The Independent Electricity System Operator (IESO) is currently discussing whether and how energy market payments for demand response (DR) resource activation should apply in the Ontario market. The IESO asked us to inform ongoing stakeholder discussions about whether and how such payments for DR resources should apply in Ontario. While energy market payments for activations have been an ongoing topic of discussion at the IESO’s Demand Response Working Group (DRWG), proposed market rule amendments to enable off-contract, non-regulated dispatchable generators to participate in the capacity auction along with DR resources renewed stakeholder interest in the matter in 2019. Given that payments for DR activations are a complex issue and would represent a substantial change to Ontario’s energy market, the IESO initiated a separate stakeholder engagement with a broader stakeholder base to advise on the issue.

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