Electricity Planning in the Parry Sound-Muskoka area

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1 Electricity Planning in the Parry Sound-Muskoka area Local Advisory Committee Meeting #2 September 26, 2016

2 Parry Sound-Muskoka Regional Planning Process and Timeline 2

3 Purpose of today s meeting Review the electricity needs and options in the Parry Sound-Muskoka area Seek input from the LAC on the draft recommendations Discuss key priorities for future LAC meetings 3

4 Recap: Types of Electricity Planning 4

5 Recap: Scope of Regional Planning: Note: Connection assessment of generation resources for procurement programs, such as the Feed-in-Tariff and, the Large Renewable Procurement, are beyond the scope of regional planning. 5

6 Options to address electricity needs Transmission System Centralized Generation Distribution System Distributed Generation 6

7 Electricity Demand Growth in this Region Planning forecast includes the peak demand impact of planned conservation efforts and distributed generation Conservation and embedded generation is expected to reduce the electricity demand by about 35 MW over the planning period (about 25% of demand growth) 7

8 230kV Transmission Infrastructure 8

9 44kV Sub-Transmission Infrastructure 9

10 Parry Sound-Muskoka: Summary of Electricity Needs 44kV Service Reliability and Performance Transformer Station Capacity in the Parry Sound and Waubaushene Areas Load Restoration on 230kV Orillia- Muskoka Transmission system 10

11 44KV SERVICE RELIABILITY AND PERFORMANCE 11

12 Some of the 44kV networks in this Region are performing below provincial average in terms of frequency and durations of outages ** Note: The highlighted areas are approximate and provide general indications of the 44kV networks that are performing below provincial average. 12

13 Main Causes of these 44kV Outages Long 44kV lines (40-100km) Increased exposure to tree, wildlife contact, and weather. Tree-Related Outages Off-Road Distribution Facilities Crews have limited access to these facilities leading to increased restoration time. Equipment Failure 13

14 Status of Maintenance and Outage Mitigations Initiatives Vegetation management Vegetation management was last completed in these areas in 2015/2016 Full clearing for these areas is planned for 2021/2022 Hydro One has committed $20M in 2016 in the Districts of Muskoka and Parry Sound to reduce tree-related outages for its customers Line patrols are conducted on a 6-year cycle Data is collected to help identify and prioritize the need to replace distribution poles and/or potentially defective equipment Last line patrolling cycle for these priorities areas occurred between The next line patrolling cycle is scheduled for Mid-cycle hazard tree program Visual inspection to identify potential risk of tree-related contact This program would be conducted in this region in 2018/2019 period Distribution System Management & Grid Modernization Distribution management system will be implemented in this region by end of 2016 and will enable operators to have greater grid visibility and to response to outage in a timely manner A broader grid modernization initiative is underway to identify opportunities for distribution automation 14

15 Opportunities to Improve Service Reliability Distribution Solutions and Mitigation Measures: Increase vegetation management to reduce exposure Install distribution automation and fast-acting switching devices to restore power in a timely manner Relocate Off-Roads 44kV lines to roadside to allow crews to better access to these distribution facilities Strengthen ties within the 44kV network to allow adjacent 44kV lines to service as a back-up supply in the event of an outage The cost, feasibility and effectiveness of these solutions depends on the solution type, the geography and the nature of the 44kV distribution network 15

16 Option to Resupply from Bracebridge TS Bracebridge, Gravenhurst, the Township of Muskoka Lakes, and the Township of Seguin are supplied by long 44kV lines ( km) from Muskoka transformer station. Currently, the Bracebridge transformer station supplies only one industrial customer and would have sufficient capacity to accommodate new customers. To shorten 44kV line exposure, new 44kV lines can be built (~ up to 15 km) to resupply these areas from Bracebridge TS at a cost of $3-6 M. Unlike Muskoka TS, Bracebridge TS only has a single source of transmission supply. A second transformer station or/and a combination of switching facilities ($5-30 M) can be installed to provide a second source of supply and to minimize the impact of potential transmission outages 16

17 Draft Recommendations The Working Group recommends the following: To further examine the cost-benefit and cost responsibility of transmission and distribution options to improve 44kV service reliability in the Muskoka area: Hydro One Transmission and affected LDCs (Hydro One Distribution, Lakeland Power and Veridian Connections) will examine the cost-benefit and cost responsibility of these options through a local planning study The status and results from the local planning study will be discussed with the LAC and affected communities To explore opportunities to improve resilience and service reliability at the community level: Facilitate discussion with the LAC and affected communities about community energy planning activities and the cost-benefit of community-based solutions to improve resilience and service reliability 17

18 TRANSFORMER STATION CAPACITY IN THE PARRY SOUND AREA 18

19 Transformer Stations Supplying Parry Sound - Waubaushene and surrounding areas Limited supply capacity is remaining on the two transformer stations supplying Parry Sound, Waubaushene and surrounding areas Electricity demand at Parry Sound and Waubaushene transformer stations is expected to grow at a rate of 1-2 MW/year over the planning period By 2035, additional transformer station capacity will be required at: Parry Sound TS (23 MW) Waubaushene TS (11 MW) 19

