Reliable transmission and modern delivery is the backbone of Ontario’s electricity system. It is crucial for supporting Ontario’s evolving supply mix, including the closing of coal-fired plants by 2014 and the further expansion of Ontario’s clean energy resources. Reliable, safe transmission brings electricity from large generators to Ontario’s largest industries and local distribution companies who in turn, deliver to homes and businesses. A modern distribution system, utilizing new technology, allows for greater customer control, incorporates renewable energy, enhances reliability, and supports new technology like electric vehicles.

Transmission

Ontario must take the transmission system that’s been built over the past century and continue to renew and update it to meet Ontario’s growing population, evolving supply mix, and enable more distributed generation.

The Ontario government has taken early and decisive steps to enhance existing electricity infrastructure. It is important to ensure that Ontario can efficiently upgrade the grid to carry additional renewable generation to homes, businesses and industries.

Since 2003, Hydro One has invested more than $7 billion in its transmission and distribution systems. The average annual investment has been double what it was from 1996-2003.

Figure 10: Grid investments

A bar graph

1996-2009 (Hydro One and predecessor) invested approximately $250M in 1990, increasing to approximately $1,550M in 2009.

Some of Ontario’s recent investments include:

  • The launch of the Bruce to Milton transmission expansion project - the largest electricity transmission investment in Ontario in the last 20 years, which will connect refurbished nuclear units and additional renewable energy to the grid.
  • Ongoing work to reinforce the power transfer capability between northern and southern Ontario including additional 750 MW of planned clean northern generation (Lower Mattagami and some northern fit Program projects).
  • The new Ontario-Québec Interconnection Project (2010), which increased access to 1,250 MW of hydroelectric power and enhanced system reliability in eastern Ontario.
  • Additional transmission projects that will facilitate the retirement of coal-fired generation, including transmission reinforcement in the Sarnia area, the installation of new transformers in the northern GTA, and voltage support facilities in the Niagara, London and Kitchener areas. These projects represent an investment of over $400 million.
  • Over 15 per cent of transformer stations across Ontario have received overhauls in the past five years, amounting to a total investment of $850 million.
  • Installation of almost 4.3 million smart meters across the province, which are already helping with outage management and remote meter reading and reducing the number of estimates for consumers.
  • Early investments in Smart Grid infrastructure and technologies, including pilots and demonstration projects. These projects will help Ontario move toward a Smart Grid system that can integrate energy monitors, home automation systems, in-home renewable generation and electric cars.
  • Hydro One’s $125-million Grid Control Centre opened in 2004 and uses some of the most sophisticated technology in the world to efficiently manage the bulk of Ontario’s electricity network.

Reliability has also been improved since 2003 due to a combination of new generation, transmission upgrades, reduced load growth and successful conservation programs. For example, Toronto’s reliability was enhanced with the installation of two new underground cables between downtown transfer stations and will be further assisted by reinforcement and upgrade projects worth about $360 million. Annual capital investments by Ontario’s Local Distribution Companies, including Hydro One, have averaged $1.1 billion between 2004 and 2009, maintaining reliable and high quality power for Ontario’s electricity customers. These investments have made the operation of the system more cost-effective, which will have an impact on Ontarians’ bills over the long term.

Modern Distribution

Local distribution systems are an important link in how electricity moves from generators to homes and businesses. In 2003, Ontario’s distribution systems often relied on older technology. The government’s move towards a Smart Grid was driven by the need to replace aging infrastructure, introduce customer control, incorporate more renewable energy and accommodate new adaptive technology such as electric vehicle charging. Over time, LDCs will have to replace old mechanical infrastructure with newer automated infrastructure that meets Ontario’s future needs.

A modern distribution system must be able to accommodate new energy supply from a variety of sources and deliver it reliably to consumers. It must take advantage of Smart Grid technologies to enable efficient and cost-effective delivery of electricity, helping customers to better manage their electricity use, and integrate more renewable energy.

Building a Smart Grid that can coordinate the production of power from large numbers of small power producers and allow utilities to more efficiently manage their grid infrastructure is another essential element of Ontario’s clean energy future. Other jurisdictions (Australia, Great Britain and California) are moving toward a smarter grid, but Ontario is leading the way in many areas. By leveraging existing communications technology, a Smart Grid will enable the two-way power flow of electricity across the grid. The Smart Grid will help incorporate distributed generation. It will also improve grid automation with real-time information that will help save energy, reduce the cost of supply over time and increase reliability.

