Ontario IESO launches its first-ever local electricity market

Share on linkedin
LinkedIn
Share on twitter
Twitter
Share on reddit
Reddit
Share on facebook
Facebook
Share on email
Email
Ontario IESO hopes it can help lower the costs of running its transmission infrastructure through the trial’s findings. Image: Ontario IESO via Facebook.

The Regional Municipality of York, Southern Ontario, Canada, will be the proving ground for a local electricity market, aimed at helping integrate distributed energy resources (DERs) into the grid.

Ontario’s Independent Electricity System Operator (IESO), is set to launch a demonstration of how solar panels, energy storage and customer-sited demand side response (DSR) connected to the distribution network can be used to drive down costs of the IESO’s transmission operations.

The IESO said just before the end of August that it will launch the project, which will in part help the network to “find affordable alternatives to building new transmission infrastructure,” as well as hopefully creating a competitive marketplace to help bring down consumer costs. Ontario’s Alectra Utilities and the government ministry Natural Resources Canada are supporting the IESO on the project.

“When we’re out talking to communities, one common theme we hear is a desire to have more choice in how their electricity needs are met,” Ontario IESO president of policy, engagement and innovation, Terry Young, said.

“This pilot will help us learn if we can enable that choice while also reducing costs for Ontarians.”

In common with similar, relatively small-scale trial and projects launched in Cornwall, England, in Australia and in Japan, the local electricity market seeks to leverage existing resources, for example by turning down customer demand for power from the grid through DSR or by storing energy in batteries generated from solar in the daytime to push into the grid at peak times.

“This project will help us better understand the potential of using distributed energy resources in place of traditional infrastructure by evaluating them in real-world applications,” Alectra Inc CEO and president Brian Bentz said.

Around 10% of Ontario’s electricity capacity already comes from DERs, the IESO said. While there has been a great deal of interest in the Canadian Province’s energy storage sector in the past couple of years, so far this has been mostly focused on the commercial and industrial (C&I) energy storage market, where businesses are able to reduce their peak costs (analogous to demand charges paid by US business, which often equate to as much as 50% of total electricity costs), levied under Ontario’s Global Adjustment Charge (GAC) policy. The North American country was also among the first to begin trialling virtual power plants (VPPs) at scale, using aggregated, interconnected home and C&I energy storage batteries.

Read Next

May 18, 2022
Study conducted by the Massachusetts Institute of Technology Energy Initiative has found energy storage can be a key enabler for the clean energy transition.  
May 17, 2022
Duke Energy’s carbon reduction plan for its Carolina businesses includes proposals for a “significant growth” in energy storage deployments.
May 16, 2022
The US government Department of Energy has issued a Request for Information as it prepares to rollout a package worth more than half a billion dollars to support development and commercialisation of long-duration energy storage.
May 16, 2022
Intersolar Europe event saw a number of energy storage-related announcements from Chinese solar PV industry players.
May 10, 2022
Energy storage deployment in the US is growing at a phenomenal pace. But the appetite for storage is much greater than the ability to build, and getting grid interconnection rights is often the biggest hurdle.

Most Popular

Email Newsletter