Douro-Dummer is considering the opportunity to strike up a deal with Fralicks Beach Renewables Ltd., (FBR) on a land option agreement to develop renewable energy capabilities.
Council looked at the matter at the June 3 council meeting where a report was submitted by CAO Todd Davies.
The topic was first broached at the November 18 council meeting where staff brought forward a report that laid out township properties that had potential for renewable energy development which could possibly generate revenues for the municipality.
According to the report the Independent Electricity System Operator (“IESO”), at the direction of the Ministry of Energy and Electrification, is currently procuring renewable energy projects under the Long Term 2 Request for Proposals (“LT2 RFP”), with the submissions for projects due in Q2 of 2027.
This particular round of procurement is for industrial sized projects that require a larger land mass.
The province is looking at ways to address the growing need for electricity as the population grows and industries require more power.
Staff presented two property options for proposal that are near the Hall’s Glen transfer station. These properties were deemed not suitable for development, but have potential for smaller scale industrial sites.
The proposed sites can be accessed by the fifth Line North Dummer and are approximately 50 acres in size.
The report stated that the township has already been approached by Fralicks Beach Renewables and they have completed a preliminary review of the property and the potential for an existing feeder connection to the nearest transmission station with the capacity to support an appropriately sized project in the range of 15–20 MW.
The report said that further work still needs to be done to determine the feasibility of the project once other approvals have been authorized.
Staff are recommending that Council enter into a land option agreement with FBR for the purposes of research, development and application preparation. There is a lengthy process from pre-development to operations to decommissioning that include the following milestones:
1. Pre-Development:
• Township outreach
• Land sourcing and electrical assessment
• Developer partnership contracting
• Public and First Nations engagement
• Agricultural assessment (step 1)
• Municipal Support Resolution
• IESO bid submission Window 2 – Spring 2027
2. Development
• Contract award by IESO
• Renewable Energy Approval
• Agricultural assessments (steps 2 and 3)
• Preliminary engineering
• Notice to proceed
3. ECP
• Detailed engineering
• Procurement
• Construction and commissioning
• Commercial Operation Date (COD) - 2031 / 2032
4. Project end of life
• Contract completion
• Project decommissioning – 2052 - 2062
According to the report FBR is prepared to enter into an agreement for land optioning that would allow this organization to begin and complete the predevelopment work necessary for them to submit an application to the IESO in the upcoming application window. Should the application be successful there are a number of potential benefits for the Township which include
:• Annual Payments: Per MW yearly payment to the Township for the 20-year contract
• Option and Lease Payments: Annual payments for land optioning (pre-contract) and lease (post-contract)
• Property Tax Increase: Due to land use change
• Local Employment: Local trades prioritized for construction and operations
• Community Benefit Payments: Agreement required as part of the REA for annual financial benefit to the Township for hosting a renewable energy project in the Township regardless of who owns the land
• Strategic Alignment: Supports business attraction, expansion, and infrastructure renewal
The next step would be to option the township lands so that all rights are secured as required so a bid can be submitted in to the IESO process.
Once to properties are secured the ball lands in FBR’s court and they become responsible for studies and pre-engineering work to determine the feasibility and scope of the renewable energy project.
At the same time, FBR would seek to fulfill the First Nations engagement requirements by beginning discussions with local First Nation which would enhance the bid’s competitiveness.
The final stage of the predevelopment process would result in FBR coming forward to Council in late 2026 or early 2027 seeking a Municipal Support Resolution that is mandatory for participation in bid submission process.
Davis stressed that the project was still in the very early stages and this recommendation is only the second step in the predevelopment stage.
Davis said at this point FBR are seeking a land lease so they can continue their research on the properties, but would allow the municipality to maintain access to said properties.
Nothing would happen to the land while they continue the research phase. If they feel it is a vialble project they will return to council to move forward with an application.
If FBR is successful with their application the terms of the lease would change.
Mayor Heather Watson commented that council discussed the viability of taking the brownfield at Hall’s Glenn and see what the township could do about putting themselves out there on the market back in Novemeber.
Watson said they were hoping some proponents would come forth with some proposals that would generate revenue for the municipality and now we have one that is before us.
Councillor Ray Johnston moved that they follow the recommendation and seconded by deputy mayor Harold Nelson.
The motion passed.
