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The Independent Electricity System Operator (IESO) has awarded 20-year contracts to 14 renewable energy projects in Ontario, marking a significant step in the province’s latest electricity procurement program.

The contracts, issued under the Long-Term 2 (LT2) Request for Proposals, cover 12 solar and two wind projects with a combined capacity of approximately 1.3GW. Together, the projects are expected to deliver more than 3 terawatt-hours (TWh) of electricity annually, helping meet rising demand forecast for the early 2030s.

According to the IESO, the competitive procurement process resulted in pricing approximately 21% lower than previous large-scale renewable contracts in the province.

All selected projects include at least 50% Indigenous equity ownership, reflecting a continued emphasis on community and Indigenous participation. Municipal support was also required as part of the application process.

The LT2 initiative represents the first major opportunity for large-scale renewable development in Ontario in over a decade and is part of what the IESO describes as the largest electricity procurement in the province’s history. Additional procurement rounds are expected, with further results anticipated later in 2026.

The awarded projects are expected to begin commercial operations between 2026 and 2028, contributing to Ontario’s evolving energy mix and long-term electricity supply strategy.

Source: power-technology.com