Toronto Hydro Secures Record 12 MW in Demand Response Capacity
Event summary
- Toronto Hydro secured 12 MW of local flexible electricity capacity through its Local Demand Response (LDR) Program, equivalent to powering 3,000 homes.
- The capacity was procured through a competitive auction from October 7–10, 2025, the largest single-year procurement since the program's 2018 launch.
- Toronto Hydro aims to procure up to 30 MW of local capacity from 2026 to 2029 across six targeted transformer stations.
- The program enables commercial, industrial, and institutional customers to reduce electricity use during peak periods and get compensated for it.
The big picture
Toronto Hydro's record procurement of 12 MW through its Local Demand Response Program reflects a strategic shift towards leveraging customer participation to manage peak demand. This approach allows the utility to optimize system capacity and defer infrastructure investments, aligning with broader industry trends towards decentralized energy solutions and grid modernization. The program's expansion to six transformer stations underscores its growing importance in ensuring resilient grid operations in Canada's largest city.
What we're watching
- Program Expansion
- Whether Toronto Hydro can sustain the pace of capacity procurement and expand the program's reach to more transformer stations.
- Customer Participation
- How the increased compensation for reducing electricity use will attract more commercial, industrial, and institutional customers.
- Grid Resilience
- The impact of the LDR Program on Toronto's grid resilience during peak demand periods, especially as summer temperatures rise.
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