On November 1, 2012, the Minister of Energy directed the Ontario Power Authority (OPA) to implement the Industrial Electricity Incentive (IEI) program to improve load and demand management in Ontario.
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Since 2007, industrial electricity use in Ontario has decreased by approximately five terawatt-hours (TWh), primarily due to the world-wide economic downturn. As a result of the continued low electricity demand levels and increased generation capacity, Ontario has experienced intermittent periods of surplus generation since 2009. The intent of the IEI program is to assist in the management of electricity demand by encouraging increased industrial production. This is to be achieved through electricity-based price adjustments for eligible electricity consumption.
Incremental industrial electricity demand brings several benefits to the electricity system, including reduced surplus energy volumes, reduced transmission congestion and the possibility of providing ancillary market services. Further benefits accrue to the province through related economic and employment impacts.
The IEI program has three streams:
Stream 1: for industrial consumers willing to operate an industrial facility and undertake a large capital investment in technologies, products or processes that are not currently being used or produced in Ontario. This Stream is now closed.
Stream 2: for existing industrial consumers in Ontario that will expand their existing, or build a new, industrial facility. This Stream is now closed.
Stream 3: for new and existing consumers in Ontario that will build a new eligible facility or expand their existing eligible facility, and is carrying on an activity that is classified within specific NAICS Canada 2012 sectors. Note that Stream 3 expands eligibility to certain other energy-intensive sectors.
Stream 3 of the IEI Program is currently under development. For updates and program specific information please visit the Stream 3 webpage.