New demand response initiative for Ontario

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Toronto, ON, Canada — (METERING.COM) — January 20, 2009 – A new demand response initiative has been introduced in Ontario targeting large industrial customers across the province that can consistently shift their electricity requirements during peak periods when the provincial system needs to curtail electricity use.

The initiative, known as DR2, is one of a number of demand response programs from the Ontario Power Authority (OPA), which give Ontario businesses more ways to manage their energy use as well as contribute to the province’s conservation targets. With these programs more than 560 MW of peak load reduction can be called upon during peak periods.

DR2 is a load shift program with contractual obligations. Participants can contract to reduce a predetermined amount of load for a minimum period of four consecutive hours up to a maximum of 12 consecutive hours, each business day on-peak period, and to therefore increase load during the off-peak period. There are three options for participation – summer months, winter and summer months, or all year. Failure to comply with the contract requirements can result in set-offs against potential revenue.

DR 2 is expected to attract industrial or manufacturing businesses able to create stocks of partially processed materials, manufactured during low energy cost periods, which would otherwise have been created during periods of high electricity prices.

A typical company with 5 MW of load shifting potential could receive an annual incentive payment of Ca$0.5 million (US$0.4 million) or more.