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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 are being developed to deliver CDM savings in targeted areas of the province with identified system needs. CDM solutions to support local initiatives are being sourced using competitive mechanisms, such as open procurements. This approach enables a broad range of participants to propose CDM programs and opportunities, and encourages 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
BizEnergySaver Program | CoolSaver Program
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.

A second cycle of local initiatives will be initiated in early 2023. The regions selected during the second cycle will be identified based on regional system needs at that time.

Retrofit regional adders

As part of the Local Initiatives Program, the IESO is introducing Retrofit regional adders in some areas of the province where electricity constraints exist.

The purpose of these adders is to encourage further uptake in the Retrofit program to assist in reducing demand for the transmission assets in these constrained areas. The target areas were selected in consultation with the IESO’s system planners and include regions that have been identified as electricity-constrained through the regional planning process.

The adders will be available for a period of six months effective April 3, 2023; during this time, all non-lighting prescriptive measures will be eligible for double the incentive normally available.

Eligible applications will be identified by Forward Sortation Areas (FSA), the first three characters of the postal code. Retrofit regional adders will be introduced in the following target areas (adder zones) in April. Facilities undertaking the retrofit must be located in the target areas identified by FSA to be eligible for the increased incentive:

Niagara region: L0S, L2A, L2E, L2G, L2H, L2J, L2M, L2N, L2P, L2R, L2S, L2T, L2V, L2W, L3B, L3C, L3K, L3M, N1A and portions of L0R – please speak to your Save on Energy representative for more information
Kingston area: K7K, K7L, K7M. K7N, K7P, K7G
Southern Huron Perth: N0L, N0M, N4X, N0K
Pembroke area: K8A, K8B, K8H
Kenora: P9N, P0X

Additional target areas will be identified for Retrofit regional adders in the second half of 2023.

If your facility is located in one of the listed FSAs, please speak to your Save on Energy representative about accessing the increased incentive. 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

Province-wide programs and local initiatives program design

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)

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)