Transitional Demand Response Program

The Transitional Demand Response Program (TDRP) was a temporary initiative launched by the IESO to help reduce demand during peak hours. This program provided economic assistance to participants that voluntarily chose to reduce demand based on market price signals.

Thirteen participants were accepted into the TDRP, representing 21 projects and 65.8 megawatts (MW) of demand response capability. Of the 13 participants, nine companies representing 32.3 MW of demand response actively participated in the program.

Demand reduction was achieved through a range of actions – from shutting down non-critical equipment, such as lighting, cooling, heating and refrigeration, to the use of load displacement and embedded generation.

Under the program, whenever the three-hour pre-dispatch price exceeded $120 per megawatt hour (MWh), TDRP participants informed the IESO of their intention to reduce demand during the hour. Participants that verifiably reduced their demand during the TDRP event were compensated through a payment calculated by multiplying the three-hour ahead pre-dispatch price by the number of megawatts (MW) of demand reduction.

Although the TDRP ended on April 15, 2007, it provided an opportunity for consumers to start thinking about demand response during peak periods. The close of the TDRP is not the end of incentive based demand response programs. The Ontario Power Authority (OPA) has launched a permanent program similar to TDRP.