To become smart grid leaders, Ontario needs to effect a transformation in a risk-averse environment. To do so, the province needs not only to advance its electricity infrastructure but also embrace a long-term and global vision.
This breakfast panel brings together diverse energy-sector stakeholders, including utilities, key industry players, government authorities, regulatory bodies and innovators.
Does an opportunity exist for Ontario utilities that implement intelligent operations to leverage that expertise into other markets? Can synergy between innovation and the electricity sector be created to support these practices? How much are we open to change?
http://www.marsdd.com/events/details/ontario-smart-grid-opportunities-electrical-utility-sector/
Value Proposition canvas- Customer needs and pains
Ontario Smart Grid Opportunities in the Electrical Utility Sector - MaRS Market Insights
1.
2. Ontario
Smart
Grid
Opportunities
in
the
Electrical
Utility
Sector:
Getting
out
from
Behind
the
Meter
Brian
Warshay
–
Research
Associate
Lux
Research,
Inc.
January
25,
2012
3. Lux
Research
! We
focus
on
emerging
technologies
in
the
chemical,
material,
and
cleantech
sectors
! We
interview
and
evaluate
emerging
technology
companies
! Support
Technology
Monitoring
and
Market
Intelligence
Qatar
Science
! We
have
12
practices
in:
and
Technology
Park
! Smart
Grid
&
Grid
Storage
! Electric
Vehicles
&
Alternative
Fuels
! Solar
Components
&
Solar
Systems
! Bio-‐based
Chemicals
&
Materials
Suntech
solar
factory,
China
! Green
Buildings
! Water,
and
others…
! Offices
in
New
York,
Boston,
Singapore,
Tokyo,
and
Amsterdam
with
~70
employees:
! 67%
scientists,
33%
business
analysts
Svalbard
Global
Seed
Vault,
Norway
3
4. Lux
Smart
Grid
Intelligence
–
Key
issues
addressed
! Smart
Grid
&
Grid
Support
• How
will
utilities
implement
advanced
metering
infrastructure?
• Is
there
a
viable
business
model
for
demand
response?
• How
can
network
security
be
maintained
on
the
power
grid?
• How
will
utilities
deal
with
grid-‐connected
vehicle
charging?
! Grid
Storage
• Which
technologies
fit
which
applications?
• Where
on
the
grid
will
grid
storage
be
located?
• How
will
storage
integrate
with
renewable
energy
and
other
grid
applications?
! Fuel
Cells
• Which
fuel
cell
technologies
are
most
cost
effective?
• For
which
applications
are
fuel
cells
most
viable?
4
5. Global
Regulatory
and
Investment
Overview
! What
is
driving
smart
grid
technology
adoption?
! Why
are
smart
grid
technologies
important
to
utilities?
! Where
is
the
investment?
! How
do
regulations
incentivize
or
constrain
the
market
! How
is
Ontario
doing?
5
6. The
Smart
Grid
U"lity
back-‐office
Distribu"on
network
End-‐user
6
7. Smart
Grid
1.0
giving
way
to
Smart
Grid
2.0
Smart
Grid
Device
Sales
Data
Rates
Source:
Lux
Research
7
8. Smart
grid
tools
and
data
benefit
utilities
Smart
Grid
Tool
Data
Quan"ty
Data
Value
Benefit
to
U"li"es
Smart
meters
High
Low
Reduced
monitoring
costs;
point-‐of-‐use
monitoring
Demand
management
&
response
High
Medium
Peak
shaving
Voltage
&
VAR
OpKmizaKon
High
Medium
Peak
shaving;
higher
efficiency
Fault
detecKon,
isolaKon,
&
repair
Low
High
Improved
reliability
&
safety
Sensors
High
Low
Improved
monitoring
Grid
storage
Medium
Medium
Dispatchable
renewable
energy;
outage
buffer
8
9. Smart
Grid
2.0’s
thirst
for
data
drives
adoption
Global
Utility
Investment
Source:
Lux
Research
9
10. Investment
and
acquisitions
in
Smart
Grid
Investments
in
2010
&
2011
by
Technology
M&A
in
2010
&
2011
by
Technology
Source:
Lux
Research
Data
through
June
30,
2011
10
11. Policies
directly
and
indirectly
drive
adoption…
Policy
Approach
Region(s)
Incen"ves
&
Mandates
Smart
meter
mandates
and
grants
Direct
European
Union
(EU)
&
USA
IncenKves
for
distributed
generaKon
Direct
Global
Market
Restructuring
Time-‐of-‐use
electricity
pricing
Direct
Global
Pay-‐for-‐performance
Direct
USA
Feed-‐in-‐tariffs
and
net-‐metering
