Category: ⚡ Markets & Operations
Complexity Level: ●○○○○ (Level 1–2 – Introductory)
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Ontario’s electricity market is the system used to coordinate electricity production and consumption across the province.
Because electricity cannot easily be stored in large quantities, generators must produce electricity at the same time that customers consume it. The electricity market helps coordinate these activities by allowing generators to offer electricity for sale while the system operator determines which generators will supply the electricity needed to meet demand.
The Independent Electricity System Operator (IESO) operates Ontario’s wholesale electricity market.
⚡ Electricity markets help determine which generators produce electricity and how much they are paid.
The market allows electricity supply to respond efficiently to changing demand.
Electricity Market
A system where electricity producers and consumers interact through rules and processes that determine which generators supply electricity and what price is paid.
Electricity demand changes constantly throughout the day.
For example:
The electricity market helps ensure that enough electricity is produced to meet these changing conditions.
The Independent Electricity System Operator (IESO) administers Ontario’s electricity market.
Its responsibilities include:
The IESO must also ensure that the electricity system operates safely and reliably.
Related topic:
Independent Electricity System Operator (IESO)
Generators participate in the electricity market by submitting offers to supply electricity.
These offers indicate:
The market uses these offers to determine which generators will operate.
Electricity demand comes from homes, businesses, and industrial facilities.
While most consumers do not participate directly in the wholesale market, their electricity usage determines how much electricity must be supplied.
Demand is influenced by many factors, including:
Consider a hot summer afternoon when electricity demand rises across Ontario.
This process repeats continuously as electricity demand changes throughout the day.
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Dispatch
This topic explains how the electricity market determines which generators produce electricity in real time.
Last Updated: 2026-03-27