As part of Ontario’s Integrated Energy Plan, announced by the Minister of Energy and Mines on June 12, 2025, the government is directing the IESO to provide updated recommendations for a Hydrogen Interruptible Rate Pilot (H2 IRP). This pilot would offer hydrogen producers the opportunity to manage their electricity costs in exchange for reducing their consumption during peak demand periods—when electricity system needs are greatest.
In 2023, the IESO received a directive to report back on a tailored H2 IRP for electrolyzer-based hydrogen producers in Ontario. Initial engagement with developers took place in summer 2023; however, the report-back was paused in fall 2023 due to uncertainties surrounding the Clean Hydrogen Investment Tax Credit (ITC).
This pilot builds on the existing Interruptible Rate Pilot, which allows large electricity consumers to test a new approach to reducing Global Adjustment charges by curtailing usage during IESO-identified system need periods.To help inform the updated recommendations, the IESO is looking to reconnect with hydrogen producers that are considering developing electrolyzer-based projects in Ontario.
Interested parties are invited to contact the IESO at engagement@ieso.ca.
IESO to report back to Ministry of Energy on a plan to design and implement a Hydrogen Interruptible Rate Pilot
July/August 2023
Focused consultation with potential pilot participants:
IESO to hold meetings with hydrogen developer organizations that express interest in the pilot
IESO to solicit feedback on pilot design features that would support participation and leverage the flexibility of electrolyzer-based hydrogen production facilities
