Chapter 3. Innovating to meet the future

The way we deliver and use electricity is changing. New technologies allow us to capture, store and use energy locally and deliver it in new and innovative ways. Clean, distributed energy resources are powering our economy and moving closer to home. New tools and devices are appearing on smartphones and in homes, harnessing the power of data that can give customers greater choice and control over their energy use. Customers' expectations of their utilities are rising.

Modernizing the system

These new technologies present a significant opportunity to make Ontario’s electricity systems more efficient, reduce costs and give customers more choice.

Figure 12: Customer of tomorrow

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1. Energy management system - An energy management system can give users real time information on how they are using electricity, reduce their electricity bills, and can balance their preferences with the needs of the system to make the best use of energy.
2. Flexible pricing - Consumers can choose the electricity pricing plan that works best for their needs and complements their lifestyle.
3. Internet of things - Technologies already on the market can connect appliances, lighting and other plugged-in electronics to smart controllers. Smartphones can turn on lights and a dishwasher, or consumers can let an energy management system run the show.
4. Distributed energy resources - Prices continue to drop for solar panels, home energy storage and electric vehicles, giving consumers more choice and making them less dependent on electricity from their local distribution company (LDC). The connected smart home will make the best use of these emerging technologies.

Innovative pricing plans

The government is working with the Ontario Energy Board (OEB) to give consumers more choice in their electricity price plans. As part of its review of the Regulated Price Plan (RPP), the OEB is using pilot projects to test innovative time-of-use price structures. Consumers can better manage their costs with time-of-use pricing by reducing or shifting their consumption to off-peak times when electricity is less expensive to produce. Time-of-use pricing also ensures that consumers pay a price for electricity that reflects the cost of producing it at peak and off-peak times.

The pilot projects are testing a variety of innovative price structures, including:

• Different ratios between on and off-peak prices;
• Different times for on- and off-peak periods;
• Prices that increase during critical peaks - the short time periods with extremely high demand; and
• Seasonal pricing plans that have a flat rate for spring and fall, and on- and off-peak price periods for summer and winter.

Some of the pricing pilots will be combined with smart technologies, such as smart thermostats, energy use apps and electric vehicles, to give customers additional ability to manage their electricity use.

The pilots have begun rolling out and will run for at least one calendar year. The results will help guide OEB decisions on potential new price plans that could give customers greater control, reduce their bills and help improve system efficiency.

In addition to these pilot programs, the government and the OEB are considering changes to the way the Global Adjustment is charged to mid-sized commercial and industrial consumers, otherwise known as non-RPP Class B consumers. For these consumers, the GA is a fixed charge that is the same regardless of the time that they consume electricity. Consultations will take place before any changes would be made.

Net metering

Changes to Ontario’s net metering framework will give businesses and consumers more opportunities to generate and store renewable electricity.

Net metering is a billing arrangement with an LDC that allows a customer to offset the electricity they buy from their LDC with electricity generated by their own renewable energy systems. Net-metered customers also receive credits on their electricity bill for the electricity they send to the grid, reducing their total bill charges. These credits can be carried over for up to 12 months for application on future bills. A net-metered customer is still able to draw power from the local distribution grid when needed.

Figure 13: How net metering works

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Figure 13 describes a rooftop solar net metering arrangement for a typical home. Other types of renewable energy can also be net-metered in Ontario.

1. Solar panels mounted on the roof of a house generate electricity.
2. The electricity generated is used to power the house first.
3. Any extra electricity generated is sent to the local grid.
4. Net-metered customers receive credits on their electricity bill for electricity sent to the local grid.
5. Electricity is drawn from the local grid when the home’s electricity needs are higher than the amount of electricity generated by the solar panels.
6. Net-metered customers' monthly electricity charges are calculated based on the difference between the amount of electricity used from the local grid and the credits received from any electricity sent to the local grid from the solar panels.

Figure 14 shows the electricity generated by a typical net-metered solar installation on a residential rooftop in the summer:

• The blue columns show the electricity bought from their LDC;
• The yellow columns show the electricity generated and used on-site; and
• The green columns show the electricity that is generated and sent back to their LDC.

