Ontario’s renewable energy, smart grid and EV policy


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Ontario's Smart Grid, EV and Renewable Energy Policy: challenges and opportunities.

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  • 1) Green Energy Act (Green Industry/Jobs), Electric Vehicles (500,000 by 2018) and Smart Grid Initiatives are progressive “game-changers” for the economy and sustainable job creation2) Policy integration of Green Energy Jobs/EV Infrastructure and Smart Grid development requires careful attention to deployment planning and risk management3) The three Policies are related - ONE business model and plan is proposed to diversify risk, minimize costs (CAPEX/OPEX) and increase the likelihood of achieving Ontario’s policy goals within constrained public budgets, earlier than expected4) The proposed Ontario Power Centre is a structure and business platform to deliver these three policy objects by leveraging Electric Vehicle (EV) sales and growth as the Enabling Technology to boost Ontario’s economy – reduce transport oil/gasoline and GHG emissions
  • Distributed Clean Electricity – or, generically, Distributed Energy Resources (DER), refers to renewable energy and, to lesser extent, cogeneration gas generators located within the distribution or local grid networkSmart Grid includes advanced two-way communication between power generators, distributors and end-users. A Smart Grid would permit more interaction between the local electric utility and customers; the goal is to reduce electricity waste and defer addition of new generation plantsEV Infrastructure is the network of Electric Vehicle (EV) battery charging stations in residential/commercial end-user garages or Charging Centres and publically owned large Power Centres well-located across the province.
  • The electricity grid was developed in the 1880s and was identified as the greatest engineering invention of the past century (2003 – National Academy of Engineering Science)A more advanced electrical grid system is proposed to reduce or defer the need to invest in very expensive power central power generators.The Video provides a good over-view of the old and Smart Grid
  • Ontario’s “Independent Electricity System Operator” (IESO) reported in May-2011 that Ontario will spend about $390 Million/yr. for 5 years – 2012-16), to upgrade the GridIssue: existing grid Not designed to accommodate small “intermittent” renewable energy generation – Micro-FiT <10kW generators considered very smallTwo prominent gas “peaker” plants disabled in GTA-Southwest 2010-11 (Oakville, Mississauga)OPA requires additional 300MW reserve power in GTA-Southwest – rejects proposals for 3 CHP (combined, heat and power) plants
  • Real problem is Critical Peak Power (CPP) that spikes demand for electricity within a short time band during most regular work days
  • One practicalsolution to managing electricitydemand is to introduce Home and Building “Energy Management Systems”These “behind the meter” systems are linked wirelessly or using existing home/building Power-lines to poll “Smart” appliances and HVAC systemsElectronic chips installed in these appliances and devices would permit demand information – electricity use, and in advanced systems – provide automated controls to power-down or shed the load on non-critical appliances and equipment when the demand for electricity spikes within the network.
  • The Smart Grid effectively integrates three key goals into a “Virtual Power Plant”Demand Response – end-users deferring electricity demand to reduce electricity costs (dependent on demand/supply and time of use pricing)Energy efficiency using “smart” devices embedded in appliances and equipment that are connected to a Energy management System(Much like most new cars have embedded computers and control systems to optimize motion and reduce energy consumption Let’s look at the video
  • 1) Good news – Participation in electricity conservation programs and technologies – EMS – reduces consumption
  • EV present a challenge to gridCharging EVsall at once could disrupt electricity grid
  • 1) Controlled EV charging is the solution
  • Distributed EV Chargers need to be monitored and controlled – including those in residential locationsEV development offers an opportunity to reduce our reliance on imported oil/gasoline, reduce CO2 / GHG emissions and Create much-needed jobs to shore-up Ontario’s leadership in the automotive industry3) Innovative marketing and corporate participation are key success factors to the development of Evs – let’s see what Google is doing at its corporate HQ in California
