Utility Administration & Operation of Virtually Net-Metered Generation

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1 Solar Canada 2017 Utility Administration & Operation of Virtually Net-Metered Generation Vinay Sharma Chair, EDA Dec 5, 2017

2 Electricity Distributors Association 2 The EDA is the voice of Ontario s local electricity distribution sector, which: Consists of municipally and privately owned local distribution companies (LDCs). Delivers electricity to 5 million residential, commercial, industrial and institutional customers. Employs 10,000 people directly and holds $19 billion in assets; including $1.9 billion in annual capital spending and $1.6 billion in annual operational spending. 2

3 The Vision This is about preparing Ontario s electricity industry today for tomorrow s consumer. This vision by the Electricity Distributors Association (EDA) and its member local utilities proposes a new way forward for Ontario s electricity system that recognizes consumers as drivers of change and leverages new technologies to deliver high-quality electricity services. The integration of local, small-scale power generation and storage technology, known as distributed energy resources (DERs), will be key to achieving a more resilient system that can alleviate cost pressures. The 2017 Ontario Long-Term Energy Plan recognizes this Vision. 3

4 Changing energy landscape Currently, LDCs manage one-way energy flow and have an obligation to connect customers and accommodate for distributed generation. The energy landscape in Ontario is changing and that brings threats and opportunities which will require transformation of the utility business model. Utilities will succeed going forward by adopting stronger customer-centric thinking. Over the next decade innovative LDCs will advance from primarily one-way deliverers of power to two-way, networked generators, distributors, and managers of electricity all in support of customer demands. The leadership of local distribution companies (LDCs) will be needed to manage the integrated power flows and digitally enabled grid. Image courtesy of Navigant Consulting Inc. 4

5 An Ecosystem of Integrated Power Flows The transformation reflects an accelerated transition towards a cleaner, more distributed and intelligent energy system. The increase of DERs (including demand response, distributed storage, distributed generation, and electric vehicles) is fueled by an increased customer desire for control over energy usage. Image courtesy of Navigant Consulting Inc. 5

6 What does this all mean to Virtual Net Metering? 6 Virtual net metering (VNM) is reflective of the evolving electricity system and is being driven out of interest for increased distributed energy resources (DER) including solar PV. VNM is a billing mechanism that facilitates a customers participation in the DER economy even if they can t install their own renewable energy system. 6

7 Why are LDCs interested in VNM? 7 Supporting evolving customer needs Ensuring grid reliability Supporting sustainability goals LDCs are partners in the Climate Change Action Plan LDCs are leaders in conservation Positioning ourselves for future DERs Creating resiliency and interdependence in communities New business opportunities 7

8 Grid Benefits of VNM 8 A cleaner grid Balancing demand: reducing peak and base load demand Greater grid coordination 8

9 How are LDCs preparing? Technological advances Grid modernization Understanding changing customer needs Infrastructure investments Data analytics Partnerships 9

10 How are LDCs preparing? 10 MICROGRIDS: Oshawa PUC, Alectra Inc., Veridian Connections, North Bay Hydro ADVANCED COMMUNITY DISTRICT UTILITY: Hydro Ottawa Zibi Project SMARTMAP: COLLUS PowerStream, Essex Powerlines TARGETED CONSERVATION: Niagara Peninsula Energy, Alectra Inc. POWER.HOUSE Alectra Inc. BATTERY STORAGE: Festival Hydro, Veridian Connections GREEN BUTTON: London Hydro, Festival Hydro, Whitby Hydro GRID-EDGE VOLTAGE CONTROLS: London Hydro, Entegrus, ENWIN DRONE TECHNOLOGY: ENWIN 10

11 Overcoming Challenges 11 Administrative challenges Cost Recovery Policy & regulatory changes 11

12 VNM Challenges Settlement across multiple addresses and rate classes Eligibility Billing Delivery costs Customer certainty Connection Impact Assessment Regulatory barriers 1212

13 The Path Forward: LTEP & Beyond VNM can accelerate the pace towards more DER initiatives. There s a lot to figure out but we have. Innovative utilities that want to take a leading role in enabling their customers to take part in the DER space and in renewable energy. A 2017 Long-Term Energy Plan that gives us a road map forward. Upcoming virtual net metering pilots that will inform the needed changes and processes. Need to consider linkages with other initiatives: community energy planning, regional planning, market renewal, cap and trade and conservation. Collaboration among utilities and partners such as CanSIA, customers, government, the IESO and the OEB will get us there

14 Thank you Electricity Distributors Association (EDA) 3700 Steeles Ave W, Suite 1100 Vaughan, ON L4L 8K8 Main: Fax: Read the vision on the EDA Website at: Follow us on