Save on Energy
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Local Initiatives

Local initiatives will encourage competition, innovation, cost savings and customer-driven solutions.

As part of the 2021-2024 Conservation and Demand Management (CDM) Framework, local initiatives will be developed to deliver CDM savings in targeted areas of the province with identified system needs. The local initiatives will be sourced using competitive mechanisms, such as open procurements. This approach will enable a broad range of participants to propose CDM programs and opportunities encouraging competition, innovation, cost savings and customer-driven solutions.

Local initiatives are intended to:

  • deliver 57 MW of demand savings and 230 GWh of energy savings over four years as per the 2021-2024 CDM program plan 
  • demonstrate the ability to use CDM as a resource to achieve specified demand and/or energy reductions that can help address regional and/or local electricity system constraints, as identified through the IESO’s regional planning process 
  • identify how targeted CDM can be used as a resource in the service territories of local utilities to address distribution system needs 
  • be cost effective and not duplicative of current province-wide CDM programs.

Targeted areas for local initiatives

The areas selected for the first cycle of local initiatives in Ontario include:

  • Richview South area in Toronto 
  • York Region
  • Ottawa
  • Belle River area in Windsor-Essex

Competitive procurements will be used for the target areas in the first cycle and are expected to be in the range of 500 kW to 10 MW. The procurements may be scoped to target customer sectors, program types or eligible technologies. 

The procurement documents will define the specific areas where the local initiatives are to operate within the region. The specific postal codes applicable to the Richview South area within the Toronto Region are provided below and details related to the other regions will be provided in the future.

When available, the Request for Proposals (RFP) for these initiatives will be posted publicly on www.merx.com and will be available to any vendors that can meet the requirements. The first of the procurements for the target areas are expected to be released in the second half of 2021. Additional details on the specific timing and sequencing will be shared as it becomes available.

A second cycle of local initiatives will be initiated in late 2022. The regions selected during the second cycle will be identified based on regional system needs at that time. 

 

Province-wide programs and local initiatives program design

The following parameters are applicable to the program design for the Richview South area in Toronto and may, or may not, be extended to subsequent local initiatives.

The IESO is seeking alternative approaches to program design for local initiatives to avoid duplication of measures and incentives within existing Save on Energy programs that are currently available province-wide. The local initiatives program will offer customers in this area new opportunities for savings, running concurrently with existing programs but not competing with them.

For information on current eligible measures under Save on Energy programs, please see the links below:

Below is a chart to provide some illustrative examples of what would be considered duplicative and non-duplicative initiatives. These are considered examples only and are not exhaustive of either duplicative and non-duplicative initiatives. 

 
Non-Duplicative Duplicative

A Retrofit program-eligible measure that does not overlap with the Small Business Program offered under a direct install program (e.g., VFD direct install program)

A Retrofit program-eligible measure offered under a rebate model (e.g., cash back after purchasing qualified LED lighting) OR

A direct install program with a higher cap, offering measures available under Small Business Program (e.g., offering direct installation of qualified lighting measures up to $15,000 per eligible business) 

A custom or prescribed Retrofit-type program with no overlap of current Retrofit program-eligible measures (e.g., prescribed or custom incentive model for fan coil units, which is not currently an eligible measure under the Retrofit program)

A custom Retrofit-type program that includes Retrofit program-eligible measures (e.g., custom application for a retrofit prescribed VFD measure

A non-income-tested direct install residential program (e.g., a direct install program for residential lighting, thermostats, appliances)

A financial adder to measures offered under a current province-wide program (e.g., higher lighting Retrofit incentive amounts for greenhouses)

The area to be included in the Richview South area for the Toronto local initiative procurement is covered by the following postal codes: M5E, M5H, M5J, M5K, M5L, M5M, M5N, M5P, M5T, M5V, M6A, M6B, M6C, M6E, M6G, M6H, M6J, M6K, M6L, M6M, M6N, M6P, M6S, M8V, M8W, M8X, M8Y, M8Z, M9A, M9B, M9C.