Independent Electricity System Operator Capacity Auction (IESO CA) Demand Program Options

How to Make the Most of Your Participation in the Ontario Market

Different Programs Serve Different Purposes:
Demand response programs help keep the lights on! By direction of the electric grid operator, these programs are designed to help balance out supply and demand in response to real-time conditions on the grid. Participants earn payments for curtailing energy for brief periods of time.

Demand management, or peak predictor, programs allow participants to reduce Global Adjustment charges by providing notifications prior to forecasted system peak events, enabling them to temporarily curtail consumption at the time when their largest electricity cost is calculated. These events happen more frequently due to the unpredictability of system peak events.

Programs at a Glance

	Capacity Auction (CA)	Global Adjustment Peak Predictor* (GAPP)
Dispatcher	Independent Electricity System Operator (IESO)	Enel
Notification Lead Time	2 hours with additional advance warning	Daily emails by 10:00 a.m.; ad hoc updates based on grid conditions
Testing Requirement	2 Audits per Season (summer/winter)	N/A
Timing of Payments vs. Realized Savings	Direct payments sent quarterly or annually per contract	On-bill energy savings starting in July of the following year
Financial Incentive	Direct Payment of $44K/MW	On-Bill Savings of $450K/MW
Potential Curtailment	2-16 hours per year	45-80 hours per year
Average Potential Earnings	$6,700/MW/hour	$8,000/MW/hour

Keys to Success:
Capacity Auction rarely reaches critical emergency levels, but the resource must be regularly tested to prove its collective ability to deliver relief to the electric grid. Audits can be called any time during the program period and may not correlate with grid constraints. In lieu of an emergency dispatch, the audit is the primary driver of your payment.

Adding an energy storage system or back-up generator allows customers to maximize both opportunities without impacting normal operations. Contact us if you are interested in learning more!