SMART GRID IN CANADA ‐ OVERVIEW OF THE INDUSTRY IN 2010 Report – 2011‐027 (RP‐TEC) 411‐SGPLAN February 8th, 2011 SMART GRID IN CANADA ‐ OVERVIEW OF THE INDUSTRY IN 2010 Prepared by: David Beauvais, PEng. MPA CANMET Energy Technology Centre – Varennes Ralph G. Zucker, Peng. Executive Director SmartGrid Canada Date February 8, 2011 Report – 2011‐027 (RP‐TEC) 411‐SGPLAN February 8th, 2011 DISCLAMER This report is distributed for informational purposes and does not necessarily reflect the views of the Government of Canada nor constitute and endorsement of any commercial product or person. Neither Canada nor its ministers, officers, employees or agents makes any warranty in respect to this report or assumes any liability arising out of this report. ACKNOWLEDGMENTS Lisa Dignard‐Bailey (CanmetENERGY), Meli Stylianou (CanmetENERGY), Dean Craig (ENMAX), Alex A Babij (SaskPower), Christian Perreault (Hydro‐Quebec), Darin Lamont (Saint John Energy), Robert Younker (Maritime Electric), Joshua Wong (Toronto Hydro), Bill Friday and Ravi Seethapathy (Hydro One), Steve Pothier (NS Power), Michel Losier (NB Power), Brent Jorowski (Manitoba Hydro). AUTHORS David Beauvais, P.Eng., MPA David Beauvais is the Smart Grid Project Leader at CanmetENERGY, Natural Resources Canada. He is responsible for supervising and conducting R&D on smart grids in Canada and supporting demonstration projects by the industry. His past experience includes power system planning at Hydro‐Quebec and AECOM and economic regulation at La Régie de l’Énergie du Quebec. David is an electrical engineer and has a Master’s degree in Public Administration – International Management. Ralph Zucker, P.Eng. Ralph Zucker is the Executive Director of SmartGrid Canada. He is a professional engineer with broad utility experience in engineering, economics and strategic planning. At BC Hydro, Ralph has previously led the Distribution Asset Management group and more recently the development of the Smart Grid vision and roadmap. He is a member of IEEE and CIGRE, and has held a seat on the Board of Directors with GridWise Alliance. He is currently an active member of the IEEE Intelligent Grid Coordinating Committee, the EPRI Distribution Executive Committee and the EPRI Smart Grid Executive Committee. Report – 2011‐027 (RP‐TEC) 411‐SGPLAN ‐ i ‐ February 8th, 2011 TABLE OF CONTENT Introduction .................................................................................................................................................. 4 Electricity in Canada ...............................................................................................................................................4 Alberta, Saskatchewan: Coal‐powered provinces getting greener ........................................................................7 British Columbia, Quebec, Manitoba, Newfoundland and Labrador: Hydroelectric producers ............................7 The green shift in Ontario: Conservation, phasing‐out coal, phasing‐in renewables..........................................10 Nova Scotia, New Brunswick and Prince Edward Island: Wind energy in the Atlantic Energy Gateway..............13 Federal government activities..............................................................................................................................14 Conclusion................................................................................................................................................... 17 TABLE OF FIGURES Figure 1: NEB Electricity Exports and Imports, January 2009 to December 2009 (GWh)........................5 Figure 2: Electricity generation and supply mix in Canada ......................................................................6 Figure 3: BC Hydro’s Smart Grid Framework (Courtesy of BC Hydro) ......................................................8 Figure 4: Burnaby Campus of BCIT where smart grid technologies are being demonstrated as part of their microgrid research initiative. (Photo credit BCIT) ........................................................9 Figure 5: Hydro‐Québec Smart Grid Development and Deployment Strategy (Courtesy of Hydro‐ Quebéc) ...................................................................................................................................10 Figure 6: First Light Solar Farm, 9.1 MW, Stone Mills, Ontario (Photo credit Dave Turcotte) ...............11 Figure 7: Hydro One’s Advanced Distribution System Project (Courtesy of Hydro One) .......................12 Figure 8: CanmetENERGY research laboratory in Varennes, Canada ....................................................15 Figure 9: Hartley Bay smart grid demonstration project by Pulse Energy .............................................15 Figure 10: Diagram showing the