Energy efficiency through demand-side management (DSM) plays an important role in ensuring a reliable, affordable, and sustainable grid in Ontario. As electricity demand is expected to grow more rapidly in the coming decades, the IESO is continuing to lead the way to capture opportunities and grow savings from energy efficiency through its DSM programs and initiatives.
In 2026, the IESO will launch a commercial HVAC demand response (DR) program (the “Program”), designed to acquire HVAC-focused DR capacity from commercial and institutional facilities across Ontario during the summer season. There is a significant opportunity for DR in this sector and although there are existing IESO programs utilizing DR to achieve electricity savings (e.g., Peak Perks and the Capacity Auction), these programs cannot fully capture the savings opportunities provided by HVAC systems and their weather-sensitive characteristics. The IESO’s current savings targets for this Program are 100 MW of DR reduction in 2026, and an additional 230 MW in 2027.
Through this new Program, participating aggregators or large customers will be paid to respond to DR events between June 1st and September 30th of each program year. It is estimated that up to 10 events will be called each year.
To support program delivery, the IESO intends to enter into an agreement with a single service provider to provide services including (but not limited to) the following:
- Process and procedure development to support program administration
- Marketing/outreach and enrollment of Participants
- DR event strategy development and implementation (including notification to Participants)
- Contact centre operation for Participant support
- Program performance tracking and comprehensive reporting
RFP Eligibility Notice:
In accordance with the Ontario Government’s Procurement Restriction Policy currently in effect, proponents that are US Businesses, in accordance with the definition below, are not eligible to participate. Any proposal received from a proponent that is a US Business will be disqualified and will not be evaluated.
Proponents that are a subsidiary of or controlled by a US Business, for which the subsidiary employs at least 250 full-time employees in Canada, are eligible to participate. Subsidiaries of a US Business that employ fewer than 250 full-time employees in Canada are not eligible to participate and will be disqualified from review.
“US Business” means an entity that:
- has headquarters or a main office located in the United States of America; and
- has fewer than 250 full-time employees in Canada as at the RFP submission deadline.
If a proponent is a subsidiary of another corporation, it will be considered a US Business if it meets both parts (a) and (b) of the definition, either directly or for the purposes of (a), by being controlled by a corporation that has its headquarters or main office located in the US.
