Robert Stasko. Ontario Canada. Director Business Development. Ontario Centres of Excellence (OCE)

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1 Robert Stasko Director Business Development Ontario Centres of Excellence (OCE) Ontario Canada

2 Ontario Centres of Excellence A non-profit agency established 20 years ago by the Ontario government to bridge the innovation gap between academic researchers and industrial end-users via the vehicle of collaborative research that will benefit the Ontario economy OCE facilitates industry-led R&D project partnerships between academic researchers and industrial recipients for the purpose of developing Intellectual Property. OCE co-funds R&D that has a clear path to eventual commercialization if successful. OCE also invests in talent development; the engagement of graduate researchers who through collaborative R&D projects earn a Masters or PHD degree and thus become employable in the commercial technology realm.

3 What is Driving Energy R&D in Ontario? De-Carbonization: reducing the Ontario carbon footprint as part of a Climate Change agenda The Green Energy Act: Ensuring that renewable or clean energy becomes a major component of the generation mix Smart Grid Solutions: enabling DG via a bi-directional, self healing, flexible and highly cognitive distribution system Electrification of Transportation: transitioning to electric mobility not just for PHEVs & PEVs but for light rail, commuter rail, transit buses and long-haul trucks GOAL: DEVELOP MADE IN ONTARIO TECHNOLOGY SOLUTIONS THAT CREATE ECONOMIC BENEFITS

4 Green Energy Act Purpose: Enabling More Renewable Generation Directs wires companies to give priority access to grid connection for renewable energy generation projects. Authorizes the Minister of Energy and Infrastructure to direct the OPA in launching new electricity supply RFPs, particularly for renewable generation. Allows the Minister to direct the OPA to develop and implement a Feed In Tariff fee structure for renewable suppliers. Directs LDCs to connect any new (renewable) generation that meets all technical requirements. Allows LDCs and Municipalities to own and operate renewable generation assets of 10MW or less. Empowers a new class of Energy Cooperatives as a business model that will accelerate the development of distributed, renewable energy sources.

5 Ontario s Past Energy R&D Priorities Coal Utilization: Efficiency improvements, SO2 and NOx capture, mercury capture, ash disposal Nuclear Power: Materials issue (neutron flux and temperature aging) fuel utilization, advanced fuel cycles and spent fuel issues, waste management, safety and environment. Hydrology research: concrete for hydro structures High Voltage Transmission: 500 to 800 kv, AC vs DC End Use Technologies: (water heaters, AC, EE appliances and lighting, codes and standards) Distribution: Utilization, materials issues around Poles, Transformers, Wires, Reliability and Protection.

6 Sector R&D Priorities Going Forward Solar, wind and biomass power generation; technology, cost and efficiency improvements. Smart Grid products: In-home devices, development & deployment of CIT, Exploiting Ontario s advantages. Energy Storage Solutions: technologies to harvest off-peak, surplus base-load or intermittent renewable electricity for redispatch when at times of peak demand Hydrogen, methanol and various bio-fuels using opportunistic feed stocks or low emission electricity for production Emerging micro DG (fuel cells, sterling engines, small wind ) and in-home smart appliances and DM products Technology to support electrification of transportation

7 Report of the Smart Grid Forum Smart grid is a modern electric system. It uses sensors, monitoring, communications, automation and computers to improve the flexibility, security, reliability, effeciency and safety of the electricity system. Smart grid includes DG, accommodates electric vehicles and provides greater customer choice. Ontario is well-position to be a global leader in smart grid technologies (smart meters are deployed, we have an established research capability, the green energy act is supportive and the electricity market provides price signals to drive consumption and production decisions.

8 Why are PEVs such a hot topic? The cost of Petro-Fuels can only go up over time Transportation is a major source of CO2 emission, and governments must take action to reduce emissions through taxes, incentives and regulation. Automotive OEMS are developing electromotive platforms that are either hybrids or pure electric (batteries or fuel cells) as part of their renewal or to promote a green car market brand. Electricity has the potential to be a green fuel for transportation, but it will only fulfill this expectation if a coordinated policy and plan is developed by all sector participants working together with a common vision.

9 The Ontario Advantage for a Greener Grid Transformation CO2 emissions can be reduced and urban air quality will be enhanced thanks to a greener grid (emission free electricity during off-peak hours). There will be ample off-peak generation capacity in the grid for some time to come, assuming optimal charging. Smart meters will soon be fully deployed, providing an ideal CITplatform for smart charging and other advanced applications that will facilitate a smarter grid Ontario is an industrial centre for both the power and the automotive sectors; and there is substantial intellectual capacity in CIT (eg: RIM, Nortel and multiple CIT spinoffs) Electricity has the potential to be a transformational fuel for transportation, but the framework for infrastructure developmentneeds to be planned with great care.

10 Barriers to PEV Deployment Battery technology is not optimal (hence hybrids as a bridge to all electric) may require battery change-outs Capital cost is still higher than for vehicles using conventional fuels (however, fuel is cheaper) Unfamiliarity with technology for both consumer and service providers, and for First Responders Infrastructure needs to be easy to access and use, equivalent to conventional fueling norms (not there yet) Government policy, incentives, regulations not fully in place. The market pull for PEVs is powerful, and car makers are trying to manage expectations while still providing consumerready products with standard warranties.

