{"id":19788,"date":"2025-08-20T16:23:34","date_gmt":"2025-08-20T16:23:34","guid":{"rendered":"https:\/\/circuitenergy.ca\/staging\/8539\/?p=19788"},"modified":"2025-09-16T20:33:39","modified_gmt":"2025-09-16T20:33:39","slug":"are-more-incentives-coming-for-bess","status":"publish","type":"post","link":"https:\/\/circuitenergy.ca\/staging\/8539\/are-more-incentives-coming-for-bess\/","title":{"rendered":"Are More Incentives Coming for BESS?"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"19788\" class=\"elementor elementor-19788\">\n\t\t\t\t<div class=\"elementor-element elementor-element-168c826 e-flex e-con-boxed no no e-con e-parent\" data-id=\"168c826\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-1aceb67b elementor-widget elementor-widget-text-editor\" data-id=\"1aceb67b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\n<p class=\"wp-block-paragraph\"><strong>2025 Ontario Ministerial Directives to IESO and OEB<\/strong><\/p>\n\n<h3 class=\"wp-block-heading\"><strong>When proven but unfamiliar technology is available, adoption often hinges on smart government policy.<\/strong><\/h3>\n\n<p class=\"wp-block-paragraph\">Incentives help accelerate the transition by reducing the risks of <strong>high upfront capital costs<\/strong> and <strong>uncertain ROI<\/strong>. With both environmental and grid pressures mounting, supportive federal and provincial frameworks will play a critical role in ensuring <a href=\"https:\/\/ieso.ca\/en\/Get-Involved\/Innovation\/Grid-Innovation-Fund\/Overview\">Battery Energy Storage Systems (BESS)<\/a> gain wider adoption across Ontario\u2019s industrial sector.<\/p>\n\n<h2 class=\"wp-block-heading\"><strong>Federal Support: The ITC Advantag<\/strong>e<\/h2>\n\n<p class=\"wp-block-paragraph\">At the federal level, Canada has already implemented strong measures. The <a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/services\/tax\/businesses\/topics\/corporations\/business-tax-credits\/clean-economy-itc\/clean-technology-itc.html\"><strong>Clean Technology Investment Tax Credit (ITC)<\/strong><\/a> currently offers up to <strong>30% coverage of eligible project costs<\/strong> for clean technologies, including rooftop solar and BESS.<\/p>\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img decoding=\"async\" loading=\"lazy\" class=\"wp-image-19795\" src=\"https:\/\/circuitenergy.ca\/staging\/6808\/wp-content\/uploads\/2025\/08\/ChatGPT-Image-Aug-19-2025-at-12_18_23-PM-1-1024x683.png\" alt=\"\" \/><\/figure>\n<\/div>\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>20%<\/strong> base incentive for clean tech solutions<\/li>\n\n<li class=\"\"><strong>An additional 10%<\/strong> if projects meet prevailing wage and apprenticeship requirements<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">This federal support significantly reduces upfront capital costs, making projects more attractive for industrial facilities.<\/p>\n\n<h2 class=\"wp-block-heading\"><strong>Provincial Programs: Where Ontario Stands<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">Ontario has relied on <strong>performance-based programs<\/strong> to drive demand flexibility for <a href=\"https:\/\/www.ieso.ca\/Learn\/Electricity-Pricing-Explained\/The-Ontario-Price\">Class A industrial facilities (those with an average load of 1 MW or more)<\/a>. Two main mechanisms stand out:<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>1. ICI \/ Global Adjustment (GA)<\/strong><\/h3>\n\n<ul class=\"wp-block-list\">\n<li class=\"\">GA charges are among the <strong>highest in North America<\/strong>\u2014estimated at <strong>$400,000 per MW<\/strong> of contribution to Ontario\u2019s grid peaks.<\/li>\n\n<li class=\"\">Facilities are charged based on their share of demand during the <strong>province\u2019s top five peak hours each year<\/strong> (<a href=\"https:\/\/www.ieso.ca\/Sector-Participants\/IESO-News\/2025\/05\/Treatment-of-Industrial-Conservation-Initiative-Load-in-the-Day-Ahead-Market\">Industrial Conservation Initiative<\/a>).