2021-2024 Conservation and Demand Management Framework
The 2021-2024 Conservation and Demand Management Framework (CDM) will help the province to cost-effectively meet its electricity system needs through the delivery of programs, training and other mechanisms that enable Ontario’s electricity consumers to improve the energy efficiency of their homes, businesses, institutions and industrial facilities. As the province recovers from the economic impacts of COVID-19, energy usage is changing. Programs under the framework provide continued opportunities for electricity consumers to save on energy costs and to address not only bulk system needs and customer needs, but local and regional electricity needs across Ontario as well.
The IESO projected in its 2021 Annual Planning Outlook that there would be a need for additional electricity capacity beginning in 2025, and the 2022 Annual Acquisition Report identified necessary actions to ensure system reliability, including new energy-efficiency programs. Based on expedited findings from the mid-term review, the government accepted the IESO’s recommendation to roll out new and expanded energy-efficiency programs, which are among the lowest-cost ways of meeting system needs, for spring 2023.
In October 2022, the IESO received a ministerial directive in connection with the 2021-2024 Conservation and Demand Management (CDM) Framework to enable additional CDM programming through a $342 million increase to the budget, from $692 million to a total of just over $1 billion. This new funding and programming will deliver additional peak electricity demand savings of 285 megawatts (MW) and annual energy savings of 1.1 terawatt (TWh) by 2025.
On December 15, 2022, the IESO submitted its 2021-2024 CDM Framework Mid-Term Review that evaluates program offerings and targets, and suggests recommendations and next steps.
In the remaining two years of the framework, enhancements will be made to the programs to reflect changing market conditions and customer feedback. This takes the four-year framework’s cumulative targets to 725 megawatts (MW) of peak demand savings and 3.8 terawatt-hours (TWh) of energy savings by 2025, with continued savings persisting well beyond the framework term.
June 8, 2023: 2021 Energy Efficiency Report Released
In the first year of the 2021-2024 CDM Framework, modest progress was made to the new set of provincial targets. Participation in Save on Energy programs is expected to increase throughout the remaining years of the framework and the IESO expects to achieve the framework targets. Overall, 451 gigawatt-hours (GWh) of energy savings (83 percent of the annual target) was achieved by the end of 2021, as well as 76 megawatts (MW) of peak demand savings (86 percent of the annual target). This involved 19,116 energy-efficiency projects across the suite of Save on Energy programs. These achievements include both “actual savings,” which result from completed projects, and “committed savings,” which represent projects that have been pre-approved for implementation but have not yet completed.
Current Save on Energy programs under the framework include:
- Retrofit Program
- Small Business Program
- Energy Manager Program
- Energy Performance Program
- Energy Affordability Program
- Energy-efficiency programming for First Nations
- Industrial Energy Efficiency Program
- Local Initiatives Program
- Foodservice Distributor Discount Program
The following additional Save on Energy programs were already planned to launch in 2023:
- Strategic Energy Management Program, an evolution of the Energy Manager Program
- Existing Building Commissioning Program
- Commercial Midstream Lighting Program
- Additional local initiatives in targeted areas of the province where electricity constraints exist.
The IESO is working toward delivering four new or enhanced Save on Energy programs in response to the October 4, 2022, ministerial directive:
- a new residential demand response program
- new targeted support for greenhouse growers in Southwest Ontario
- enhancements to the Save on Energy Retrofit Program to include custom energy-efficiency projects
- enhancements to the Save on Energy Local Initiatives Program.
For more information, please visit the Save on Energy website.
More information on the framework, including a detailed breakdown of program budgets and energy savings and peak demand targets expected to be achieved, can be found in the CDM Framework Program Plan, which has been updated to reflect the enhanced budget and targets from the October 4, 2022 ministerial directive.