IESO rules diverge from provincial policy, do not reflect municipal realities, or prioritize protection of Ontario farmland

March 3, 2026

Ontario’s Independent Electricity System Operator or IESO must demonstrate greater transparency and consistency with provincial policy, says the Multi-Municipal Energy Working Group, a coalition of municipal leaders throughout Ontario.

In a letter to the IESO written by Chair Tom Allwood, who is also a councillor with the municipality of Grey Highlands, obtained by Wind Concerns Ontario, the group expressed concerns about IESO processes, as demonstrated in recent procurements.

“For future energy procurements, the IESO must ensure its processes are transparent, align with provincial land use priorities, and support municipalities with clear, timely guidance. Protecting agricultural land and ensuring meaningful municipal and community engagement are essential to the credibility and success of Ontario’s energy planning,” the group concluded.

In 2025 as approximately 20 proposals for new industrial wind power sites were presented to municipalities for approval, municipal councillors in a number of towns and counties complained that the IESO process was not helpful. There were complaints about being asked to render a very important decision with minimal information in a short timeframe, and confusion about project requirements.

The Multi-Municipal Group says the 2025 procurement process was rife with “conflicting directions.” In the letter, Mr. Allwood summarized the issues:

“Municipalities have been provided with conflicting direction by various provincial agencies:

• In the October 2024 Provincial Policy Statement (PPS), the Ministry of Municipal Affairs and Housing confirmed that protection of agricultural land is a priority for the government by expanding the definition of agricultural land to include both Class 1 – 3 soils but also class 4-7 soils. The PPS states that energy projects located on agricultural land must be limited in size and be a secondary use of the land. These rules apply to all municipalities after October 2024.
• The IESO has created a different set of rules for the development of contract proposals that are more restrictive in terms of solar projects.  For wind turbine projects, the direction from the IESO focuses proponents on municipal Official Plans even though these documents may not have been updated to reflect the expanded definitions of agricultural land the new PPS.
• Older documentation from the Ministry of Agriculture, Food and Agribusiness provided a clear definition for the PPS’s term “limited size” at 1 HA or 2.5 acres.  This important detail is missing from the new guidance in the IESO’s Agricultural Impact Assessment.”

The letter referred to the fact that the vast majority of 2025 proposals for new wind power projects were rejected, in the main because of municipalities’ (and citizens’) wish to protect agriculture.

The group listed recommendations for improvement, which included aligning IESO documentation with Ontario’s Provincial Policy Statement, streamlining the required Agricultural Impact Assessment, improve guidance to municipalities, and monitor proponent compliance.

The IESO is about to launch “window 2” of its Long-Term 2-Request For Proposals for 2026, and recently held stakeholder engagement sessions online.

In the news, various organizations have stated clearly that farmland deserves the strongest protection, including the Ontario Federation of Agriculture (OFA). In a comment released for Agriculture Day on February 9th, OFA executive Brianna Miller said,

“The richness of the soil, the diversity of the landscapes and the abundance of clean, fresh water are the foundation of our food production system and it’s important that we take steps necessary to protect it, both for ourselves and for future generations.

Farmland is a finite and irreplaceable resource; once it’s lost, it’s lost forever. That’s why we feel strongly that preserving farmland for agricultural uses needs to be a priority at the local, provincial and federal levels — and this needs all of us, urban and rural voices, working together.”

The entire letter from the Multi-Municipal Energy Working Group may be read here: