These two programs are similar in that they both involve a reducing electricity demand from the grid to help manage it during system peaks. Participants in DR and ICI receive payments and savings in return for helping the grid, however, there are major differences between the programs. Firstly, the Demand Response program results in cash payments from the system operator through an agreement. In the ICI program, the value comes in the form of savings that show up on monthly bills. Like any other energy cost saving program, the amounts are calculated from a baseline.
Although ICI is unique to Ontario, there are other jurisdictions with high portions of electricity charges related to system and facility peaks. Also, it’s important to note that the Demand Response Program in Ontario has changed and is now managed under a larger program umbrella named the “Capacity Market”.
Another major difference is that in Demand Response programs, the system operator will tell the facility when to curtail their load. There is a predetermined and agreed-upon amount for the required load reduction from the grid. In the ICI program each participant must decide how much and when to reduce their load to comply with the program rules to receive the available savings.
Edgecom Energy provides solutions for both ICI and Demand Response. For ICI participants, our pTrack™ peak prediction software solves the problem of when to curtail; Our Curtailment Action Plan Analysis (CAPA) solves the problem of how much and how to curtail. Our energy monitoring solutions provide real-time visibility of your curtailment effort and accumulated savings. For Demand Response contributors, Edgecom Energy is a registered market participant with the IESO with the most advanced participation tools and competitive aggregation fees in the market. Learn more about EE Demand Response.
System-Backed Capacity Import Resources are one of the newer resource classes eligible to participate in the Independent Electricity System Operator (IESO)'s Capacity Auction. This raises the question: What is a System-Backed Capacity Import Resource?
Virtual power plants (VPPs) are the future of our electric grids. The grid's current aging infrastructure was built around electricity flowing in one direction, from the central power plant to the end-user. However, with the introduction and the resulting rise in popularity of distributed energy resources (DERs) like solar panels, wind turbines and battery storage systems, the grid is now required to handle electricity coming from the central power plants and the end-users.
Edgecom Energy is an Independent Electricity System Operator (IESO) market participant that acts as a capacity aggregator for participation in the Capacity Market. Aggregators simplify participating in the Capacity Auction for their customers and reduce the number of moving parts the IESO has to deal with on their end.