Update on Analysis of Barriers to CDM

An IESO-distributor working group is currently exploring opportunities for collaboration when it comes to the delivery of CDM to provide further value to ratepayers and support both local and system reliability, and has held preliminary discussions with the OEB. Preliminary conversations have focused on the potential creation of a modified policy framework or application process to streamline the regulatory process for distributors seeking to access rate-based funding for CDM. The OEB will consider proposals arising from the working group and whether changes to the CDM Guidelines or other OEB actions would assist in reducing barriers to distributor CDM activities.

The OEB is also considering how the implementation of the Framework for Energy Innovation (FEI) (following the release in January 2023 of the OEB’s Framework for Energy Innovation: Setting a Path Forward for DER Integration report) addresses barriers to distributor CDM activities, and whether additional barriers remain:

  • In March 2023, the OEB issued Filing Guidelines for Incentives for Electricity Distributors to Use Third-Party DERs as Non-Wires Alternatives, which identifies the information distributors should include in their applications for incentive mechanisms. This new filing guidance is intended to encourage the use of third-party Distributed Energy Resources (DERs) as non-wires alternatives, assist distributors in developing their incentive proposals and facilitate effective and timely regulatory review.
  • The OEB is moving forward to engage a consultant to develop draft Benefit-Cost Analysis guidance and tools for electricity distributed energy resources and other non-wires alternatives.
  • The OEB has a longer-term plan to expand the CDM Guidelines into “Consolidated guidance for non-wires alternatives,” incorporating FEI work to provide comprehensive guidance on the use of distributed energy resources and CDM, as non-wires alternatives by distributors.


Going forward, the OEB will continue this work to identify and address barriers to distributor CDM activities. The OEB plans to conduct stakeholder engagement to give the public an opportunity to provide input on any proposed changes to CDM Guidelines or other initiatives to address identified barriers in the future.