Energy Storage Ontario Submission to the Standing Committee on General Government Bill 172, Climate Change Mitigation and Low-Carbon Economy Act

Transcription

1 April 4, 2016 Energy Strage Ontari Submissin t the Standing Cmmittee n General Gvernment Bill 172, Climate Change Mitigatin and Lw-Carbn Ecnmy Act Intrductin Gd afternn members f the Standing Cmmittee n General Gvernment. My name is Jim Fnger and I have the hnur tday t speak n behalf f Energy Strage Ontari and its member cmpanies, including the ne that emplys me, Ameresc Canada Inc. ESO is the vice f energy strage in Ontari. We are an advcacy rganizatin that represents the brad range f cmpanies engaged in the energy strage business in Ontari. ESO is, in fact the nly trade assciatin in Canada fcused n advancing the rle f energy strage and building the market fr the energy strage business. ESO was incrprated just tw years ag and has becme the hub f activity fr energy strage in Canada. Thrugh netwrking, knwledge-sharing, advcacy and stakehlder educatin, we are helping t build a strnger industry and shwcase the value that energy strage can bring t the system. Our membership represents all players alng the value chain -- technlgy prviders, prject develpers, pwer generatrs, lcal electricity distributin cmpanies, and NGOs. Attached t this submissin yu will see a full list f ur membership. Overall Opprtunity Energy Strage Ontari welcmes Bill 172 and Ontari s plan t put a price n carbn thrugh a cap and trade prgram. This is an effective plicy instrument t curb carbn emissins and shape new practices and behaviur. Building n Ontari s grund-breaking initiative t g ff cal, the prvince is nw in a tremendus psitin t demnstrate t the wrld hw an ecnmy can grw prsperity while migrating t lw carbn energy systems. But t get there three critical cmpnents are required: 1. An ecnmic value n carbn that prvides cnsumers and business with financial reasns t mve t lw carbn energy systems; 2. High efficiency energy systems that use less energy t d the same r mre wrk and; 3. Energy strage systems that will ultimately reduce fssil-based energy generatin thrugh the cntinued use f current carbn free energy systems and the further deplyment f intermittent renewable generatin such as Wind and Slar. 1

2 Backgrund n Energy Strage Energy strage is ften called the Swiss army knife f resurces. It adds value at all pints in the energy system frm generatin t distributin t transmissin. It increases the value f the energy prduced by ther surces and adds capacity value t the system. There is a wide range f energy strage technlgies, which include different types f batteries, flywheels, pwer-t-gas, cmpressed air, and pumped hydr. Energy strage ptimizes all the resurces n the grid, it lwers greenhuse gas emissins, can help defer cstly transmissin and distributin system upgrades, and increase grid resilience and efficiency. Energy strage systems have the ability t bth instantly absrb excess energy frm and insert required energy int the electricity grid as required. This permits the fllwing t ccur: 1. The strage f Ontari s persistent surplus f lw-emissin base lad generatin capacity at night int bth high value areas n the transmissin grid and lad centers within the distributin grid t be used during perids f high demand. Nt nly des this maximize the value f current energy generatin resurces it als maximizes the use f existing transmissin and distributin assets thrugh reduced cngestin in perids f high demand. 2. The rapidly grwing energy cntributin f carbn-free energy frm renewable, intermittent surces can be smthed ut and made much mre reliable allwing a much greater percentage f them t be intrduced int the electricity system 3. The deplyment f lcal area micrgrids that will prvide cmmunities with energy resiliency imprving the reliability f lcal energy supply during climate change induced weather events. 4. The mass adptin f electric vehicles nt Ontari s rads withut the need fr a cmplete redesign f the distributin grid facilitating energy strage based vehicle charging statins. Prgress t Date In the 2013 Lng Term Energy Plan, Ontari tk imprtant leadership n energy strage with its 50MW prcurement. These prcurements have made Ontari a leading jurisdictin n energy strage in Nrth America. But it is just the beginning. These prcurements were well versubscribed with a variety f innvative, and fully cmmercial, energy strage prjects that have set the fundatin fr the applicatins that imprve grid peratin and resiliency in Ontari. Energy strage can als: Prvide lw-cst ptins fr custmers t decrease emissins and electricity bills by shifting their energy demand frm n-peak t ff-peak perids; mve nrthern cmmunities ff f diesel- based energy systems; assist large industrial and small retail custmers in cnservatin and demand management thrugh n-site energy strage systems; and 2

