December 15, 2023 - Under section 57.1 of the Ontario Energy Board Act, 1998, the OEB has the authority to grant temporary licence exemptions for innovative pilot projects. Click here to find out more information.
October 31, 2023 - The OEB has selected six projects to receive one-time total funding of $1.5 million to support innovation in the energy sector as part of its Innovation Sandbox Challenge.
OEB Innovation Sandbox ChallengeThe OEB Innovation Sandbox is led by OEB staff and provides two services:
For innovators with questions about an idea or concept, the Information Service is an informal way to speak with OEB staff about the OEB's regulatory framework and how it applies to your idea or concept.
For those with a proposed pilot project, OEB staff can provide written guidance specifically tailored to your project. Staff can also help with requesting temporary relief* from a regulatory barrier. Staff will provide their support to pilot projects that show clear potential to benefit Ontario’s energy consumers.
* Keep in mind that that the OEB may provide temporary exemptions from its own regulatory requirements such as OEB codes, rules and licences (e.g., Distribution System Code, Retail Settlement Code) but are unable to provide exemptions that are found in statutes and regulations (e.g., Electricity Act, 1998, Ontario Energy Board Act, 1998).
Find out more about the ProcessThe "as-it-happens" dashboard provides insights into projects that have received Sandbox support.
* "Distributed Energy Resources" category includes EVs
The list of proposals below provide detail into the Sandbox support request and support provided to proponents that sought Project-specific Support.
MFN proposed to own and operate a renewable generation facility paired with a storage facility to supply electricity to a privately-owned quarry. The project considers multiple configurations, including wind turbines or a solar panel system with storage, that would supply electricity to the quarry to reduce its reliance on diesel generators, with excess generated electricity conveyed to a distribution system for net metering credits.
Support Sought:Staff's view on whether the project is eligible for net metering, as well as other regulatory approvals required to implement the project including requirements to obtain generation, distribution and retailer licences.
Support Provided:Staff provided its view that the project would require licences for generation (which includes authorization for storage operations) and electricity retailing but would not appear to require any other regulatory approvals. Staff also shared its view that the project, as proposed, would be ineligible for net metering but provided guidance on how it could be modified to become eligible.
Enova Power proposed this project as part of its efforts to use third-party distributed energy resources (DERs) to meet distribution system needs, in alignment with the OEB's Non-Wires Solutions (NWSs) Guidelines. The project is intended to optimize capacity on feeders using DERs, including demand response, distributed generation and energy storage assets. It aims to provide insights into the ability of DERs to defer traditional infrastructure investments and assess the viability of the NWS model. Enova Power will collaborate with GridS2, a Toronto-based clean tech firm, to implement a transactive energy platform in an operational setting to support constrained medium-voltage feeders.
Support Sought:Guidance on whether the activities proposed by Enova Power are permissible under section 71 of the Ontario Energy Board Act, 1998.
Support Provided:Staff provided its view that the proposed activities can be considered distribution activities within the meaning of section 71(1) of the Ontario Energy Board Act, 1998 and are therefore permissible. The activities are consistent with those identified as eligible for distribution rate funding in the OEB's NWSs Guidelines.
This project was selected as part of the IESO-OEB's Joint Targeted Call on DER Integration.
This project sought to demonstrate the capabilities of a group of various energy resources on the Ontario Tech University campus to provide local and provincial grid services. Due to a project partner withdrawing their participation in the project, the proponent is no longer participating in the program.
Guidance on whether the activities of Oshawa Power, which are primarily research activities related to DERs, are permissible under section 71 of the Ontario Energy Board Act, 1998.
Support Provided:Staff provided its view that the proposed activities are permissible under s.71(1) of the OEB Act as distributors may engage in research to explore innovative opportunities to meet distribution system needs.
This project was selected as part of the IESO-OEB's Joint Targeted Call on DER Integration.
Toronto Hydro will aggregate local, behind-the-meter (BTM) demand response (DR) resources (that are currently participating in Toronto Hydro's Local DR program) to simulate participation in IESO's Capacity Auction, and subsequently simulate managing this capacity in the real-time energy markets. The project expects provide insights into the potential benefits of creating a new market participation pathway that enables the same DER to provide services to the bulk system as well as the distribution system.
