Discussion on Remote Community Connection Concepts

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1 Discussion on Remote Community Connection Concepts February 1, 2012

2 Presentation Overview 1. Northwest Ontario First Nation Transmission Planning Committee Overview 2. Strategic energy supply options 3. Transmission planning for remote communities 4. Transmission concepts for discussion 5. Options for communities not economic to connect now 2

3 Northwest Ontario First Nation Transmission Planning Committee Overview Planning for the transmission connection of the Remote Communities is being conducted by the Northwest Ontario First Nation Transmission Planning Committee (NOFNTPC), which has the following mandate: The purpose of the Northwest Ontario First Nation Transmission Planning Committee is to develop e a regulatory business case for the expansion of the Ontario electrical ect ca transmission ss system to the remote north. In developing the regulatory business case the Committee, by conferring with the communities, will undertake to capture the diverse needs of the communities and reflect those needs within the technical options for connecting to the provincial transmission system. Once a regulatory business case has been reviewed and the needs of the communities effectively captured, it can be a tool for any proponent to approach regulatory bodies in Ontario to request the extension of the provincial transmission system. All Northwest Ontario Remote First Nations communities are represented on the committee directly or by representatives from their tribal councils 3

4 Load and Capacity Forecast First Step in Planning Study Remote Community Load Forecast Diesel Capacity Forecast (Required to Meet Demand) Prime (MW) Installed (MW) Other Planning Considerations Roughly 100 MW of renewable resources have been identified in the vicinity of the remote communities whose development could be considered d once transmission i is available Potential for major mines north of Dryden to decommission and make capacity available to support load growth of remote communities prior to the end of study period Potential for 40 MW of load at Ring of Fire by 2017 and up to 150 MW in long-run 4

5 Strategic Energy Supply Options Objective: Develop business case to support regulatory processes and project funding discussionsi Three strategic options to supply electricity in remote communities Diesel generation (status quo) Renewable generation including consideration of mini-grids Renewable generation can be integrated within the isolated diesel systems or in clusters of two or more communities connected by transmission lines Transmission connection Connect economically feasible remote communities to the Independent Electricity System Operator (IESO) controlled (provincial) grid Opportunity to economically develop larger renewable generation projects (wind, hydro) 5

6 Challenges with Diesel Generation Highest cost generation within the Ontario Power System Constrained growth and economic development Environmental impact and risk Fuel spills and leakage Greenhouse gas emissions (transport and generation) Noise Waste disposal from diesel operations 6

7 Renewable Generation Integrated with Diesel Renewable generation, possibly coupled with storage, can be economically integrated with diesel systems in: Isolated community systems Connected community clusters Integration ti of renewable generation is less economic than transmission connection for the 20 communities identified for connection In the five communities not economic to connect, renewables could reduce diesel fuel burn and greenhouse gas emissions Continued diesel operation would be needed to maintain system integrity (particularly with intermittent resources) 7

8 Cost Comparison of Strategic Options High level assessment estimated comparative unit energy costs for alternative technologies Sub-sets of the 25 communities were used for the analysis of each technology; these cost ranges only represent the estimated cost of supplying the sub-set of communities examined for each technology Average Unit Cost of Power over 40 years ($/kwh) Low High Diesel Only Isolated Wind Integrated with Diesel Hydro Connected to Community Clusters Transmission Connection

9 Evaluation of Strategic Electrical Supply Options Evaluation criteria include: Cost Constraints to Load Growth Adverse Environmental Impact Diesel Only Highest Highest Highest Renewables Integrated with Diesel Systems Moderate Moderate Moderate Transmission Lowest Lowest Lowest 9

10 Transmission Planning Starts with the Existing System Current Transmission System North of Dryden E4D from Dryden to Ear Falls supplies Red Lake and Pickle Lake E2R supplies Red Lake E1C supplies Pickle Lake Constraints E1C already at its limit E4D and E2R likely to reach limits in 2012 Reinforcement of Red Lake and Pickle Lake is required to connect growth north of Dryden including remote communities, mining and industrial loads 10

11 Transmission System Planning Criteria The following criteria are used for planning power system expansion: Cost Reliability Flexibility Feasibility Environmental performance Social acceptance Note on cost: Cost cannot be fully understood until the preferred transmission concepts have been developed by the NOFNTPC and IESO feasibility studies are complete 11

12 Transmission Connection Plan - Design Considerations Community Considerations Community interests regarding land use (traditional areas, trap lines, natural features, etc.) Follow existing linear features (roads, eskers, etc.) where possible and minimize impacts where not possible Work with other infrastructure projects such as permanent road development and Bell Alliant - fibre optic project Technical Considerations Follow Ontario Transmission Planning Criteria Observe transmission and distribution line capabilities Assess if technical impacts on existing power system are acceptable Optimize reliability and flexibility Consider opportunities for development of potential renewable generation resources and shared use of facilities with other developments 12

13 Communities North of Red Lake and Pickle Lake Form Clusters Based on Technical Challenges The relative distance between the supply sources (Red Lake and Pickle Lake) and the communities coupled with the various design considerations outlined on slide 14 resulted in the development of these groupings of communities Red Lake Cluster Pickle Lake Cluster 13

14 Red Lake Cluster Connection Concept 14

15 Pickle Lake Cluster Connection Concept (115 kv) 15

16 Ring of Fire Considerations Transmission connection of the Ring of Fire via Pickle Lake would depend on mining companies interest and routing preferences. If transmission capacity is shared with Ring of Fire and other mining proponents, there is potential for cost synergies for remote communities Linkages with both supply to Pickle Lake and remotes configuration: A 115 kv line to Pickle Lake is sufficient to serve remote community load, but a 230 kv line to Pickle Lake would be required to also supply the Ring of Fire The connection configuration for various remote communities in the vicinity of the Ring of Fire would differ under a Ring of Fire connection scenario to optimize use of line 16

17 Scope and Timing for Connecting Remote Communities Project involves constructing one or more 115 kv lines, step- down stations and distribution feeders Depending on the configuration, distance of new lines could range from 900-1,300 km of 115 kv and km of low- voltage lines Ongoing discussions on project specifics involve the communities and other stakeholders The cost of diesel consumed in these communities over the next 25 years is expected to be more than $1B Project timeline is a function of planning and development activities, which are ongoing 17

18 Supply Options for Communities not Economic to Connect at this Time The communities that are not economic to connect at this time are: Lake Nipigon: Whitesand, Kiashke Zaaging Anishinaabek East: Marten Falls Coast: Peawanuk, Fort Severn The OPA has conducted preliminary studies on the following options for these communities and have found they can reduce the cost of supply Renewables combined with battery storage (micro hydro, wind, solar) These options require continued use of diesel for operability requirements and meeting load OPA will work with these communities to identify specific energy supply solutions that meet their unique needs 18

19 Key Conclusions and Next Steps Key Conclusions There is an economic case for connecting 20 remote First Nation communities to the Ontario grid Integrating renewable generation resources within existing diesel systems may enable some communities to reduce their diesel consumption and costs Renewables integration is likely an economically viable option for the 5 communities not economic to connect at this time. Next Steps Complete NOFNTPC report Community-driven coordination and consensus-building on path forward Commence project development 19