Energy Storage Canada releases new report on unlocking Ontario’s distributed energy storage resources, with research support from Peak Power

ESC recommends a Distributed Reliability Track that could mobilize 100 to 500 MW of dispatchable energy storage capacity within 12 to 24 months

TORONTO, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Energy Storage Canada today released Unlocking Distributed Storage Resources: Diversifying Ontario’s Procurement Strategy to Include DERs, a new report authored by ESC with research support from Peak Power and input from across its membership. The report recommends establishing a Distributed Reliability Track for behind-the-meter and distribution-connected energy storage.

The report proposes a way to implement commitments already established through Energy for Generations, Ontario’s Integrated Energy Plan. The plan recognizes that the full value of distributed energy resources remains largely untapped and calls for compensation frameworks that reflect the services they provide to the grid.

Work is already underway through the Ontario Energy Board’s review of distributed energy resource valuation and interconnection reforms, as well as the IESO’s Enabling Resources Project. The proposed Distributed Reliability Track would connect these efforts to a defined procurement target and a durable revenue signal capable of mobilizing private capital.

The IESO projects that Ontario’s annual electricity demand will increase by 65% by 2050. Long-term generation and transmission investments remain essential, but they cannot address the near-term capacity window. The report identifies distributed behind-the-meter storage as an underutilized resource class capable of adding firm, dispatchable capacity to the grid within 12 to 24 months, far faster than any conventional generation or transmission alternative.

At the same time, behind-the-meter batteries installed at commercial and industrial sites remain underused. Approximately 80% to 90% of annual battery revenue is derived from Global Adjustment peak management over the expected life of an asset, resulting in batteries using only approximately 20% to 30% of their available cycling capability

Improved utilization would enable the grid to draw on battery capacity during peak periods, enhancing reliability. Because that capacity is distributed across many customer sites, it also reduces exposure to a disruption at any single location, strengthening resilience.

The report positions the proposed Distributed Reliability Track as a practical next step in translating Ontario’s existing policy direction into action, while helping address the province’s near-term reliability needs.

“Ontario has an opportunity to unlock more value from distributed energy storage resources that are already operating or can be deployed quickly,” said Justin Rangooni, President and CEO of Energy Storage Canada. “This report brings together industry evidence and practical recommendations for connecting the work underway at the OEB and IESO with a procurement mechanism that supports reliability, attracts investment and delivers value for ratepayers.”

Operational data examined as part of the report also demonstrates the additional grid services that distributed energy storage systems could provide under a more coordinated framework.

“Operational data from deployed Ontario assets shows that batteries are capable of doing much more for the grid than the current framework allows,” said Ashish Naik, Vice President of Corporate Development at Peak Power. “These systems can respond within seconds, but today they remain underused. A Distributed Reliability Track would activate capacity already connected to the grid and provide the revenue certainty needed to finance new projects before Ontario’s capacity deficit grows.”

The report recommends an initial procurement of 100 to 500 MW through eight- to ten-year standard-offer contracts with defined availability and performance obligations. This capacity could be deployed within 12 to 24 months using existing technology and private capital, without new transmission infrastructure. Participating batteries would remain free to provide other services outside their contracted windows, including Global Adjustment peak management, demand response, non-wires alternatives, ancillary services and energy arbitrage.

The report also recommends meter aggregation across battery portfolios, standardized compensation for non-wires alternatives, lower wholesale market participation thresholds, faster interconnection and coordinated dispatch signals. While many of these measures are already underway, coordinating them through a common procurement framework could give the IESO access to verified, dispatchable capacity during critical periods. For ratepayers, better use of distributed storage could reduce the need for higher-cost centralized capacity procurement, defer distribution infrastructure investments and place downward pressure on peak-related system costs.

Peak Power provided technical research, operational data and industry expertise in support of the report, working with Energy Storage Canada and members of the broader energy storage sector throughout 2026. The analysis was also informed by perspectives from utilities, demand response aggregators, storage operators and technical reviewers. The full report is available at https://www.energystoragecanada.org/white-papers

About Peak Power

Peak Power delivers end-to-end battery storage development and energy optimization solutions powered by industry-leading peak forecasting and energy market intelligence. Working across North America, Peak Power helps large energy users cut electricity costs, unlock new revenue streams, and pursue sustainability goals.

Website: https://www.peakpowerenergy.com
LinkedIn: https://www.linkedin.com/company/peak-power

About Energy Storage Canada

Founded in 2016, Energy Storage Canada (ESC) is the national voice of Canada’s energy storage sector, advancing its growth and market development through advocacy, education, collaboration and research.

Technology-agnostic and nationally focused, ESC represents more than 100 organizations across the energy storage value chain, from developers, technology providers and utilities to engineering firms, service providers, professional services companies and NGOs. Our members operate across Canada and around the world, reflecting the sector’s rapidly expanding reach.

As policy, markets and technologies evolve, ESC brings the industry together. We connect members with decision-makers and sector experts, create opportunities for collaboration and provide a strong, coordinated voice on the policy and regulatory issues shaping the future of energy storage in Canada.

Website: www.energystoragecanada.org
LinkedIn: https://www.linkedin.com/company/energystoragecanada

To arrange an interview with Justin Rangooni, President and CEO of Energy Storage Canada, or a technical expert from Peak Power, please contact Elizabeth Cook, Communications Coordinator at Energy Storage Canada, at elizabeth.cook@energystoragecanada.org.