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ARTICLE · 21 APRIL 2026

Procurement Future For Repowered Facilities In Ontario

Blake, Cassels & Graydon LLP
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The Independent Electricity System Operator (IESO) has announced significant changes to its Long-Term 2 Request for Proposals, creating a dedicated stream for repowered facilities with a 1 terawatt cap.

CanadaEnergy and Natural Resources
Reena Goyal
Reena Goyal
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This bulletin was updated on April 21, 2026.

This is the latest on the integration of repowered facilities in the second window of the Independent Electricity System Operator’s (IESO) Long-Term 2 (LT2) Request for Proposals (RFP).

Eligibility

In late 2025, the IESO advised that repowered facilities would be ineligible to participate in the first window of the LT2 RFP (i.e., LT2(e-1) and (c-1)), but that steps would be taken to integrate participation by repowered facilities in the second window of the LT2 RFP (i.e., LT2(e-2) and (c-2)).

The IESO has since announced it will indeed be offering an LT2(e-2) and (c-2) RFP stream for repowered facilities with a cap of 1 terawatt. This is in addition to the procurement target of 3 TWs for new-build facilities, which will proceed by way of its own separate stream to ensure they remain competitive against the project development cost advantages that already existing facilities may have.

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