Figure 14: Residential net-metering with 4 kW rooftop solar PV

Source: Ontario Ministry of Energy, 2017

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• Data for figure 14

The government has recently taken significant steps to enhance net metering by removing the limit on the size of eligible generation systems and allowing them to be paired with energy storage technologies.

The government will expand and enhance net metering by proposing legislative and regulatory amendments that would allow third-party providers to own and operate net-metered renewable generation systems while ensuring appropriate consumer protection measures are in place. This would give Ontario electricity consumers added opportunities to reduce their electricity bills by offsetting their electricity purchases with clean power generated on-site. Net-metered renewable energy systems can also help reduce peak demand and defer or avoid the need for LDCs to invest in certain costly upgrades to their networks.

The government will also propose legislative and regulatory amendments that would enable the deployment of demonstration projects for virtual net metering. The government will work with the Independent Electricity System Operator (IESO) to develop a program to support a select number of innovative renewable distributed generation demonstration projects, as well as virtual net-metering demonstration projects. Virtual net metering could allow Ontarians who may not be able to install their own renewable energy system to participate in renewable energy projects located away from their homes or businesses, and still receive a credit offsetting their electricity bill. It could also support the siting of renewable generation where the electricity is most needed and valuable on the distribution grid. The goal of these demonstration projects would be to better understand the impacts of virtual net metering and guide future policy decisions on net metering. Proposed legislative amendments are expected to be brought forward in fall 2017. Pending passage of legislative amendments, regulatory changes would be made in 2018.

Taken together, these proposed enhancements would provide a platform for future innovation in clean, distributed energy and put Ontario at the forefront of renewable energy integration in Canada.

Energy storage

Energy storage is a game-changing technology. Sometimes, it acts like a home or business, consuming electricity from a local network. At other times, it acts like a power plant, sending out electricity when needed.

Energy storage can offer benefits throughout the grid, from large-scale facilities that can reduce the need to build new supply, import electricity or use GHG-emitting generation sources, to smaller-scale devices that can provide backup services to buildings.

The Province has made it a priority since 2013 to understand the value of energy storage for Ontarians. This includes:

• procuring 50 megawatts of different types of energy storage to test how they can support Ontario’s electricity network;
• using the Smart Grid Fund to support several energy storage projects and test the full range of their capabilities on distribution systems; and
• undertaking studies that look at realizing the different benefits of storage.

A March 2016 study by the IESO found that energy storage facilities can provide many of the services needed to ensure the electricity system in Ontario operates reliably. The government also commissioned Essex Energy to study the benefits of storage for distribution networks. The study found that energy storage can provide many benefits including cost reduction, for larger consumers.

Customer-connected energy storage could also provide benefits to the grid, particularly if the LDCs partner with these customers to share both the cost and the benefit. However, as discussed in the Barriers to Innovation section later in this chapter, the rules are not clear about how these partnerships could work. The Government and its agencies will move forward to provide the right environment for LDCs and customers to partner on storage where it makes sense for both parties.

The unique aspects of energy storage come into conflict with some of the rules governing the electricity system. The government started to understand these challenges in the 2013 LTEP, and since that time has been engaging with agencies and the energy storage industry to target the barriers that unfairly disadvantage this technology.

The government has now identified these market and regulatory barriers and is updating regulations, including addressing how the GA is charged for storage projects. Concurrently, it is seeking support from the IESO and OEB to take similar steps with their respective codes and rules that prevent the cost-effective development of energy storage where it can provide value to customers and the electricity system.

Electrification of transportation

Ontario’s Climate Change Action Plan focuses significant attention on using low-emission transportation to drive down greenhouse gas emissions in the province. This is critical to establishing a low carbon economy. The continued adoption of EVs will have an impact on our distribution networks. If too many EVs in a neighborhood charge at the same time, important parts of the distribution system could be strained. As EVs become more popular, pressures on our distribution networks will grow and utilities will need the tools to manage this change in a cost-effective way.

Utilities have begun to test ways to work with EV owners to minimize these impacts. FleetCarma, a clean tech firm based in Waterloo, successfully tested a project that guarantees EV owners the amount of charge they need in the morning, but allows an LDC to control charging to minimize the impact on its network. Burlington and Oakville Hydro are testing how to do the same thing by offering smart chargers at a reduced cost in exchange for some control of the charging activity.

