Markets and Related Programs

As a low cost resource, energy efficiency (EE) is leveraged to support overall system reliability. The existing incentive-based programs have proven to be successful but as part of the IESO’s drive for competition and cost-effectiveness, the IESO is piloting an auction-based mechanism for procuring EE. The energy efficiency auction pilot will procure up to 13 MW peak demand reductions from energy efficiency and non-dispatchable load-shifting resources (EE capacity). The learnings from the pilot will inform long-term options for enabling EE to compete to meet system needs through an appropriate market-based mechanism.

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.

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Enrollment Packages due February 10, 2021:

If your organization is interested in participating in the Pilot, you must submit the following documents as part of your enrollment package:

• Articles of Incorporation
• Most recent audited financial statement – must be no more than three years old, not required for registered market participants
• A signed EE Pilot Auction Participation Agreement
• Completed EE Resource Plan Template
• Substantiation sheets (see Appendix C of M&V Procedures document for template) – required for any measures that are not included in the Measure Reference Manual where deemed savings M&V approach will be used

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.

• EE Auction Pilot Detailed Design document (updated November 11, 2020)
• EE Auction Pilot Detailed Design document – redline (posted November 11, 2020) 
• Appendix A EE Auction Pilot Participant Agreement (Updated November 11, 2020)

• Appendix A EE Auction Pilot Participant Agreement – redline (posted November 11, 2020) 

• Appendix B EE Auction Pilot M&V Procedures
• Appendix B EE Auction Pilot M&V Procedures – redline (posted November 11, 2020) 

• Appendix C EE Auction Pilot Measure Reference Manual
• Appendix D EE Resource Plan template (updated November 11, 2020)
• Appendix E EE Resource Plan Update template
• Appendix F EE Resource Report template
• Appendix G Auction Offer template
• EE Auction Pilot FAQs
  
  

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. Presentation Recorded Presentation

If you have any questions on these changes or to keep up to date with news, please email eeauctionpilot@ieso.ca.