Direct
Global
Redefining
as
asset
class
for
energy
storage
Direct
USA
(California)
Renewable
energy
credits
Indirect
USA
Renewable
porVolio
standards
Indirect
Global
Carbon
Management
&
Security
Emission
regulaKons
Indirect
Most
developed
naKons
ReKrement
of
fossil/nuclear
power
plants
Indirect
USA,
Europe,
Japan
Source:
Lux
Research
11
12. …while
politics
constrain
progress
Policy
Resul"ng
constraint
Region(s)
Regulatory
uncertainty
Direct
USA
Cross-‐border
interconnecKon
permiYng
Direct
North
America;
EU
and
funding
Short-‐term
investment
perspecKve
Direct
USA
Disconnect
between
smart
grid
Direct
Deregulated
uKlity
markets
beneficiaries
an
investors
UKliKes
are
highly
regulated
Indirect
Global
Lack
of
standards
for
interconnecKon
Indirect
Global
Status
quo
inerKa
Indirect
Global
Source:
Lux
Research
12
13. Grid
Smarts
in
Ontario
! Regulatory
and
Infrastructure
Support
• 2.6%
of
Ontario’s
electricity
is
from
wind,
a
40%
increase
• Ontario
has
a
Feed-‐in-‐Tariff
for
renewable
energy
projects
• Ontario
has
time-‐of-‐use
rates
and
500
MW
of
demand
response
• Nearly
100%
of
Ontario’s
meters
are
smart
! Demonstration
Projects
• Energate
pilot
allowed
customers
to
control
and
monitor
energy
consumption
along
with
consumer-‐connected
demand
response
• Enbala’s
projects
in
North
America
pave
the
way
for
frequency
regulation
13
14. Summary
and
outlook
! What
is
driving
smart
grid
technology
adoption?
• Though
smart
meters
will
lay
the
smart
grid
foundation,
it
is
the
resulting
influx
of
data
that
will
drive
new
markets
! Why
are
smart
grid
technologies
important
to
utilities?
• Smart
grid
technologies
align
with
the
goals
of
utilities
to
improve
reliability,
safety,
and
reduce
costs
! Where
is
the
investment?
• Although
later
stage
private
investment
and
M&A
continue
to
streamline
the
market,
government
funding
will
remain
imperative
for
adoption
! How
do
regulations
incentivize
or
constrain
the
market?
• While
regulations
indirectly
and
directly
drive
adoption,
antiquated
regulatory
frameworks
are
slow
to
adapt
new
infrastructure
! How
is
Ontario
doing?
• Ontario
is
equipped
with
the
technology
and
infrastructure
to
rapidly
expand
its
smart
grid
capabilities,
but
regulatory
guidance
will
need
to
remain
flexible
and
adaptable
to
meet
the
goals
in
the
Long-‐Term
Energy
Plan
14
15. Thank
You
Brian
Warshay
Research
Associate
+1
(917)484-‐4872
Brian.Warshay@luxresearchinc.com
www.luxresearchinc.com
16. Market Potential for Smart Grid in Canada Alex Bettencourt
MaRS Market Insights Managing Director
17. Our Mission
SmartGrid Canada is a national association of public and private
organizations including utilities, vendors, technology and service
providers, academics and other industry leaders.
Together, the members of SmartGrid Canada are united by a
passion and dedication to building a more innovative, reliable
and cost-effective electricity delivery system for the benefit of
all Canadians.
18. SmartGrid Canada Membership
Smart Grid Canada is a national association of public and private organizations including utilities,
vendors, technology and service providers, academics and other industry leaders.
Utilities
Technology
Services &
Academia
R&D
Together, the members of Smart Grid Canada are united by a passion and dedication to building a more
innovative, reliable and cost-effective electricity delivery system for the benefit of all Canadians.
19. The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location.
20. 6 reasons why smart grid is important to
Canadians & the economy
21. A Smart Grid is essential to Canadian
economic prosperity.
Over 60% of our GDP now comes from industries and services
that run on electricity; in 1950, the figure was only 20%. Since
1980, over 85% of energy growth has been supplied by electricity.
Manhattan Institute:The Million-Volt Answer to Oil
24. A clean economy requires renewable
energy, which in turn, requires a smart
grid.
