Smart Grid: an Ontario Perspective
Brian Hewson, Senior Manager Regulatory Policy
Hamilton
May 8, 2013
Overview
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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
What’s happening in Ontario?
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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
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What is a smart grid?
Smart Grid
Intelligence/Communications Layer
Telecom Network
- Phone
- Internet
- Smart Meter
communication
infrastructure
Diagram source: EPRI
Status / Control
Status / Control
Status / Control
Conventional Grid
Conventional grid
interoperates with
smart grid
intelligence through
enhanced devices:
- Smart meters
- Switches
- Transformers
Diagram source: EPRI
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What is smart grid?
Customers
•Energy
management
•Renewable
energy
•Storage
•EVs
•Micro-grids
Distribution
•Automated
switching
•Sensors
•Power
quality/reliability
•Self-healing
systems
•Storage
Transmission
•Automation
•Integration of
renewable
energy
•Storage
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What are the key smart grid issues and challenges?
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Data access and analytics
Cyber security
Privacy
Customer value and Cost
Interoperability/compatibility
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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???
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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
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The Ontario policy context for addressing these issues
• Green Energy Act 2009 – smart grid objective
• Minister’s 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
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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
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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
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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
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Smart Grid Report
• Direction to network businesses
• Develop plans which must address smart grid
policy:
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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
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What’s 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
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What’s 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
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What’s next?
• Utilities developing plans based on policy
direction
• Standards development
– SCC work
• Data access
– Green Button
Smart grid is an evolution not a revolution.
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Thank You
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Go to: www.ontarioenergyboard.ca
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