IESO announces largest Canadian residential virtual power plant

Canada’s Independent Electricity System Operator (IESO) and EnergyHub, a grid-edge flexibility provider, have announced the enrolment of more than 100,000 homes in the Save on Energy Peak Perks programme, calling it the largest residential virtual power plant (VPP) in Canada.

With the 100,000 participants having been enrolled over six months, the VPP is now capable of delivering peak demand reduction of up to 90MW, the equivalent of taking a city the size of Kingston, Ontario off the grid during peak times.

During summer 2023, the Peak Perks virtual power plant was activated on six occasions in Canada, with the final event in early September achieving a maximum one-hour peak demand reduction of 54MW.

Flexible capacity is expected to climb as enrolment continues.

Participants in Peak Perks help the grid with their smart thermostats by participating in brief, time-limited thermostat adjustments of up to two degrees Celsius during periods of peak electricity demand between June 1 and September 30 on weekday afternoons or in early evenings.

Participants receive a $75 virtual prepaid MasterCard when they enrol, as well as a $20 virtual prepaid MasterCard each additional year they stay in the programme.

Residential electricity customers in Ontario with central air conditioning or a heat pump controlled by a smart thermostat are eligible to take part.

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“We are so pleased that Ontario residents are taking an active role in energy efficiency through Peak Perks,” said Tam Wagner, director of Demand Side Management at the IESO.

“Demand side management is a critical resource that can make a significant contribution to the reliability of the province’s electricity grid – especially on hot summer days when air conditioning use is at its highest – and will play an important role in ensuring long-term electricity supply matches demand in the province.”

Citing a 2023 research report from Rocky Mountain Institute (RMI), Virtual Power Plants, Real Benefits, EnergyHub states how virtual power plants are a valuable and largely overlooked resource for advancing key grid objectives.

According to a report from RMI, which early last year founded a virtual power plant partnership known as the VP3, by 2030, VPPs could reduce peak demand in the United States by 60 gigawatts (GW). That number could grow to more than 200 GW by 2050.

“The scale and speed of enrolment proves that electricity providers and customers can partner on initiatives that provide mutual benefit,” said Erika Diamond, senior vice president of Customer Solutions at EnergyHub.

“The IESO has built a resource that will continue to grow and play a key role in keeping the grid reliable and accelerating decarbonisation as demand for electricity in the province increases.”

EnergyHub adds that close coordination with OEMs, optimised customer-facing microsites and enrolment pages, as well as consultation on marketing best practices – paired with integrations with the industry’s largest network of device partners – enabled tens of thousands of the IESO’s participants to the programme with the smart thermostat of their choosing.