Corporate Power Purchase Agreements (C-PPAs) for ICI Participants
Overview
In June 2025, Ontario Regulation 429/04 (the “Regulation”) was amended to create a new regulatory framework that enables large electricity consumers to access clean electricity through Corporate Power Purchase Agreements (C-PPAs). These changes take effect with the 2026–2027 base period.
The framework supports participants in the Industrial Conservation Initiative (ICI) program by allowing them to enter into C-PPAs with renewable generators located anywhere in Ontario. This initiative helps consumers manage electricity costs and meet clean energy goals, while providing new revenue opportunities for generators.
Eligibility and Participation Requirements
To participate, both the large electricity consumer and the generator must be market participants and meet the requirements set out in the Regulation.
Participants are required to submit prescribed forms and supporting documentation to confirm regulatory compliance. Submissions include, but are not limited to:
- A signed Eligible Purchase Agreement
- An attestation confirming that participants meet, and will continue to meet, the Regulation’s requirements throughout the base period
How C-PPAs Work
C-PPAs are typically structured like virtual power purchase agreements (VPPAs), where financial settlement is separate from the physical delivery of electricity. Under these agreements, the generator’s output can be used to offset the consumer’s demand during peak periods, which may help reduce Global Adjustment charges under the ICI program.
This structure offers participants a flexible tool to manage electricity costs and support clean energy goals, while providing new revenue opportunities for generators of renewable electricity.
The Independent Electricity System Operator (IESO) is responsible for administering both the ICI program and the C-PPA framework.
Key Dates
|
Submission Type |
Deadline |
|---|---|
|
Pre-base period submission window* |
February 1st - March 30th of the applicable base year |
|
Post-base period submissions |
Within 15 days after the base period ends |
*IESO strongly suggests submitting early in the submission window to allow sufficient time to remedy any issues ahead of the beginning of the base period
Resources
The IESO has published draft materials to help stakeholders understand the C-PPA framework and prepare for the 2026 submission window. These materials include:
Draft C-PPA Program Guideline
- Draft C-PPA Program Guideline (October 8, 2025)
Draft C-PPA Frequently Asked Questions (FAQs)
- Draft C-PPA FAQ (October 8, 2025)
Draft C-PPA Prescribed Forms and Workbooks
- Draft Prescribed Form: Attestation for Eligible Purchase Agreement - Pre-base Period (October 8, 2025)
- Draft Eligible Purchase Customer Workbook (October 8, 2025)
- Draft Eligible Generator Workbook (October 8, 2025)
- Draft Prescribed Form: Attestation for Eligible Purchase Agreement - Post-base Period (October 8, 2025)
Stakeholder Engagement
To help stakeholders understand the C-PPA framework, the IESO is hosting a stakeholder engagement session on Tuesday, November 4, 2025 at 10:00 am (ET).
Engaging Stakeholders
Stay Informed
To receive updates on the C-PPA framework, subscribe to the C-PPA distribution list.
For inquiries, please contact: corporateppa@ieso.ca