25. Outages cost money – smart grid can
improve reliability.
Power outages and interruptions cost Americans at least $150
billion each year - about $500 for every man, woman and child.
DOE,The Smart Grid: an Introduction
26. Smart grid sets the foundation for
future technology – electric vehicles,
etc.
27. Key Areas of Competitive Advantage
1. Time of Use Rates
2. Sustainable Remote Communities
3. Renewable Integration on Distribution System
28. Time of Use Rates
CALIFORNIA
ONTARIO
Good Consumer Mass
Telecom Over
Collaboration & Implementation
Rugged Terrain
Communication Time-of-Use Rates
29. CANADA FACTS
Opportunities for Smart & Sustainable
Canada has over 300 remote
Communities 34 million
• Population communities with a total population
of 200,000 – mostly on diesel.
• Population Density Rank 230th
Opportunity for Canada to reduce its own cost of powering these communities while
solving the problems and selling to the developing world.
30. Sustainable Remote Power Projects
Hydrogen Assisted Renewable Power Wind-Diesel Storage
Community Energy Management Hydrokinetic Turbine
32. Distributed Renewable Generation
Voltage Regulation
Energy Storage
Energy Management
Market Innovation
Protections & Control
Ontario has the some of the highest penetration of renewable
generation on its distribution system (up to 10MW/connection)
36. MaRS Market Insights
SmartGrid Canada
www.sgcanada.org
For more information, contact:
Alex Bettencourt
Managing Director
SmartGrid Canada
alex.bettencourt@sgcanada.org
37. Implemen"ng
Smart
Grid
………..
U"lity
Best
Prac"ce
Presented to MaRS Insight Panel
January 25, 2012
By: John Mulrooney
38. What
is
Best
Prac"ce
??
A
Best
Prac"ce
is
a
method
or
technique
that
has
consistently
shown
results
superior
to
those
achieved
with
other
means,
and
that
is
used
as
a
benchmark.
Best
Prac"ce
come
from
experience.
39. Ontario
LDCs
Years
of
Experience
developing
U"lity
Best
Prac"ce
Planning
Engineering
Capital
and
OM&A
Management
OperaKons
40. Best Judge of Utility Best
Practice
At the end of the day, there is only one judge of Best
Practice for the LDC
Our Regulator …….The OEB
Slide 40
41. Smart
Grid
Overarching
Must
Haves
1.
Smart
Grid
IniKaKves
must
benefit
the
Customer.
2.
Smart
Grid
IniKaKves
get
no
free
ride .
I
will
explain….
42. Best
Prac"ce
To
Iden"fy
SG
Ini"a"ves
1. Best
PracKce
starts
with
Smart
Grid
strategy
and
mulK
year
Smart
Grid
capital
plan
Ked
to
the
corporate
vision
and
approved
by
the
Board
of
Directors.
No
different
to
what
LDCs
having
been
doing
in
the
past.
2.
Each
Smart
Grid
IniKaKve
must
make
business
sense
and
benefit
the
customer
(I.e.
Benefit:Cost
raKo
greater
than
one).
This
is
where
the
prudence
of
the
iniKaKve
is
checked.
ExcepKons:
pilot
or
demonstraKon
projects
where
these
iniKaKves
are
jusKfied
on
their
longer
term
potenKal
benefit
to
the
customer.
3.
Best
PracKce
involves
collaboraKon
with
other
industry
stakeholders
taking
advantage
of
the
experience
of
others
to
determine
technical
feasibility
and
benefits.
43. Priori"zing
SG
Ini"a"ves
In
any
capital
budget,
there
is
usually
more
demand
for
capital
funding
than
capital
dollars
available.
Smart
Grid
IniKaKves
should
undergo
the
same
rigor
as
every
other
corporate
iniKaKve
in
compeKng
for
capital
funding.
44. Priori"zing
SG
Ini"a"ves
(con"nued)
1.
The
SG
IniKaKve
has
already
passed
the
prudence
test
(part
of
idenKfying
SG
iniKaKves).
2.
SG
IniKaKves
are
evaluated
with
other
capital
iniKaKves
based
on
their
raKng
of
benefit
and
risk
to
the
corporaKons
overall
corporate
objecKves.
