Ontario’s Clean Energy, Electric Vehicles and Smart Grid Policies

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Smart Grid

Distributed Clean

Electricity

EV Infrastructur

eJOBS

consolidate investment, diversify risk and increase likelihood of success

Ontario Power Centres

delivering the promises

Definitions

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Distributed Clean Electricity – small renewable energy and cogeneration plants Design and installation of small-scale (500kw-10MW) electricity generators Located close to electricity customers within the local distribution grid, and Generating electricity using sustainable solar/wind power and highly efficient cogeneration plants that burn low

carbon natural gas or biofuels/biomass fuels

Smart Grid – two-way usage information communication and power generation Electrical power lines, transformers and power management devices located within the local distribution network

and customer premises to manage electricity demand/supply balance and warn customers of potential price spikes or outages caused by excess customer demand

Information and communication technologies (applications) communicate with customer’s electricity meter and devices embedded in the customer’s main circuit board and electricity consuming equipment and programmed to read and relay electricity use

Offers customers accurate, reliable and timely electricity reports to manage electricity use and costs Supports the introduction of two-way communications and power generation from distributed clean electricity

generators or customer ‘s rooftop solar PV generator

EV Infrastructure – management of EVs & battery chargers (G2V – V2G) Electric Vehicle (EV) battery chargers installed in residential, commercial and industrial premises and in larger

EV Charging Centres EV battery charging is expected to pose a challenge to LDC’s distribution grid if EV owners choose to charge their

batteries during peak demand period - (G2V) Controlled EV Charging would reduce the likelihood of excess electricity demand on the Grid Future possibility of EV transmitting VOLT/VAR to supply Smart Grid - (V2G)

Electric Grid Gets Smarter

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Centralized Generation, Distribution Networks and Customer Loads

Source: Figure 2.1 Basic Structure of the Electrical Grid http://www.ferc.gov/industries/electric/indus-act/reliability/blackout/ch1-3.pdf

Challenge – Grid Capacity Restricted in GTA-Southwest

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“It was concluded that public spending on the smart grid over the next five years [2012-16] would amount to about $390 million per year, an investment already factored into electricity price increases projected under Ontario’s Long-Term Energy Plan. This investment is aimed at enhancing the efficiency of the distribution grid and using smart grid technologies to enable the connection of distributed generation, such as wind and solar, in a more intelligent, cost effective way.” Second Report of the Smart Grid Forum (IESO) May-2011 (Pg.29)

Central Generation Grid Model not designed to accommodate distributed small (500kW<10MW) intermittent “renewable energy” generation within distribution networks

NG “Peaker” plants (500MW- 900MW) politically disabled in GTA Southwest Grid districts (Oakville, Mississauga)

OPA requires 300MW of reserve power in GTA-Southwest Ontario districts; Grid unable to transmit power without very expensive upgrades (3 CHP proposals rejected - Redpath Sugar, Atlantic Packaging and GM Oshawa)

Challenge – Managing Critical Peak Power (CPP)

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Source: KEMA

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Solution – Home/Building Energy Management Systems

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Solution - Virtual Power Plants

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Integration of Information and Communications Technologies

Opportunity – 7%-14% Peak Demand Reduction AchievableChart Source: FERC – National Assessment of Demand Response Potential – June 2009

Quote Source: Smart Power, Peter Fox-Penner 2010, Island Press, Pg.43

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“..when customers have enabling technologies they shift peak power to lower-priced periods. Under TOU [Time of Use billing] rates average customers shift 5-10% of their use. Under CPP [Critical Peak Power] the amount of shift is 20-30%. In a recent pricing pilot by Baltimore Gas & Electric, customers who adjusted their use saved 36- 37% of their on-peak power… this is indicative of what we would expect when the Smart Grid is widely deployed and customers have in-home networks and controllable appliances”

Challenge - EV Charging Disruptive Risk

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“Utilities that don’t prepare to integrate EVSEs [Electric Vehicle Supply Equipment] into their distribution networks are likely to incur unplanned costs and grid reliability problems, as well as be perceived as a bottleneck to EV adoption.” Silver Spring Networks: White Paper – The Dollars and Sense of EV Smart Charging [2010] (Pg. 2)

“If millions of Germans were to switch to electric cars, would this put an unbearable strain on Germany's power generation capacity? Not at all, says German technology executive and Eurelectric specialist Peter Birkner. But it would lead to a breakdown of the power grid. There is only one solution, according to Birkner: the widespread introduction of smart charging systems. The consumer will have to become an integral part of the electricity system.” Alexander Bakst, The coming breakdown of the power grid (Or: why electric cars can work only if consumers turn to smart charging), European Energy Review, Sept-29-2011

“EV charging with a Level II charger is a bigger load than the average house, even a few EVs on a distribution feeder could overload that feeder and associated transformers …. Early results from an ongoing Electric Power Research Institute (EPRI) project suggest that peak [EV] charging, higher charger power ratings, and increases in the number of EVs on a transformer could yield decreases in transformer lifetimes due to temperature-induced insulation aging from capacity overload.” MIT Study on the Future of the Electric Grid [2011] (Pg. 120)

Solution – Controlled EV Charging

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“Utilities that prepare for EVSEs with smart grid “smart charging” technologies and customer incentives will be able to proactively influence when and how EV charging occurs, enabling them to reduce peak demand, mitigate the impact of EV charging on the grid, and actively support customers with EVs.” Silver Spring Networks: White Paper – The Dollars and Sense of EV Smart Charging [2010] (Pg. 2)

“To give an idea of the effect, researchers simulated controlled and uncontrolled [EV] charging of an aggressive 75% penetration of EVs in the Netherlands. With controlled charging, even this high penetration of vehicles would require upgrading only 1.9% of transformers.” MIT Study on the Future of the Electric Grid [2011] (Pg. 121)

“ [US] National projections range from as few as 3.3 million to 40 million [EVs] by 2030. … EVs are expected to cluster in select high-income and eco-conscious neighborhoods.” MIT Study on the Future of the Electric Grid [2011] (Pg. 122)

EV and EV Chargers

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Ontario Power Centres (OPC)

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Public Ownership of Ontario Power Centres (OPC) EV Charge Infrastructure, Clean Electricity Generation and Energy Management

Systems

Integrated Business Model Benefits Green Jobs/EVs- Infrastructure/Smart Grid modular business platform Enables sustainable jobs, industrial investment and replication to scale based on

local requirements Redevelopment/repurposing of select MOT car pool lots & Ontario properties Catalyst for “first adopters” - EV Fleets and related services in major Ontario

communities Solution to GTA-Southwest demand for clean reserve power with added VOLT/VAR

regulation services for Local Distribution Grid (operated by LDC) Expedites Conservation and Demand Management (CDM) programs to install

behind the meter Home and Building Energy Management Systems and Smart EV Chargers

Development to generate construction jobs and train/employ sustainable staff of OPC and Smart Energy Technicians to service EV & CDM customers

Export opportunities of modular turn-key EV Power Centres and Smart Grid expertise to other provinces and global markets

Opportunities Summary

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Integration of small (<10MW) modular “clean” distributed energy resources (DER) within GTA-Southwest distribution grid

Introduction of district “Virtual Power Plants” (VPP) to engage in conservation and demand management (CDM) programs for most customers too small to participate in OPA Demand Response (DR) programs

Development of Smart EV Charge Infrastructure to eliminate EV range anxiety, manage EV Fleets, reduce uncontrolled EV charge demand on the grid and secure Ontario leadership in EV investment and jobs

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EV Charging + Solar Electricity

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