Hydro One Experience with Renewable Distributed Generation & Advanced Distribution System Initiative

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1 Hydro One Experience with Renewable Distributed Generation & Advanced Distribution System Initiative Convention on the Electric Industry & Its Markets June 4, 2012 B. N. (Bob) Singh 1 Manager - Asset Strategy

2 Presentation Outline Hydro One - Who are we? Hydro One Transmission & Distribution Drivers of Change for Ontario s Electrical Grid Renewable Generation & Integration Initiatives in Ontario Hydro One Smart Grid Initiatives (Smart Meters, WiMax) Hydro One Advanced Distribution System (ADS) Owen Sound Living Lab 2

3 3 Hydro One at a Glance Owned by the Province of Ontario Largest transmitter in Ontario; Largest distributor in Ontario Over 1.3M Distribution customers $17.3 Billion in assets 640,000 sq km service territory Approximately 5700 employees 2010 Revenue: $5.1 Billion; 2010 Net Income: $591 Million Integrated 29,000 km transmission grid and interconnection system (26 interconnections with neighbouring provinces and states) Over 123,600 km of distribution lines

4 Drivers of Change - Ontario s Electrical Grid Green Energy & Green Economy Act (2009) & Long-Term Energy Plan (2010) Coal-fired Generation Retirement by 2014 Ageing Generation Infrastructure Specific Conservation & Demand Management Targets Develop renewable energy projects from wind, solar, bio-energy (10,700 MW by 2018) Add to nuclear fleet, Grow hydroelectric capacity Hydro One Corporate Strategy Ageing Transmission & Distribution Infrastructure New Technologies Smart Meters, Smart Grid, DG Technologies, Storage, EVs, etc. 4

5 Transmission Assets Hydro One Asset Age - 30% will reach expected life within 10 years - 50% will reach expected life within 20 years Distribution Assets - 20% will reach expected life within 10 years - 40% will reach expected life within 20 years (Expected Life: Stations 70 yrs, Conductors 61 yrs) 5

6 Distribution Territory Served by Hydro One & Renewable Rich Areas in Ontario Wind Solar Hydro 6 Southern Ontario Northern Ontario

7 Renewable Generation Initiatives in Ontario Renewable Energy Supply 1 (RES1) 2004 Renewable Energy Supply 2 (RES 2) 2005 Renewable Energy Standard Offer Program (RESOP) 2006 Feed In Tariff Program (FIT) 2009 Renewable Energy Supply 3 (RES 3) 2009 Micro FIT

8 8 RENEWABLE DG PICTURE: HYDRO ONE SYSTEM

9 Connecting Generation to Distribution: Technical Challenges Radial system: Distribution system not designed to connect multiple generators - bi-directional power flow Rural Feeders: long, weak, light voltage issues Technical Limits: Protections & system limits; Transmission capacity Model & Tools: Steady State; Dynamic study Transmission Constraints: TS back-feed, DGs not market participant Tx/Dx Code Overlap: How does this work? Evolving technical impacts/solutions: learning continues 9

10 Dealing with Technical Challenges: Engage internal & external technical experts on complex issues and universities on R&D matters Work with the Independent Electricity Systems Operator (IESO) and Ontario Power Authority (OPA) on Transmission impact (reverse flow) Continue to better understand technical impacts of integrating large amounts of renewable DGs Work on Smart Grid & other demonstration projects to further facilitate renewable generation connection and to transform the distribution system to address customer needs 10

11 Advanced Distribution System (ADS) Initiative Purpose Modernize our distribution system to better serve our customers Pilot underway to identify, deploy, analyze, and assess equipment and applications Builds on Smart Meters and WiMax already deployed Partners 11

12 12 ADS Four Technology Pillars

13 ADS Phased Approach 13 PHASE 0 COMPLETE 2010 Project Planning & Mobilization Requirements Approved Functionality Selected PHASE1 IN PROGRESS Functionality Ready Functionality Confirmed PHASE onward Once confirmed new standards will be deployed and incremental changes (+/-) will be reflected in ongoing business plans Scenario Definition & Requirements Elaboration Functionality Selection & Estimating Rel Rel 2 Functionality Functionality 2014 Evaluation & Selection & Benefit Rel 3 Estimating 2015 Confirmation Functionality Deployment & Transition to Operations Rel Business Case Template Confirmed Business Case PROGRAM 13 PROJECT

14 Owen Sound Trial Area Living Lab North-west of Toronto High concentration of year-round residential & seasonal customers Winter peaking load (electric heating & water heating) Distributed Generators The Living Lab to go live in Q

15 Living Lab Main Features Modernization of Owen Sound TS and Chatsworth and Berkely DS (IEC 61850) Automation of select feeders with intelligent devices Fully deployed wireless communication (WiMax) in the area Distribution Management System (DMS) at the Provincial Grid Control Centre Integration with the Enterprise Information Systems 15

16 Thank You Any Questions? 16