In its most recent Annual Report the Independent Electricity System Operator reiterated that it is fully prepared to continue meeting its key responsibilities, while simultaneously grappling with a sea of change around it. Despite growing needs to respond to market uncertainties and new technology, the IESO has kept its costs down and its focus on core objectives, which are not changing.
CEO Peter Gregg stressed that IESO priorities remain much the same during the pandemic as they were prior to it. He summarized the agency’s focus as “ensuring Ontarians have affordable electricity, where and when they need it.” In his introductory message to the Annual Report, Mr. Gregg reassured observers that “we are having daily conversations with generators, transmitters and distributors to share information and ensure we are collectively prepared. We are also in close contact with the North American Electric Reliability Corporation and the Electric Subsector Coordinating Council, to ensure a coordinated response across the provincial and North American grids.”
Mr. Gregg noted that the IESO has responded substantively to recent developments, shifting its planned approach to procuring capacity, advancing efforts to address barriers to participation in power markets, as well as inviting feedback on planning processes and products and sharing the assumptions that underpin them. Its fee structure has remained flat for the last three years.
Mr. Gregg reiterated that key components of the mandate include “improving market design to deliver more efficient outcomes, facilitating innovation to support system needs, and navigating through the day-to-day challenges and complexities of a sector in transition.” Year-over-year decreases in overall demand are becoming the new norm. At 135.1 TWh, demand in 2019 was the second lowest over the past 25 years.
IESO priorities over the past year have included research, analysis and engagement to support the development of its first Annual Planning Outlook (APO), evolving the demand-response auction, reviewing resource adequacy, refining bulk and regional planning processes, “unlocking the value of DERs,” simplifying the connection process, enhancing situational awareness beyond Ontario’s borders, strengthening cybersecurity, accelerating First Nations participation in the provincial electricity sector and exploring non-traditional approaches to reduce local demand.
Examples of key work areas for the IESO in 2019 included:
• Market reforms “to create a more transparent and competitive marketplace and unlock the value of new and existing resources”
• Hosting engagements on the next cycle of regional planning
• Ensuring the effective oversight of Ontario’s electricity markets by considering market compliance during the evolution of market renewal activities, and increasing guidance and monitoring activities
• Issuing a call for innovative solutions to reduce peak demand and launching an enhanced LED incentive program for greenhouse customers
• Assuming responsibility for the centralized delivery of Save on Energy programs
• Introducing regional networks to enable customers to be part of important conversations about electricity and regional planning
• Continuing to stimulate dialogue on emerging issues through IESO events.
The 2019 Annual Report is available on the IESO website.