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Electricity produced and consumed within a single entity (“behind the
meter”) will not qualify because the IESO has an electricity demand side
management suite of programs that covers behind the meter generation.
However, most details of the program’s design are still under discussion.
Ontario has 60 Local Distribution Companies (LDCs) covering all regions
of the province. The IESO is of course developing its local generation
program in consultation with the LDCs which will ultimately be the
frontline for connecting local generation projects. In fact, LDCs may well
be in the forefront of this new industry.
a昀昀ordability for consumers, and support environmentally responsible local
economic development.
It is possible and even likely that a number of Ontario consumers and businesses will
soon be hosting or neighbouring new local generation projects that will supply power in new ways, while challenging the boundaries of traditional energy businesses.
They may be part of a worldwide trend towards energy grids that are more participatory and community-based. They could help improve Ontario’s energy self-reliance, a characteristic that has lately been rising rapidly in value. It could also bene昀椀t
the popularity of the current Ontario government, which deserves credit for mandating the program and moving it forward as part of provincial energy policy.
There are no predetermined overall targets for new capacity to be
secured through the Local Generation Program but there will be a
certain amount of eligible projects speci昀椀ed in MW for each program
call. The IESO anticipates completing contracts to reach approximately
80 per cent of the eligible project volume in each call, depending on
pricing and other factors.
Ontario is not the 昀椀rst jurisdiction to clear a path for DERs, but it appears
committed to doing so in a systematic way that could signi昀椀cantly alter how
Ontarians produce and consume energy. The potential for speedy development of
bene昀椀cial new technology and innovative business models is unprecedented.
DERs like those anticipated in the Local Generation Program represent
a variety of new business opportunities that, if appropriately deployed,
could make the electricity system more e昀케cient, contribute to
Jake Brooks is an energy consultant who served
as Executive Director of the Association of Power
Producers of Ontario for many years.
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