Local Initiatives
Local initiatives encourage competition, innovation, cost savings and customer-driven solutions.
Local initiatives are developed to deliver Demand Side Management (DSM) savings in targeted areas of the province with identified system needs. DSM solutions to support local initiatives are sourced using competitive mechanisms, such as open procurements. This approach enables a broad range of participants to propose DSM programs and opportunities, and encourages competition, innovation, cost savings and customer-driven solutions.
Local initiatives are intended to:
- demonstrate the ability to use DSM 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 DSM 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 DSM 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 Essex County.
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. Additional information including the specific target areas (within the broad regions identified above), target customer sectors, program types and/or eligible technologies will be defined in forthcoming procurement solicitation document(s), such as a Request for Proposals (RFP).
When available, open opportunities will be posted publicly on www.merx.com.
Retrofit regional adders
The IESO has introduced Retrofit regional adders in some areas of the province where electricity constraints exist, to assist in reducing demand for the transmission assets.
Most non-lighting measures will be eligible for double the incentive normally available from the Retrofit program through the Retrofit regional adders, with the exception of solar PV DERs, horticultural lighting, horticultural lighting controls, and the energy management information system (EMIS) measures.
Eligible applications will be identified by the first three characters of the postal code. Facilities undertaking the retrofit must be located in the target areas identified to be eligible for the increased incentive (updated as of June 30, 2025):
| Region | Forward Sortation Area (FSA) |
|---|---|
|
Barrie/Muskoka |
L0M, L3V, L4M, L4N, P0A, P0B, P0C, P0E, P0G, P1H, P1L, P1P, P2A |
|
Belleville/Peterborough |
K0L, K0M, K8N, K8P, K8V |
|
Brant |
N3L, N3P, N3R, N3S, N3T, N3V |
|
Caledonia-Norfolk |
L9G, N0A, N0E, N3W, N3Y, N4B |
|
Elmira |
N0B, N3B |
|
Kenora |
P0X, P9N |
|
Kingston area |
K7G, K7K, K7L, K7M, K7N, K7P |
|
Niagara region |
L0R, L0S, L2A, L2E, L2G, L2H, L2J, L2M, L2N, L2P, L2R, L2S, L2T, L2V, L2W, L3B, L3C, L3K, L3M, N1A |
|
Ottawa |
K2K, K2L, K2M, K2S, K2T, K2V, K2W |
|
Pembroke area |
K8A, K8B, K8H |
|
Ramore |
P0K, P0M, P0N |
|
Waubaushene |
L0K, L0L, L4R, L9M |
|
Woodstock |
N0J, N4S, N4T, N4V, N5C |
|
Greater Windsor Area |
N0P, N0R, N8H, N8L, N8M, N8N, N8P, N8R, N8S, N8T, N8V, N8W, N8X, N8Y, N9A, N9B, N9C, N9E, N9G, N9H, N9J, N9K, N9V, N9Y |
If your facility is located in one of the listed target areas, please speak to your Save on Energy representative about accessing the regional adder . Representatives can be contacted through the Retrofit support line at 1-844-303-5542 or by email at retrofit@ieso.ca.
Non-duplicative province-wide programs
The following parameters are applicable to the program design for target areas for the first half of the framework and may, or may not, be extended to subsequent local initiatives. Additional parameters for program designs may be specified in forthcoming procurement solicitation documents.
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 these areas 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:
The following chart provides examples of what would be considered duplicative and non-duplicative initiatives. These are examples only and should not be considered an exhaustive list of 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 prescriptive 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 prescriptive VFD measure) |
|
A direct-install residential program with measures outside the scope of the Remote First Nations Efficiency Program and the Energy Affordability Program targeting single and multi-family residential buildings.
|
A financial adder to measures offered under a current province-wide program (e.g., higher lighting Retrofit incentive amounts for greenhouses) |