Drivers & Benefits of Smart Electricity Grids in Canada R1

Academia R&D Utilities Industry

CANADIAN CONTEXT

Ontario Faced a Looming Resource Gap 10,700MW by 2018

Largest Market in World on Mandatory Residential Time of Use Rates

Government/Regulator Support for Smart Grid MAY 2009 JUL 2013 DEC 2013

Generous Feed In Tariff for Renewable Energy

Proliferation of Distributed Generation FIT (10kW+) 10,000+ applications received for 20,000+ MW

MicroFIT (<10kW) 40,000+ applications received for 350+ MW Proliferation of Distributed Generation

CASE STUDY Hydro One Smart Grid Project

North American Utility Smart Grid Maturity Rankings By Tier

Holistic Smart Grid Approach Based on Four Technology Pillars

16 Hydro One Smart Zone P-to-P Microwave Distribution Station WiMAX Base Station Transformer Station

17 New Protection, Control & Telecom Building New WiMAX Base Towers New WiMAX CPE’s Factory Built & Commissioned Intelligence Added to the Trial Area WiMAX Enabled Utility Applications

Renewable Integration Distributed Generation Management IEC PCT Substation Protections WiMAX Telecommunication Network Reliability Improvement Distribution Management System Distribution Automation Fault Location, Isolation & Restoration Customer Benefit Conservation Voltage Reduction Demand Response Energy Theft & Analytics Cost/Operational Benefit Operational Data Store (i.e Big Data) Mobile DMSAMI for Operations 18 Hydro One’s Smart Grid Program

Regulator and Shareholder Driving Focus on the Customer Benefits of Smart Grid 19 Σ = $130/year (9% savings) Customer Benefit Utility Benefit Reduce System Peak Meet Energy Efficiency Mandate Receive Payment in Capacity Market Defer Investment by Managing Local Peak Meet Shareholder Mandate Absorb Surplus Baseload Generation

MANAGING DIRECTOR SmartGrid Canada SMART GRID PROGRAM DIRECTOR Hydro One Alex Bettencourt