IESO York Region Non Wires Alternatives Demonstration Project

The IESO, with support from Natural Resources Canada, is undertaking a demonstration in York Region to explore market-based approaches to secure energy and capacity services from distributed energy resources (DERs) for local needs, while coordinating across the electricity system. A key objective of the IESO York Region Non Wires Alternatives Demonstration Project is to better understand the potential of using DERs in place of traditional infrastructure by enabling them to operate in real-world applications. The demonstration will leverage both existing and new resources in southern York Region, where electricity demand is growing and is expected to exceed system capability over the next 10 years. The Demonstration Area is identified on this map to assist potential participants. The project is funded through the IESO’s Grid Innovation Fund and Natural Resources Canada, and will be delivered by Alectra Utilities, the local distribution company in York Region.

Development of the project is being informed by two IESO-led white papers, one of which describes how transmission and distribution systems will need to function and interact with each other in a high-DER future. The second paper considers different market-based approaches for procuring DERs, explores how the resources can operate to meet local needs and wholesale market needs, and outlines the coordination required to ensure they can do both without adversely impacting reliability.

The IESO will present and seek feedback on the design of the demonstration including proposed resource eligibility, demonstration timelines, distribution locational marginal pricing, participation rules, and the participation agreement. All comments and enquiries on this engagement can be directed to

Related Information

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Schedule of Activities

Date Engagement Activity Webinar Registration and Recordings

October 20-21, 2021

Local Capacity Auction (Year 2)


August 25, 2021

Final Demonstration Project Rules (Year 2) posted:

Final standard Contract (Year 2) posted:



August 25, 2021

Initial Registration Open (Year 2) – visit


August 11, 2021

IESO is seeking feedback from participants on the Draft Demonstration Project Rules and Draft Standard Contracts.


July 20, 2021

Public webinar where the IESO and Alectra will provide an overview of the second operational year of the IESO’s York Region Non-Wires Alternative Demonstration Project for prospective participants as well as the broader stakeholder community. The presentation will include a summary of the demonstration to date and will describe the updated draft project rules and contracts for participation, including the newly introduced local reserve service for the upcoming second year and that is complementary to the local capacity and energy services from last year. Stakeholder feedback will be sought on the Demonstration’s design parameters and, with respect to prospective participants, details about their DERs’ characteristics.

Recorded Presentation

This webinar was presented during the IESO's July stakeholder engagement sessions, see full agenda for more information.

April 14, 2021

Year 1 Engagement Summary Report


November 2020

Local capacity auction (Year 1)


October 13, 2020

Final standard Contract (Year 1):


September 23, 2020

Initial registration is now open (Year 1)


September 14, 2020


  • Communication

Final Demonstration Project Rules (Year 1) posted:



August 13, 2020

IESO is seeking feedback from participants on the Draft Demonstration Project Rules.

IESO Response to Stakeholder Feedback



July 23, 2020

Public webinar to present an overview of the draft Demonstration Rules and describe requirements for participants

Webinar will also focus on distribution locational marginal pricing (DLMP) to inform stakeholders on the concepts behind the demonstration’s proposed local energy auction price.

Recorded Presentation

This webinar is being presented during the IESO's July stakeholder engagement meetings. See agenda for more information.

Registration List

July 9, 2020


Development of a Transmission-Distribution Interoperability Framework

Download a copy.


June 1, 2020

Non-Wires Alternatives Using Energy and Capacity Markets white paper

Download a copy.


January 10, 2020

Stakeholder feedback due on materials presented at December 12th meeting

IESO response to stakeholder feedback


December 12, 2019

Public webinar

Draft white papers:

  • Communication
  • Non-Wires Alternatives Using Energy and Capacity Markets
  • Development of a Transmission-Distribution Interoperability Framework

Recorded presentation