Seven steps to an energy efficient Ontario

The future of the electricity market in Ontario is examined in light of the recent debate concerning deregulation. This report focuses on measures that would have to be taken to ensure that there will be sufficient electricity available to serve the needs of Ontario. Increasing supply, or decreasing demand are discussed as the obvious answers to the problem at hand. The report concludes that: (1) mechanisms to encourage Demand Side Management and Demand Response have all but disappeared since the opening of the competitive electricity market in Ontario, (2) the current market structure does nothing to stimulate increased supply, nor does it encourage measures to reduce demand; as such, the result is an unsustainable situation. The report further concludes that Demand Side Management and Demand Response programs are essential components of the success of Ontario's evolving electricity market, and recommends programs that are designed and implemented in a manner that dovetail with parallel policies dealing with supply challenges. Seven essential elements of such a policy are discussed. These are: (1) vision and a clear set of goals for demand side management; (2) appropriate market drivers, principles and pricing incentives; (3) a central co-ordinating authority for managing demand side management; (4) appropriate implementation agents to manage programs and processes; (5) incentives to motivate change; (6) widespread education of the market; and (7) appropriate tactics to enable demand side management in sectors