<\/li>\n\n<li class=\"\">Current strategies include:<br \/>\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Avoiding production<\/strong> during peaks<\/li>\n\n<li class=\"\"><strong>Curtailing loads<\/strong> where possible<\/li>\n\n<li class=\"\"><strong>Installing BESS<\/strong> to discharge during peaks and lower contribution<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">More details: <a href=\"https:\/\/www.ieso.ca\/Learn\/Electricity-Pricing-Explained\/Global-Adjustment\">Global Adjustment explained<\/a>.<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>2. Demand Response (DR)<\/strong><\/h3>\n\n<p class=\"wp-block-paragraph\">Ontario\u2019s <a href=\"https:\/\/www.ieso.ca\/Learn\/Ontario-Electricity-Grid\/Demand-Response\">Demand Response (DR)<\/a> program compensates facilities for being available to reduce demand or discharge stored energy during stress events.<\/p>\n\n<ul class=\"wp-block-list\">\n<li class=\"\">DR revenues average <strong>~$65,000 per MW (4-hour duration)<\/strong> annually, depending on event calls and aggregator participation.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\"><strong>The challenge:<\/strong> Both GA and DR are <strong>performance-based<\/strong>, requiring accurate peak predictions and reliable dispatch. That makes ROI uncertain year-to-year\u2014one reason why many facilities hesitate to commit to BESS despite the clear potential.<\/p>\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<h2 class=\"wp-block-heading\"><strong>The Case for Upfront Incentives<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">Ontario\u2019s current model leaves industrial adopters carrying most of the <strong>performance risk<\/strong>. While BESS supports the grid by reducing peak stress, <strong>no upfront incentive framework currently exists at the provincial level<\/strong>.<\/p>\n\n<p class=\"wp-block-paragraph\">This is why many industry stakeholders are calling for <strong>capital-focused incentives<\/strong> that mirror the federal ITC\u2014support that could help Ontario manufacturers deploy storage faster, de-risk their investments, and avoid curtailing production.<\/p>\n<\/div>\n\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\">\n<figure class=\"is-style-nfd-dots-bottom-right wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"683\" loading=\"lazy\" class=\"wp-image-17767\" style=\"aspect-ratio: 4\/3; object-fit: cover;\" src=\"https:\/\/circuitenergy.ca\/staging\/6808\/wp-content\/uploads\/2025\/07\/public-4-1024x683.jpeg\" alt=\"\" srcset=\"https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/07\/public-4-1024x683.jpeg 1024w, https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/07\/public-4-300x200.jpeg 300w, https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/07\/public-4-768x512.jpeg 768w, https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/07\/public-4-825x550.jpeg 825w, https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/07\/public-4-1060x707.jpeg 1060w, https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/07\/public-4-1536x1024.jpeg 1536w, https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/07\/public-4-550x367.jpeg 550w, https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/07\/public-4-750x500.jpeg 750w, https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/07\/public-4.jpeg 1620w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n<\/div>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n<h2 class=\"wp-block-heading\"><strong>What\u2019s Next in Ontario?<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">Two major policy frameworks provide clues about where provincial incentives could emerge:<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>1. Electricity Demand Side Management (eDSM) Framework, 2025\u20132036<\/strong><\/h3>\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.oeb.ca\/consultations-and-projects\/policy-initiatives-and-consultations\/electricity-conservation-and-demand\"><strong>Electricity Demand Side Management (eDSM<\/strong><\/a><strong>) Framework<\/strong> is a <strong>12-year, $10.9B platform<\/strong> for energy efficiency and demand management across residential, commercial, and industrial sectors.