EnergyHub Helps Ontario’s IESO Build Canada’s Largest Residential Virtual Power Plant in Just Six Months

Rhea-AI Summary

EnergyHub and IESO have enrolled over 100,000 homes in the Save on Energy Peak Perks program, creating the largest residential virtual power plant in Canada. The VPP is capable of reducing peak demand by up to 90 MW, equivalent to taking a city the size of Kingston, ON off the grid during peak times. Virtual power plants could reduce peak demand in the US by 60 GW by 2030 and over 200 GW by 2050, leading to $35 billion in annual power sector expenditure reductions in 2030.

Insights

Energy Market Analyst

The enrollment of over 100,000 homes in Ontario's Save on Energy Peak Perks program represents a significant milestone in the development of residential virtual power plants (VPPs) and their role in demand side management. The reported peak demand reduction capability of up to 90 MW is substantial, considering it can effectively remove a city the size of Kingston, ON, from the grid during peak times. This scale of demand reduction can lead to cost savings for both utilities and consumers by reducing the need for expensive peak-time energy generation and potential infrastructure investments.

Virtual power plants, by aggregating distributed energy resources, offer a flexible and responsive tool for grid operators to balance supply and demand, thus enhancing grid reliability. The growth trajectory of VPPs, as suggested by the Rocky Mountain Institute's report, indicates a transformative potential in the energy sector, with a forecast of reducing peak demand in the U.S. by 60 GW by 2030. This trend is likely to have a ripple effect in the energy market, potentially influencing energy prices, investment strategies and the overall approach to energy management.

Environmental Policy Expert

The rapid enrollment in the Peak Perks program is not only a testament to the program's design and marketing but also reflects a growing public interest in participating in energy efficiency initiatives. The environmental implications of this are significant, as VPPs can play a crucial role in accelerating decarbonization efforts. By managing the load more efficiently and reducing reliance on carbon-intensive peak power plants, VPPs contribute to the reduction of greenhouse gas emissions.

Furthermore, the success of such programs can influence policy decisions, potentially leading to supportive regulations and incentives that further encourage the adoption of smart, connected devices. This can have a long-term impact on how energy efficiency is integrated into climate change strategies and the transition towards a more sustainable energy system.

Technology Integration Specialist

The integration of smart thermostats and other internet-connected devices into the energy grid through programs like Peak Perks is a notable advancement in smart home technology application. The ease of enrollment and customer engagement achieved through optimized microsites and the strategic partnership with device manufacturers (OEMs) underscores the importance of user experience in the adoption of new technologies. As VPPs continue to evolve, the interoperability of devices and the seamless integration with utility programs will be critical for scalability and consumer adoption.

Additionally, the technological infrastructure that supports VPPs, such as advanced metering and real-time data analytics, is crucial for the precise management of distributed energy resources. The development and refinement of these technologies can lead to broader applications beyond residential energy management, potentially impacting commercial and industrial sectors as well.

More than 100,000 homes have enrolled in Ontario’s Independent Electricity System Operator (IESO) Save on Energy Peak Perks program since the initiative launched in June 2023

NEW YORK--(BUSINESS WIRE)-- EnergyHub, a leading grid-edge flexibility provider, in partnership with Ontario’s Independent Electricity System Operator (IESO), has enrolled more than 100,000 homes in the Save on Energy Peak Perks™ program in just six months to create the largest residential virtual power plant (VPP) in Canada. It’s the fastest growing flexibility program in EnergyHub’s decade-plus working with over 60 utility clients on Bring Your Own Thermostat™ programs.

With 100,000 homes enrolled, the VPP is capable of delivering peak demand reduction of up to 90 MW, the equivalent of taking a city the size of Kingston, ON off the grid during peak times. Flexible capacity is expected to climb as enrollment continues.

According to a recent report by the Rocky Mountain Institute, virtual power plants – groups of internet-connected devices like batteries, electric vehicles, and smart thermostats that can be actively controlled – are a valuable and largely overlooked resource for advancing key grid objectives. By 2030, VPPs could reduce peak demand in the United States by 60 gigawatts (GW) and could grow to more than 200 GW by 2050. In addition, VPPs could help reduce annual power sector expenditures by $35 billion in 2030.

“The scale and speed of enrollment proves that electricity providers and customers can partner on initiatives that provide mutual benefit,” said Erika Diamond, Senior Vice President of Customer Solutions at EnergyHub. “The IESO has built a resource that will continue to grow and play a key role in keeping the grid reliable and accelerating decarbonization as demand for electricity in the province increases.”

The Peak Perks™ program shows that well-designed and effectively-marketed programs scale quickly. Close coordination with device partners (OEMs) to secure maximum visibility for the program in OEM marketing channels, optimized customer-facing microsites and enrollment pages, and consultation on marketing best practices – paired with integrations with the industry’s largest network of device partners – enabled tens of thousands of the IESO’s participants to easily join Peak Perks™ with the smart thermostat of their choosing.

“We are so pleased that Ontario residents are taking an active role in energy efficiency through Peak Perks,” said Tam Wagner, Director of Demand Side Management at the IESO. “Demand side management is a critical resource that can make a significant contribution to the reliability of the province’s electricity grid – especially on hot summer days when air conditioning use is at its highest – and will play an important role in ensuring long-term electricity supply matches demand in the province.”

EnergyHub is an independent subsidiary of Alarm.com (NASDAQ: ALRM), the leading platform for the intelligently connected property.

About EnergyHub

EnergyHub is the leading grid-edge DERMS provider. Utilities rely on EnergyHub’s DERMS platform to manage all distributed energy resources to serve grid and market objectives. EnergyHub works with over 60 utilities in North America to manage more than 1.7 GW of flexible capacity. We empower utilities and their customers to create a clean, distributed energy future. For more information, visit www.energyhub.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240201701375/en/

Anne Steinberg

Kitchen Public Relations

anne@kitchenpr.com

917-817-4850

Source: EnergyHub

FAQ

How many homes have enrolled in the Save on Energy Peak Perks program?

Over 100,000 homes have enrolled in the Save on Energy Peak Perks program.

What is the peak demand reduction capability of the VPP?

The VPP is capable of reducing peak demand by up to 90 MW.

What is the equivalent of the VPP's peak demand reduction in terms of taking a city off the grid?

The peak demand reduction is equivalent to taking a city the size of Kingston, ON off the grid during peak times.

What is the potential impact of virtual power plants in the US by 2030 and 2050?

Virtual power plants could reduce peak demand in the US by 60 GW by 2030 and over 200 GW by 2050.

What is the potential reduction in annual power sector expenditures by 2030 due to VPPs?

VPPs could help reduce annual power sector expenditures by $35 billion in 2030.