1. MINISTRY OF ENERGY
Emerging Generation & Storage Technology
Policy Considerations
Ken Nakahara
Senior Manager, Smart Grid and Network Policy
Ontario Ministry of Energy
8 June 2012
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2. 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

3. 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

4. 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 technologies
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5. MINISTRY OF ENERGY
Ontario’s Economic Opportunity
•Ontario’s investments in smart meters and Emerging Technology Growth
distributed generation have positioned Ontario at the Market Size
forefront of an emerging clean energy economy Technology ($B) CAGR
focused 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 seen
as potential growth areas for Ontario.

6. 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 of
United 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

7. 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 Generation
Notable Companies: Electrovaya, Hydrogenics, Notable Companies: Canadian Solar, Morgan
Hydrostor, Temporal Power, S&C Electric, Solar, Solera, Heliene, Samsung
eCamion
Important 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?

8. 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

9. 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 innovation
How do we ensure we resolve these issues? What are the next steps?

10. 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