Ontario Energy Association and Energy Storage Canada Support Widespread Adoption of Distributed Energy Resources (DERs)
TORONTO, Dec. 12, 2024 /CNW/ - Today the Ontario Energy Association (OEA) and Energy Storage Canada (ESC) released From Small to Mighty: Unlocking DER's to Meet Ontario's Electricity Needs. The report recommends a policy and regulatory framework aimed at enabling the widespread adoption of Distributed Energy Resources (DERs) across the province. Such a forward-looking strategy would maximize benefits for electricity customers through affordability, bill savings, and enhanced resilience; for the electricity grid through improved reliability; and for economic and environmental benefits through emission reductions.
A Framework for DERs in Ontario
The vision emphasizes empowering Ontario residents and businesses to manage their energy costs through DERs, such as rooftop solar panels, battery energy storage systems (BESS), and demand-response technologies. By leveraging DERs, the province can enhance affordability, grid reliability, and emissions reductions.
"To most efficiently meet Ontario's future energy needs requires us to modernize our policies, regulatory framework and electricity grid to accommodate and integrate distributed energy resources (DERs)," said Vince Brescia, President & CEO, Ontario Energy Association. "The framework put forward today provides one key element of a customer-centric, scalable, and environmentally responsible approach to meeting some of Ontario's growing energy demands."
"Energy Storage of all types and durations is going to be critical to meeting the future needs of Ontario's electricity system and this absolutely includes leveraging the value energy storage systems can provide as DERs," said Justin Rangooni, President & CEO, Energy Storage Canada. "Ensuring the alignment of procurement and planning to enable DERs, enabling DERs' full participation in IESO markets & procurements, and modernizing the province's policy and regulatory frameworks will ensure we are utilizing the full range of benefits DERs can provide the grid to increase affordability, flexibility, and reliability in the electricity system."
Key principles of the framework include:
- Affordability for Customers: Enabling households and businesses to use DERs to manage energy costs and participate in the electricity market.
- Grid Modernization: Supporting investments in advanced grid technologies to improve efficiency, reliability, and flexibility.
- Environmental and Economic Benefits: Promoting clean energy solutions that reduce greenhouse gas emissions and drive economic growth.
- Fair Compensation for DERs: Ensuring equitable payment for the multiple services DERs provide to the wholesale market, distribution systems, and end-users.
Background: Addressing Ontario's Energy Needs
Ontario's electricity demand is projected to grow by 75% by 2050, from 151 TWh in 2025 to 263 TWh. The scale of Ontario's developing needs underscores the need for a broader and flexible approach.
As one element of a broader framework, ESC and OEA propose a complementary procurement stream led by Local Distribution Companies (LDCs) to address smaller-scale, localized DER projects. This would empower LDCs to leverage their direct customer relationships, grid visibility, and operational experience to accelerate DER deployment.
The framework proposes a "walk-jog-run" approach:
- Walk Phase: Immediate development of DERs through LDC-led procurement and foundational investments in grid modernization.
- Jog Phase: Enhanced coordination between LDCs and the IESO to enable local flexibility markets and meet near-term supply needs.
- Run Phase: Full integration of DERs into wholesale and distribution markets, supported by refined market rules and advanced systems.
Actions for Immediate Implementation
The OEA and ESC call on the Ontario government to:
- Enable LDC-led DER procurements through policy direction to the Ontario Energy Board (OEB) and the IESO.
- Expand IESO's annual capacity auction targets to increase participation of aggregated DERs.
- Modernize regulations to support DER deployment, including reducing barriers to interconnection and eliminating gross load billing for behind-the-meter resources.
- Support the development of LDC-led local flexibility markets that integrate DERs efficiently and allow for cost-effective grid optimization.
As Ontario prepares for significant industrial growth and rising energy demand, DERs offer an agile, community-friendly, and cost-effective solution. By embracing this framework, Ontario can build a more resilient, reliable, and sustainable energy future.
About the OEA
The OEA is the credible and trusted voice of the energy sector. We earn our reputation by being an integral and influential part of energy policy development and decision making in Ontario. We represent Ontario's energy leaders that span the full diversity of the energy industry. Learn more at www.energyontario.ca.
About Energy Storage Canada
With approximately 100 members, Energy Storage Canada (ESC) is Canada's only national trade association dedicated solely to the growth & market development of energy storage through policy advocacy, education, collaboration, and research. ESC is technology-agnostic and not-for-profit, representing the full value chain for energy storage from end to end. Learn more at: www.energystoragecanada.org
SOURCE Ontario Energy Association (OEA)
Vince Brescia, President & CEO, Ontario Energy Association, 416.605.3166, [email protected]; Justin Rangooni, President & CEO, Energy Storage Canada, 647.627.1815, [email protected]
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