New Program to Strengthen Electricity Grid and Reduce Costs for Consumers

New Peak Performance program will incentivize businesses to lower electricity use during high demand periods, protecting grid reliability and keeping costs down

 As part of its plan to build a more self-reliant energy system, the Ontario government is further expanding its offerings under the Energy Efficiency Framework by introducing the new Peak Performance program. The new initiative will use financial incentives to encourage commercial and institutional properties to reduce heating, ventilation, and air conditioning (HVAC) use during periods of high demand. This change will protect the reliability of Ontario’s electricity grid, reduce costs for consumers and businesses while delivering up to 100 megawatts of peak-demand reduction in 2026 and scaling up to 230 megawatts in 2027.

“Our government is taking action to help consumers and businesses keep costs down while ensuring Ontario’s electricity system remains reliable during periods of high demand,” said Sam Oosterhoff, Associate Minister of Energy-Intensive Industries. “The new Peak Performance program will give commercial and institutional buildings a new way to manage electricity use during the summer and support a stronger, more efficient grid.”

With electricity demand projected to increase by up to 90 per cent over the next 25 years, maximizing existing grid capacity is essential to reducing strain and keeping energy costs down. Large buildings such as offices, retail centres and universities contribute significantly to peak electricity demand in the summer season while occupancy is often lower during these periods.

Starting today, eligible facilities will be able to participate by signing up to reduce HVAC use for up to three hours on business days, between June 1 and September 30, in response to high system demand. Participants must be able to reduce at least 500 kilowatts or contribute to a portfolio of aggregated load reduction of at least 500 kilowatts to be eligible and will receive a $20 per kilowatt incentive to offset the cost of monitoring and control equipment.

"In this tariff war, Premier Ford is laser-focused on protecting affordability for Ontario families and businesses", said Stephen Lecce, Minister of Energy and Mines. "That is why our government cut the gas tax by 10 cents per litre, opposed the carbon tax, and introduced Ontario's largest energy savings program. Our government is taking another step forward unveiling another financial incentive for businesses, reducing their energy bills and saving the grid electricity."

Ontario’s Energy Efficiency Framework is forecasted to reduce the province’s peak demand by 3,000 megawatts by 2036, the equivalent of taking three million homes off the grid. By lowering operating costs for households and businesses and freeing up electricity capacity, these measures help strengthen Ontario’s competitiveness on the global stage and support the government’s goal of making Ontario one of the most competitive economies in the G7.

Peak Performance is part of Ontario’s $10.9 billion, 12-year Energy Efficiency Framework, a key component of Energy for Generations, the province’s first integrated energy plan. The Framework, which launched in January 2025 and expanded offerings in November 2025, is designed to reduce electricity demand, lower costs for customers and support Ontario’s growing economy.

Quick Facts

• Large buildings such as offices, retail centres and universities are some of Ontario’s largest untapped resources for demand response, contributing significantly to peak electricity demand during the summer cooling season.
• Ontario’s Energy Efficiency Framework, which launched in January 2025 and expanded offerings in November 2025, is designed to reduce electricity demand, lower costs for customers and support Ontario’s growing economy. New and expanded programs under the Framework include the Home Renovation Savings Program and the Save On Energy XLerate Program.
• The Framework is estimated to result in $23.1 billion in nominal electricity system benefits, thereby saving ratepayers $12.2 billion in electricity system costs by helping to avoid the build out of new generation.
• Peak Performance builds on the success of Peak Perks, Ontario’s demand response program for homes and small businesses. Peak Perks is Canada’s largest virtual power plant, with more than 300,000 participants and over 200 megawatts of peak demand reduction delivered in summer 2025 — with even larger savings expected in 2026.