IESO Selects Participants for Demonstration Project to Provide Regulation Services

Jun 29, 2010

TORONTO, June 29 /CNW/ – Ontario’s Independent Electricity System Operator (IESO) has selected two companies, Sempa Power Systems Ltd. and Hydrogenics Corporation, to participate in an innovative project that will allow large industrial, commercial and institutional electricity consumers to provide a grid-balancing service usually supplied by generators.

Regulation service acts to match total system generation to total system demand on a second-by-second basis. By helping to correct variations in power system frequency, it reinforces the stability and reliability of the power system.

The Alternative Technologies for Regulation Demonstration Project will test new ways to provide regulation service to Ontario’s electricity market. This service is usually provided by generation facilities with automatic generation control (AGC) capability, which allows a generator to vary its output automatically in response to signals from the system operator. However, some electricity consumers capable of varying their power demand with the same level of precision may also provide the service.

The main objective of the study, which is to be completed this year, is to assess the viability of non-generation technologies providing regulation service. During the expected two-month study period, the participating companies will receive signals from the IESO, which will monitor and assess participants’ responses to these signals. The research findings will also identify some of the necessary administrative, regulatory and technical changes that are required to facilitate the integration of different resources on Ontario’s electricity system.

“This project is a perfect example of the type of innovation that will be required as Ontario moves ahead with the development of a smart grid,” said Bruce Campbell, VP of Resource Integration at the IESO. “Electricity consumers are starting to play an increasingly important role in the management of Ontario’s power system, and if they can provide some of the ancillary services we require, it will result in greater competition, flexibility and reliability.”

The IESO is responsible for managing Ontario’s bulk electricity power system and operating the wholesale market. For more information, please visit

For further information: Alexandra Campbell, 416-506-2806