MINISTRY OF ENERGY

Energy StoragePresentation to APPrO Storage Symposium

November 19, 2014

MINISTRY OF ENERGY

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From Today’s Grid….to Tomorrow’s Grid

From less integration…Today’s grid: electricity wires and connections are the focal point of the grid

…to greater integrationTomorrow’s grid - the distribution, exchange of information and integration of technologies become the focus

Technology is evolving. The grid of tomorrow will be very different than the grid of today.

MINISTRY OF ENERGY

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Ontario Policy Framework for Smart Grid

The Green Energy Act has provided guidance on smart grid for Ontario, including the vision to enable innovative technologies such as energy

storage.

Power System FlexibilityEnable more renewables and better

efficiency in grid operation

Adaptive InfrastructureEncourage more innovation and

ensure adaptivness to future conditions (e.g. electric vehicles)

Customer ControlEnable more conservation through

a shift to smarter homes

• Mobile charging infrastructure to support EVs• Storage opportunities• Enabling innovative technologies

More Innovation

• Customer based micro-generation• More distributed generation,

used more efficiently (i.e. less transmission investment)

Cleaner supply and lower costs

• Smart meters• Time-of-use rates• Home Energy Management• Load control

More Conservation

Expected OutcomesFocus Area

MINISTRY OF ENERGY

Ontario is Active in All Aspects of Storage

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Bulk System Support:

Ancillary Services

Renewables Integration

Peak Shaving

Reserve Capacity

Tx Support:

Congestion & Loss reduction & Investment Deferral

Renewables Integration

Grid support, power quality & reliability, etc.

Behind the Meter:

Customer back-up, power quality & reliability

DG Integration Cost

management

Dx Support:

Loss reduction & Investment Deferral

DG & EV Integration

Grid support, power quality & reliability, etc.

10’s - 100’s MW 10’s MW < 2 MW < 1 MW

50 MW IESO/OPA Procurements

Under Consideration

~10 Demos Underway

+Smart Grid Fund

• Energy storage is important for Ontario & the government recognizes its key role in grid modernization.

MINISTRY OF ENERGY

Energy Storage in the Long Term Energy Plan

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2013 LTEP Storage Initiatives:

50MW procurement process for storage by end of 2014

Work to address Regulatory Barriers

Providing opportunities for storage under the large renewables procurement (LRP)

Examining the opportunities for storage under net-metering and conservation policies

Independent study to establish the value of energy storage’s many applications

MINISTRY OF ENERGY

Sector’s Innovation Challenge• Utility investment in R&D is among the

lowest across sectors (see graph)

• Only a few of the 80 utilities in the Province have the customer base required to attract large scale technology vendors and the sufficient balance sheet strength to pursue innovation.

• Traditional regulatory approval process has not been conducive to rapidly evolving technology and is only beginning to evolve with the OEB’s Renewed Regulatory Framework for Electricity.

• The sector’s low innovation performance has been a long-standing challenge for advancing technologies like energy storage, and also became a catalyst for Ministry of Energy to create the Smart Grid Fund program.

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CANADA INDUSTRIAL R&D INTENSITIES(R&D SPENDING RELATIVE TO REVENUES)

Source: Mowat Centre

MINISTRY OF ENERGY

Smart Grid Fund • The Smart Grid Fund (SGF) is a $50M competitive grant program designed to leverage

Ontario’s advantages in the energy sector and build the smart grid industry by funding technology demonstration projects on Ontario’s distribution system.

• SGF has three objectives: advance Smart Grid in Ontario, support economic development, and reduce the risk and uncertainty in electricity sector investments.

• Since launched in 2011, SGF has supported over 15 projects with more to be announced in the near future. The program has created over 600 jobs and leveraged over $100M in investment.

SGF Technology Areas Sample SGF Portfolio Organizations

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Behind the Meter

Data Analytics

MicrogridsGrid

Automation

DG & Storage

EV-Grid Integration

MINISTRY OF ENERGY

Smart Grid Fund & Energy Storage

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• Energy Storage was a focus area for the most recent call for applications. The projects below have been recently announced and incorporate forms of storage. More storage projects will be announced in the near future.

Projects Examples Featuring Storage

Recipient Project Collaborators SGF Contribution

Microgrid test facility in Guelph includes integration

of battery storage & flywheel

University of Waterloo, Guelph

Hydro, NCC Development

$2,934,000

Deployment of lithium-ion systems to ease system congestion and support

electric vehicle integration

Toronto Hydro, London Hydro, Hydro Ottawa,

National Research Council

$1,310,000

Rural distributed energy management system includes

lithium-ion deployment

Hydro One, eCamion, University of Toronto, multiple

observer LDCs

$492,535

MINISTRY OF ENERGY

Other Activities to Keep Pulse on Innovation

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