IESO Announces Results of Demand Response Auction
December 12, 2019
The IESO’s fifth demand response (DR) auction secured capacity from consumers that will help to ensure the reliability of Ontario’s electricity system for the summer 2020 and winter 2020/2021 periods.
The DR auction has been an annual competitive process through which participating residential, commercial and industrial consumers are selected to be available to reduce their electricity consumption as needed. Successful DR providers help to maintain the reliability of the province's electricity system, while auction participants benefit by offsetting their energy costs and improving their competitiveness.
The average annual clearing price of this year’s auction was $58,725/MW, a 36% decrease since the first auction in 2015. The average of the summer and winter qualified capacity was 1,462 MW, a slight drop from last year’s 1,490 MW, while the number of auction participants increased.
Starting next year, the IESO will evolve the DR auction into a broader capacity auction in which other resources—such as generators, imports and energy storage—can compete. Allowing other resources to participate next year will increase competition and put downward pressure on costs for Ontario consumers.
The competitiveness of the auction will ultimately drive innovation and attract new and innovative technologies to enter the market, as well as low-cost resources that may not have had the opportunity to compete under previous targeted IESO procurements.
The implementation of the first capacity auction is pending the outcome of an Ontario Energy Board review, which is expected to conclude in late January.
More information about this year’s DR auction results:
- The auction cleared 858.6 megawatts (MW) for the 2020 summer commitment period and 919.3 MW for the 2020/2021 winter commitment period
- There were 52 organizations registered as auction participants, an increase of 14 over last year
- There were 22 organizations that bid into the auction, an increase of five over last year
- Eight of the 22 participants were new to the auction this year
The full list of this year’s successful participants is as follows:
|
Participant Name |
Summer Capacity |
Winter Capacity |
|---|---|---|
|
AIR LIQUIDE CANADA INC. |
18 |
27 |
|
DEMAND POWER GROUP INC. |
1 |
8 |
|
DIRECT ENERGY MARKETING LIMITED |
10.5 |
5 |
|
EDGECOM ENERGY INC. |
27.1 |
36.9 |
|
ENEL X CANADA LTD. |
207.6 |
196.6 |
|
EN-POWERED INC. |
6.2 |
8.6 |
|
ESSEX ENERGY CORPORATION |
2 |
2 |
|
ESSROC CANADA INC. |
18 |
18 |
|
GC PROJECT LP |
19 |
16.3 |
|
GERDAU AMERISTEEL CORPORATION |
72 |
72 |
|
GERDAU AMERISTEEL CORPORATION -CAMBRIDGE |
2.4 |
2.4 |
|
GREAT CIRCLE POWER CORPORATION |
19 |
|
|
IVACO ROLLING MILLS 2004 L.P. |
25 |
25 |
|
NRG CURTAILMENT SOLUTIONS CANADA, INC. |
128.2 |
117.1 |
|
NRSTOR C&I L.P. |
20.3 |
20.3 |
|
OHMCONNECT, INC |
1 |
1 |
|
PEAK POWER INC. |
1.6 |
1.6 |
|
RESOLUTE FP CANADA INC. |
28 |
|
|
RODAN ENERGY SOLUTIONS INC |
230 |
235.6 |
|
STEM ENERGY CANADA INC. |
2.3 |
12.7 |
|
VOLTUS ENERGY CANADA LTD |
66.4 |
66.2 |
|
Total |
858.6 |
919.3 |
Additional information about the auction is available on Demand Response Auction webpage.