Smart Grid: an Ontario Perspective

1
Smart Grid an Ontario Perspective

• Brian Hewson, Senior Manager Regulatory Policy
• Hamilton
• May 8, 2013

2
Overview

• Role of the Ontario Energy Board
• What is smart grid a very quick picture
• What are the smart grid issues?
• The policy context for smart grid
• Whats happening in Ontario?

3
Role of the Ontario Energy Board

• OEB regulates (licence and set rates) 77
  distributors of varying size and 5 transmitters,
  OPA and IESO (including SME)
• Licences generators, wholesalers, sub-metering
  and retailers
• Establishes rules for network businesses conduct
  with customers and with other market players
• Review and approval of major transmission
  facilities
• Review of market rules, reliability standards
• Sets CDM targets and establishes compliance with
  targets
• Five objectives guide the Board in electricity
  sector regulation
• protecting the interests of consumers
• Maintaining financial viability and economic
  efficiency
• promotion of renewable energy generation and CDM,
  facilitate development and implementation of
  smart grid

4
What is a smart grid?

• Telecom Network
• Phone
• Internet
• Smart Meter communication infrastructure

Intelligence/Communications Layer
Diagram source EPRI

• Conventional grid interoperates with smart grid
  intelligence through enhanced devices
• - Smart meters
• - Switches
• - Transformers

Smart Grid
Status / Control
Status / Control
Status / Control
Conventional Grid
Diagram source EPRI
4
5
What is smart grid?
Customers Distribution Transmission
Energy management Renewable energy Storage EVs Micro-grids Automated switching Sensors Power quality/reliability Self-healing systems Storage Automation Integration of renewable energy Storage
6
What are the key smart grid issues and
challenges?

• Data access and analytics
• Cyber security
• Privacy
• Customer value and Cost
• Interoperability/compatibility

7
So how are the issues being addressed?

• Interoperability
• Standards development
• NIST, IEC, Standards Council of Canada
• Transmission and distribution - coordination
• Behind the meter more challenge
• Cyber-security
• Standards NERC/NIST
• Utility focus protection of grid???

8
So how are the issues being addressed?

• Integration of new technology
• Pilots and demonstration programs EVs, storage,
  sensors, self-healing
• Renewable energy solar, wind, fuel cells
• Data access privacy, security
• Data management - analytics

9
The Ontario policy context for addressing these
issues

• Green Energy Act 2009 smart grid objective
• Ministers Directive on smart grid
• 3 areas of focus customer control, system
  operations and adaptive infrastructure
• 10 policy objectives
• OEB Renewed Regulatory Framework
• Smart Grid Report
• Review of plans for demonstrations and smart grid
  related to connection of generation

10
Renewed Regulatory Framework Objectives

• Shift  focus from utility cost  to value for
  customers
• Better align utility reliability and quality of
  service levels with customer expectations
• Institutionalize continuous improvement and
  innovation
• Provide for a comprehensive approach to network
  investments to achieve optimum results
• Better align timing and pattern of expenditures
  with cost recovery
• Provide a sustainable, predictable, efficient and
  effective regulatory framework

11
Defined Outcomes

• Customer Focus
• services are provided in a manner that responds
  to identified needs customer preferences
• Operational Effectiveness
• Continuous improvement in productivity and cost
  performance is achieved and utilities deliver on
  system reliability and quality objectives
• Public Policy Responsiveness
• Utilities deliver on obligations mandated by
  government (e.g. in legislation and in regulatory
  requirements imposed further to Ministerial
  directives to the Board)
• Financial Performance
• Financial viability is maintained and savings
  from operational effectiveness are sustainable

12
Smart Grid Development Implementation

• Smart grid is a modernization of the grid
• Meter is demarcation point for utility smart grid
  activities
• Allow opportunity for all players, creativity and
  innovation
• Board Report recognizes need for innovation,
  develop appropriate incentives for utilities
• Provides direction on developing a clear set of
  expectations for utilities in planning for smart
  grid

13
Smart Grid Report

• Direction to network businesses
• Develop plans which must address smart grid
  policy
• Customer engagement
• Data access
• Automation of networks to provide flexibility
• Integration of technology - storage
• Assessment of new innovative technology
• Plans to consider 10 policy objectives
• Principle concern for value, reliability, consumer

14
Whats happening now in Ontario?

• Hydro One Networks
• Owen Sound smart zone to demo a number of
  technologies for system and customer
• Sensor deployment
• Renewable integration automated switching
• Toronto Hydro
• North York smart pilots
• Community storage
• Automation to support renewables

15
Whats happening now in Ontario?

• Powerstream
• EV demonstration
• Micro-grid
• Grid automation/sensing
• 20 or so utilities working together on data
  security assessments, analysis
• System Operator developing alternative
  technologies to manage the provincial grid
• Storage, demand control
• Peak management DR automation

16
Whats next?

• Utilities developing plans based on policy
  direction
• Standards development
• SCC work
• Data access
• Green Button
• Smart grid is an evolution not a revolution.

17

• Thank You
• ???????
• Go to www.ontarioenergyboard.ca