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