The government wants to provide LDCs with more options for integrating EVs into their networks at the lowest cost. The OEB will support this goal by looking at how LDCs can facilitate investments in technologies such as residential smart chargers that would avoid more costly system upgrades. These new technologies could also use incentives to give more choices to EV owners. For example, an EV owner could be rewarded for allowing the car to be charged at times when the distribution network is being used less. The customer would work with the LDC to find the right combination of preferences so both parties can benefit from smart charging.

The government will also promote the sharing of information and data on EV usage, and work to harmonize the province’s energy, climate change, transportation, and infrastructure policies. Beyond personal EVs, the government is broadening its attention to include other types of mobility, including electrified transit and school buses.

Vehicle-grid integration

Vehicle-grid integration is a perfect example of what can be gained by modernizing the grid. It provides more choice for customers while giving utilities the information and tools to optimize their systems.

A car is parked 95 per cent of the time. For EVs, some of that time is dedicated to charging; the rest of the time, it sits idle, waiting for its next trip. In the future, the battery of an electric vehicle could be used to deliver electricity to the home in the event of an outage. The battery could also deliver electricity back to the community, or even to the entire grid. Essentially, the EV becomes a distributed energy resource, one that can help avoid system upgrades and reduce costs for everyone.

The government will engage with its partners in the energy sector and vehicle manufacturers to develop a roadmap for vehicle-grid integration that will look closely at this technology and what it could mean for Ontario.

Grid modernization

Electricity distribution is a critical piece of Ontario’s grid. The province’s LDCs are the final step in a system that delivers electricity from generators to homes and businesses. Ontario is a world leader in deploying smart meters, which are the foundation for a smart grid. The meters continue to provide data to LDCs, allowing them to locate and respond more quickly to power outages, monitor their systems and better plan for the future - all to the benefit of Ontario’s consumers.

A modern grid is a digital grid. It harnesses the power of data so that customers and utilities can make the right decisions. For LDCs, it means having the information critical to making their networks run as smoothly as possible. For customers, it means the local network will be ready when you want to buy an electric vehicle, install a battery, put up solar panels or choose a new pricing plan. It means more tools for you to track your energy usage. It means a more efficient, reliable and resilient grid. Above all, it means potential savings on your bill.

Figure 15: Distribution grid modernization

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1. Communication lines - Data from smart meters is sent to the LDC using communications infrastructure. In the future, this will also include data from sensors and other devices monitoring the entire grid.
2. Smart meters - In addition to their use for billing, smart meters also provide critical data on system health for LDCs and smart meters can also be used for distributed energy resources (DERs) and large consumers to provide even more information on how the grid is operating.
3. Digital grid platform - LDCs use powerful software platforms to analyze data and use that information to make their networks as efficient and reliable as possible, potentially avoiding costly upgrades.
4. Sensors - Sensors instantaneously feed data back to the LDC about the health of its network’s wires, transformers, and other assets.
5. Distributed energy resources - Today, DERs are mostly renewable generation. In the future, they will include energy storage, microgrids and even electric vehicles. DERs have a range of benefits that are optimized by a Digital Grid Platform.
6. Vehicle grid integration (VGI) - In the future, EVs can be used to power homes and even support the local network. VGI can turn EVs into highly responsive DERs and give owners more services and choice.

A modern grid can also give customers more choice, ranging from flexible pricing to enabling home energy management systems and realizing the full value of EVs. A modern grid can ensure that distributed energy resources like solar power, storage and microgrids can be integrated in the most efficient way possible. Above all, a modern grid can drive down costs for customers.

Now is the time to build on our investments in smart meters and the smart grid. A study by an expert third party in 2015 found that Ontario’s consumers and businesses stand to gain $6.3 billion in economic, environmental and reliability benefits if the grid is modernized over the coming decades. A modern grid would be more resilient to the effects of climate change and utilize the real-time data needed to respond to problems or address them before they happen.

However, that same study found there were several barriers to modernizing the grid further in Ontario. LDCs, for example, are challenged by diffuse benefits. This is when they bear the costs of technologies such as energy storage, but do not get the benefits, which can accrue to customers other parties in the electricity sector. Without clear rules for addressing diffuse benefits, LDCs are less motivated to explore solutions that may be more cost-effective and provide greater benefits to the grid. Ontario is committed to removing these barriers so that utilities can make the right investments.