open automated demand response (openADR) protocol being tests by CanmetENERGY and project partners........................................................................16 Report – 2011‐027 (RP‐TEC) 411‐SGPLAN ‐ ii ‐ February 8th, 2011 Report – 2011‐027 (RP‐TEC) 411‐SGPLAN ‐ iii ‐ February 8th, 2011 INTRODUCTION The modernization of electrical infrastructure is underway in many countries around the world. Motivated by important drivers such as economic development, national security, and environmental and clean energy objectives, provinces, states and countries are prioritizing innovation in their electrical grids and striving to build a “smart grid”. In Canada, smart grids have been progressing for some time. During Industry Canada’s Digital Economy Consultation in 2010, smart grids were identified as a core component of a digital economy. Over the last two years, activity has escalated, as related research has expanded and as greater numbers of applications are becoming commercially available. One important initiative is the Clean Energy Fund (CEF), which was announced by Natural Resources Canada on May 19, 2009 and included a demonstration component for Renewable and Clean Energy Technologies. Nineteen demonstration projects were announced in six technology areas, including energy storage and smart grids. These projects accounted for $146 millionF in CE contributions.1 With greater smart grid activity across Canada, there is an increasing need for building awareness, sharing of knowledge and progress, and collaboration on both research and deployments. SmartGrid Canada has recently been formed as a not‐for‐profit alliance to foster that advancement. With a broad membership base including utilities, vendors, technology and service providers, academia, and other industry associations, SmartGrid Canada2 intends to lead this sector for the benefit of all Canadians. Industry is also providing leadership through its participation in new initiatives, such as the Canadian Smart Microgrid Research Network and the Smart Grid Standards Task Force. Canada has a great role to play in smart grid development in North America and around the world, by enhancing the innovative culture and the technical expertise that is already evident in many areas across the country. This paper will provide an overview of Canadian smart grid activities and initiatives by province, by utility and by the federal government. Electricity in Canada Comparing levels of smart grid development in Canada is a challenge. Canada is a federation of ten provinces and three territories. Electricity resource plans and economic regulation of transmission and distribution utilities are provincial responsibilities. Federal jurisdiction is limited to nuclear electricity generation, electricity exports, metering, telecommunications and research and development. Jurisdiction over environmental issues is shared between the provincial and federal governments. 1 CEF Projects, http://www.nrcan.gc.ca/eneene/science/renren‐eng.php, November 15th, 2010 update. 2 SmartGrid Canada (SGC) is a new national organization dedicated to promoting a more modern and efficient electricity grid for the benefit of all Canadians, www.sgcanada.org Report – 2011‐027 (RP‐TEC) 411‐SGPLAN ‐ 4 ‐ February 8th, 2011 Each province has a different mix of electrical energy sources, closely tied to local resources. Using electricity for heating and domestic hot water is dominant in hydro‐powered provinces, while natural gas or fuel oil is used in other provinces. Canada is a land of many natural resources. The country ise th world’s largest producer of uranium, the second‐largest producer of hydroelectricity and the third‐ largest producer of natural gas. In addition, it has the second‐largest reserves of crude oil in the world. The energy sector is one of the main engines of Canada’s economy; it accounts for about 6% of Canada’s gross domestic product (GDP). The electricity sector alone generates about 2% of GDP. And both the energy sector in total and the electricity sector specifically are expected to play increasing roles in our economic future. As presented in the picture below, Canada was a net exporter of electricity in 2009. Five provinces – Manitoba, Ontario, Newfoundland and Labrador, New Brunswick and Quebec – are net exporters of electricity, while five provinces are net importers. Electric power generated in Labrador flows through Quebec’s transmission network. Figure 1: NEB Electricity Exports and Imports, January 2009 to December 2009 (GWh)3 The illustration below shows that a large proportion of the electricity produced in Canada is generated by hydroelectric and nuclear plants. Over 75% of the electric power generated in Canada involves no or few greenhouse gases emissions. Our