  • Ontario Power CentresPublic OwnershipIntegration of Key Policy Initiatives – Smart Grid, EV Infrastructure and Clean Energy Generation
  • Restatement of specifics
  • Ontario’s renewable energy, smart grid and EV policy

    1. 1. Ontario‟s Clean Energy, Electric Vehicles and Smart Grid Policies consolidate investment, diversify risk and increase likelihood of success Ontario Power Centres Smart Grid Distributed Clean Electricity EV Infrastructure JOBS delivering the promisesSuncharge Corporation © 2012 20/01/2012
    2. 2. DefinitionsDistributed Clean Electricity – small renewable energy and cogeneration plants Design and installation of small-scale (500kw-10MW) electricity generators Located close to electricity customers within the local distribution grid, and Generating electricity using sustainable solar/wind power and highly efficient cogeneration plants that burn low carbon natural gas or biofuels/biomass fuelsSmart Grid – two-way usage information communication and power generation Electrical power lines, transformers and power management devices located within the local distribution network and customer premises to manage electricity demand/supply balance and warn customers of potential price spikes or outages caused by excess customer demand Information and communication technologies (applications) communicate with customer‟s electricity meter and devices embedded in the customer‟s main circuit board and electricity consuming equipment and programmed to read and relay electricity use Offers customers accurate, reliable and timely electricity reports to manage electricity use and costs Supports the introduction of two-way communications and power generation from distributed clean electricity generators or customer „s rooftop solar PV generatorEV Infrastructure – management of EVs & battery chargers (G2V – V2G) Electric Vehicle (EV) battery chargers installed in residential, commercial and industrial premises and in larger EV Charging Centres EV battery charging is expected to pose a challenge to LDC‟s distribution grid if EV owners choose to charge their batteries during peak demand period - (G2V) Controlled EV Charging would reduce the likelihood of excess electricity demand on the Grid Future possibility of EV transmitting VOLT/VAR to supply Smart Grid - (V2G)Suncharge Corporation © 2012 20/01/2012
    3. 3. Electric Grid Gets Smarter Centralized Generation, Distribution Networks and Customer Loads Source: Figure 2.1 Basic Structure of the Electrical Grid http://www.ferc.gov/industries/electric/indus-act/reliability/blackout/ch1-3.pdfSuncharge Corporation © 2012 20/01/2012
    4. 4. Challenge – Grid Capacity Restricted in GTA-Southwest“It was concluded that public spending on the smart grid over the next five years[2012-16] would amount to about $390 million per year, an investment alreadyfactored into electricity price increases projected under Ontario‟s Long-Term EnergyPlan. This investment is aimed at enhancing the efficiency of the distribution grid andusing smart grid technologies to enable the connection of distributed generation, suchas wind and solar, in a more intelligent, cost effective way.” Second Report of the SmartGrid Forum (IESO) May-2011 (Pg.29) Central Generation Grid Model not designed to accommodate distributed small (500kW<10MW) intermittent “renewable energy” generation within distribution networks NG “Peaker” plants (500MW- 900MW) politically disabled in GTA Southwest Grid districts (Oakville, Mississauga) OPA requires 300MW of reserve power in GTA-Southwest Ontario districts; Grid unable to transmit power without very expensive upgrades (3 CHP proposals rejected - Redpath Sugar, Atlantic Packaging and GM Oshawa)Suncharge Corporation © 2012 20/01/2012
    5. 5. Challenge – Managing Critical Peak Power (CPP) Source: KEMASuncharge Corporation © 2012 20/01/2012
    6. 6. Solution – Home/Building Energy Management SystemsSuncharge Corporation © 2012 20/01/2012
    7. 7. Solution - Virtual Power Plants Integration of Information and Communications TechnologiesSuncharge Corporation © 2012 20/01/2012
    8. 8. Opportunity – 7%-14% Peak Demand Reduction Achievable Chart Source: FERC – National Assessment of Demand Response Potential – June 2009 Quote Source: Smart Power, Peter Fox-Penner 2010, Island Press, Pg.43“..when customers have enabling technologies they shift peak power to lower-priced periods. Under TOU[Time of Use billing] rates average customers shift 5-10% of their use. Under CPP [Critical Peak Power] theamount of shift is 20-30%. In a recent pricing pilot by Baltimore Gas & Electric, customers who adjustedtheir use saved 36- 37% of their on-peak power… this is indicative of what we would expect when the SmartGrid is widely deployed and customers have in-home networks and controllable appliances”Suncharge Corporation © 2012 20/01/2012
