pm May 5, 2014
Phase II to procure the remaining MW to complete the 50 MW procurement will be carried out by
the OPA, and will focus on how storage can best meet the future capacity needs of the system. To
allow for lessons learned to be reflected in Phase II, the OPA’s release of the Phase II RFP will be
timed to coincide with the conclusion of the IESO’s Phase I procurement.
See Energy Storage webpage on IESO website for the Energy Storage Procurement Framework.
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