Guidance on whether the activities of Toronto Hydro are permissible under section 71 of the Ontario Energy Board Act, 1998. These activities are primarily related to using DR capacity from their Local DR program to simulate participation in IESO-administered markets.
Support Provided:Staff provided its view that the proposed activities, which build on Toronto Hydro's existing ratepayer-funded Local Demand Response program, are permissible under s. 71(1) of the OEB Act as they are aligned with the OEB's Conservation and Demand Management Guidelines.
This project was selected as part of the IESO-OEB's Joint Targeted Call on DER Integration.
The project will simulate the aggregation of heterogenous behind-the-meter (BTM) distributed energy resources (DERs) to test how these resources could provide distribution level services and participate in IESO-administered markets. Stated benefits of this simulation project include understanding what potential economic value is associated with the use of DERs, as well as determining how existing DERs that are not fully utilized could be used to the benefit of the distribution and bulk systems.
This project is intended to demonstrate the technical capabilities of DERs in providing wholesale services in a streamlined way that maximizes DER value. This participation will be simulated in the pilot outside of the actual IESO-administered market environment.
OEB staff's view on whether Enel X requires a wholesaler licence to participate in this simulation of IESO market participation.
Support Provided:Staff provided its view that a licence is not required for simulated activities.
This project was selected as part of the IESO-OEB's Joint Targeted Call on DER Integration.
The project will test two types of non-wires alternative solutions to mitigate capacity limitations associated with EV charging: 1) Remote load management by Hydro Ottawa of customers' behind-the-meter (BTM) EV chargers, and 2) Front-of-the-meter (FTM) batteries. This project will also test the capabilities of distributed energy resources (DERs) aggregations to provide bulk-level services. The project expects to reduce peak demand and may defer the need for infrastructure builds.
Guidance on whether the project activities to be undertaken by Hydro Ottawa are permissible under section 71 of the Ontario Energy Board Act, 1998. These activities are primarily related to curtailing BTM EV chargers, installing a FTM battery, and using these resources to simulate participation in IESO-administered markets.
Support Provided:Staff provided its view that the proposed activities are permissible under s. 71(1) of the OEB Act as their main purpose is to meet distribution system needs and they are aligned with the OEB's Conservation and Demand Management Guidelines.
This project was selected as part of the IESO-OEB's Joint Targeted Call on DER Integration.
Essex Powerlines and NODES will set up and operate a live, local (distribution-level) market for distributed energy resource (DER) services with Essex Powerlines acting as a Distribution System Operator (DSO). The project will demonstrate the use of DERs participating in the local market and explore how those same resources can also provide bulk level services. Stated benefits of the project include demonstrating the ability of a utility to act as a DSO, testing whether DERs can provide services to both distribution and bulk systems and testing distribution level/IESO co-ordination.
Guidance on whether the activities of Essex Powerlines, which are primarily related to it acting as a DSO, are permissible under section 71 of the Ontario Energy Board Act, 1998.
Support Provided:Staff provided its view that the proposed activities are permissible under s. 71(1)of the OEB Act as the main purpose for the local DER market is to meet distribution system needs and they align with the OEB's Conservation and Demand Management Guidelines.
As part of Natural Resources Canada's Zero Emission Vehicle Infrastructure Program, EPCOR would receive grant funding to allow them to act as a "Delivery Organization," making EPCOR responsible for distributing funding to eligible applicants to install EV chargers. The project expects the increased availability of EV chargers to support increased EV adoption.
Support Sought:Customized guidance related to whether project activities are permissible under section 71 of the Ontario Energy Board Act, 1998.
Support Provided:Staff described its view that acting as a Delivery Organization is permitted under section 5(3)(c) of Ontario Regulation 161/99 of the OEB Act.
On June 18, 2021, the OEB and the Independent Electricity System Operator (IESO) announced a partnership between the OEB Innovation Sandbox and the IESO's Grid Innovation Fund to support pilot projects seeking to test how to derive value from distributed energy resources. The successful projects, announced on March 30, 2022, April 14, 2022 and April 22, 2022, will accelerate the adoption of local energy projects to help communities play an increasing role in providing for their own energy needs.
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