<\/p>\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Programs include <strong>Home Renovation Savings<\/strong>, <strong>Peak Perks HVAC incentives<\/strong>, and <strong>Save on Energy initiatives<\/strong>.<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">Stakeholders have requested inclusion of <strong>\u201cbeneficial electrification measures\u201d<\/strong>\u2014like <strong>heat pumps and BESS<\/strong>.\u00a0<\/p>\n\n<h3 class=\"wp-block-heading\"><strong>2. Integrated Energy Plan (IEP)<\/strong><\/h3>\n\n<p class=\"wp-block-paragraph\">Ontario\u2019s <a href=\"https:\/\/ieso.ca\/en\/Sector-Participants\/IESO-News\/2025\/06\/Ontarios-Integrated-Energy-Plan-Outlines\">Integrated Energy Plan (IEP)<\/a> highlights the <strong>growing role of Local Distribution Companies (LDCs)<\/strong> as electrification accelerates.<\/p>\n\n<p class=\"wp-block-paragraph\">Ministerial directives to the <a href=\"https:\/\/www.oeb.ca\/\">Ontario Energy Board<\/a> (OEB) and <a href=\"https:\/\/www.ieso.ca\/\">IESO<\/a> stress:<\/p>\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Grid modernization for <strong>resilience, cybersecurity, and severe weather readiness<\/strong><strong><br \/><\/strong><\/li>\n\n<li class=\"\">Greater <strong>DER (Distributed Energy Resource) adoption<\/strong><strong><br \/><\/strong><\/li>\n\n<li class=\"\">A review of the <a href=\"https:\/\/ieso.ca\/en\/Get-Involved\/Innovation\/Grid-Innovation-Fund\/Overview\"><strong>Grid Innovation Fund<\/strong><\/a><strong> (GIF)<\/strong> by <strong>May 31, 2026<\/strong>, focusing on barriers to commercialization and adoption of DERs like BESS<\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">For the directives themselves, see the Ontario Ministry of <a href=\"https:\/\/www.ieso.ca\/corporate-ieso\/ministerial-directives\">Energy\u2019s Ministerial Directives to the Energy Sector<\/a>.<\/p>\n\n<div class=\"wp-block-columns is-layout-flex wp-container-core-columns-is-layout-8f761849 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\"><div class=\"wp-block-image is-style-default\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"783\" height=\"480\" loading=\"lazy\" class=\"wp-image-18922\" style=\"aspect-ratio: 1.3333333333333333; object-fit: cover; width: 398px; height: auto;\" src=\"https:\/\/circuitenergy.ca\/staging\/6808\/wp-content\/uploads\/2025\/08\/images-3-2-e1755623373951.webp\" alt=\"\" srcset=\"https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/08\/images-3-2-e1755623373951.webp 783w, https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/08\/images-3-2-e1755623373951-300x184.webp 300w, https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/08\/images-3-2-e1755623373951-768x471.webp 768w, https:\/\/circuitenergy.ca\/staging\/8539\/wp-content\/uploads\/2025\/08\/images-3-2-e1755623373951-550x337.webp 550w\" sizes=\"auto, (max-width: 783px) 100vw, 783px\" \/><\/figure>\n<\/div><\/div>\n\n<div class=\"wp-block-column is-vertically-aligned-center is-layout-flow wp-block-column-is-layout-flow\">\n<h2 class=\"wp-block-heading\"><strong>Why This Matters for Ontario Industry<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">Ontario manufacturers already face some of the <strong>highest peak-related charges in North America<\/strong>. Today, BESS provides a pathway to:<\/p>\n\n<ul class=\"wp-block-list\">\n<li class=\"\"><strong>Cut <\/strong><a href=\"https:\/\/www.ieso.ca\/power-data\/price-overview\/global-adjustment\"><strong>Global Adjustment charges<\/strong><strong><br \/><\/strong><\/a><\/li>\n\n<li class=\"\"><strong>Earn <\/strong><a href=\"https:\/\/www.ieso.ca\/Learn\/Ontario-Electricity-Grid\/Demand-Response\"><strong>Demand