2021-2024 Conservation and Demand Management Framework

October 1, 2020 Update

The IESO has received a Ministerial directive to implement a new 2021-2024 Conservation and Demand Management (CDM) framework, launching the week of January 4, 2021. The province recognizes the benefits of CDM programs to the electricity system and electricity consumers, as well as the contribution they provide to Ontario’s economy and competitiveness.

Programs in the new CDM framework will target those who need them most. The framework will include opportunities for commercial, industrial, institutional, on-reserve First Nations and income-eligible consumers.

Key Information

The new CDM framework will be centrally delivered by the IESO under the Save on Energy brand and will focus on cost-effectively meeting the needs of Ontario’s electricity system, including achieving provincial peak demand reductions, as well as targeted approaches to address regional and/or local electricity system needs
The 2021-2024 CDM framework will provide continued opportunities for electricity consumers to manage their electricity costs, and stability for partners and businesses involved in the delivery and administration of Save on Energy programs across the province
Opportunities for electricity consumers will include support to improve the overall efficiency of buildings, facilities and communities, and opportunities to build awareness of energy-efficiency best practices and behaviours to help electricity consumers make decisions around energy-efficiency equipment and products
The new CDM framework will support and solicit customer-based solutions, leverage competitive procurements and calls for proposals to increase competition in the industry, and will be able to respond to changing community needs, particularly in vulnerable communities

Next Steps

Details of programs under the new framework will be available in early November 2020. In the coming weeks the IESO will be engaging with vendors, customers, and key stakeholders on new programs and to ensure a smooth transition from the current 2019-2020 Interim Framework to the new 2021-2024 CDM framework.

For questions, please contact your IESO or Save on Energy representative for more information.

Frequently Asked Questions

What has been announced?

The Minister of Energy, Northern Development and Mines has issued a Ministerial directive to the Independent Electricity System Operator (IESO) to establish a new four-year electricity conservation and demand management (CDM) framework for the delivery of a suite of centrally delivered CDM programs launching the week of January 4, 2021.

The framework will focus on cost-effectively meeting the needs of Ontario’s electricity system, including achieving provincial peak demand reductions, as well as targeted approaches to address regional and/or local electricity system needs. Opportunities for consumers will include support to better manage electricity costs, improve the overall efficiency of buildings, facilities and communities, and build awareness of energy-efficiency best practices and behaviours.

Why did the government issue a directive for a new CDM framework?

The government recognizes that electricity CDM programs help consumers manage their energy costs, help cost-effectively address system needs and are an important contributor to Ontario’s economy.

As Ontario recovers from the COVID-19 pandemic, the 2021-2024 CDM Framework will provide continued opportunities for electricity consumers to manage their electricity costs, stability for partners and businesses involved in the delivery of CDM programs in the province, and will help to cost-effectively meet electricity system needs.

How will my current project be impacted by the new framework?

Energy-efficiency projects already underway or applications that are pre-approved/contracted by December 31, 2020, will not be affected by the announcement of this new framework and will be expected to complete according to the current program timelines. Projects under the Conservation First Framework (begun before April 2019) must be complete by June 30, 2021, to be eligible for an incentive. Projects under the Interim Framework (since April 2019) must receive pre-approval by December 31, 2020.

Projects that cannot complete by the prescribed timelines under the IF will be offered the opportunity to apply to the new framework, subject to any new rules, eligibility criteria and guidelines.

What programs are available for electricity consumers?

Opportunities under the 2021-2024 CDM Framework will continue to focus on those who need them most, including commercial, industrial, and institutional consumers, on-reserve First Nations consumers, and income-eligible residential consumers. Information on the programs that will be available can be found here.

More detailed information on available incentives and program budgets will be available in early December.

With whom is the IESO engaging on the design of new programs?

The new framework is informed by customer insights, lessons learned and direct feedback received through the government posting of the 2021-2024 CDM Framework objectives in July/August. In the coming weeks, the IESO will continue to engage with customers and key stakeholders on enhancements of new programming and opportunities for the future.