“Flexible Industrial Embedded Cogeneration”
• Industrials losing competitiveness.
• Cannot compete with utility power plant economies of scale in bidding to Ontario RFP calls.
• Cannot make the firm commitments required in RES bid submissions and contracts.
• Lost opportunity for industrials and government.
• Initiate a more flexible process specifically tailored to improve competitiveness of industrials
while at the same time providing for electricity to meet Ontario’s needs.
• Preferred to review process on a case by case specific basis and negotiate mutually beneficial
solutions through Facilitator.
o Reduces cost of legal and administration to the Ministry of Energy and to the
o Increases the flexibility of potential projects on an intelligent, engineered level.
o Eliminates potential negative impact of idling industrial capacity to sell power.
o Allows for other Gov Ministries to support with Training, Competitiveness loans/grants
to drive Ontario’s economy and provide for Regional Economic development.
o Facilitator to co-ordinate complicated internal Gov. process.
o Eliminates risk of liquidated damages.
o Eliminates costs of preparing bids under RFP calls: legal, accounting, engineering and
technical, submission fees, opportunity costs we cannot afford.
• Industrial based cogen will take advantage of existing infrastructure.
o Proponents projects based on existing infrastructure capacity and current consumption.
o Capacity and energy payments depending on approaches.
o In/Out flows accepted.
o Increased system reliability through generation at load providing VAR support,
transmission system efficiency and cost savings.
o Overall thermal efficiency improved at same time.
• Cogeneration provides for thermal load stability at same time as electricity price stability.
• Not in direct competition with large utility power plants.
o Primary industry still respected and preserved, providing for employment stability and
reduced social cost risks in Ontario’s small frontier communities.
• Improves overall power mix in Ontario thereby reducing risk through diversification.
• Regional economic development model which provides overall social cost savings to
government. Industrial plants: Mining, Forestry located in remote areas would have an
opportunity to diversify product mix. Makes industry more competitive globally.
• Allows for creative combination bids: bricks and mortar with dispatch/financial opportunities.
Extracts maximum value from assets and market at same time.
• Delivers most reliable, fastest option to market generation capacity and energy. Industrial asset
base and infrastructure existing. Special financial deals not required. Best options would be
carried out by industrial host as internal capital expansion, thus not going through risk of
financing, off balance sheet JV.
• Should be incented similar to BCH Powersmart with financial incentives to drive project