IESO has announced the transition of incentive programs to utilities. How will this transition affect industrial and commercial companies? Message from provincial electricity authorities is reassuring: at Toronto Hydro most programs will continue in the similar format, incentive application process is expected to become faster and easier.

Conservation incentive programs past 2015

Programs to be continued past the end of 2015: Retrofit, Energy Audit, including Building Systems Audit, Existing Building Commissioning, High performance New Construction, Process and Systems Upgrade Initiative, including Small Capital Projects, Embedded Energy Managers, Monitoring and Targeting, Preliminary and Detailed Engineering Study. Small Business Lighting program will be replaced in 2016. New programs are expected to be launched by LDCs with the focus on innovation and accountability through measurement and verification of actually achieved results.

At some moment during the transition period each LDC will launch their own incentive program and start accepting applications. What’s important to businesses to know is that CDM program has provincial funding for another 6 years. Incentive levels of 2011-14 will stay through 2015 and may change in 2016. Though each LDC will launch their own conservation program, application and evaluation procedures will remain the same or better (easier to follow).

Conservation programs will vary from one LDC to another. For example, Powerstram will not support Energy Manager Program, while Toronto Hydro will be re-launched it with modified conditions: instead of fully covering EM’s salary, only 60% of the salary will be refunded, but the host company will be eligible for bonus funding up to $150K based on achieved saving.

Transition of started projects

All started energy conservation projects will have sufficient time to finish. Projects completed prior to LDC launch will have 150 days to submit reports. Projects not completed by the end of 2015 will be extended with a 2-page Amendment Agreement. Projects started with OPA and not finished prior to LDC launch will be transitioned to the new program; details will be worked out before the end of 2015. All applications submitted prior to LDC launch will be subject to 2011-14 incentive rates.

Changes in incentive programs at Toronto Hydro

New from incentive program at Toronto Hydro, as planned for 2016:

  • Existing streams of incentives will be simplified
  • Headquarter approach will be extended
  • Audit and Process & Systems procedures incentive stream will be simplified
  • CHP will allow 3rd party participation, e.g. ESCO

saveONenergy site will evolve to reflect Conservation First Framework (CFF) and will direct visitors to the appropriate LDC.

This post is prepared based on presentation delivered by Joe Bilé, Manager, CDM Program Delivery & Business Development at Toronto Hydro Electric System.