Grid modernization can also support new business models. One exciting opportunity is peer-to-peer frameworks for transactive energy. One way to implement transactive energy is through Blockchain, a computer protocol that tracks transactions within a marketplace. Blockchain uses secure, distributed databases to enable, for example, the management of EVs, the trade of renewable electricity and peer-to-peer demand response opportunities.

Combining other distributed energy resources with Blockchain technology holds the potential to provide significant value to the electricity sector, including:

• Increasing system reliability by providing greater visibility on where and how distributed energy resources and loads are affecting the system;
• More efficient balancing of the needs of the provincial grid with those of the local distribution system;
• Allowing DERs to participate and provide service in Ontario’s electricity markets;
• Facilitating new business models like community-owned DERs and virtual net metering;
• Providing instantaneous feedback on how DERs are responding to price signals; and,
• Encouraging new participants in the electricity sector, which can lead to greater customer choice.

Transactive energy and Blockchain pilots are being undertaken in many jurisdictions. These models are also being studied and developed in Ontario, and the government plans to explore how Blockchain and other transactive energy models could benefit Ontarians.

Enhancing the Smart Grid Fund

The Smart Grid Fund was launched in 2011 to support innovation in Ontario’s electricity sector. Innovation has produced a wide range of technologies - home energy management, grid automation, energy storage, microgrids, cyber security and EV integration. Through the Fund, Ontario companies have solved problems on distribution grids, and utilities have increased their understanding of how the smart grid can benefit the system and their customers.

The Smart Grid Fund is also supporting jobs and growth in the province. The Fund has given Ontario businesses the support they need to turn demonstrations into commercial successes. A number of recipients and products are gaining traction in foreign markets, including:

• N-Dimension Solutions, a cyber security firm with over 100 utility customers in North America;
• Utilismart’s distribution monitoring software, which has been installed by over 140 utility customers; and
• A transformer sensor manufactured in Ontario by GRID20/20, which has been tested in 11 countries.

As part of the government’s grid modernization strategy, now is the right time to build on this success by renewing and enhancing the Smart Grid Fund. An enhanced Smart Grid Fund will focus on encouraging a culture of innovation within the electricity sector that explores new solutions for integrating many technologies, tests new business models, integrates electricity and other energy resources and generates new ideas for advancing grid modernization.

Distributed energy resources

A distributed energy resource (DER) is a decentralized source of energy that provides electricity services to individual customers or to the wider system located nearby.

Specific examples of DER include:

• Distributed generation (DG) - electricity generated for self-consumption and/or export to the distribution grid;
• Energy storage - energy stored for use close to where it is needed;
• Microgrid - a mini network that can operate independently when it is disconnected from the main electricity grid;
• Energy efficiency - measures to reduce overall electricity use, either behind the customer’s meter, or on the distribution system (see Chapter 5); and
• Demand response - a temporary reduction or shift in demand in response to higher prices or requests from a system operator.

Each DER offers its own distinct benefits. However, the biggest gains occur when LDCs use smart communications systems to integrate a number of the technologies across their distribution networks.

Renewable distributed energy resources

Renewable generation systems, such as solar photovoltaic (PV) panels, are becoming more widely adopted across the province. When strategically located and combined with smart communications and control systems, renewable distributed generation can benefit LDCs and their customers: utilities can defer or avoid certain costly investments in their local distribution networks, and customers can generate and store their own power, lowering bills and ensuring reliable access to electricity when power from their network is not available.

The government will work with the IESO to develop a program to support a select number of innovative renewable distributed generation demonstration projects strategically located and paired with other DERs and smart grid technologies, as well as virtual net metering demonstration projects. These demonstration projects will help inform the value of DG and DER to customers and the grid, and inform future grid modernization and net-metering policies, guide the treatment of renewable DG by regulators and energy markets, and steer further integration of these resources into Ontario’s energy system.

Barriers to innovation

Ontario’s approach to grid modernization is to create the right environment for LDCs to make the best decisions for their systems and their customers. To get there, the government and its partners need to address the barriers to innovation. Many of these barriers are a legacy of the old way of doing things, when power only flowed one way and the technologies were simple and straightforward.