45. Not
All
Smart
Grid
Technology
Is
Smart
With enough horsepower, even a rock can fly……..but…
46. ENERGY
MINISTRY
OF
Smart
Grid
in
Ontario
MaRS
Discovery
District
Smart
Grid
Seminar
January
25,
2012
47. MINISTRY
OF
ENERGY
A
Smart
Grid
is
a
Modern
Electricity
System
Intelligence/Communications Layer Telecom Network
- Phone
- Internet
- Smart Meter
communication
infrastructure
SMART GRID
Diagram source: EPRI
Conventional grid
Status / Status / Status / interoperates with
Control Control Control
smart grid
intelligence
through enhanced
Conventional Grid devices:
- Smart meters
- Auto Switches
- Intelligent
Transformers
Diagram source: EPRI
47
48. MINISTRY
OF
ENERGY
Smart
Grid
is
Global
• Grid
modernization
is
being
driven
by
aging
infrastructures,
growing
energy
demands,
and
the
availability
of
new
technologies
that
enable
2-‐way
communications
and
control.
• Drivers
change
with
time.
The
smart
grid
is
a
journey
rather
than
a
destination .
smart
grid
technology
…is
the
equivalent
of
the
internet
for
electricity.
It
is
the
thing
that
brings
our
plans
all
together,
that
makes
it
all
possible
and
will
deliver
a
genuinely
low
carbon
world
Prime
Minister
David
Cameron
(UK)
the
energy
Internet
is
what
happens
when…the
information
revolution
meets
the
energy
technology
revolution…the
breakthrough
platform
in
which
innovation
is
going
to
happen
and
will
be
built
Tom
Friedman,
author,
Hot,
Flat,
and
Crowded
…
updating
the
way
we
get
our
electricity
by
starting
to
build
a
new
smart
grid
that
will
save
us
money,
protect
our
power
sources
from
blackout
or
attack,
and
deliver
clean,
alternative
forms
of
energy
to
every
corner
of
our
nation
President
Barack
Obama
48
49. MINISTRY
OF
ENERGY
Ontario
as
a
Smart
Grid
Leader
• Ontario
is
a
leading
jurisdiction
on
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,
greener
and
more
efficient
grid,
while
ensuring
reliability
and
safety.
• Maximize
Existing
Assets
– Use
existing
assets
to
their
full
potential,
by
using
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.
49
50. MINISTRY
OF
ENERGY
Key
Drivers
for
Smart
Grid
• Key
Drivers
for
Smart
Grid
in
Ontario:
• Key
Success
Factors:
1. Aggressive
integration
of
renewable
• Feed-‐in-‐Tariff
distributed
generation
• Green
Energy
Act
2. One
of
North
America s
most
ambitious
conservation
targets
• Engaged
Customers
3. One
of
the
largest
smart
meter
(1st
in
North
• Engaged
Leadership
America)
and
time
of
use
pricing
(1st
in
world
• Leading
Utilities
to
have
mandatory)
rollouts
globally
4. Advanced
automotive
sector
and
efforts
to
accelerate
electric
vehicle
adoption
5. Strength
in
manufacturing,
research,
and
utility
sectors
50
51. ENERGY
MINISTRY
OF
Leadership
on
Smart
Meters
• Modernize outdated meter infrastructure
What
do
Smart
• Enable time-of-use pricing and conservation
Meters
do?
• Provide basis for smart grid / smart homes
Benefits to the Electricity System: Benefits to Consumers: Progress:
Smart
Meter
Ø Reduces the number of LDC field visits
to read and service meters
Ø Facilitates conservation and demand
management programs
4.7 million
Benefits
Ø Reduces tampering and theft of Ø Accurate meter reads (no more estimates) deployment
electricity Ø Timely information to help manage complete
Ø Significant operational benefits (better consumption
outage management and system Ø Better customer service (e.g. outages
visibility) automatically known)
TOU
Ø Environmental benefits as a result of
load shifting
Ø Gives customers ability to move discretionary
load to cheaper hours.
> 3.4 million
Benefits
Ø Savings in avoided/ deferred capacity Ø Reduces long-term cost of electricity supply
expected to be
completed by
investments (new generation and Ø Increases awareness of consumption Summer 2012
transmission)
51
52. ENERGY
MINISTRY
OF
A
Framework
for
Smart
Grid
The
Green
Energy
Act
established
what
a
smart
grid
should
do
for
Ontario.
