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Capacity-Based Demand Response

​The Capacity-Based Demand Response program is a transitional program, governed by the IESO Market Rules, which brings contracted demand response providers from the Demand Response 3 (DR3) Program into the wholesale energy market. The program, which currently maintains 159 MW of demand response capacity, provides availability and utilization payments to both aggregated and individual loads who are capable of reducing their consumption at times of peak demand and when it is cost-effective for them to do so. 

These resources are considered in the IESO economic dispatch process alongside bids and offers from other resources in the energy market and can be used on a province-wide basis or to meet more specific, locational needs.

Over time, the demand response capacity in the program will be reduced as the legacy contract dates for resources come due and their participation in the transitional program will end. As this capacity expires, these participants will have the opportunity to compete against other providers of demand response capacity through an auction. Eventually, they will have an opportunity to compete against other types of resources, such as generators and imports, in a capacity auction to meet Ontario's resource adequacy needs.

Settlements: Program Settlement Processing Timelines

The Capacity-Based Demand Response Program Settlement Processing Timelines document, found in Market Calendars, provides a one year reference on the deadlines for both the IESO and demand response market participants. These deadlines cover the processes from measurement and verification plan review to data submission and processing.

CBDR Operations and Rates

The Capacity-Based Demand Response Operational Information and Rates document provides a reference on the Notification timelines, Hours of Availability, Rate Information, and Participation Zones for demand response market participants. This information is used to operate and manage the existing CBDR resources.

Resources: Summary of Program Resources

CBDR Resource Designated Settlement Area(s) Availability Window
DR3_TORONTO_EARLY All            Early Window 12:00 p.m. to 6:00 p.m. E.P.T. throughout the year
DR3_NE_LOAD1_LATENorth East (Applicable to a single Direct Participant)

Late Window 1:
4:00 p.m. to 9:00 p.m. E.P.T. (October 1 to May 31)

Late Window 2:
12:00 p.m. to 9:00 p.m. E.P.T. (June 1 to September 30)

DR3_NORTHEAST_LATE North East, North West
DR3_NW_LOAD2_LATE North West (Applicable to a single Direct Participant)
DR3_SOUTHWEST_LATE Georgian Bay, South Central, South West, Bruce
​DR3_TORONTO_LATE East, Essa, Toronto
DR3_WEST_LATE Long Point, West