Ontario’s electricity system is entering a period of significant change.

Electricity demand is expected to grow substantially over the next 25 years, driven by population growth, electrification, new housing, manufacturing and emerging industries. At the same time, some of the greatest pressure on the grid happens during a relatively small number of high-demand periods, particularly hot summer days when cooling systems are operating across thousands of buildings at once.

Ontario’s response is increasingly focused not only on producing more electricity, but also on managing when and how electricity is consumed.

A good example is the new Peak Performance Program, launched in 2026 under Ontario’s Energy Efficiency Framework.

What is Peak Performance?

The program provides financial incentives to eligible commercial and institutional buildings that reduce electricity demand during periods when Ontario’s grid is under greater pressure.

The primary focus is HVAC.

When a high-demand day is forecast, participating facilities receive advance notice and can temporarily reduce eligible loads during an event, which typically lasts up to three hours.

The concept is relatively simple:

Instead of only paying to produce more electricity during periods of high demand, Ontario is also creating value for organizations that can temporarily use less.

The province expects Peak Performance to deliver up to 100 MW of peak-demand reduction in 2026, increasing to 230 MW in 2027.

And the financial opportunity can be significant

For the 2026 season, the performance incentive is $54,845.40 per MW-season of average verified demand reduction.

Eligible new participants may also qualify for an enabling incentive of $20 per kW, intended to help offset equipment or service costs required to participate.

According to Save on Energy, a portfolio capable of reducing an average of 1 MW during the 2026 event season could receive close to $75,000 when performance and qualifying enabling incentives are combined.

There is an important distinction, however: this is primarily a program for larger facilities and building portfolios.

Participants generally need to aggregate at least 500 kW of demand-response capacity across participating facilities. Buildings that cannot achieve that level individually may potentially participate through an authorized aggregator.

Why this matters beyond HVAC

Perhaps the most interesting part of the program is what it tells us about the future of building energy management.

At least 75% of a participating facility’s proposed demand-response contribution must come from HVAC-related measures. But up to 25% can come from eligible non-HVAC measures, including:

• Lighting controls and dimming
• Zone shut-off strategies
• Process loads such as pumps and motors
• Battery storage used to offset HVAC loads
• Curtailment of non-critical building systems

This represents a broader shift in how we should think about energy efficiency.

For years, the conversation around buildings has largely focused on one question:

“How much energy can we save?”

The next question is becoming equally important:

“When are we using that energy, and do we actually need to be using it at that moment?”

From energy efficiency to energy flexibility

Consider a large facility during a summer afternoon.

Cooling equipment may be operating at maximum output. Lights may remain at full power across partially occupied areas. Ventilation, pumps and other equipment may continue following fixed schedules regardless of actual occupancy.

Individually, each system may seem insignificant.

Collectively, across thousands of Ontario buildings, their simultaneous electricity demand matters enormously.

Technologies such as building automation, smart thermostats, occupancy sensing, daylight harvesting, lighting controls and demand-controlled ventilation allow buildings to respond more intelligently to actual conditions.

That means energy efficiency is no longer only about installing equipment that consumes fewer watts.

Increasingly, it is about creating buildings capable of deciding when those watts are necessary in the first place.

Buildings are becoming part of Ontario’s energy infrastructure

Peak Performance is part of Ontario’s broader $10.9-billion, 12-year Energy Efficiency Framework, designed to reduce electricity demand while supporting a growing provincial economy.

That investment sends an important signal to building owners, property managers and sustainability professionals.

The building of the future will not simply be an energy consumer.

It will be an active participant in the energy system, measuring consumption, responding to occupancy, adjusting loads and reducing demand when electricity is most valuable.

For organizations planning capital improvements today, that creates an important question:

Are we simply replacing old equipment, or are we preparing our buildings for the way Ontario’s electricity system is evolving?