DER Roadmap

DER Timeline

DER Project Overviews

SHOW ME

Distributed Energy Resource (DER) Potential Study

Wholesale Market Integration

This study will identify the types of DERs that are cost-effective and/or are likely to emerge in the near- to mid-term in Ontario. The study will then quantify the potential system value of these DERs and further estimate the extent to which the system value can be captured.

How it contributes: The results will inform how the studied DERs could be included in the DER participation model(s) for the wholesale market, and may provide insights into alternative pathways for DERs to deliver system value. 

Participate in the DER Potential Study.

Connections

This study will be a key input to the DER Market Vision and Design Project.

IESO/OEB Joint Targeted Call on DER Integration

Wholesale Market Integration

The IESO and Ontario Energy Board (OEB) have issued a joint targeted call for innovative DER integration projects. The joint call is funded through the IESO’s Grid Innovation Fund (GIF) and supported by the OEB’s Innovation Sandbox.

How it contributes: The targeted call seeks to demonstrate the capabilities of DERs in providing services at both the local and provincial levels, while also exploring market and regulatory barriers.

Learn more about the IESO/OEB Joint Targeted Call.

 

Connections

The Exploring Expanded DER Participation in the IAMs white paper series provided input into this project.

The learnings from the targeted call will be a key input to the DER Market Vision and Design Project.

Energy Efficiency (EE) Auction Pilot

Wholesale Market Integration

To complement existing incentive-based programs, the IESO has piloted an auction-based mechanism for procuring energy efficiency solutions.

How it contributes: The EE Auction Pilot demonstrates an open and competitive mechanism for procuring energy efficiency solutions. This work investigates how energy efficiency can be procured as a capacity resource and how its capacity price and value compare to other resources.

Learn more about the EE Auction Pilot.

 

Connections

This project will be input into the NWA Solutions Options Development and the Procurement Mechanisms for NWAs work. The pilot will also help inform energy efficiency procurement as part of other broader initiatives.

DER Market Vision Project (MVP)

Wholesale Market Integration

The DER MVP is the first phase of the DER Market Vision and Design Project. This work is a key focus area of IESO’s DER integration activities and is what much of the near-term DER Roadmap efforts build towards.

How it contributes: The DER MVP will identify foundational wholesale market participation models that will be designed and implemented in the DER Market Design Project. Enhanced DER participation model(s) and the criteria for implementing the enhancements at a future date will also be explored as part of the DER MVP.

Participate in the DER Market Vision and Design Project.

Connections

Inputs for this project include the Exploring Expanded DER Participation in the IAMs white paper series, the DER Potential Study, the IESO/OEB Joint Targeted Call, IESO’s York Region NWA Demonstration, the T-D Coordination Working Group, Lessons Learned from GIF Projects, and the DER Scenarios and Modelling Study.

This project is the primary input for the DER Market Design Project.

DER Market Design Project (MDP)

Wholesale Market Integration

The DER MDP is the second phase of the DER Market Vision and Design Project.

How it contributes: The DER MDP will involve detailed design and implementation of the foundational DER participation model(s) that were identified as part of the DER MVP.

Participate in the DER Market Vision and Design Project.

Connections

The primary input for this project is the DER MVP. Other inputs include the IESO/OEB Joint Targeted Call, the T-D Coordination Working Group, and Lessons Learned from GIF Projects.

Transmission-Distribution Coordination Working Group (TDWG)

Transmission-Distribution Coordination

This working group will leverage stakeholder expertise to inform the DER Roadmap’s T-D coordination activities.

How it contributes: The TDWG will propose high level T-D coordination processes, identify roles and responsibilities for the IESO, LDCs, and DER providers to help inform the development of DER participation model(s) for the wholesale market.

Connections

The primary inputs for this working group are the IESO’s York Region NWA Demonstration and the DER Scenarios & Modelling Study.

The outputs from this working group will inform the DER Market Vision and Design Project.

IESO’s York Region NWAs Demonstration

Transmission-Distribution Coordination Enabling Non-wires Alternatives

This project demonstrates the use of local auctions to facilitate the use of DERs in place of traditional infrastructure by enabling DERs to operate in real-world applications with a focus on coordination across the system.

How it contributes: The operations coordination learnings from the demonstration will inform the development of DER participation model(s) for the wholesale market. Learnings will also be informative for how to plan for and procure DERs to meet non-wires needs identified at the regional level.

Learn more about the demonstration project.

Connections

This project will contribute to the T-D Coordination Working Group and is an input to the DER Market Vision and Design Project. It also inform the NWA Solutions Options Development and the Procurement Mechanisms for NWAs work.

DER Scenarios & Modelling Study

Transmission-Distribution Coordination Enabling Non-wires Alternatives

This study will model T-D coordination protocols in detail, including active management of DERs, consideration of distribution automation, and the potential for DERs to meet local and system level needs simultaneously.

How it contributes: The study will develop and model foundational T-D operations coordination protocols, informing the rules and protocols for the IESO, LDCs and DER providers needed to enable DER participation model(s) in the wholesale market.

