Ontario gets 90 proposals for renewable generation

The proposals total 4,400 megawatts of generating capacity — nearly 15 times the 300 megawatts the province had been seeking, Energy Minister Dwight Duncan told the Legislature.

Renewable sources include wind, the sun, gas from composted plant material or landfills and some kinds of water power.

The companies that want to produce renewable power will now be asked to submit formal bids through a request for proposals process. Final bids must be in by Aug. 25, and the winning proposals will be chosen by the end of the year.

"The interest we've received will help meet or exceed our targets of generating 5 per cent of Ontario's total energy capacity from renewable sources by 2007, and 10 per cent by 2010," Duncan said.

Winning bidders will negotiate 20-year contracts with the soon-to-be-created Ontario Power Authority.

The bid for renewable energy sources is part of a larger campaign by the province to stimulate construction of 2,500 megawatts of conventional generating capacity. Rules for that bidding process are expected to be announced recently.

The Liberal government is scrambling to get more generating capacity built in Ontario because it has promised to shut down all the province's coal-burning power stations by 2007, starting with the Lakeview station next year. The coal plants total about 7,500 megawatts, or 25 per cent of the province's generating capacity.

The province has faced power problems in each of the past two summers — last year with a blackout over much of northeastern North America, and the previous summer when Ontario ran dangerously short of power because of high demand triggered by hot weather.

Dave Butters, president of the Association of Power Producers of Ontario, said the response to the competition for renewable generation shows the interest of the private sector in building new power facilities. Provincially owned Ontario Power Generation was not allowed to bid.

"It's certainly encouraging to see that number of folks who feel they could meet the test," Butters said.

Making 20-year contracts available is also good news for bidders, who prefer longer contracts that provide more certainty, Butters said.