Ministry of Energy and Electrification
Open and Transparent Energy Procurement Process Increases Competition, Accountability and Cost Savings
About the Art
This free-standing stained glass artwork represents transparency both in its physical material and depicted subject. It illustrates one of Aesop’s Fables, “Mercury and the Woodsman,” in which an honest woodsman is rewarded by the god Mercury.
Digital artwork by Aedán Crooke and Amy Jiao of Surface Impression. No AI was used in the creation of these original artworks.
By publishing contracts, Ontario’s Independent Electricity System Operator (IESO) and Ministry of Energy and Electrification (ENERGY) are fostering a competitive, transparent process that decreases costs for Ontario taxpayers and ratepayers.
After more than a decade of stable electricity supply, and at times a surplus, the IESO has forecasted emerging electricity supply needs in 2025 due to increased electrification, business investments, nuclear facility refurbishments, and expiring contracts.To meet this need, ENERGY and the IESO launched a series of competitive procurements for new resources. The results of these procurements, including contract prices, are being posted publicly, making the contracting process open and transparent. These competitive procurements are also accompanied by publicly posted standard offer contracts that clearly state the contract terms.
Previously, procurement pricing and contract terms were kept confidential. Publicly posting contract details allows the public to better understand the procurement process and see how contracts are awarded. This fosters a more competitive procurement and drives prices down for new resources. For example, in a recent procurement, the first long term procurement, there was a 24 per cent reduction in the average cost of grid-scale battery storage compared to batteries procured in the previous round. In addition to promoting openness and transparency, this initiative also supports greater public and stakeholder engagement. By making contracting information more publicly accessible, energy projects can be assessed more accurately by a greater number of stakeholders, such as electricity equipment providers and financiers.
ENERGY and IESO are setting a precedent for greater transparency in procurement processes. This approach holds both the government and vendors publicly accountable, ensuring contracts are awarded fairly to maintain Ontario’s reliable, affordable and clean electricity system.
All accompanying materials available in English.
