Stay Calm.There’s a Revolution Going On!A System Operator’s PerspectiveDon 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?

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• Market Opening2002

• Blackout2003• 13 Public Appeals

• Lakeview Shutdown2005

• Introduction of Wind Capacity (200 MW)2006• 1600 MW in new gas-fired capacity (more to

come)2008

• 2700 MW CDM Target2010

• Broad implementation of TOU rates2011

• Coal Shutdown2014

Smart Grid Forum

• Industry leaders brought together to develop a vision for an integrated smart grid for Ontario

• Vision designed to guide:– 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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