Response revenues<\/strong><strong><br \/><\/strong><\/a><\/li>\n\n<li class=\"\"><strong>Qualify for a <\/strong><a href=\"https:\/\/www.canada.ca\/en\/natural-resources-canada\/news\/2024\/06\/government-of-canada-launches-the-first-clean-economy-investment-tax-credits.html\"><strong>30% federal ITC<\/strong><strong><br \/><\/strong><\/a><\/li>\n<\/ul>\n<\/div>\n<\/div>\n\n<p class=\"wp-block-paragraph\">But the ROI is still performance-dependent. With new provincial policy directions now underway, there\u2019s a growing possibility that <strong>upfront incentives for BESS will arrive in Ontario\u2019s next round of demand-side and grid modernization programs<\/strong>.<\/p>\n\n<h2 class=\"wp-block-heading\"><strong>Conclusion: Position Your Facility Now to Cut Electricity Costs \u2014 Federal Incentives and Manageable Risks Make BESS a High-Reward Strategy<\/strong><\/h2>\n\n<p class=\"wp-block-paragraph\">If you\u2019re a <strong>Class A facility\u2014or approaching Class A thresholds\u2014this is the moment to prepare.<\/strong><\/p>\n\n<ul class=\"wp-block-list\">\n<li class=\"\">Collect your <strong>interval data<\/strong><strong><br \/><\/strong><\/li>\n\n<li class=\"\">Model your <strong>coincident peak exposure<\/strong><strong><br \/><\/strong><\/li>\n\n<li class=\"\">Size for <strong>GA + DR participation<\/strong><strong><br \/><\/strong><\/li>\n\n<li class=\"\">Align with <strong>federal ITC compliance<\/strong><strong><br \/><\/strong><\/li>\n<\/ul>\n\n<p class=\"wp-block-paragraph\">By acting now, facilities can capture today\u2019s GA\/DR value stack while positioning themselves for future <strong>capital-focused provincial incentives<\/strong>.<\/p>\n<hr class=\"wp-block-separator has-alpha-channel-opacity\" \/>\n<p class=\"wp-block-paragraph\"><strong>Next Step with Circuit Energy<\/strong><strong><br \/><\/strong><a href=\"https:\/\/circuitenergy.ca\/contact\/\">Circuit Energy<\/a> helps Ontario manufacturers assess and implement BESS projects with precision\u2014integrating storage into your existing operations, securing federal ITC benefits, and preparing for future provincial support.<\/p>\n\n<p class=\"wp-block-paragraph\">Contact us to request a <strong>Peak Coincidence & DR Assessment<\/strong> for your facility.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>2025 Ontario Ministerial Directives to IESO and OEB When proven but unfamiliar technology is available, adoption often hinges on smart government policy. Incentives help [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18922,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"elementor_theme","format":"standard","meta":{"_acf_changed":false,"nf_dc_page":"","footnotes":""},"categories":[41],"tags":[],"class_list":["post-19788","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog"],"acf":[],"_links":{"self":[{"href":"https:\/\/circuitenergy.ca\/staging\/8539\/wp-json\/wp\/v2\/posts\/19788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/circuitenergy.ca\/staging\/8539\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/circuitenergy.ca\/staging\/8539\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/circuitenergy.ca\/staging\/8539\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/circuitenergy.ca\/staging\/8539\/wp-json\/wp\/v2\/comments?post=19788"}],"version-history":[{"count":0,"href":"https:\/\/circuitenergy.ca\/staging\/8539\/wp-json\/wp\/v2\/posts\/19788\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/circuitenergy.ca\/staging\/8539\/wp-json\/wp\/v2\/media\/18922"}],"wp:attachment":[{"href":"https:\/\/circuitenergy.ca\/staging\/8539\/wp-json\/wp\/v2\/media?parent=19788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/circuitenergy.ca\/staging\/8539\/wp-json\/wp\/v2\/categories?post=19788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/circuitenergy.ca\/staging\/8539\/wp-json\/wp\/v2\/tags?post=19788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}