DERs and the Energy Transition

Distributed energy resources (DERs) – such as storage and generating technologies like wind and solar – are emerging as a cost-effective option to help meet the growing needs of the electricity system as the energy transition unfolds.

The Ontario Energy Board (OEB) and Independent Electricity System Operator (IESO) commissioned a joint study to further understand how compensation mechanisms for DERs can work together to enable better design and alignment moving forward. 

The study, Assessment of Ontario’s DER Compensation Mechanisms and Recommendations, lays out a suite of considerations for the OEB and IESO, the goal of which is to maximize the economically efficient adoption and operation of DERs.

As the study notes, the OEB has already made progress on a number of the recommendations to leverage DERs to meet system needs. These include:

This study responds to stakeholder requests for greater co-ordination between the OEB and IESO on DER initiatives. It also responds to feedback highlighting the need for a holistic understanding of the value that DERs can bring to the electricity system, and how the sector can continue to unlock these benefits.

The OEB and IESO are planning a joint engagement session on Aug. 22 to discuss the study further and how it aligns with Energy for Generations, Ontario’s recently released Integrated Energy Plan. Stakeholders can learn more about that session here.