2025-2036 Electricity Demand-Side Management Framework

As one of the lowest-cost resources, investment in energy efficiency through demand-side management is an essential component of electricity resource procurement; and plays a unique role in ensuring a reliable, affordable, and sustainable grid now and into the future.

To capture the opportunities and grow the savings from energy efficiency, the IESO is continuing to lead the way in energy-efficiency programming in North America through a $10.9 billion, 12-year funding commitment from the Ontario government, beginning January 2025, that will provide continued and expanded opportunities for residential and business electricity consumers across the province to manage their electricity use and electricity costs.

The 2025-2036 Electricity Demand-Side Management Framework is an enduring approach to energy efficiency that enables the IESO to optimize the full value of demand-side management in a variety of ways:

  • Provide Ontario homes and businesses with continuing opportunities to manage their electricity costs.
  • Empower Ontarians to take actions that will collectively make a difference and help us achieve a sustainable energy future.
  • Reduce future electricity system costs by decreasing the amount of new supply and transmission lines needed to meet growing demand for electricity.
  • Offer greater certainty to the marketplace that demand-side management programs will be available for the longer term.
  • Allow contractors and service providers to continue investing in their business and staff complement with available ongoing opportunities.
  • Empower greater consumer engagement on a regional level and programs to help address local system needs through the involvement of local distribution companies (LDCs).
  • Enable the IESO to collaborate with sector partners — including LDCs, Enbridge Gas, delivery partners and trade allies — on the promotion of programs and innovative offerings for both residents and businesses.

The Ontario government has also directed the IESO to include beneficial electrification measures to promote the use of electricity to improve energy affordability, expand customer choice and reduce emissions in Ontario, while minimizing impacts to the electricity system. The delivery of beneficial electrification measures is expected to begin with a focus on residential consumers that heat their homes with non-regulated fuels like heating oil.

The IESO will manage the framework through three-year demand-side management plans that establish budgets and demand and energy savings targets by sector, with a mid-point review in year six.

Supporting  Material

2025-2027 Electricity Demand-Side Management Program Plan (with Beneficial Electrification) (PDF) - includes the programs to be offered and a breakdown of program budgets, and energy savings and peak demand targets expected to be achieved as well as forecasted cost effectiveness for each program.