The Ontario Power Authority (OPA) has started two new energy-efficient programs, combined heat and power III (CHP III) and demand response two (DR2) program to serve electricity users and industrial providers in Ontario. These programs are to support the Ontario government's conservation and renewable energy targets. The CHP III is initiated to increase industrial efficiency, expand renewables role in energy mix and enhance flexibility and reliability of electricity grid.

CHP III: OPA has placed a draft request for proposal (RFP) to enter into contracts electricity and heat generating companies for industrial processes, from renewable fuels.

Industrial Energy From Renewable Biomass

The RFP responds to a directive from the Ontario government to secure around 100 megawatt (MW) of high-efficiency renewable-fuelled CHP projects.

CHP III supports industrial businesses to generate electricity and process heat for their manufacturing processes and to sell excess power back to the Ontario’s grid. The procurement is likely to attract companies that create bio-fuels as part of routine industrial process, such as wood waste.

The new CHP III process is followed by CHP I procurement completed in 2006. The CHP I has awarded seven contracts with a total capacity of 414 MW and CHP II, an RFP for large gas-fired CHP projects, which closes on January 29, 2009. The deadline for the CHP III submissions is April 30, 2009.

DR2 program – This is an incentive program for large Ontario industrial and manufacturing businesses to find ways to use less electricity when power supply is short or very expensive. A company with 5 MW of load shifting potential will receive an annual incentive payment of $500,000 or more.

Industry contributes to reduction in Ontario’s peak power load

DR2 program concentrates on large industrial customers across Ontario that can consistently shift their electricity requirements during peak periods when the provincial system needs to curtail electricity use.

DR 2 enables Ontario businesses to manage their energy use and contribute to the conservation targets. This new program will add to the already over 560 MW of peak load reduction the province can call upon during peak periods.

DR 2 is likely to attract industrial or manufacturing businesses able to create stocks of partially processed materials, manufactured during low energy cost periods. A sample of processes that are expected to be attracted to DR 2 program are municipal water pumping, ice storage, plastics grinding, rock or gravel crushing operations, wood pulp production and mine de-watering.