MISSISSAUGA, Ontario – December 9, 2021 – Today, the IESO released the results of its province-wide Capacity Auction, securing 1286 megawatts (MW) of capacity for the 2022 summer period and almost 841 MW for the 2022/23 winter period from a broad range of eligible resources.
Rodan Energy once again secured the largest amount of capacity in the auction, reinforcing its position as Canada’s largest Demand Response (DR) provider. With almost 350 MW of capacity under management, Rodan is responsible for approximately 27% of the available IESO capacity.
“Our technology driven, and customer centric approach are at the heart of why we have extended our lead as Ontario’s largest demand response provider,” says Paul Grod, President and CEO at Rodan. “Our commercial and industrial customers put their trust in our ability to effectively manage what is going to happen in this dynamic energy market. Our significant investments in software and data analytics ensure we deliver the most valuable solutions to our customers. We firmly believe that demand response is a clean, reliable and cost-effective capacity resource, and a key component to a sustainable energy future.”
This capacity resource will be used by the IESO to help the province manage summer and winter electricity system peaks. The capacity providers include industrial and commercial consumers providing demand response, electricity imports from Hydro Quebec, natural gas generation, and energy storage. The annual capacity auctions are an important tool to meet Ontario’s power system needs and provide the flexibility required to enable the province to adapt to changing conditions.
The capacity auction revenues help Ontario’s largest employers reduce their energy costs by paying them to reduce power consumption from the grid when needed by the IESO. Over the years, there has been a steady growth in DR resources thanks to the development work of DR providers like Rodan Energy. In addition, the IESO has opened the auction to other resources such as natural gas generation and out of province power producers. This new capacity has far exceeded the procurement targets set by the IESO, which has dramatically depressed pricing. The capacity market price has dropped by more than 65% since the start of the auction and most recently has decreased by over 25% from the 2019 auction.
This, together with recent policy uncertainty and excessive rules, has forced some of the province’s largest manufacturers to withdraw from the capacity market. DR has been an important revenue source which has allowed them to stay competitive while producing in Ontario. Capacity prices have dropped below the minimum floor for some businesses, renewing calls for the IESO to raise the capacity limits on the program. Setting a capacity growth trajectory will also enable the province to address the significant electricity capacity shortfall expected in 2026 when the Pickering power plant is retired.
About Rodan Energy Solutions
Rodan Energy is a leading North American provider of DER asset optimization, demand response and energy intelligence solutions. Our mantra is making sustainable attainable for commercial and industrial energy users as well as power distribution and generation companies.
Rodan’s Apollo Energy Intelligence suite delivers industry leading technology to effectively manage and optimize distributed energy resources, battery energy storage, and microgrids.
Canadian operations are managed from Mississauga, Ontario and Calgary, Alberta with the US business located in Princeton, New Jersey. Rodan is active across North American and offers services to customers in all deregulated markets including IESO, PJM, NYISO, MISO, NEISO and AESO.
Rodan Energy Solutions
905-625-9900 ext. 241