    9. 9. Challenge - EV Charging Disruptive Risk“Utilities that don’t prepare to integrate EVSEs [Electric Vehicle Supply Equipment] intotheir distribution networks are likely to incur unplanned costs and grid reliabilityproblems, as well as be perceived as a bottleneck to EV adoption.” Silver Spring Networks:White Paper – The Dollars and Sense of EV Smart Charging [2010] (Pg. 2)“If millions of Germans were to switch to electric cars, would this put an unbearable strainon Germanys power generation capacity? Not at all, says German technology executiveand Eurelectric specialist Peter Birkner. But it would lead to a breakdown of the powergrid. There is only one solution, according to Birkner: the widespread introduction of smartcharging systems. The consumer will have to become an integral part of the electricitysystem.” Alexander Bakst, The coming breakdown of the power grid (Or: why electric cars can workonly if consumers turn to smart charging), European Energy Review, Sept-29-2011“EV charging with a Level II charger is a bigger load than the average house, even a few EVs on adistribution feeder could overload that feeder and associated transformers …. Early results from anongoing Electric Power Research Institute (EPRI) project suggest that peak [EV] charging,higher charger power ratings, and increases in the number of EVs on a transformer couldyield decreases in transformer lifetimes due to temperature-induced insulation aging fromcapacity overload.” MIT Study on the Future of the Electric Grid [2011] (Pg. 120)Suncharge Corporation © 2012 20/01/2012
    10. 10. Solution – Controlled EV Charging“Utilities that prepare for EVSEs with smart grid “smart charging” technologiesand customer incentives will be able to proactively influence when and how EVcharging occurs, enabling them to reduce peak demand, mitigate the impact ofEV charging on the grid, and actively support customers with EVs.” Silver SpringNetworks: White Paper – The Dollars and Sense of EV Smart Charging [2010] (Pg. 2)“To give an idea of the effect, researchers simulated controlled and uncontrolled[EV] charging of an aggressive 75% penetration of EVs in the Netherlands. Withcontrolled charging, even this high penetration of vehicles would requireupgrading only 1.9% of transformers.” MIT Study on the Future of the Electric Grid[2011] (Pg. 121)“ [US] National projections range from as few as 3.3 million to 40 million [EVs]by 2030. … EVs are expected to cluster in select high-income and eco-consciousneighborhoods.” MIT Study on the Future of the Electric Grid [2011] (Pg. 122)Suncharge Corporation © 2012 20/01/2012
    11. 11. EV and EV ChargersSuncharge Corporation © 2012 20/01/2012
    12. 12. Ontario Power Centres (OPC) Public Ownership of Ontario Power Centres (OPC)  EV Charge Infrastructure, Clean Electricity Generation and Energy Management Systems Integrated Business Model Benefits  Green Jobs/EVs- Infrastructure/Smart Grid modular business platform  Enables sustainable jobs, industrial investment and replication to scale based on local requirements  Redevelopment/repurposing of select MOT car pool lots & Ontario properties  Catalyst for “first adopters” - EV Fleets and related services in major Ontario communities  Solution to GTA-Southwest demand for clean reserve power with added VOLT/VAR regulation services for Local Distribution Grid (operated by LDC)  Expedites Conservation and Demand Management (CDM) programs to install behind the meter Home and Building Energy Management Systems and Smart EV Chargers  Development to generate construction jobs and train/employ sustainable staff of OPC and Smart Energy Technicians to service EV & CDM customers  Export opportunities of modular turn-key EV Power Centres and Smart Grid expertise to other provinces and global marketsSuncharge Corporation © 2012 20/01/2012
    13. 13. Opportunities Summary Integration of small (<10MW) modular “clean” distributed energy resources (DER) within GTA-Southwest distribution grid Introduction of district “Virtual Power Plants” (VPP) to engage in conservation and demand management (CDM) programs for most customers too small to participate in OPA Demand Response (DR) programs Development of Smart EV Charge Infrastructure to eliminate EV range anxiety, manage EV Fleets, reduce uncontrolled EV charge demand on the grid and secure Ontario leadership in EV investment and jobsSuncharge Corporation © 2012 20/01/2012
    14. 14. EV Charging + Solar Electricity SUNCHARGE EV CARPORT www.suncharge.caSuncharge Corporation © 2012 01/07/2012