3 jump-start Ontari clean-tech manufacturing, exprts, and transitin t a lw-carbn ecnmy. Specific Immediate Opprtunity thrugh Bill 172 Ontari has many f the necessary ingredients t emerge as a glbal leader in energy strage, including aggressive GHG reductin and lw carbn ecnmy plicy bjectives. There is an pprtunity t use strage in Ontari t reduce carbn frm gas plants by up t 4.5 millin tnnes f CO2 per annum. In 2015, 91% f available Gas Fired Generatin Capacity ran, n average, fr just under three hurs each day, accunting fr 8.3 TWh f Ontari s electricity generatin and emitting apprximately 4.5 millin tnnes f CO2. Apprximately millin tnnes f CO2, ut f this 4.5 millin Tnnes, culd be eliminated with 1,000 MW f energy strage by negating 2-3 TWh f thermal gas pwer generatin. This assumes that natural gas generatin perates at peak lads and at a capacity factr f 32% (as referenced in the IESO Pwer System Planning August 13, 2015 dcument). Currently, the envirnmental benefits f transmissin and distributin based strage such as GHG reductins assciated with displacing gas-fired generatin, and the ptential fr strage t facilitate electrificatin f the transprtatin sectr are nt adequately taken int accunt when energy agencies make their planning decisins. In cnjunctin with wind and slar, strage can als play an integral rle in nrthern ff-diesel strategies fr Ontari s First Natins and the Ring f Fire. Specifically, strage plus renewable micrgrid systems can greatly reduce the amunt f expensive, dirty diesel being shipped t these cmmunities, while increasing pwer supply resiliency and reliability. These slutins can be installed relatively quickly and can bridge the gap fr cmmunities befre they are cnnected t the transmissin line. Recmmendatin fr Inclusin int Bill 172 As part f Ontari s Bill 172 legislatin, the gvernment shuld earmark an initial $100 millin frm auctin revenues fr an Energy Strage Deplyment Fund. (This amunt represents the annual carbn emissins value frm nn-base lad peak gas-fired generatin in the Prvince, assuming a $17 per tnne carbn price, and the ptential diesel savings frm deplying strage plus renewable micrgrid slutins in remte cmmunities). As gas- and diesel-fired electricity is significantly reduced thrugh clean technlgies, the annual cntributin t the Fund frm auctin revenues culd decline accrdingly. The fund s specific bjective wuld be t help deply 24,000 MWhs f strage thrughut the Ontari transmissin and distributin grids, which wuld eliminate the need fr gas-fired peak generatin, reducing annual carbn emissins by 4.5 millin tnnes, and deplying strage plus renewable micrgrids in partnership with diesel-based remte cmmunities. The prvince culd then invite 3

4 applicatins frm bth private and public sectrs t apply t the fund t help deply energy strage systems that meet ne r mre f the fllwing criteria: Supprt the eliminatin f GHG emissins frm peak energy inefficient gas-fired generatin; Supprt the mve t the electrificatin f the transprtatin system thrugh better utilizatin f existing generatin, transmissin and distributin assets; Supprt the utilizatin f surplus base-lad, eliminating the need t spill hydr and curtail renewables and t further supprt the better integratin f renewables int Ontari s electricity system; Supprt the transitin f nrthern remte cmmunities frm diesel t renewable energy systems; and Assist industrial, cmmercial and residential custmers in cnservatin and demand management thrugh behind-the-meter energy strage systems. Energy Strage Ontari views Bill 172 as an imprtant step in ensuring envirnmental benefits as well as necessary ecnmic benefits thrugh jb and new cmpany creatin. We fully supprt the legislatin and hpe t see carbn values at a levels high enugh t spark immediate change in persnal and crprate behaviur. Thank yu. 4

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