Energy Efficiency Auction Pilot

As a low cost resource, energy efficiency (EE) helps support overall system reliability. To complement existing incentive-based programs, the IESO has piloted an auction-based mechanism for procuring energy efficiency. The energy efficiency auction pilot has secured 7.4 MW of peak demand reductions for the winter of 2022/23 and 6.6 MW for the summer of 2023. See the links below for more information. The learnings from the pilot will be used to inform future IESO energy efficiency programs and procurement initiatives.

The pilot’s learning objectives:

  • Assess the interest and ability of different sectors (sophisticated large or multi-site customers, energy service companies, local distribution companies, etc.) to compete to provide EE capacity through an auction-mechanism
  • Discover the price of EE capacity with competition for delivery enabled
  • Evaluate strengths and weaknesses of M&V procedures for confirming capacity contributions from EE resources
  • Assess the unique characteristics of EE resources (project implementation timeline, deliverability, savings persistence, etc.) versus traditional supply resources

The auction will take place in March 2021 for capacity delivery starting in winter 2022 and summer 2023.

Auction Pilot Results

On March 22 and 23, 2021, the IESO received offers from Potential Participants in the Auction Pilot. The IESO has run the auction and selected the successful offers. For more information, see the EE Auction Pilot post-auction report and announcement.

Related Information

The IESO has made some minor updates to the EE Auction Pilot design documents since they were first posted in response to stakeholder questions. The changes are outlined below.

The EE auction pilot is not part of the CDM Frameworks under which the IESO operates the Save on Energy programs. The change in the CDM Framework for 2021 has no impact on the auction pilot, which is funded by the Grid Innovation Fund.

On November 12, 2020 the IESO held a public webinar to walk through the November 11, 2020 document updates and provide an overview of the main steps required to participate in the Auction Pilot.

If you have any questions on these changes or to keep up to date with news, please email