Ontario Energy Storage Basics from Enel X: What is the ICI? Part 2

Enel X energy storage can save users money.

In this two-part article, Enel X North America explains what the Industrial Conservation Initiative (ICI) is – and why it matters to industrial energy users in Ontario. This second part expands further into predicting system peak events and minimizing energy consumption. Read Part 1.

Energy reduction for minimal use

The Independent Electricity System Operator (IESO) provides this example showing how average monthly peak demand is calculated:

These thresholds pertain only to individual facilities. Organizations with multiple facilities cannot combine average monthly peak demand across multiple buildings to qualify as a Class A customer.

As Global Adjustment (GA) costs have risen in recent years, the ICI has received more attention. For years, eligibility for Class A customers was limited to facilities with at least five megawatts (MW) in average monthly peak demand. Then, in 2017, the Ontario government lowered the threshold to one MW for all customers — and 500 kilowatts for manufacturers and select agricultural industries — extending the incentive to many more of the province’s largest energy consumers.

In recent years, predicting when system peak events occur has become more difficult. The IESO’s model for predicting peak demand levels on the grid missed two of the five events that factored into GA charges last year.

In addition to predicting system peak events, ICI participants need to minimize their energy consumption from the grid during these periods. Some facilities are able to accomplish this through energy reduction alone, such as shutting down non-essential lighting or other equipment, or re-scheduling maintenance that requires downtime for energy-intensive equipment.

This is also why so many Ontario businesses have adopted energy storage. Installing an energy-storage system enables these customers to store the lowest-cost electricity onsite and consume it at times when relying on the grid is most expensive, including when GA charges are calculated. This also eliminates the need to reduce energy consumption, providing access to power for critical equipment during these periods.

Whether through energy reductions or storage — or even a combination of the two — Ontario businesses have had success in tackling GA charges through this approach. Last year, Ontario commercial and industrial energy consumers participating in Enel X’s system peak predictor program saved nearly $13 million on GA charges alone.

Today’s Ontario businesses face some of the highest electricity costs in North America. Thanks to the ICI, they have options to protect themselves from these costs.

To learn more about how Ontario businesses are leveraging energy-storage technology, read this whitepaper from Enel X, Understanding Ontario’s Energy Storage Opportunity.

To learn more, contact Enel X.

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