The government has taken a number of steps to encourage innovation in a changing energy sector. In 2010, it directed the OEB to give guidance to utilities on building smart grid technologies into their systems and putting innovation into their business practices. The OEB incorporated these ideas through a new regulatory framework. The OEB also established a Smart Grid Advisory Committee in 2013 to provide it with ongoing assistance in facilitating grid modernization.

Despite these efforts, there has been an unclear and uneven level of investment in grid modernization by Ontario’s LDCs. Some of them, such as Hydro Ottawa and Greater Sudbury Utilities, are implementing plans to build a modern grid and a culture of innovation within their organizations. Nevertheless, the Electricity Distributors Association found that half of Ontario LDCs still approach innovation in a gradual or incremental way. It is clear that barriers to innovation remain. With the rapid development of new technology and the increase in customer expectations, the time to address these barriers is now.

To encourage change in the energy sector, the government will work with utilities and other partners to build a culture of innovation, and will look to the OEB to explore, where cost-appropriate:

• Building a stronger culture of innovation in the sector;
• Ensuring that there are no unfair barriers that disadvantage the deployment of energy storage;
• Utility participation in residential smart charging;
• The deployment of renewable distributed generation and other distributed energy resources that provide value to customers;
• The use of innovative, non-wires solutions that could, among other things, allow utilities to manage their systems better and encourage customer choice including the principles of efficiency and cost-effectiveness;
• Allowing utilities to manage their systems better and encourage customer choice including the principles of efficiency and cost-effectiveness;
• The regulatory treatment of LDC capital and operational expenditures, which can inhibit the uptake of these non-wires solutions;
• A cost-benefit framework that provides clarity on the treatment of investments, such as those with localized costs that provide benefits to other electricity system participants (also known as the diffuse benefits issue);
• The ability of utilities to make non-traditional distribution system investments and participate in market opportunities that would ultimately reduce ratepayers' costs associated with capital or other investments; and
• Opportunities for utilities to partner with their customers to use in-front and behind-the-meter applications to address system needs.

Taking these actions should create the right environment for LDCs to overcome barriers and modernize their businesses and systems. In such an environment, LDCs will have more clarity on how they can pursue the innovation contemplated under the Strengthening Consumer Protection and Electricity System Oversight Act, 2015 and invest in solutions that make the most sense for the systems and their customers.

As part of this effort, the government will encourage LDCs to develop plans that demonstrate how they intend to modernize their grids and their businesses. These modernization plans could be incorporated into a LDC's asset management practices and their filings to the OEB.

IESO market renewal and innovation

The IESO is preparing for the future by laying the foundation through Market Renewal, which will develop a made-in-Ontario solution to create better price signals and establish more competitive market-based mechanisms to meet system needs. The long-term goal of Market Renewal is to create a more dynamic market where all resources, including new technologies, have the opportunity to compete alongside traditional forms of supply for a variety of system products such as energy, capacity and operability. As costs come down and new business models are developed, emerging technologies, often at the local level, will be increasingly competitive compared to traditional resources. At the same time, the existing and new markets will present opportunities and choice to a wide variety of consumers looking to become more active in Ontario’s energy markets.

Market Renewal also aims to enhance and improve existing market mechanisms and create new mechanisms that will allow new technologies like energy storage to compete on an equal footing with traditional assets and showcase the different values they provide in meeting system needs, including managing surplus baseload generation, regulation, operating reserve and flexibility.

Building on the success of renewables

The tremendous growth of Ontario’s clean tech and renewable energy sectors has attracted billions of dollars in investment to Ontario and led to the creation of thousands of new jobs across many trades and professions. That explains why a broad coalition of employers, labour and industry groups, including the International Union of Operating Engineers, the Laborers' International Union of North America (LiUNA) and the Aboriginal Apprenticeship Board of Ontario, support Ontario’s investment in renewable energy.

Ontarians have every reason to expect that these economic benefits will continue. According to a report from an expert third-party, the renewables sector is forecast to contribute nearly $5.4 billion to Ontario’s gross domestic product and create 56,500 jobs between 2017 and 2021. Many of the companies that participated in Ontario’s expansion of renewable energy are now poised to export their expertise and products to foreign markets. This could contribute as much as $1 billion to Ontario’s GDP and could add as many as 10,700 jobs between 2017 and 2021.