20 Potential Options Option 1: Resupplying some customers in the Parry Sound and Waubashene areas from other adjacent transformer stations using existing and new distribution facilities The existing 44kV system can transfer up to 10 MW to neighboring transformer stations from Waubaushene transformer station. With some reinforcements on the 44kV distribution network (~ about $7M), up to 6 MW can be transferred to neighbouring stations from Parry Sound transformer station. These reinforcements would also improve the service reliability for Township of Muskoka Lakes and Township of Seguin. Option 2: Upgrade the transformers at the existing Parry Sound and Waubaushene transformer stations ($25-30M per transformer upgrade) Option 3: Defer the transformer upgrade using targetted demand management and distributed energy resources 20

21 Opportunities to defer transformer station upgrades Given the modest growth in this area, there is a large value for deferring (i.e., about $2M per year) the transformer station upgrades using community-based solutions. Examples of community-based solutions: Local hydroelectric potential (According to OWA, 38 MW potential in the Parry Sound District) Initiatives to identify opportunities to improve heating efficiency (e.g., energy baselines through community energy plans) Pilots and emerging technologies (e.g., thermal energy storage, microgrid) At this time, the Working Group has limited information on the cost and feasibility of distributed energy resources and demand management in this area. More work needs to be done to determine whether it is cost-effective and feasible to rely on these solutions to address the local needs. 21

22 End of Life Replacement of Transformers Based on the typical service life, transformers at Parry Sound and Waubaushene could be reaching end of life in the early 2030s. Depending on the demand growth and management, it may be cost effective to advance the end of life replacement and to replace the aging assets with upgraded/upsized facilities. 22

23 Draft Recommendations The Working Group recommends the following: To manage near-term growth: Resupply some of customers in the Parry Sound and Waubaushene areas from neighbouring transformer stations using existing and new distribution facilities. To better understand the cost and feasibility of implementing distributed energy solutions and demand management in the Parry Sound area: Initiate a local potential study on distributed energy resources/demand management Leverage local knowledge and community energy planning activities Identify opportunities for targeted conservation and energy efficiency opportunities in First Nations communities and municipalities. To determine if there is an opportunity to align the end of life replacement with transformer station capacity needs: Monitor the demand growth and the results from the local potential study Work with Hydro One Transmission to actively monitor and assess the conditions of these transformers Revisit this need in the next iteration of the plan 23

24 LOAD RESTORATION ON 230KV ORILLIA-MUSKOKA TRANSMISSION SYSTEM 24

25 Load Restoration on 230kV Orillia-Muskoka system Today, about 450 MW are being supplied by 230kV Orillia-Muskoka system In the event of a major outage on the 230kV Orillia- Muskoka system, all loads would be interrupted and there is limited ability to restore the load in a timely manner. This does not meet Ontario s planning standards. According to Ontario s planning standards, no more than 600 MW can be interrupted following a major outage. Demand on the 230kV Orillia-Muskoka system is expected to increase up to 600 MW by early 2030s 25

26 Potential Options In the event of a 230kV transmission outage, the following fast-acting isolating devices can be installed to minimize the impact of supply interruption to customers Motorized Switches (~$5-7M): Isolates sections of the transmission line following an outage within 30 min and would enable power to be restored to customers in a timely manner. Breakers (~$20-25 M): Immediately isolates sections of the transmission line that are not directly impacted by the outage and would reduce the total number of customers that would be affected by a transmission outage. 26

27 Draft Recommendations The Working Group recommends the following: To restore up to 300 MW within 30 minutes following a major outage on the 230kV Orilla-Muskoka transmission system by: Install motorized switches at the Orillia transformer station. Given the uncertainty demand forecast over the longer term and the substantial cost of installing breakers, it is not recommended that breakers be installed at this time. 27

28 Other Considerations End of life replacement of a transformer station planned at Minden within the next five years Additional supply may be required on the Orillia-Muskoka 230kV transmission system over the longer-term (beyond 2030s) Voltage and power quality concerns 28

29 Next Steps and Timeline NEXT STEP: LAC members to provide comments on the draft recommendations by Oct 15,

30 Parry Sound-Muskoka Technical Working Group s Priorities Priority #1: Get the LAC s input on the draft recommendations Priority #2: Better understand the potential, cost and feasibility of demand management and distributed energy resources in the area Priority #3: Keep LAC members and affected communities posted on the status of the IRRP recommendations LAC members to provide comments by Oct 15, 2016 Final report will be posted by Dec 2016 Engage with LAC to assist with local potential study Identify opportunities for targeted conservation and energy efficiency opportunities in First Nations communities and municipalities by leveraging local knowledge and community energy planning activities Determine cost-effective and feasible communitybased solutions that may be implemented to help defer the transformer station needs in the area Provide a status update on the local planning study to examine cost-benefit and cost responsibility of the options to improve 44kV service reliability in the Muskoka area Provide a status update on any near-term projects and outcomes from the local potential study Priority #4: Keep LAC members and affected communities posted on demand growth and conservation activities Priority #5: Coordinate regional and community energy planning activities Review electricity demand growth and conservation activities in Parry-Sound Muskoka with LAC Facilitate a discussion with the LAC and affected communities about community energy planning activities and local solutions to improve resilience and service reliability Use LAC meetings to share best practices and to coordinate regional and local energy planning activities 30

31 DRAFT LAC ROADMAP 31