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Hydro One Experience with Renewable Distributed Generation &

Advanced Distribution System Initiative

Convention on

the Electric Industry & Its Markets

June 4, 2012

B. N. (Bob) Singh Manager - Asset Strategy

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Presentation Outline Hydro One - Who are we?

Hydro One Transmission & Distribution

Drivers of Change for Ontario’s Electrical Grid

Renewable Generation & Integration Initiatives in

Ontario

Hydro One Smart Grid Initiatives (Smart Meters,

WiMax)

Hydro One Advanced Distribution System (ADS) –

Owen Sound Living Lab

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Hydro One at a Glance Owned by the Province of Ontario

Largest transmitter in Ontario; Largest distributor in Ontario

Over 1.3M Distribution customers

$17.3 Billion in assets

640,000 sq km service territory

Approximately 5700 employees

2010 Revenue: $5.1 Billion; 2010 Net Income: $591 Million

Integrated 29,000 km transmission grid and interconnection system (26 interconnections with neighbouring provinces and states)

Over 123,600 km of distribution lines

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Drivers of Change - Ontario’s Electrical Grid Green Energy & Green Economy Act (2009) & Long-Term Energy Plan (2010)

Coal-fired Generation Retirement by 2014

Ageing Generation Infrastructure

Specific Conservation & Demand Management Targets

Develop renewable energy projects from wind, solar, bio-energy (10,700 MW by 2018)

Add to nuclear fleet, Grow hydroelectric capacity

Hydro One Corporate Strategy

Ageing Transmission & Distribution Infrastructure

New Technologies – Smart Meters, Smart Grid, DG Technologies, Storage, EVs, etc.

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Hydro One Asset Age Transmission Assets - 30% will reach expected life within 10 years - 50% will reach expected life within 20 years

Distribution Assets - 20% will reach expected life within 10 years - 40% will reach expected life within 20 years (Expected Life: Stations 70 yrs, Conductors 61 yrs)

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Distribution Territory Served by Hydro One & Renewable “Rich” Areas in Ontario

Southern Ontario

Northern Ontario

Solar

Wind

Hydro

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Renewable Generation Initiatives in Ontario

Renewable Energy Supply 1 (RES1) – 2004

Renewable Energy Supply 2 (RES 2) – 2005

Renewable Energy Standard Offer Program (RESOP) – 2006

Feed In Tariff Program (FIT) – 2009

Renewable Energy Supply 3 (RES 3) – 2009

Micro FIT – 2009

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RENEWABLE DG PICTURE: HYDRO ONE SYSTEM

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Connecting Generation to Distribution: Technical Challenges

Radial system: Distribution system not designed to connect multiple generators - bi-directional power flow

Rural Feeders: “long, weak, light” – voltage issues

Technical Limits: Protections & system limits; Transmission capacity

Model & Tools: Steady State; Dynamic study

Transmission Constraints: TS back-feed, DGs not market participant

Tx/Dx Code Overlap: How does this work?

Evolving technical impacts/solutions: learning continues

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Dealing with Technical Challenges:

Engage internal & external technical experts on complex issues and

universities on R&D matters

Work with the Independent Electricity Systems Operator (IESO) and

Ontario Power Authority (OPA) on Transmission impact (reverse flow)

Continue to better understand technical impacts of integrating large

amounts of renewable DGs

Work on Smart Grid & other demonstration projects to further

facilitate renewable generation connection and to transform the

distribution system to address customer needs

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Advanced Distribution System (ADS) Initiative Purpose

Modernize our distribution system to better serve our customers

Pilot underway to identify, deploy, analyze, and assess equipment and applications

Builds on Smart

Meters and WiMax already deployed

Partners

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ADS Four Technology Pillars

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PHASE1 – IN PROGRESS 2011-2016

PHASE 0 – COMPLETE 2010

PHASE 2 2013-onward

Once confirmed new standards will be deployed and incremental changes (+/-) will be reflected in ongoing business plans

Rel 1 2012

ADS – Phased Approach

Business Case Template

Confirmed Business Case

Project Planning & Mobilization

Scenario Definition & Requirements

Elaboration

Functionality Selection & Estimating

Functionality Deployment & Transition

to Operations Rel 2 2014

Rel 3 2015

Rel 4 2016

Functionality Evaluation &

Benefit Confirmation

Functionality Selection & Estimating

Functionality Confirmed

Functionality Selected

Requirements Approved

Functionality Ready

PROJECT

PROGRAM

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Owen Sound Trial Area – “Living Lab” • North-west of Toronto

• High concentration of year-round residential & seasonal customers

• Winter peaking load (electric heating & water heating)

• Distributed Generators

• The “Living Lab” to go live in Q4 2012

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Living Lab – Main Features

Modernization of Owen Sound TS and Chatsworth and Berkely DS (IEC 61850)

Automation of select feeders with intelligent devices

Fully deployed wireless communication (WiMax) in the area

Distribution Management System (DMS) at the Provincial Grid Control Centre

Integration with the Enterprise Information Systems

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Any Questions?

Thank You