Planning for Today and Tomorrow

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Byron Francis
6 years ago
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1 Electricity Distributors Association Planning for Today and Tomorrow Vinay Sharma, EDA Chair

2 LDC innovation knows no size MICROGRIDS: Oshawa PUC, Alectra Inc., Veridian Connections, North Bay Hydro ADVANCED COMMUNITY DISTRICT UTILITY: Hydro Ottawa Zibi Project SMARTMAP: COLLUS PowerStream, Essex Powerlines TARGETED CONSERVATION: Niagara Peninsula Energy, Alectra Inc. POWER.HOUSE Alectra Inc. BATTERY STORAGE: Festival Hydro, Veridian Connections GREEN BUTTON: London Hydro, Festival Hydro, Whitby Hydro GRID-EDGE VOLTAGE CONTROLS: London Hydro, Entegrus, ENWIN DRONE TECHNOLOGY: ENWIN 2

The Power to Connect Advancing Customer-Driven Electricity Solutions for Ontario

consumers as drivers of change and leverages new technologies to deliver

LDC led integration of community based, small-scale power generation and storage

3 The Power to Connect Advancing Customer-Driven Electricity Solutions for Ontario This vision is a new way forward for Ontario s electricity system that recognizes consumers as drivers of change and leverages new technologies to deliver high-quality electricity services. LDC led integration of community based, small-scale power generation and storage technology, known as distributed energy resources (DERs), will be key to achieving a more resilient and low-carbon system that can alleviate cost pressures. 3

Changing Energy Landscape The energy landscape is changing and that brings challenges and opportunities which will require transformation of

4 Changing Energy Landscape The energy landscape is changing and that brings challenges and opportunities which will require transformation of the LDC business model. LDCs will succeed going forward by adopting stronger customercentric thinking. Image courtesy of Navigant Consulting Inc. 4

5 LDC of the Future Snapshot As LDCs progress along the three DER dimensions, the LDC of the future will assume a critical function in Ontario s energy transition as a Fully Integrated Network Orchestrator (FINO). 5

6 Core Challenges The way forward requires careful and constructive coordination with government, IESO, OEB and stakeholders, such as municipal shareholders and partners to overcome the challenges related to: Consistent and fair rules and provisions for DER assets Distribution planning and rate basing Jurisdictional roles and responsibilities LDC organization and structure Efficient prices and rate design 6 6

7 2017 Long-Term Energy Plan The Ministry of Energy unveiled its 2017 Long-Term Energy Plan (LTEP), Delivering Fairness and Choice, on October 26. The LTEP places customers at the centre of decision making and recognizes their increasing role in the electricity sector. The plan emphasizes that technological innovation and customer demands for better services and products is driving a pace of change in the province. The EDA is encouraged that the LTEP acknowledges the central role of LDCs in the future and that the OES has been directed to create the right environment to encourage more LDC innovation to assist customers. 7 7

2017 Long-Term Energy Plan Directives to the Ontario Energy Board (OEB) and Independent Electricity System Operator (IESO): Identify steps for cost-effective modernization of Ontario s electricity

8 2017 Long-Term Energy Plan Directives to the Ontario Energy Board (OEB) and Independent Electricity System Operator (IESO): Identify steps for cost-effective modernization of Ontario s electricity sector (i.e. smart grid and non-wires solutions, energy efficiency measures on distribution systems). Identify barriers to the development of distributed energy resources (DERs) such as energy storage. Identify opportunities for LDCs to raise the profile of their modernization/innovation plans. Consider further opportunities for encouraging a culture of innovation in the distribution sector. Develop a program to support a select number of innovative renewable distributed generation demonstration projects, strategically located and paired with other DERs and smart technologies, as well as virtual net-metering projects. 8 8

9 Looking Ahead There are a number of intersecting initiatives that will shape the modernization of the grid: OEB: Rate Design for Commercial and Industrial Customers IESO: Market Renewal; Grid-LDC Interoperability MINISTRY OF ENVIRONMENT AND CLIMATE CHANGE: Climate Change Action Plan MINISTRY OF ENERGY: Long-Term Energy Plan Implementation Plans The EDA is pleased to see that its vision for the future of the electricity sector was recognized in the Long-Term Energy Plan as pivotal to the next four years. The association welcomes the positive language from government in the LTEP to enable innovation in the sector. Our recommendations and the vision we put forward asked for regulatory flexibility for local utilities to pursue innovative initiatives like distributed energy resources. We look forward to working with the government, IESO and the OEB to address barriers. 9 9

10 Thank you Electricity Distributors Association (EDA) 3700 Steeles Ave W, Suite 1100 Vaughan, ON L4L 8K8 Main: Fax: EDA Website: Follow us on

Advancing Customer-Driven Solutions for Ontario

The Power to Connect Advancing Customer-Driven Solutions for Ontario IESO STAKEHOLDER SUMMIT PRESENTATION June 12, 2017 The Vision This is about preparing Ontario s electricity industry today for tomorrow