Ontario-based manufacturers of hydroelectric components have been successfully exporting to the United States for years. Many of Ontario’s solar manufacturers are also reporting increased export activity to the U.S., despite strong global competition. Wind component manufacturers have also developed expertise that will help them succeed in nearby American markets that are replacing coal-fired generation with renewables and other clean sources of electricity.

Exporting Ontario’s energy expertise

Ontario’s energy innovators are experts in smart grid, renewables, nuclear and other technologies, and are using the solid base they have established in the province to export to other markets in North America and around the world.

The government continues to support the dynamic and innovative business climate that made this possible and will expand assistance to Ontario companies wanting to diversify their energy-related goods, services and expertise, by:

• Working with the federal and other provincial governments, industry and postsecondary institutions to develop and support trade initiatives that support market entry and new business opportunities;
• Developing market intelligence that determines which foreign markets hold promise for Ontario’s energy goods and services;
• Participating in energy-related trade missions abroad; and
• Promoting Ontario’s technical expertise at appropriate international forums.

In consultation with industry and the federal government, the government intends to develop a pilot program that provides financial support for the demonstration of locally-developed technologies abroad. The pilot will help Ontario energy companies get a foothold with utilities and buyers in global markets, and support the Province’s commitments to help Ontario companies go global.

Global economies are demanding clean and low-cost energy solutions and Ontario entrepreneurs are poised to seize that opportunity.

MaRS Cleantech

Nuclear Innovation

Ontario’s expertise in nuclear energy has enabled it to be a leading jurisdiction in nuclear research and nuclear medicine. Ontario can help create new export opportunities for nuclear innovations, such as:

• Small modular reactor (SMR) Technology: This is a new generation of nuclear power reactors that have smaller footprints than conventional reactors and the promise of lower costs from mass production. In 2016, the government released a consultant’s study on the feasibility of SMRs for remote mining applications in Ontario, which found that SMRs could be an economic and emission-free alternative to diesel power. The government continues to monitor SMR technologies and engage with key stakeholders involved in advancing these innovative designs.
• Nuclear fuel research: Technological innovations could lead to the reprocessing or recycling of used nuclear fuel or the use of thorium to power nuclear reactors.
• Hydrogen: Ontario’s nuclear technology could be used for the large-scale production of hydrogen. Hydrogen is a source of low-carbon energy that could, in the future, replace gasoline for transportation or natural gas for heating.

Ontario is keenly interested in collaborating with the federal government, universities and industry partners to continue its support of the nuclear industry for both energy and non-energy applications.

Innovative uses for Ontario’s natural gas system

Renewable natural gas

Renewable natural gas (RNG) can be an innovative Ontario-made source of energy. RNG is a low-carbon fuel produced by the decomposition of organic materials found in landfills, forestry and agricultural residue, green bin and food and beverage waste, as well as the waste from sewage and wastewater treatment plants. Because it comes from organic sources, the use of RNG does not release any additional carbon into the atmosphere. Ontario’s new Waste-Free Ontario Act, 2016 and its Organic Waste Action Plan, will create more opportunities to use organic waste to produce clean energy. As an added benefit, RNG can use the existing natural gas distribution system to replace the use of conventional natural gas in today’s stoves and furnaces.

Power-to-gas

Electrolysis, also known as power-to-gas, uses electricity to break down water molecules into hydrogen and oxygen. This transforms electricity into hydrogen gas, another type of fuel. Hydrogen can be stored or transported in existing natural gas pipelines and used to heat homes and fuel vehicles.

Power-to-gas could potentially become a new and important link between the province’s electricity system and its natural gas system. The IESO recognizes this, and has already awarded a contract to Hydrogenics, an Ontario-based manufacturer of electrolysis and fuel cell technology, to provide electricity grid services during the production of hydrogen.

Using electricity to create hydrogen is one way to help decarbonize the natural gas supply. The Province has acknowledged the potential versatility of this fuel and is undertaking a feasibility study of using hydrogen to fuel Go Transit passenger trains.

