Energy Manager

Two new power initiatives improve bottom line for energy-efficient Ontario companies

On January 19th, the Ontario Power Authority (OPA) announced two new power-related programs which will serve both Ontario’s electricity users and the province's industrial backbone. The two initiatives are part of an integrated effort to support the provincial government’s aggressive conservation and renewable energy targets.

January 22, 2009  By Newswire

  1. Combined Heat and Power III (CHP III) — The OPA posted a draft request for proposal (RFP) on the 19th to enter into contracts with large industrial companies capable of generating both electricity and heat for industrial processes, from renewable fuels.
  2. Demand Response Two (DR2) Program – An incentive program geared to large Ontario industrial and manufacturing businesses to find ways to use less electricity when Ontario’s power supply is short or very expensive. A typical company with five MW of load shifting potential could receive an annual incentive payment of $500,000 or more.

Combined Heat and Power III (CHP III): Industrial Energy from Renewable Biomass

The CHP procurement is designed to increase industrial efficiency, expand the role of renewables in Ontario’s energy mix and increase the flexibility and reliability of the entire electricity grid.

The draft RFP —posted on the OPA’s website today—responds to a directive from the Government of Ontario, to secure approximately 100 megawatts (MW) of high-efficiency renewable-fuelled Combined Heat and Power (CHP) projects.

CHP III encourages large industrial businesses to generate both electricity and process heat for their own manufacturing processes and to sell excess power back to the provincial grid. The procurement is expected to attract companies that create potential bio-fuels as part of routine industrial process, such as wood waste.


The new CHP III process follows a successful CHP I procurement completed in 2006—which awarded seven contracts with a total capacity of 414 MW—and CHP II, an RFP for large gas-fired CHP projects, which closes on January 29, 2009. Deadline for the CHP III submissions is April 30, 2009.

For further information on CHP III and other OPA procurements visit

Demand Response Two: Industry Contributes to Reduction in Ontario’s Peak Power Load

This program targets large industrial customers across Ontario that can consistently shift their electricity requirements during peak periods when the provincial system needs to curtail electricity use.

DR 2 is one of a number of OPA demand response programs which give Ontario businesses more ways to manage their energy use as well as contribute to the province’s conservation targets. This new program will add to the already more than 560 megawatts (MW) of peak load reduction the province can call upon during peak periods.

DR 2 is expected to attract industrial or manufacturing businesses able to create stocks of partially processed materials, manufactured during low energy cost periods, which would otherwise have been created during periods of high electricity prices. A sample of processes that will likely be attracted to the DR 2 program:

  • municipal water pumping
  • ice storage
  • plastics grinding
  • rock or gravel crushing operations
  • wood pulp production
  • mine de-watering

DR2 program registration is available starting immediately. For complete program information, visit

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