“A Transformation to Smart Grid” Energy Mix at NB Power “A Transformation to Smart Grid” New Brunswick Energy Institute – Institut de l’énergie Nouveau-Brunswick Michel Losier, Program Director of PowerShift Atlantic Neil Larlee, Director of Strategic Planning November 21, 2013 Safety Tip – going back to ice (walk ways cleaned, black ice, slips and falls)… Let’s go back to last Thursday : -32C – Peak Demand – burning oil… What were you doing on Thursday morning – turn up the heat, showers, breakfast, lights… Gas – we know vs. electricity – end of month? How can we look at this differently going forward ? New technology, shifting demand off peak, new relationships with our customers. The smart grid…

Electricity Generation in Canada by Fuel Type, 2012 Canadian Electricity Landscape Electricity Generation in Canada by Fuel Type, 2012

Canadian Electricity Landscape Selected World Residential Electricity Prices, 2009

Canadian Electricity Landscape Canada’s Market Structure

Title Points 40% renewable by 2020 Low and Stable Energy Prices Energy Security Reliability of the Electrical System Environmental Responsibility Effective Regulation 40% renewable by 2020 5

NB Power Strategic Direction Sustainable Electricity Smart Grid (Siemens) Reduce Debt by $1 Billion Vision Reduce and Shift Demand Top Performer (more effective and more productive) Strategy Enabler

Connected to Atlantic Canada, Quebec and New England NB Power and Atlantic Canada Connected to Atlantic Canada, Quebec and New England (Peak - 200MW) Wind Generation NB – 294 MW (Peak – 3100 MW) Wind Generation- NB – 294 MW NS – 317 MW PEI – 164 MW NFLD – 55 MW Quebec – 1057 MW Canada – 5511 MW Strategically situated and Interconnection Diversity of generation 300 MW of wind Wind Generation NB – 294 MW NS – 324 MW PEI – 164 MW Total - 800 MW Canada – 6568 MW (Peak - 2000MW) Reduce and Shift Demand 7

Smart Grid in New Brunswick Why?

Thursday, January 24th – bitter cold morning (-32 °C wind chill ) Peak 3117 MW Oil fired units were required to cover this peak Peak 3117 MW (Thurs 7-10 am) 2850 MW (Wed – supper time) At peak – burning oil usually at a premium Increase of 700 MW in a 5 hour period (electric space heating and hot water…) What are our consumption patterns on peak and how do we reduce or shift 100 MW from this peak Less Oil, offset the need to build in the future, reduced cost and more environmentally responsible… Onset of electric vehicles Valley 2460 MW (2-3 am)

Typical Household Energy Usage – New Brunswick

Energy Efficiency (Reduce) and Load Shifting (Shift) Customer Issue: Investment (Efficiency programs) Customer Issue: Behaviour Customer Issue: Trust Reduce and Shift Demand 11

new Partnership with new solutions A Customer Project (with Technology) A new Partnership with new solutions

What have customers told us? A responsible transition towards a sustainable future “a gradual reduction of fossil dependency over time” Reliability, comfort, competitive rates, ability to better manage bills, choice and ease of use

Market Trends

Trends: Wind Energy Source: Greentech Media, “Four Charts That Prove the Future of Clean Energy Is Arriving, “We are living it, and it is gaining force.” September 18, 2013

Trends: Solar Energy Source: Greentech Media, “Four Charts That Prove the Future of Clean Energy Is Arriving, “We are living it, and it is gaining force.” September 18, 2013

Trends: LEDs Source: Greentech Media, “Four Charts That Prove the Future of Clean Energy Is Arriving, “We are living it, and it is gaining force.” September 18, 2013

Trends: Electric Vehicles Source: Greentech Media, “Four Charts That Prove the Future of Clean Energy Is Arriving, “We are living it, and it is gaining force.” September 18, 2013

Game Changers? Rooftop Solar Electric Vehicles Reduce and Shift Demand 20

NB Power and Siemens A 10 Year Partnership Up to 40 new technology jobs Center of Competency and R&D team Innovation in New Brunswick Transformation to a new business model. 21

Smart Grid – Why New Brunswick? An Integrated Utility High electric heat penetration Robust Distribution Network Broadband Infrastructure 40% renewable by 2020 Reduce and Shift Demand 22

Electric Thermal Storage In the home Existing Baseboard (60% of New Brunswick homes) Electric Thermal Storage (Potential solution for the future) We’re out there – we’re testing behind the scenes now to integrate renewables onto the grid. Thought this was wort

NB Power Strategic Direction Sustainable Electricity Smart Grid (Siemens) Reduce Debt by $1 Billion Vision Reduce and Shift Demand Top Performer (more effective and more productive) Strategy Enabler

“A Transformation to Smart Grid” Energy mix at NB Power “A Transformation to Smart Grid” New Brunswick Energy Institute – Institut de l’énergie Nouveau-Brunswick Michel Losier, Program Director of PowerShift Atlantic Neil Larlee, Director of Strategic Planning November 21, 2013 Safety Tip – going back to ice (walk ways cleaned, black ice, slips and falls)… Let’s go back to last Thursday : -32C – Peak Demand – burning oil… What were you doing on Thursday morning – turn up the heat, showers, breakfast, lights… Gas – we know vs. electricity – end of month? How can we look at this differently going forward ? New technology, shifting demand off peak, new relationships with our customers. The smart grid…