Ontario has a number of demand-response programs in place to meet its aggressive targets for what could loosely be called peak conservation. The latest is called DR3, and it’s what you could call the highest quality demand response — contractual obligations for aggregators to reduce load demand when asked to by the province’s electricity system operator.

About 10 aggregators have applied to participate in the program, and last week Enernoc and ConsumerPowerline were the first to tout contracts with the Ontario Power Authority. Both companies, and any other DR3 participant, basically sign a five-year contract that requires them to deliver up to 25 megawatts during critical peaks to reduce stress on the grid. From what I understand, aggregators (and the individual companies they’ve signed up) stand to make some decent money from the guaranteed negawatts.

“The larger story is that there’s now a large group of very excited and interested aggregators willing to sign up and build this new demand-response industry in Ontario. That growth of a new industry I think is really an exciting story,” said Sean Brady, director of demand response and industrial programs for the Ontario Power Authority.

Companies or organizations that use 50 kilowatts or more of electricity are permitted to sign up with aggregators. “What’s interesting is that it’s a new opportunity (for organizations) to look at using energy consumption as a strategic asset, and demand-response gives you the opportunity of monetizing your assets,” said Brady, adding that this will spur development, investment and deployment in new technologies such as controls system and energy management systems. “The other opportunity is that you have a set of fresh eyes from these aggregators who are looking at your electricity consumption.”

The Ontario Power Authority plans to have 566 megawatts of demand-response in place by 2010, part of the province’s commitment to reaching 1,350 megawatts of conservation by the same year. Aggregators participating in DR3 have nine months to ramp up to their 25 megawatt limit. Brady said he expects that many will be set up by this summer.