April 18, 2005

Ontario picks first clean energy source projects from 2004 RFP

The Ontario government has selected four cleaner-energy projects with a total generating capacity of 1,675 megawatts (MW), enough to power more than 650,000 homes. Provincial Energy Minister Dwight Duncan said the projects "represent a significant portion of our commitment to replace coal with cleaner sources of supply and conservation. In particular, the two projects near Sarnia will be sufficient to replace most of the capacity at the Lambton coal-fired station."

The projects are the first four proposals selected in the province's Request for Proposals (RFP) issued in June 2004 as part of its move to bring on line 2,500 MW of new, cleaner power or demand-side projects to replace coal-fired generation. They include a cogeneration project, two combined-cycle natural gas-fired generating plants, and an innovative province-wide demand response initiative:

* Greenfield Energy Centre in Sarnia-Lambton (a partnership between Calpine and Mitsui), 1,005 MW;

* St Clair Power, also in Sarnia-Lambton (a partnership between Invenergy and Stark Investments), 570 MW;

* Greater Toronto Airports Authority, in Mississauga, 90 MW; and

* Loblaw Properties, a province-wide demand response initiative, 10 MW.

The Loblaw Properties initiative entails the installation of equipment in 80 retail outlets which will enable the strategic reduction and shifting of electrical consumption as required. This concept will not only reduce the company's electricity consumption, it is expected to improve the efficiency of the Ontario electricity system a while improving air quality in the province.

All four projects should be in operation by the end of 2007 and will bring $1.1 billion in new capital investment to Ontario.

The response to the RFP surpassed the government's expectations, with 33 proposals received representing more than 8,800 MW of new electricity capacity and demand-side projects. "The entire RFP process was overseen by an independent fairness commissioner to ensure the process was fair and transparent," Duncan said. "The process is also designed to ensure all winning proposals meet rigorous mandatory technical and financial requirements and represent the most cost-effective projects for the ratepayers of Ontario."

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