Smart Cities for All_OntarioMoE_Smart Meters and Smart Grid

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    MINISTRY OF ENERGY

    Smart Meters and Smart Grid:

    An Ontario Case-Study

    Jon NormanOntario Ministry of Energy

    The World Bank

    March 6, 2012

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    MINISTRY OF ENERGY

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    What is Smart Grid?

    Telecom Network- Phone- Internet- Smart Meter

    communicationinfrastructure

    Intelligence/Communications Layer

    Conventional GridSMARTGRID

    Status /Control

    Status /Control

    Status /Control

    Diagram source: EPRI

    Diagram source: EPRI

    Conventional gridinteroperates withsmart gridintelligencethrough enhanceddevices:- Smart meters

    - Auto Switches- IntelligentTransformers

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    MINISTRY OF ENERGY

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    Why does Ontario need a Smart Grid?

    Driven by Aging infrastructure and changing

    objectives (e.g. environment) Evolving opportunity to apply

    technologies that allow intelligent,two-way communications & control.

    Generally, transmission systems arealready equipped with thesecapabilities. Distribution systems aremuch less flexible and efficient.

    Smarter grids can enable: more efficient grid operation, connection of diverse and flexible

    generation, including renewables, enhanced conservation opportunitiesfor customers

    adoption of new and innovativetechnologies, like electric vehicles.

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    MINISTRY OF ENERGY

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    Ontarios Drivers

    Each jurisdiction has its own particular drivers for advancing the smart grid.

    These shift with time, highlighting the fact that the smart grid is a journey rather than adestination.

    Ontario investment into smart grid

    More than $1 billion smart metering infrastructure

    Additional $390 million per year over next 5 years (renewable integration, load management)

    Ontario has several factors that are leading it toward a smarter grid:

    1. Aggressive integration of renewable, distributed generation into the distribution grid

    2. One of North Americas most ambitious conservation targets

    3. One of the largest smart meter and time of use rollouts globally4. Significant effort to create conditions for accelerated electric vehicle adoption

    5. Ability to leverage existing leading edge assets in manufacturing, research, and electricitydistribution systems

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    MINISTRY OF ENERGY

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    Smart Metering in Ontario

    Ontario is the first jurisdiction in North America to roll out smart meters and the first in theworld to introduce mandatory time-of-use pricing.

    Commitment to jurisdiction-wide smart metering and time-of-use pricing announced in 2005

    Progress to-date:

    More than 4.7 million meters are installed (99 percent of households and smallbusinesses).

    More than 3.6 million customers on time-of-use rates

    Costs

    $ 1 billion initiative for smart metering and wireless infrastructure & control systems

    $ 90 million centralized data management centre

    Costs recovered through electricity customers (about $3 per meter/month)

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    MINISTRY OF ENERGY

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    Modernize outdated meter infrastructure Enable time-of-use pricing and conservation Provide basis for smart grid / smart homes

    Gives customers ability to movediscretionary load to cheaper hours.

    Reduces long-term cost of electricity supply

    Increases awareness of consumption

    What do SmartMeters do?

    Benefits to Consumers:

    Facilitates conservation and demandmanagement programs

    Accurate meter reads (no more estimates)

    Timely information to help manageconsumption

    Better customer service (e.g. outagesautomatically known)

    Benefits to the Electricity System:

    Reduces the number of LDC fieldvisits to read and service meters

    Reduces tampering and theft ofelectricity

    Provides significant operationalbenefits (better outage managementand system control)

    Environmental benefits as a result ofload shifting

    Savings in avoided/ deferred capacityinvestments (new generation andtransmission)

    Smart MeterBenefits

    TOUBenefits

    Smart Metering Benefits

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    MINISTRY OF ENERGY

    Time of Use Pricing Structure

    Time-of-use rates provide incentives to shift consumption away from peak periods, whenelectricity is costly and/or environmentally damaging to produce.

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    MINISTRY OF ENERGY

    Functional Specification for Smart Meters

    Meet all applicable laws (health, safety, etc)

    Acquire, date and time stamp all meter reads at theend of each hour

    Transmit meter reads to the distributors AMCC and

    MDM/R by 5 a.m. following the end of each dailyread period

    Achieve a prescribed minimum success rate inacquiring and transmitting meter reads (98%) and aprecision measure (at least 0.01 kWh)

    Maintain time accuracy within a 1.5-minutevariance, as measured against Official Time

    Provide the necessary reporting capabilities toenable distributors to monitor the health of thesmart metering infrastructure

    Security requirements

    LAN

    AMRC

    AMCC

    Meters+ AMCD

    MDM/R

    WAN

    CIS +Billing System

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    MINISTRY OF ENERGY

    Benefits

    In the ramp up to province-wide TOU rollout, several pilot studies were completed byOntario LDCs which indicated that time-of-use pricing contributed to reduction inconsumption of electricity during peak demand hours.

    Early results show load shifting impacts in the range of 3-5%

    Smart meters have also:

    Helped utilities manage their systems better as increasing amounts of renewableenergy come onto the distribution system.

    Provided automatic notification of outages and improved ability to detect source ofoutages

    Enabled a comprehensive database for improved services and potential for openenergy data

    Provided a platform for smart home energy management systems.

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    MINISTRY OF ENERGY

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    Objectives for a Smart Grid in Ontario

    The Green Energy Act set aframework for the development of asmart grid

    Over 80 distinct utilities acrossprovince with different objectives

    Ontario government has:

    Defined smart grid objectives forthe province

    Established responsibilities ofstakeholders

    Identified areas for coordination

    The Green Energy Actestablished what a smart

    grid should do for Ontario.

    Power System Flexibility

    Enable more renewables and better

    efficiency in grid operation

    Adaptive Infrastructure

    Encourage more innovation and

    ensure adaptivness to future

    conditions (e.g. electric vehicles)

    Customer Control

    Enable more conservation through

    a shift to smarter homes

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    MINISTRY OF ENERGY

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    Customer Control

    Installation of a

    Smart Meter

    Implementation of

    Time of Use Rates

    Increase visibility ofprice and

    commodity usagefor customer

    Add load control for

    Air Conditioningand Appliances

    Customers are

    active participantsin Conservation

    Complete Now In various stages of piloting

    More opportunities for conservation and energy management

    Focus Area Expected Outcomes

    Customer Control

    Smart meters Time-of-use rates Home Energy Management Load control

    More Conservation

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    MINISTRY OF ENERGY

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    Enabling Renewables and Power System Flexibility

    Feed-in Tariff (FIT) and

    Micro FITLimited SystemVisibility/Control

    Smart Grid Capacity

    Building / DemonstrationProjects

    Implement Projects to

    give information on real-time supply to gridoperator

    Seamless integration of

    distributed generation;Better Grid Efficiency;More flexible operation

    Now Advanced stages of piloting, e.g. Hydro Ones Smart Zone

    Power SystemFlexibility

    Distribution Automation Customer based micro-generation More distributed generation,

    used more efficiently

    Increased visibility and controlover grid operations

    Increased efficiency and flexibility managing distribution networks

    Focus Area Expected Outcomes

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    MINISTRY OF ENERGY

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    Adaptive Infrastructure

    Installation of a SmartMeter and

    Implementation ofTime of Use Rates

    Charging InfrastructureFund

    Capacity Building /Demonstration

    Projects, particularlycharging infrastructure

    Enablement of new products, services, and

    marketsMore efficient and flexible grid operation

    Near Complete Now Future

    MoreRenewables

    More innovation and flexible grid infrastructure

    AdaptiveInfrastructure