Ontario Launches New Program to Strengthen Electricity Grid and Reduce Costs for Consumers
April 20, 2026
New Peak Performance program will incentivise 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 on April 17, 2026, 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.
Quotes
“This is another step in our government’s plan to help hardworking small business owners across the province manage energy costs and stay competitive while supporting a more reliable electricity grid. The new program will provide small businesses with real savings they can reinvest in growing their operations, creating good-paying jobs, and building a stronger Ontario economy.”
– Nina Tangri
Associate Minister of Small Business
“The announcement in Hamilton today is providing targeted investments in the places Ontarians rely on every day-including hospitals, schools, and workplaces in Hamilton-while helping meet growing electricity demand. By upgrading high-demand HVAC systems, we are reducing peak use, strengthening grid reliability, and keeping energy costs down for families and businesses.”
– Monica Ciriello
MPP Hamilton Mountain
“This is great news for families and businesses right here in our community. When large buildings like offices and shopping centres reduce their energy use during peak hours, it takes pressure off the entire grid — and that means lower costs for everyone. Programs like Peak Performance are about making Ontario’s energy system work smarter, so families can keep more money in their pockets.”
– Neil Lumsden
MPP for Hamilton East-Stoney Creek
“As Ontario transitions towards a more dynamic and resilient electricity grid, Save On Energy demand side management programs like Peak Performance will play a critical role in ensuring grid reliability, reducing peak demand, and supporting the integration of new technologies. This new program for commercial and industrial participants will build on the success of Peak Perks, the Save On Energy demand response program for residential and small business consumers, which has more than 320,000 participants.”
– Chuck Farmer
Executive Vice-President of Power System Development, Independent Electricity System Operator
“Ontario’s universities are committed to being strong partners in building a reliable, affordable and sustainable energy system. Universities are playing a leadership role in the installation of energy management systems and incentives such as Peak Performance will provide additional practical tools to reduce peak demand, control operating costs and support system reliability as electricity needs in the province grow.”
– Steve Orsini
President and CEO, Council of Ontario Universities
“The Commercial HVAC Demand Response program is a smart, practical solution that benefits both the electricity grid and commercial buildings. BOMA Toronto is pleased to collaborate with the Province to support our members in participating in this important initiative.”
– Susan Allen
President and Chief Executive Officer, BOMA Toronto
“The launch of Ontario’s HVAC Demand Response Program comes at a pivotal time to help consumers manage energy costs. Local electricity distribution companies are key partners in supporting these programs and look forward to working with their commercial and institutional customers to optimize the benefits of this initiative and to enhance Ontario’s economic competitiveness.”
– Teresa Sarkesian
President & Chief Executive Officer, Electricity Distributors Association
“Through the use of modern demand-response control technology, as outlined in this New Peak Performance Program, Ontario’s HVACR contractors, like Arvin Air Systems, can help reduce peak electricity demand from commercial and institutional buildings, providing greater reliability to the province’s electrical system while enhancing efficient operation of these buildings. This is good for the offices, colleges, malls and other large users of electricity engaged in the program; and it is also very good for all Ontario residents. We will all benefit from enhanced reliability in our electrical grid.”
– Joe Muchynski
Chair, HRAI; Vice President, Arvin Air Systems
“HVAC systems represent a significant proportion of a commercial or institutional building’s energy-use profile. This New Peak Performance Program makes use of technology to maintain the reliability of the electrical grid in the province during times of elevated energy demand, while delivering the ventilation and cooling requirements needed in these buildings. HRAI member companies are well positioned to advise building owners and managers about equipment maintenance and the use of smart technologies, like the controls used in this program.”
– Sandy MacLeod
President & CEO, HRAI
“The Stoney Creek Chamber of Commerce supports initiatives that help businesses turn energy management into a competitive advantage. Ontario’s new Commercial HVAC Demand Response Program provides a clear, actionable way for organizations to reduce peak demand, improve operational efficiency, and contribute to a more reliable electricity system. We see strong potential for this program to complement ongoing efforts to support energy innovation and collaboration across our business community.”
– Brenda Wilson
Executive Director, Stoney Creek Chamber of Commerce
“As electricity demand grows, helping businesses manage peak usage is an important way to keep the system reliable and costs competitive. This Program gives large electricity users more flexibility to reduce demand when it matters most, while complementing the long term investments Ontario will need to power economic growth.”
– Vincent Caron
Vice President, Policy, Ontario Chamber of Commerce
