Stay Calm.
There’s a Revolution Going On!
A System Operator’s Perspective
Don Tench, Director, Market Evolution
May 28, 2009
Ontario’s Independent
Electricity System Operator
• Balance load and generation to
ensure a reliable electricity
service
• Integration takes place through
the wholesale electricity market
• Oversee centralized database
that supports provincial smart
metering initiative
Our History
Ladies and Gentlemen,
the Revolution: Supply
Ontario Hourly Wind Output: December 1-31 2008
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Ladies and Gentlemen,
the Revolution: Demand
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Ladies and Gentlemen,
the Revolution: Infrastructure
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So you want a revolution?
2002
2003
2005
2006
2008
2010
2011
2014
• Market Opening
• Blackout
• 13 Public Appeals
• Lakeview Shutdown
• Introduction of Wind Capacity (200 MW)
• 1600 MW in new gas-fired capacity (more to
come)
• 2700 MW CDM Target
• Broad implementation of TOU rates
• Coal Shutdown
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Smart Grid Forum
• Industry leaders brought together to develop a vision for
an integrated smart grid for Ontario
• Vision designed to guide:
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a co-ordinated approach across the sector
the mitigation of technology risks
the development of capital investment plans
a supportive regulatory framework
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The Future
2011
• Smart meters and time-of-use rates
• More in-home displays and LDC smart
technologies
• Preparing the grid for plug-in electric
vehicles
2015
• Substantial increase in smart appliances
• Renewables, demand response, storage
projects and LDC automation
technologies are widespread
• Electric car infrastructure in place
2020
• Coordination across the sector complete
• Smart appliances standard
• Micro-grids begin to emerge
Getting There: Innovation
• New technologies need to be invented and brought to
market
– Ontario needs to leverage the opportunity to create green jobs
• Sustained and significant investments are required
– All LDCs and transmitters in Ontario required to develop Smart
Grid plans for regulatory approval
– Provincial government commitment to support R&D efforts
– OEB proactive in facilitating these initiatives
• Rethink the traditional system management paradigm
– Adopt a more decentralized approach to system balancing
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Getting There: Discipline
• Develop Standards and Standardized
Approaches
– Significant work is already being done
– Industry needs to develop standards so that
technology developers can work together
– Need a North American approach to standards
• Ensure Fiscal Responsibility
– Need to ensure investments are prudent
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Getting There: The Customer
• Achieving the benefits of smart grid requires social
change
• Provide consumers with tools so they can become more
active energy users
– Offer access to timely consumption information
– Promote energy management devices, services and
systems
– Raise smart meter standards
– Support “energy literacy” through education
– Offer dynamic price signals
– Create PHEV Plan
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Enabling Tomorrow’s
Electricity System
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