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
Encourage more innovation and
• Mobile charging infrastructure to support EVs
ensure adaptivness to future • Storage opportunities More Innovation
conditions (e.g. electric vehicles) • Enabling innovative technologies
52
53. ENERGY
MINISTRY
OF
Smart
Grid
Initiatives
Smart
Grid
Implementation:
• Hydro
One
Smart
Zone
(integrating
DG)
• Toronto
Hydro
Smart
Zone
(reliability
and
control)
• Burlington
SmartCity,
Powerstream,
Veridian
and
other
pilots/asset
management
• Industry
pilots,
such
as
Better
Place
EV
charging
infrastructure
• Industry
ramp-‐up,
such
as
GE
Grid
IQ
Innovation
Centre,
and
much
more.
Industry
engagement
• Ontario
Energy
Board
working
group
on
Smart
Grid
• Outreach
to
Small
and
Medium
size
businesses
(MEDI)
• Discussions
with
ICT
sector
and
broader
smart
grid
component
industries.
• Ontario
Economic
Opportunities
in
Energy
(OE2)
Funding
• Smart
Grid
Fund:
$50
million
supporting
companies
building
the
smart
grid
industry
53
54. MINISTRY
OF
ENERGY
Ontario
Economic
Opportunities
in
Energy
•
OE2
Advisory
Group
–
A
look
at
Ontario s
strengths
and
economic
opportunities
Focus
Examples
Global
Drivers
and
Trends
Global
Market
Size;
Top
Global
Players
Ontario s
Private
Sector
Top
Ontario-‐based
Companies;
Strengths
and
Gaps
Ontario s
Research
Strengths
Universities
and
Colleges;
Partnership
Projects
Role
of
Ontario
Utilities
Investment
opportunities
and
patterns
Programs
and
Funding
Private
and
Public
Sector
funds
Ontario s
Regulatory
Framework
Utility
cost
recovery;
Regulatory
and
other
instruments
Cluster
analysis
Global
comparison;
networks
of
energy
hubs
54
55. ENERGY
MINISTRY
OF
The
Opportunity
♦ Projected
worldwide
smart
grid
investments:
$200
billion
from
2008
to
2015.
♦ By
2014,
the
annual
global
market
potential
for
smart
grid
equipment
manufacturers
and
solutions
providers
will
be
$15
to
$31
billion.
(McKinsey,
2010)
♦ The
Smart
Grid
Forum
estimates
that
Ontario
will
invest
$390
million
per
year
over
5
years
on
Smart
Grid
projects.
55
56. ENERGY
MINISTRY
OF
Thank
you.
Jon
Norman
Director
–
Transmission
and
Distribution
Policy
Ontario
Ministry
of
Energy
Phone:
416-‐326-‐1759
Email:
jon.norman@ontario.ca
56
57. MINISTRY
OF
ENERGY
Smart
Grid
Principles
EFFICIENCY
CUSTOMER
VALUE
• Make
the
grid
more
efficient
and
cost-‐effective
• Provide
benefits
to
electricity
customers
such
as
through
control
and
automation,
visibility.
access,
participation,
visibility,
and
choice.
COORDINATION
SECURITY
• Coordinate
activities
of
multiple
LDCs
and
• Protect
against
unauthorized
or
malicious
encourage
partnerships.
attacks
to
the
grid.
INTEROPERABILITY
PRIVACY
•
Ensure
information
exchange
between
systems
• Integrate
privacy
requirements
into
smart
grid
through
use
of
standards
and
partnerships.
planning
and
design.
Privacy-‐by-‐design.
ECONOMIC
DEVELOPMENT
SAFETY
• Encourage
economic
growth
and
job
creation
•
Ensure
health
and
safety
and
improve
it
within
the
province
of
Ontario.
wherever
practical.
ENVIRONMENTAL
BENEFITS
RELIABILITY
• Promote
green
technologies
to
reduce
• Maintain
reliability
and
improve
it
wherever
environmental
footprint.
practical
through
flexibility,
innovation
and
forward
compatibility.
57
58. ENERGY
MINISTRY
OF
Smart
Grid
Objectives
CUSTOMER
CONTROL
POWER
SYSTEM
FLEXIBILITY
ADAPTIVE
INFRASTRUCTURE
Conservation
through
Enable
renewables
and
better
More
innovation
and
adaptive
smarter
buildings
efficiency
in
grid
operation
to
future
conditions
• Access
• Distributed
Renewable
• Flexibility
• Visibility
Generation
• Forward
Compatibility
• Control
• Visibility
• Encourage
Innovation
• Participation
In
• Control
And
Automation
• Maintain
Pulse
On
Renewable
Generation
• Quality
Innovation
• Customer
Choice
• Education
58