Overview of Market Renewal
At its core, Market Renewal is about doing things better. Market Renewal is about improving the way electricity is priced, scheduled and procured in order to meet Ontario’s current and future energy needs reliably, transparently, efficiently and at lowest cost.
The Market Renewal project includes a number of initiatives that will enable the province to more efficiently meet demand over the near and longer terms and include:
- Introducing a Day-Ahead Market to provide greater certainty to market participants and lower the cost of producing electricity.
- Reducing the cost of scheduling and dispatching resources to meet demand as it changes from hour-to-hour and minute-to-minute through a Single Schedule Market and Enhanced Real-Time Unit Commitment.
- Exploring how Ontario’s interties could be better used to meet unexpected short-term changes on the system
- Improving the way Ontario acquires the resources to meet longer-term supply needs by implementing an Incremental Capacity Auction.
Mission and Principles
The IESO and its stakeholders worked closely together to establish a mission and set of guiding principles for the Market Renewal project. Together the mission and principles provide a shared vision for the sector on where the project is heading and how it will get there.
The Benefits of Market Renewal
In April 2017, the IESO published a commissioned, independent report assessing the potential benefits of Market Renewal. The report drew from past Ontario studies, the experience of other jurisdictions which have made comparable market changes, and extensive stakeholder consultation. Key findings from the benefits case are:
- The estimated net benefits of Market Renewal are $2.2-$5.2 billion, over a 10 year period.
- The benefits from Market Renewal are likely to grow over time as Ontario’s electricity sector continues to decarbonize, as contracts expire, and as the sector becomes more distributed in nature.
- Market Renewal will better prepare Ontario for the future by creating a competitive framework for effectively incorporating new and emerging technologies.
- The IESO and stakeholders have substantial opportunities to enhance the benefit-cost ratio of Market Renewal by learning from the experiences of other jurisdictions and applying them to Ontario’s unique context.
Read the benefits case report.
The IESO has been working closely with the stakeholders on the market renewal project since April 2016. Given the scale and scope of the changes being proposed, stakeholders input is critical, requiring new forums working alongside existing bodies. The IESO has developed a stakeholder engagement framework to ensure alignment and collaboration with those that will help reshape the electricity marketplace
The framework includes:
- Stakeholder engagements for each design initiative where options are discussed and decisions made.
- Technical subcommittees, if needed, for focused discussion on specific issues.
- A Market Renewal Working Group to guide, advise and inform the IESO on important strategic, policy and design issues that could impact the overall success of Market Renewal.
- A CEO Roundtable to share information, issues and create alignment at the executive level.
The IESO is working closely and collaboratively with stakeholders to develop the design for Ontario’s renewed market. All stakeholders are invited to participate in the process.
For more information about becoming involved in market renewal, please contact engagement@IESO.ca.
Learn more about the evolution of electricity markets in Ontario.