From Insight to Action: How LDCs Can Lead Ontario’s eDSM Future

Originally shared at the GridSmartCity Spring Forum, May 26, 2025, Blue Springs Golf Club, Acton, Ontario.

At the recent GridSmartCity Spring Forum, a group of member local distribution companies (LDCs), commercial partners, and other industry stakeholders gathered to explore how collaboration, innovation, and collective action can enhance service delivery and build more sustainable electricity utilities. Representing Aladaco, Dan Josling, Director of Business Development, outlined the pivotal role LDCs will play in driving results under Ontario’s new $10.9 billion electricity Demand Side Management (eDSM) Framework.

This approach reflects a shift: conservation programs are no longer fully centralized—they are returning to a community-driven model.

A New Era of Energy Efficiency

Announced in January 2025, Ontario’s eDSM Framework is big, bold, and built for local delivery. 

• 12-year roadmap with rolling 3-year action plans

• $10.9 billion in funding—nearly 10x the previous framework

• Targeting 18 TWh in electricity savings and 3,000 MW in peak demand reduction

• Enough to power 2+ million homes and reduce the need for new generation facilities

Read the 2025-2027 Program Plan

What This Means for LDCs

LDCs are already far more than just poles and wires—and the eDSM Framework encourages them to go even further, expanding their role in customer engagement, program delivery, and long-term planning.

With funding of $90–$150 million available per 3-year cycle, the opportunity is significant, but success will depend on more than just access to dollars. It requires clear strategies, strong internal capacity, and the right delivery partners.

Strategic Advantages for LDCs

For LDCs that step into this leadership role, the benefits are substantial. By helping customers access energy efficiency incentives, utilities can deepen trust and strengthen relationships. Many programs directly support customer-side upgrades that reduce peak demand, which can delay or eliminate costly system investments.

Additionally, enhanced data collection improves load forecasting and capital planning. And from a reputational perspective, the framework positions LDCs to demonstrate climate leadership and contribute meaningfully to ESG reporting and municipal accountability.

The Opportunity for Municipalities

Because many LDCs are municipally owned, there’s also strong alignment between eDSM goals and municipal mandates. Energy efficiency supports climate targets, helps households and businesses lower their energy costs, and attracts investment in building retrofits and clean energy projects.

Municipalities that align their corporate and energy strategies with their LDC’s role in eDSM can unlock new value—both financially and socially—while demonstrating leadership on climate and affordability.

The Realities: Capacity, Trust, and Complexity

Despite strong momentum, several challenges remain—and many of them stem from the impacts of the 2019 shift to centralized program delivery. For over a decade, LDCs successfully led conservation efforts. But when local delivery was pulled back in March 2019, it triggered a significant labour disruption across the sector. Some conservation staff were reassigned, others exited the industry, and over time, much of that in-house expertise was lost.

Now, as LDCs return to the forefront of program delivery, they face the realities of rebuilding that capacity. Outreach teams are lean. Conservation knowledge needs to be reestablished. And the “easy wins”—like LED retrofits—are largely behind us. What lies ahead are deeper, more technically complex projects that require sustained engagement and a high level of customer trust.

Compounding these challenges are broader market pressures, including economic constraints that make it harder for customers to invest, as well as lingering skepticism following years of program restructuring. Rebuilding credibility requires transparency, consistency, and achieving quick wins that demonstrate value early.

To address these gaps and accelerate progress, many LDCs and municipalities are turning to experienced delivery partners who can help design, engage, and deliver at pace.

What’s at Stake

Failing to engage with the framework could mean lost funding, reduced customer confidence, and limited influence in shaping local program design. It could also stall progress on broader climate and infrastructure goals.

The risk isn’t just inaction—it’s falling behind while others move forward.

Aladaco’s Role: Supporting LDCs at Every Stage

With over 20 years of experience in CDM/DSM program delivery and energy and carbon management strategies, Aladaco provides end-to-end support aligned with IESO standards, LDC mandates and municipal priorities.

We help clients:

• Plan: Build GHG inventories, CDM plans, and energy/carbon reduction roadmaps.

• Design: Create local program models and custom incentives.

• Engage: Facilitate outreach through co-branded webinars, facility assessments, and stakeholder communications.

• Verify: Execute measurement, verification, and quality assurance to ensure programs meet regulatory benchmarks.

Whether you need program delivery support or targeted technical guidance, our flexible model adapts to your internal capacity and goals.

What LDCs and Municipalities Should Do Now

To align with the eDSM framework and maximize impact:

1. Understand the framework. Review the 2025–2027 Program Plan and clarify your role.

2. Align local strategies. Ensure your municipal and corporate plans reflect eDSM goals and identify opportunities for synergy.

3. Build internal and external capacity. Evaluate your staffing and delivery partner needs now, before funding ramps up.

4. Engage early. Proactive outreach to customers and stakeholders will build trust and drive participation.

5. Measure and refine. Track early results and be ready to adjust as the market evolves.

   
   
   
   

Let’s Build the Future Together

Ontario’s electricity future is local, strategic, and collaborative. The framework is here. The funding is here. The opportunity is here.

Are you ready to lead?

Contact Aladaco today to get expert support on planning, designing, and delivering your eDSM strategy.