Context - Current State

Transcription

1 Generator - HONI Workshop Context - Current State January 22, 2009

2 Context Minister s Directive Increase amount of renewables in supply mix Accelerate achievement of conservation targets Improve transmission from orange zones and elsewhere where limiting new renewables Potential to convert existing coal to biomass Increase availability of distributed generation Potential for pumped storage for peaks

3 Context Procurements to Date Renewables RFPs I and II: 395 and 975 MW Clean Energy Supply I: 1945 MW Bruce refurbishment (1500 MW) CHP RFP 1: 414 MW Portlands (550), Goreway (875), Halton Hills (632), Northern York Region (393) RESOP: 1500 MW contracted Renewables III: additional 500 MW of 2000 MW CHP II, III: 500 MW and 100 MW respectively

4 Context Distribution Connections (per end of August, 2008) 1. Initial Feasibility Assessment 2. Connection Impact Assessment 3. System Impact Assessment 4. Connection Cost Estimate 5. Connection and Cost Recovery Agreement 6. Design, Build, & Connect #Applications MW MW 643 Qualified 5409MW 671 In eligible 6017MW 127 projects 1092MW MW Being Estimated MW Being Negotiated Projects to be completed in MW #Completed MW MW MW Completed by IESO MW Completed MW Completed In Service Projects 9 51MW

5 Context Incentives for Hydro One Clear objective of our owner and regulator Generators are customers and if they re dissatisfied, they ll complain to Minister Wires upgrades to facilitate new and distributed generation contribute to a more robust and smart system Appropriate incremental investment can also result in growth in our rate base

6 Context Queuing Issues Many TS and feeder queues filled Suspect many projects can t proceed to connection Most projects are signing CCRA s to retain queue positions Challenging or impossible for viable projects to proceed due to queue issues

7 Context Transfer Capability Constraints

8 Context Other Constraints on Distribution Connections Backfeed: 60% of transformer rating (single transformer at DESN) Feeder loading: 400 amps Short circuit at TS SIAs particularly voltage support at injection points to transmission

9 Context Cost Allocation Currently largely proponent pay for wires per OEB codes Challenging for shared facilities Different timing for generation projects Competition tends to make proponents hold back Potentially large up front costs OEB review underway for transmission, coming for distribution Question regarding need for supporting rate base investments to be paid by all customers

10 Context - Planning The relative economics of wires options Locational considerations Operational solutions Major changes in system design The need for a mix of supply sources, particularly for system operations New technology

11 Context - IPSP Only recommends study of some enabling lines and major new network transmission No new station investment Investments in dynamic reactive support and protection and control backbone can enable substantial new generation Too slow for government

12 Context Right to Connect Wires limitations are a reality Investments required to increase the limits Hydro One believes economic evaluation based on value of new generation and total cost to get it, would be appropriate Working on how this will be done, particularly in absence of IPSP

13 Policy and Process - Issues Generation not developing under RESOP Hydro One responsiveness to generators Projects not moving blocking projects behind them Readiness of wires system Locational considerations for wires Cost allocation Planning / commitment for wires upgrades