Power Shift: Ontario Bets on Local Energy Markets

Alectra's Centricity project puts homes and businesses at the center of Ontario's clean energy grid.

16 Aug 2025

Canada's electricity sector is entering a pivotal phase as Ontario launches one of its most ambitious clean energy experiments. On August 15, 2025, Alectra and a wide-ranging group of partners unveiled Centricity, a project that transforms homes and businesses from passive consumers into active participants in the power system.

The concept is both practical and visionary. Solar panels, batteries, and smart devices are no longer just household assets; they can supply electricity back to the grid or reduce demand during peak hours. By creating a local energy market, Centricity aims to reduce costly infrastructure upgrades while making Ontario's grid more resilient and efficient. The project has secured CAD 6 million from Natural Resources Canada and approximately CAD 149,645 in additional support from Mission Innovation, underscoring its importance both nationally and internationally.

The coalition driving Centricity is unusually broad. Alongside Alectra are Oakville Enterprises, Deloitte, the Ontario Energy Association, the Electricity Distributors Association, Electricity Canada, the Smart Grid Innovation Network, and the University of Toronto Mississauga. This blend of utilities, consultants, associations, and researchers underscores the scale of collaboration needed to reinvent the grid. Alectra president Brian Bentz framed the mission clearly: empower customers to engage in the energy transition while keeping the system reliable and affordable.

The timing is urgent. Electric vehicle adoption and distributed clean technologies are accelerating, straining Ontario's distribution networks. Building new lines and substations is costly and slow, while market-driven participation offers a more nimble way to balance supply and demand. Customers who share energy or shift usage stand to be rewarded for their role in stabilizing the grid.

Yet challenges remain. Regulators must adapt rules, and questions about consumer participation, cybersecurity, and market complexity linger. Deloitte stresses the need for clear standards, while researchers at the University of Toronto will track outcomes to guide future policy.

Observers across North America are watching closely. If Centricity succeeds, it could provide a blueprint for utilities worldwide, proving that decentralization and two-way power flows are not just possible but essential. Ontario now stands at the forefront of redefining how electricity systems operate in the clean energy era.