A new demand response incentive for Ontario’s Class B commercial and institutional electricity customers will offer $54.84 per kilowatt (kW) of consumption reduction during specified periods between June 1 and Sept. 30. Prospective participants in the soon-to-launch Peak Performance program can enroll until May 30, 2026 if they have the ability to curtail at least 500 kW of load across their portfolios, or an aggregated group of buildings, and provide metering data to verify it.
The new incentive will be activated during periods of high demand on the provincial electricity system, similar to the Peak Saver perk that’s already available for residential and small business customers through Ontario’s suite of Save on Energy initiatives, albeit with more complicated parameters and potentially more lucrative payouts. In addition to the base incentive for load reduction, first-time participants (i.e. all registrants in 2026) can qualify for up to $20/kW toward the upfront costs of installing equipment and/or engaging professional services needed to comply with program requirements.
“Demand side management programs like Peak Performance will play a critical role in ensuring grid reliability, reducing peak demand, and supporting the integration of new technologies,” maintains Chuck Farmer, executive vice president, of power system development with Ontario’s Independent Electricity System Operator (IESO). “This new program for commercial and industrial participants will build on the success of Peak Perks, the Save On Energy demand response program for residential and small business consumers, which has more than 320,000 participants.”
The Peak Performance program is open to commercial, multi-residential and public sector buildings that are not registered in the Industrial Conservation Initiative (ICI), which provides potential for cost-savings for Class A customers with average monthly peak demand of at least 1 megawatt (1,000 kW). Building owners/managers who can meet the 500-kW peak reduction threshold within their portfolios can register directly with the IESO for the program, but smaller operators can also tap into the incentives via an aggregator. In all cases, the IESO will validate all submitted load reduction data and disperse incentives after the Sept. 30 end date for the program.
At least 75 per cent of the qualifying demand response must come from adjustments to HVAC-related loads. Enrollees are promised day-ahead notice that a call for consumption reduction may be coming, with confirmation whether that will be the case by 12 noon on the day itself. It’s expected that curtailment periods will last a maximum of three hours and likely occur in the hours between 3 p.m. and 7 p.m. during weekdays.
“The commercial HVAC demand response program is a smart, practical solution that benefits both the electricity grid and commercial buildings,” observes Susan Allen, president and chief executive officer of the Building Owners and Managers Association (BOMA) of Greater Toronto. “We are pleased to collaborate with the Province to support our members in participating in this important initiative.”
Stakeholders seeking guidance on the application process can submit a request via the Save On Energy website.
