2021-2024 CDM Framework Directive Issued by Ontario Minister of Energy, Northern Development and Mines to IESO

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Energy Team

The Minister of Energy, Northern Development and Mines (MENDM) has issued a directive to the Independent Electricity System Operator (IESO) to implement a 2021-2024 Conservation and Demand Management (CDM) Framework launching the week of January 4, 2021.

The Directive was informed by stakeholders’ submissions in response to the 2021-2024 CDM Framework Proposal that was posted for comment over much of the summer.

Per the IESO posting, the new framework will be centrally delivered by the IESO under the Save on Energy brand and will include incentive programs targeted to commercial, industrial, institutional, on-reserve First Nations, and income-eligible electricity consumers.

As noted in the Framework Proposal, the Directive states that competitive procurement and calls for proposals will be leveraged to increase competitions and highlight consumer-based solutions.

The Framework will focus on measures that achieve provincial peak demand reductions, as well as targeted approaches to address regional and/or local electricity system needs. The programs will target the commercial, industrial, institutional (ICI) consumers, on-reserve Indigenous consumers, and low-income and income-eligible consumers.

Residential offerings will be focused on the development of tools and guidance to help improve energy efficiency awareness.

The Directive indicates that due to limited forecasted needs in the Framework’s first two years, programs will be designed to maintain program delivery capacity in the province and meet consumer needs, and will look to develop new programs in 2023, after a mid-term review has taken place.

The Directive also notes that the IESO will coordinate the delivery of CDM programs with entities delivering natural gas Demand Side Management (DSM) programs.

IESO will now prepare its management plan for the implementation of the Framework and deliver it to MENDM by December 1st, 2020.

Please let our team know if you have any questions, or if we can help.

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