The new call for proposals from Ontario’s Independent Electricity System Operator seeks demand-side solutions for grid reliability, sustainability and affordability

Ontario’s Grid Innovation Fund is accepting proposals for projects focused on electrification and demand management in the province.

The fund, established in 2005, is managed by the Independent Electricity System Operator (IESO). Eligible projects in the 2024 call for proposals will address issues relating to two streams:

• Electric vehicle transportation; and
• Space and water heating across all sectors and ventilation and cooling for non-residential weather-sensitive loads.

“The purpose of the 2024 Call is to demonstrate how innovative demand-side solutions can help address Ontario’s growing electricity needs while maintaining grid reliability, sustainability and customer affordability,” reads the proposal guidelines.

“Specifically, the 2024 Call is seeking projects that will demonstrate how EVs and controllable space/water heating and cooling equipment can provide system flexibility and be integrated to support the electricity system.”

Grid Innovation Fund 2024 goals

Through the Grid Innovation Fund (GIF), the IESO wants to support projects that will satisfy four goals:

• Support customers in managing electricity costs and reducing greenhouse gas (GHG) emissions;
• Support Ontario distribution utility evolution including coordination between distribution and transmission level operations;
• Inform the IESO’s demand-side management, planning, and innovation activities and;
• Inform the broader electricity sector of the capabilities of innovative demand-side solutions.

Proposals must specify types of Ontario-specific flexibility services, new programmatic/participation approaches, quantify greenhouse gas emissions reductions and how the solution can support sector innovation.

Funding for EV-related projects

With respect to EVs (Stream 1 of the funding program), the projects must, “Demonstrate how EV aggregations and EV fleets can…support the distribution network and/or bulk electricity system through participation in an innovative EV program. The EV program should explore how EV aggregations/fleets can provide flexibility services through managed charging (V1G), vehicle-to-home (V2H) or vehicle-to-building (V2B), as well as grid injection through vehicle-to-grid (V2G).”

Electric vehicles includes light-, medium- and heavy-duty vehicles and rail. The GIF’s total budget is $9.5 million to divide between the selected projects. Eligible projects are to be no longer than 36 months.

Projects may request a minimum of $1 million in funding and maximum of $4.75 million.

The submission portal is open until July 22, 2024.