11 Smart Cars and Smart Grids Customers will buy very smart cars that talk to drivers, maintenance schedules, access the internet and link to satellites. The grid may need to get just as smart. The CO2 attribution of a kilowatt of fuel will be important for customers and for public policy. This has to be compiled, communicated and tracked Customers will want choices for fuel provision: (example: Non-emitter, totally renewable or best price). The bill for the charge should go to the right customer or meter no matter where it plugs in. This should be seamless and automatic for the user. CIT Technologies to do this need to be developed!

12 Electrifying Public Transit In the US the Obama Stimulus has allocated major funding for renewal and upgrades of urban public transit systems. At least 60 cities are planning new electric trolley or light rail systems (many had them ripped out in the 40s and 50s). The US DOT has targeted urban transit, trucking, rail and marine applications for electrification with major funding for R&D and demonstration projects. It is likely that this trend will be exported to Canada. At the very least these will be new loads for LDCs, but also opportunities to seek innovative and cost effective solutions to existing transit problems that also manage new electricity loads.

13 Hydrogen is storable electrons For many applications Hydrogen can be considered as a mechanism for storing emission-free, inexpensive off-peak electricity; either for grid support, industrial uses or for transportation (range extender) H2 from Electrolysis of Water: Pro: Distribution system in place, can be made with low emission electricity, water plentiful, can be part of a distributed demand response business model for grid support and load management. Con: Capital intensive, and production cost depends on local electricity rates, off-peak or otherwise (not just commodity price, but transmission, distribution and Global Adjustment costs) Future Options: Direct conversion via Nuclear or Sunlight

14 Plug N Drive Ontario Background, and Status Unlike many other jurisdictions, no single agency in Ontario has clear jurisdiction to coordinate the planning, policy and implementation for needed infrastructure to enable grid connected Plug-in Electric Vehicles (PEVs). OCE (along with OPG, HydroOne, IESO, OPA, and many other sector participants) brought together Ontario PEV stakeholders, electricity agencies, LDCs, auto OEMs, government ministries and academia into a working group in order to address PEV infrastructure issues. The group has met five times, with more attendees each time (110 on Nov 15, 2010). The partnership name Plug N Drive was coined in the second meeting in order to provide a simple label for decision makers and for the public at large.

15 The Waterloo Report Plug N Drive commissioned the University of Waterloo to prepare a report on the state of preparedness of the Ontario Grid for PEVs, and to identify R&D gaps that could limit PEV uptake or could undermine environmental benefits. The report was completed in June of last year, and is now public information. Based on findings, the partnership is reviewing identified technology gaps and opportunities, and will form collaborative teams to address them each in turn. Group members would contribute funds (based on capability and interest) to maintain the group s role as a forum for problem solving and to share information.

16 Plug N Drive Purpose: The mandate and goals for this partnership are being finalized, but a document has been circulated that could form the basis. The draft mission statement is: To develop, implement and promote a sustainable transportation future for Ontario that utilizes low CO2 derived electricity as fuel for plug-in electric vehicles, and to assist in making grid infrastructure plug in ready for a wide range of electrified transportation technologies. Although a common vision will soon be articulated, OCE s interest will be to identify new technology R&D opportunities and pilot projects that can enable such a future. Recent activities and reports available on:

17 Key Plug N Drive Goals: 2011 The Plug N Drive Ontario Coalition would: Seize opportunities to build Ontario s advantage as the Green Energy Innovator. Accelerate the uptake of best new technologies and best electricity market prices in Ontario. Fast-track R+D to make Ontario the virtually emissions-free power champion. Create a knowledge base, a platform and a voice of authority to communicate the promise and potential of Ontario s clean, green, sustainable transportation future. Organize and coordinate activities among all potential participants

18 Attendees at Recent Plug N Drive Conference Meetings Ministry of Energy and Infrastructure, Ministry of Transportation, Ministry of International Trade & Investment Hydro One, Ontario Power Authority, Ontario Power Generation, Independent Electricity Systems Operator, Toronto Hydro, Veridian, Electricity Distributors Assoc. Ontario Centre of Excellence (Energy), Ontario Institute of Technology, University of Waterloo, UOIT, Auto 21, Clinton Climate Foundation, Pollution Probe, Toronto Atmospheric Fund Intellimeter, Autoshare, Bullfrog Power, HyMotion, Toyota, GM, Ford and Mitsubishi, Nissan.

19 OCE R&D Priorities for 2011 SOLAR dropping the price of photovoltaic panels by an order of magnitude (e.g. from $0.80 per KWh to $0.08 per KWh). STORAGE dealing with the intermittent nature of renewable supply developing Hydrogen technology. SMART GRIDS enabling bidirectional energy flow; optimize distributed and/or congested generation with central generation. PLUG-INS electrification of our transportation systems. TALENT developing the next generation of innovators (green jobs).

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