To support this technology going forward, the government will work with the IESO to evaluate the development of a pilot project that explores the energy system benefits and GHG emission reductions from the use of electricity to create hydrogen.

Summary

• The government will work with the Ontario Energy Board to provide customers with greater choice in their electricity price plans.
• The net metering framework will continue to be enhanced to give customers new ways to participate in clean, renewable energy generation and to reduce their electricity bills.
• Barriers to the deployment of cost-effective energy storage will be reduced.
• Utilities will be able to intelligently and cost-effectively integrate electric vehicles into their grids, including smart charging in homes.
• The Province’s vision for grid modernization focuses on providing LDCs the right environment to invest in innovative solutions that make their systems more efficient, reliable, and cost-effective, and provide more customer choice.
• The government will build on its success and renew and enhance the Smart Grid Fund. This will continue the Province’s support of Ontario’s innovation sector and help overcome other barriers to grid modernization.
• The Independent Electricity System Operator will work with the government to develop a program to support a select number of renewable distributed generation demonstration projects that are strategically located and help inform the value of innovative technologies to the system and to customers.
• The government intends to fund international demonstration projects to help Ontario’s innovative energy companies diversify to foreign markets.
• The Province will collaborate with the federal government, universities and industry to support the province’s nuclear sector.
• Innovative uses for Ontario’s natural gas distribution system will be pursued.
• The government will work with the IESO to explore the development of a pilot project that evaluate the energy system benefits, and GHG emission reductions from the use of electricity to create hydrogen.

Accessible descriptions

Figure 12: Customer of tomorrow

Figure 12 shows a person standing in front of a stylized home energy management console that allows her to see and control how electrical devices in the home are being used, such as solar photovoltaic panels, electric vehicles, energy storage, and appliances. The home energy management console also shows the amount of power being used throughout the day. Figure 12 depicts a future scenario where electricity customers have greater choice and control over how they use power.

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Figure 13: How net metering works

Figure 13 is an illustration that depicts a typical home with solar panels mounted on the roof. It is a sunny day and so the solar panels are producing electricity. Some of this electricity is not being used by the homeowner and this extra electricity is being sent to the local electricity grid. An electricity bill displays that the homeowner has received a credit for the electricity that they have sent to their local electricity grid. The homeowner is also able to draw from the local electricity grid at times when their solar panels are not producing enough electricity to meet their demand.

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Figure 14: Residential net-metering with 4 kW rooftop solar PV

Figure 14 is a Combination line and bar graph. The vertical axis is labelled Consumption/Generation (kW) and is numbered from 0 to 3 in increments of 0.5. The horizontal axis is labelled Hour of the Day and is numbered from 1 to 24. The bars of the graph show the typical Electricity Bought from LDC, Generation Sent to LDC, and Self Consumption of electricity in a net-metered household with a rooftop solar PV system. A line through the bars shows a Typical Summer Day Load.

Figure 14 illustrates how, on a typical summer day, a net-metered household with a rooftop solar PV system uses renewable generation produced by the installation, sends any generation exceeding its needs to the grid, and draws electricity from the grid as needed. In the early morning, before the sun rises, the household draws all the electricity it needs from the local grid. As the sun rises the household starts to use electricity generated by the solar PV system and the amount of electricity the household draws from the grid decreases. Over the afternoon, when the sun is the strongest, the solar PV system is generating more electricity than the household needs, so the extra generation is sent to the local grid. As the sun goes down in the evening the solar PV system generates less electricity and once again the household draws electricity from the grid. Overnight, when the solar PV system does not generate, the household draws all the electricity it needs from the grid.

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Figure 15: Distribution grid modernization

Figure 15 is a representation of a modern electricity distribution grid, which includes a local distribution company, industrial and household customers, power lines, energy storage, renewable generation, and electric vehicles. Since the modern grid enables the bi-directional flow of electricity, the graphic includes lines depicting power flow to and from the customers and grid assets that can both consume and generate power. A modern grid is also a digital grid. The graphic includes lines that connect different parts of the distribution grid to a digital control platform. This depicts the flow of digital information that is collected from smart meters and sensors on the grid and is sent to the local distribution company’s digital grid platform using digital communications infrastructure. The local distribution company can use the information to run the electricity grid better and more efficiently.

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