Local Generation Program

The IESO recognizes that distributed energy resources (DERs), such as smaller scale, distribution-connected generation, can offer value to our electricity system as Ontario’s demand for electricity continues to grow. Locally sited resources can help support municipal clean energy commitments, address local energy supply concerns, and empower more Ontario customers and business to participate in the electricity system.

Ontario has nearly 2,000 MW from roughly 1,600 existing biogas, wind, solar, and combined heat and power facilities with contracts sunsetting over the next ten years. To continue to benefit from the value provided by these distribution connected generation assets, the IESO is engaging on a proposal to establish the Local Generation Program, which will enable re-contracting of existing resources, and consider opportunities for expansions and new-build facilities. Eligibility for this competitive program will be aimed at providing opportunities for non-market participant, distribution connected, generation (energy producing) resources, between 100 kW and 10 MW in size.

The IESO has been directed by the Minister of Energy and Electrification to report back on this opportunity by April 2025 with a target launch date for the program in 2026.

The purpose of this engagement is to communicate the IESO’s proposed high-level program design and gather feedback from stakeholders and communities to help ensure that the program developed meets the objectives. IESO anticipates at least two engagement sessions before the initial report back to the Minister.

The IESO encourages any stakeholders interested in the Local Generation Program to remain informed and active on this engagement.  To be added to the distribution list for communications related to this engagement, please email engagement@ieso.ca.

Related Information

Engagement Plan

Schedule of Activities