Enhanced 2021-2024 Conservation and Demand Management Framework

October 4, 2022 update

The IESO has received a ministerial directive in connection with the 2021-2024 Conservation and Demand Management (CDM) Framework to enable additional CDM programming through a $342 million increase to the budget, from $692 million to a total of just over $1 billion. This new funding and programming will deliver additional peak electricity demand savings of 285 megawatts (MW) and annual energy savings of 1.1 terawatt (TWh) by 2025; the four-year framework is expected to achieve a total of 725 MW of peak demand savings and 3.8 TWh of electricity savings. 

The IESO projected in its 2021 Annual Planning Outlook that there would be a need for additional electricity capacity beginning in 2025, and the 2022 Annual Acquisition Report identified necessary actions to ensure system reliability, including new energy-efficiency programs. The government accepted the IESO’s recommendation to roll out new and expanded energy-efficiency programs, which are among the lowest-cost ways of meeting system needs. These programs are expected to be available to eligible electricity consumers beginning in spring 2023.

The new and enhanced programs include:

  • A new residential demand response program for homes with existing central air conditioning and smart thermostats to help lower energy use at peak times 
  • Targeted support for greenhouse growers in Southwest Ontario, including incentives to install LED lighting, advanced controls or behind-the-meter distributed energy resources (DER), such as combined solar generation and battery storage.
  • Enhancements to the Save on Energy Business Retrofit Program for businesses, institutional and industrial customers to include custom energy-efficiency projects
  • Enhancements to the Save on Energy Local Initiatives Program to reduce barriers to participation and to add flexibility for incentives for DER solutions. 

The targeted support for greenhouse growers will have a particular impact in Southwest Ontario, with regional peak demand savings of 225 MW. This will help to alleviate electricity system constraints in the region and foster economic development. 

The overall savings from this enhanced CDM programming will result in an estimated three million tonnes of greenhouse gas emission reductions over the lifetime of the energy-efficiency measures implemented through the programs.

More information will be posted on the Save on Energy website on the new and enhanced programs as it becomes available. 

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