The Ontario government is rolling out a new initiative aimed at reducing pressure on the province’s electricity grid while offering financial incentives to businesses that cut energy use during peak demand periods.
The new Peak Performance program, announced Thursday by the Ministry of Energy and Mines, is part of the province’s broader Energy Efficiency Framework and is designed to encourage commercial and institutional buildings to temporarily reduce electricity consumption, particularly HVAC use, during periods of high demand.
The program will offer financial incentives to participating facilities that reduce or shift electricity use during peak hours between June 1 and September 30. Eligible participants must be able to reduce at least 500 kilowatts of demand individually or as part of an aggregated portfolio and will receive $20 per kilowatt to help offset the cost of monitoring and control equipment.
“Our government is taking action to help consumers and businesses keep costs down while ensuring Ontario’s electricity system remains reliable during periods of high demand,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. “The new Peak Performance program will give commercial and institutional buildings a new way to manage electricity use during the summer and support a stronger, more efficient grid.”
The province says the initiative is intended to help manage rising demand, with electricity use projected to increase by up to 90 per cent over the next 25 years. Officials say large buildings such as offices, retail centres and universities are key targets, as they contribute significantly to peak summer electricity demand while often operating at reduced occupancy.
Starting immediately, eligible participants can sign up to reduce HVAC use for up to three hours on business days when the grid is under stress.
“In this tariff war, Premier Ford is laser-focused on protecting affordability for Ontario families and businesses,” said Stephen Lecce, Minister of Energy and Mines. “That is why our government cut the gas tax by 10 cents per litre, opposed the carbon tax, and introduced Ontario’s largest energy savings program. Our government is taking another step forward unveiling another financial incentive for businesses, reducing their energy bills and saving the grid electricity.”
The government says the broader Energy Efficiency Framework is expected to reduce peak electricity demand by 3,000 megawatts by 2036, equivalent to the output of several major generation projects. Officials also say the plan will help avoid billions in system costs by reducing the need for new electricity infrastructure.
Peak Performance builds on existing initiatives such as Peak Perks, a residential and small business demand-response program described by the province as Canada’s largest virtual power plant, with more than 300,000 participants.
The full Energy Efficiency Framework is valued at $10.9 billion over 12 years and is part of Ontario’s broader energy strategy aimed at improving grid reliability and supporting economic growth.
More information is available through the Ministry of Energy and Mines.
