Local Generation Program

The Independent Electricity System Operator (IESO) is establishing the Local Generation Program to enable re-contracting of existing distributed energy resources (DERs) and consider opportunities for expansions and new-build facilities in Ontario. The program targets distribution-connected generation resources between 100 kW and 10 MW in size, including biogas, wind, solar, and combined heat and power (CHP) facilities. Ontario currently has nearly 2,000 MW from approximately 1,600 existing generation facilities with contracts sunsetting over the next decade. This competitive program will provide opportunities for non-market participant resources to continue supplying value to Ontario's electricity system as the province's electricity demand grows.

The program is designed to support municipal clean energy commitments, address local energy supply concerns, and empower more Ontario customers and businesses to participate in the electricity system. The IESO has been directed by the Minister of Energy and Electrification to report back on this opportunity by April 2025, with a target program launch date in 2026. Eligibility is aimed at providing equitable opportunities for smaller-scale, distribution-connected generation resources that have not previously participated in market mechanisms.

The engagement process includes multiple stakeholder sessions to gather feedback on the high-level program design. An initial webinar was held on April 23, 2025, with feedback due by May 9, 2025. A second engagement webinar occurred on June 5, 2025, with feedback due by June 19, 2025. The IESO has committed to at least two engagement sessions before the initial report back to the Minister in April 2025. Stakeholders interested in remaining informed should email engagement@ieso.ca to be added to the distribution list.