The IESO, with support from Natural Resources Canada, is undertaking a demonstration in York Region to explore market-based approaches to secure energy and capacity services from distributed energy resources (DERs) for local needs, while coordinating across the electricity system. A key objective of the IESO York Region Non Wires Alternatives Demonstration Project is to better understand the potential of using DERs in place of traditional infrastructure by enabling them to operate in real-world applications. The demonstration will leverage both existing and new resources in southern York Region, where electricity demand is growing and is expected to exceed system capability over the next 10 years. The Demonstration Area is identified on this map to assist potential participants. The project is funded through the IESO’s Grid Innovation Fund and Natural Resources Canada, and will be delivered by Alectra Utilities, the local distribution company in York Region.
This presentation summarizes the York Region Non-Wires Alternatives Demonstration evaluation report.
• The project is aimed to utilize wholesale market concepts to showcase DERs as viable alternatives and/or deferral
strategies to traditional generation, transmission, and distribution infrastructure .
• In 2021 and 2022, ten participants provided local services in York Region with individual or aggregated DERs.
• 10 – 15 MW was secured as part of Local Capacity Auction and activated using Local Energy Auctions.
• Average DER portfolio performance was high (81-91%), but there were over/under deliveries by different DERs.
• The economic value of using DERs as alternatives was net-positive in most simulated scenarios evaluated, though
the assessment is illustrative and dependent on key assumptions.
• The evaluation finds that the Demonstration was successful and met the objectives it set out to achieve.
• Findings support potential for ‘stacked services’ opportunities for DERs, assuming sufficient penetration of DERs in
a given service area to support energy needs