A Smart Grid is a more intelligent grid infrastructure, incorporating communications technology and automation to:

  • Maximize existing infrastructure
  • Rather than building out more traditional grid infrastructure (poles, wires, etc.), a Smart Grid will use Information Technology solutions to improve and automate distribution
  • Modernize the grid
  • The current distribution system in some places is decades old. A modernized grid is critical for improving reliability, home automation and adapting to evolving transportation needs
  • Lay the foundation for Smart Homes
  • A Smart Grid will put in place the intelligent infrastructure required to support applications for home automation, conservation and smart charging for electric vehicles

The Green Energy and Green Economy Act, 2009 identified three main areas of focus for Ontario’s Smart Grid:

  • Helping consumers become active participants in conservation.
  • Connecting new and renewable sources of energy to the overall system (consumers and businesses produce energy that can be connected to the local system) to help address power demands.
  • Creating a flexible, adaptive grid that can accommodate the use of emerging, innovative energy-saving technologies and control systems.

Smart meters provide a foundation for the Smart Grid and provide customers with timely and accurate information about their electricity use. Smart meters also provide utilities with automatic notification of outages, save on in-person meter-reading costs and enable Time-of-Use pricing.

Smart meters also help avoid system costs that in turn save money for ratepayers: Hydro Ottawa saved $200,000 in meter reading in 2008 and Toronto Hydro estimates that smart meters will cut meter-reading costs by $2.5 million by 2010.

Future Needs

The Ontario government, working with its agencies, will move forward responsibly on a number of new and modernizing transmission projects as well as on improving and maintaining the province’s existing infrastructure across all regions in Ontario. These improvements will also balance environmental concerns and the cost to ratepayers.

In addition to evaluating the province’s need for transmission to integrate renewables, meet provincial demand growth and ensure reliable service, system planning will address community needs. For example, a transmission solution to maintain reliable supply in the southwest GTA will be required.

The Plan

In 2009, the government asked Hydro One to start planning and developing a series of new transmission and distribution projects. Since that time, there have been a number of developments, such as the substantial interest in the Green Energy and Green Economy Act, 2009 to develop renewable energy projects.

Based on the advice of the OPA, the government will prudently move forward with cost- effective priority transmission projects that meet current and future demand and also:

  • Accommodate renewable projects;
  • Serve new load; and
  • Support reliability.

Ontario will proceed first with an investment of approximately $2 billion in five priority projects to be completed in the next seven years, which will ensure a growing mix of renewable sources can be reliably transmitted across the province. These priority projects together with the Bruce to Milton line, in addition to various other station and circuit upgrades, will enable approximately 4,000 MW of additional renewable energy.

Figure 11: Transmission investments: complete, underway and proposed

A map of Ontario showing complete and proposed transmission lines
Priority transmission projects
Project Type Need Target Completion Date
Series compensation in Southwestern Ontario Upgrade Add renewables to grid 2014
Rewiring west of London Upgrade Add renewables to grid 2014
West of London New Line Add renewables to grid 2017
East-West Tie New Line Maintain system reliability, allow more renewables, accommodate electricity requirements of new mineral processing projects. 2016-17
Line to Pickle Lake New line Serve industry needs and help future remote community connection Pending consultation

Given the nature of the transmission upgrades in southwestern Ontario, including series compensation, rewiring and a new line west of London, the government intends to direct Hydro One to carry out these projects immediately.

The East-West tie will be submitted to the OEB to carry out a designation process to select the most qualified and cost-effective transmission company to develop the line.

To ensure successful and timely implementation of the line to Pickle Lake, the government will work with its agencies and the multiple parties involved, including the Federal government, local industries, and First Nation communities that stand to benefit from the project to establish an implementation schedule and a proponent for the line.

Transmission planning will also continue at the regional level, using an approach that considers conservation, demand management, distributed generation and transmission. Regional plans will assess needs based on a region’s unique resource mixes and community priorities. Load growth and system reliability are also factors in determining system planning and transmission solutions. Ontario will continue to plan and study additional transmission projects as demand and changes to supply require.

To build a modern system, the government will issue a set of Smart Grid principles and objectives to the Ontario Energy Board. These will provide guidance to LDCs in modernizing their distribution systems and enable the smart home of the future. LDCs will develop smart grid plans and ensure that these are coordinated across the Province. The government will also establish a Smart Grid Fund in 2011 which will provide assistance to Smart Grid companies with a strong Ontario presence. This will lead to new economic development opportunities and bolster Ontario’s position as a leader in the Smart Grid.