Our Local Demand Response (LDR) Program helps manage electricity demand during peak periods by engaging select customers to temporarily reduce their electricity consumption. In addition to supporting improved service reliability, this initiative helps defer costly infrastructure upgrades.
Local Demand Response Program
Help support system capacity through targeted demand reduction.
About
About the program
Launched in 2018, the LDR Program is our flagship Non-Wires Solutions (NWS) initiative. It’s designed to help address short- to medium-term capacity constraints at specific transformer stations by using demand response (DR), including behind-the-meter and customer-owned distributed energy resources, to reduce strain on our grid.
Between 2026 and 2029, Toronto Hydro aims to procure up to 30 megawatts (MW) of capacity across multiple transformer stations (TS).
In 2026, procurement focused on the service areas of:
- Finch TS
- Leslie TS
- Manby TS
- Horner TS
- Strachan TS
- Dufferin TS
In 2027, Toronto Hydro will expand the program to include three additional service areas:
- Ellesmere TS
- Cecil TS (limited availability*)
- Terauley TS (limited availability*)
By reducing electricity consumption during peak times, participants help us manage system capacity more efficiently, allowing us to defer or avoid costs associated with infrastructure upgrades while maintaining reliable service for customers.
*Only certain neighbourhoods within the Cecil and Terauley TS service areas are eligible to participate due to the localized need for demand response in these areas.
Eligibility
Eligibility
To participate, you must:
- Be located in the area served by one of the nine target stations (to be confirmed by Toronto Hydro upon registration)
- Offer a minimum of 500 kilowatts (kW) (either from a single facility or aggregated resources)
Note: Toronto Hydro will evaluate each address to determine its contribution to system needs and program objectives. Addresses that are not expected to provide sufficient system value may be deemed ineligible for participation in the program at Toronto Hydro's discretion.
How to apply
How to apply
The following section outlines the typical procurement process.
1. Review the Program Rules to see if you qualify.
Review our 2027 Local Demand Response Program Rules (PDF, 18.2 MB) to learn more about the program and determine if your facility or aggregated resources meet the eligibility criteria.
2. Submit your application.
Complete the Local Demand Response Program Participant Application (PDF, 130 KB) and email it to local_dr@torontohydro.com.
Note: If you have more than 10 contributors, fill out the Local Demand Response Program: Additional Contributors (PDF, 109 KB) and submit it with your main application. We’ll confirm your eligibility within three business days of receiving your application.
3. Sign a Participant Agreement and execute the contract.
Eligible applicants will be invited to sign a Participant Agreement with Toronto Hydro outlining:
- Contracted capacity and attributes
- Maximum number of DR events
- Measurement and verification expectations
- Additional program requirements
Note: Acceptance into the LDR Program will be on a first-come, first-served basis until Toronto Hydro’s capacity target has been reached. If Toronto Hydro reaches its target capacity, the next opportunity to participate in the LDR Program will be through the capacity auction in October 2027 for the 2028 program year.
The following is a summary of key program dates for the 2027 program year.
| Activity | Date |
|---|---|
| Registration opens | September 1, 2026 |
| Registration closes | November 30, 2026 |
| Application changes deadline (capacity reduction) | February 1, 2027 |
| Application changes deadline (all else) | April 1, 2027 |
| Contracting period | April 1, 2027 to May 31, 2027 |
After you enrol
How it works once enrolled
The following section explains how the deployment stage works once you're enrolled.
1. Monitor your email for standby notices.
You may receive a standby notice by email anytime between 7 a.m. the day before and 7 a.m. on the day of a potential activation.
2. Report outages.
Notify us of any outages during the day-ahead period — no later than 9 a.m. on the day of a potential activation.
3. Respond to activations.
If placed on standby, you may receive an activation notice by email a minimum of two hours before the activation window. If activated, you’re required to reduce your load in accordance with your contracted capacity.
4. Collect payment.
At the end of each month during the commitment period, you’ll receive a settlement statement summarizing your activity and performance of the previous month. Once accepted, you’ll submit an invoice to Toronto Hydro and will be paid within 15 business days of the invoice submission.
Frequently asked questions
Frequently asked questions
The LDR Program has an obligation period between June 1 and September 30 each year. During this time, participants must be available and ready to reduce their electricity consumption if called upon by Toronto Hydro.
When we ask participants to reduce their load, it’s called a “dispatch event” or “activation.”
Activations can occur on business days between 12 p.m. (noon) and 9 p.m. EST, excluding statutory holidays. We refer to this as an “availability window.”
Each activation lasts four hours and will take place within the availability window. Only one activation may occur per day.
Up to six activations may occur during each obligation period. This includes both test and live events.
We use capacity auctions to decide how much to pay for DR. Here's a simple breakdown of the process:
- We set the target: We determine how much capacity is needed and the highest price we’re willing to pay per MW per day.
- You submit a capacity offer: Eligible participants submit a capacity offer that includes the amount of capacity they can provide and the price they want to be paid for it.
- We rank the offers: All offers are sorted from lowest to highest price. If two offers have the same price, the one submitted earliest gets priority.
- We accept offers: We accept the lowest-priced offers until we reach our total capacity target. The last accepted offer becomes the clearing price.
- You receive a contract: If your offer is accepted, you’ll receive a contract at the clearing price.
The first capacity auction took place in October 2025 and set the capacity price at $700/MW-day for the 2026 and 2027 program years. The second auction will take place in October 2027 and will set the capacity price ($/MW-day) for 2028–2029.
Payments are issued monthly.
We measure your performance by comparing your actual electricity consumption during an activation to your expected baseline (the amount you would have used without participating). The difference between the two is your verified capacity contribution, calculated hourly.
Please refer to our 2027 Local Demand Response Program Rules (PDF, 18.2 MB) for more information.
If you have any questions or concerns, please email local_dr@torontohydro.com.
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