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MINISTRY OF ENERGYEmerging Generation & Storage Technology Policy Considerations Ken Nakahara Senior Manager, Smart Grid and Network Policy Ontario Ministry of Energy 8 June 2012 1
MINISTRY OF ENERGY Ontario’s Smart Grid Drivers• Grid modernization is being driven by aging infrastructures, growing energy demands, the push towards renewable energy, and the availability of new technologies that enable 2-way communications and control.• Ontario is increasingly seen as a leading jurisdiction on many aspects of smart grid, leveraging IT, communications technology, and automation to move toward Grid 2.0• Smart grid in Ontario is driven by a need to: • Modernize Old Infrastructure – Move toward a cleaner and more efficient grid, while ensuring reliability and safety. • Maximize Existing Assets – Use existing assets to their full potential and integrate renewable energy more efficiently, by making them smarter • Lay the Foundation for Smart Homes – Enable conservation and active participation of energy consumers – Accommodate future innovations for energy generation, storage and management. New Generation and Storage Technologies Are Integral to Smart Grid Success
MINISTRY OF ENERGY Storage, New Generation, and Smar t Grid in Ontario Ontario also has unique circumstances that make storage and new generation technologies important to our Smart Grid rollout•Managing nuclear assets during off-peak hours•1 in 20 by 2020 EV commitment•Expanding our solar resources through FIT 2.0
MINISTRY OF ENERGY A Policy Framework for Smar t Grid The Green Energy Act & OEB Smart Grid Directive place emphasis on integrating generation and storage assets into an intelligent grid Focus Area Expected Outcomes • Smart meters Customer Control • Time-of-use rates Enable more conservation through More Conservation • Home Energy Management a shift to smarter homes • Load control Power System Flexibility • Customer based micro-generation • More distributed generation, Cleaner supply and Enable more renewables and better lower costs used more efficiently efficiency in grid operation (i.e. less transmission investment) Adaptive Infrastructure • Mobile charging infrastructure to support EVs Encourage more innovation and ensure adaptivness to future • Storage opportunities More Innovation conditions (e.g. electric vehicles) • Enabling innovative technologies4
MINISTRY OF ENERGY Ontario’s Economic Opportunity•Ontario’s investments in smart meters and Emerging Technology Growthdistributed generation have positioned Ontario at the Market Sizeforefront of an emerging clean energy economy Technology ($B) CAGRfocused on: Plug-In • Smart grid technology (grid automation, data Electric 5.9 48.4% management, smart meters); Vehicles • Energy storage; Storage 10.2 20% • Electric vehicles; and Solar Thermal 7.0 20.0% • Other emerging technologies, such as concentrated solar photovoltaic (CPV). Hydrogen 2.4 19.0%•Ontario is committed to growing its clean energy Solar PV 82 18.0%economy: District • Develop leading edge energy technologies, Energy 55 8.4% services and expertise in Ontario Biofuels 16.5 48.4% • Assist competitive Ontario energy firms with exportable goods and services to access and expand into international markets.•Storage and New Generation Technologies are seenas potential growth areas for Ontario.
MINISTRY OF ENERGY Global Initiatives•Other jurisdictions are moving to invest in storage and generation technologies.•While it is a competitive space, Ontario has the resources to compete globally.•Ontario is a sandbox for innovation & has the capacity for technology breakthroughs.Jurisdiction Project 16 storage demonstration projects (CAES, Flywheel, Li-Ion Battery, etc…). $770M ofUnited States Recovery Act funding. ARPA-E: $36M on EV Battery Technologies, $27M on cost-efficient storage (<$100/kWh) BYD: Largest battery storage system in the world: 36MWh, $500M in Hebei Province. China Connected to 140MW renewable generation Japan Panasonic: Home Energy Battery Systems for Asia and Europe India National Solar Mission: 7 Concentrated Solar PV Projects Bornholm & Graciosa smart grid test beds: integrated renewable & storage solutions Europe
MINISTRY OF ENERGY Emerging Ontario Industries Ontario is experiencing growth in the generation and storage sectors, with activity from both industry start-ups and local utilities Storage GenerationNotable Companies: Electrovaya, Hydrogenics, Notable Companies: Canadian Solar, MorganHydrostor, Temporal Power, S&C Electric, Solar, Solera, Heliene, SamsungeCamionImportant Ontario-Based Projects:•Hydro One: Li-Ion research partnership at Ryerson University w/ Electrovaya•Toronto Hydro: Installing eCamion’s Community Energy Storage Systems•Utility involvement with the FIT and microFIT programs•Toronto Hydro: Underwater CAES pilot w/ Hydrostor•Hydrogenics & Enbridge: Utility-scale storage How is Ontario Supporting These Emerging Industries?
MINISTRY OF ENERGY Smart Grid Fund• The Smart Grid Fund (SGF) is a competitive grant program designed to leverage Ontario’s advantages in the energy sector and build the smart grid industry.• $18.7M on 12 innovative smart grid demonstration & capacity-building projects• Solutions emerging from the Fund will contribute to building a resilient electricity system that is critical to providing reliable, clean and affordable power to consumers, as well as advance Ontario’s clean energy economy.• Storage solutions have found representation among the successful applications• The Ontario Centres of Excellence is also funding a number of storage and generation pilot projects through its Special Energy Fund
MINISTRY OF ENERGY Considerations & Opportunities• Certain considerations must be resolved for these emerging technologies to maximize their potential in Ontario’s smart grid industry: • High cost limits viable business models, but increase in competitiveness may be ahead – Total Lithium-Ion Battery Pack Cost: $1000/kWh in 2010, $400/kWh projected in 2015, $150/kWh projected in 2030 (Bloomberg New Energy Finance) • Benefits flow to those who do not contribute to costs • Technology requires more piloting and real-world testing before it can be commercialized. • Current market and regulatory rules may not allow for optimum business models and limit investment; review and reform by IESO/OEB is underway.• Ontario has key advantages that will help our companies overcome these concerns: • Ambitious government commitments and programs • Highly skilled workforce • Strong academic researchers and progressive utilities looking for partnerships • Established clusters in other clean energy sectors, creating a hub for innovationHow do we ensure we resolve these issues? What are the next steps?
MINISTRY OF ENERGY Clean Energy Economic Development Strategy• The Ministries of Energy and Economic Development and Innovation are developing a Clean Energy Economic Development Strategy to leverage Ontario’s strengths and experience to become a leader in key areas of the energy sector.• The storage and new generation sectors will benefit from these efforts:• Energy Institute- MaRS investigating potential • Spur domestic innovation, commercialization, and collaboration • Achieve greater global market presence for Ontario companies • Administer vital demonstration and pilot projects• Clean Energy Task Force • Identify export markets, marketing opportunities, and approaches to demonstrating Ontario’s advanced clean energy systems. • Provide advice on ways to increase collaboration between industry, the utilities, academia and government • Identify the challenges that innovative companies face in implementing new clean energy technologies and services in Ontario• Trade Missions • Showcase & find partnerships for Ontario’s emerging storage and generation firms