Connections

This study is a component of the IESO’s York Region NWA Demonstration.

The results of the study will be a key topic of discussion with the T-D Coordination Working Group and will inform the T-D coordination in the DER Market Vision and Design Project.

Local Initiatives Program (LIP)

Enabling Non-wires Alternatives

The Local Initiatives Program aims to demonstrate the use of targeted Conservation and Demand Management (CDM) as a cost-effective resource to help address identified local and/or regional needs.

How it contributes: The Local Initiatives Program seeks to demonstrate a targeted procurement strategy for CDM used as NWAs. The project will help inform how to plan for and procure CDM to meet non-wires needs identified at the local and/or regional level.

Learn more about local initiatives.

Connections

This project will be input into the Procurement Mechanisms for NWAs and NWA Solutions Options Development work.

NWA Regional Planning Process Improvements

Enabling Non-wires Alternatives

As part of the Regional Planning Process Review near-term action items, this project will refine the approach to identifying opportunities for cost-effective DER and energy efficiency to defer the need for traditional transmission solutions.

How it contributes: These improvements to the planning process will enhance transparency to stakeholders, provide greater consistency across planning regions, and help prioritize time and effort towards feasible and cost-effective NWAs.

Connections

This project is an input to the NWA Solutions Options Development and the Procurement Mechanisms for NWAs work.

NWA Solution Options Development

Enabling Non-wires Alternatives

As part of the Regional Planning Process Review action items, this project will develop NWA options in sufficient detail to assess their economic viability and operationalize Integrated Regional Resource Plan (IRRP) recommendations.

How it contributes: This project is expected to provide greater specificity in defining NWA solutions and allow more comprehensive evaluation of NWA options to enable potential future procurement mechanisms.

Connections

Key inputs of this project include the NWA Regional Planning Process Improvements as well as the IESO’s York Region NWA Demonstration and the Local Initiatives Program.

Procurement Mechanisms for NWAs

Enabling Non-wires Alternatives

As part of the Regional Planning Process Review action items, this project will consider how to procure resources as part of implementing NWA solutions, where cost effective.

How it contributes: This work will investigate the use of existing resource procurement mechanisms (e.g., Capacity Auction, Medium-Term RFPs, Long-Term RFPs, etc.) or define new approaches for procuring DERs and energy efficiency as NWAs.

Connections

Key inputs of this project include the NWA Regional Planning Process Improvements as well as the IESO’s York Region NWA Demonstration, the Resource Adequacy Framework, and the Local Initiatives Program.

Lessons Learned from Grid Innovation Fund (GIF) Projects

The IESO is enhancing public reporting on learnings from the GIF to share the results and insights generated from the participating projects. Lessons learned will be reported periodically and presentations will be provided to targeted audiences.

How it contributes: This work will make learnings from GIF projects more accessible by communicating key results, which cover a wide range of topics, to relevant stakeholders. Learnings from GIF projects are generally relevant to the DER Roadmap and will be used as part of a number of initiatives.

Connections

This project is an input to DER Market Vision and Design Project. It will also inform many of the other DER Roadmap initiatives.

One of the most significant changes to electricity systems around the world has been the rapid installation of distributed energy resources (DERs). DERs are resources that generate energy, store energy, or control load and that are connected directly to a local distribution system or to a host load facility within a local distribution system. They can include solar panels, combined heat and power plants, battery storage, electric vehicles, and consumers who can reduce electricity use on demand.

These resources can provide more control and choice for energy consumers, additional revenue streams for businesses, economic development and sustainability opportunities for communities, and can help defer or avoid investments in new transmission infrastructure. With Ontario electricity demand forecast to increase this decade, DERs can provide clean and local supply that helps keep the provincial grid reliable and affordable.

While DERs can provide benefits to customers and the electricity grid, they currently participate in the IESO’s wholesale market in a limited way. As a result, this DER Roadmap has been developed to set out the IESO’s goal, objectives, initiatives and timing for DER integration .

The roadmap was developed with stakeholder input and aligns other key IESO initiatives, such as the Resource Adequacy Framework and Enabling Resources Program. Stakeholders are invited to learn more about each project, provide input in ongoing engagements and participate in these pilot programs and initiatives. Progress updates on the DER Roadmap will continue through the DER Roadmap engagement.

The IESO's Objectives for DER Integration

The IESO’s goal for DER integration is to maximize the value DERs can provide to Ontario’s electricity system by addressing challenges and opportunities within its mandate. There are three key focus areas for DER integration activities and a time-bound objective for each:

Wholesale Market Integration: Introduce expanded wholesale market participation models that improve DERs’ ability to compete to provide the services they are technically capable of providing (2026).

Transmission-Distribution (T-D) Coordination: Implement operational coordination protocols between the IESO, local distribution companies (LDCs), and DER providers that enable DER participation in the wholesale market (2026).

Enabling Non-Wires Alternatives (NWAs): Develop approaches to identify needs, value alternatives, and identify acquisition methods for DERs as non-wires solutions to defer or avoid the need to build new transmission infrastructure (2024).