The Ontario Energy Association and Sussex Release DER Compensation Report
TORONTO, March 3, 2026 /CNW/ – The Ontario Energy Association (OEA) is pleased to announce the release of its latest report, DER Compensation: Analysis & Recommendations.
With Ontario’s electricity sector at a pivotal crossroads, Ontario is facing urgent demands for reliability, affordability, economic growth, and decarbonization. Distributed Energy Resources (DERs) such as storage, solar PV, demand response, and EV charging are essential to reaching Ontario’s goals. This report delivers an analysis of Ontario’s distributed energy resource (DER) compensation framework, building on the province’s strong existing foundation to better unlock the full value of DERs and ensure they are appropriately and transparently recognized for the services they provide.
“To most efficiently meet Ontario’s growing energy demands, we must modernize our policies, regulatory framework, and electricity grid to fully accommodate and integrate distributed energy resources (DERs),” said Navodi Athapaththu, Director at the Ontario Energy Association. “By focusing on reforming net metering, institutionalizing flexibility markets, and accelerating grid modernization, this report provides the key elements of a customer-centric, scalable, and environmentally responsible approach to powering our province’s future.”
This report was developed in partnership with Sussex Strategy Group to provide a detailed mapping of Ontario’s compensation model across several key archetypes, to reveal systemic gaps and opportunities for reform. The paper uses an evidence-based approach while aligning with Ontario’s Integrated Energy Plan and positioning Ontario to lead in DER integration.
“Ontario’s Integrated Energy Plan positions DERs as a tool to support system growth and modernization, but despite strong policy foundations, there remains room to improve how DERs are compensated fully for the value they provide,” said Kaleb Ruch, Director of Energy at Sussex Strategy Group. “This report offers implementable steps, grounded in Ontario’s distinct energy landscape, to move towards a more economically efficient DER valuation framework and recommends enabling actions that must be undertaken in parallel. The opportunity is a clearer pathway for DERs to participate fully in Ontario’s energy system, widening their adoption and scaling benefits to Ontario ratepayers.”
Read the full report: https://energyontario.ca/wp-content/uploads/2026/03/2025-11-OEA-DER-Compensation-Report-Final-Report.pdf
About the OEA:
The Ontario Energy Association is the credible and trusted voice of Ontario’s energy sector, representing energy leaders across the full diversity of the industry.
OEA takes a grassroots approach to policy development by combining thorough, evidence-based research with executive interviews and member polling. This approach ensures OEA’s policy positions are grounded in rigorous analysis and reflects the views of the majority of its members.
SOURCE Ontario Energy Association (OEA)
