Demand Response in Ontario

Paul Grod, CEO, Rodan Energy July 11, 2013

About Rodan Energy

•Leading smart grid integrator•Focus on metering, demand response, utility services and energy management •Connecting power producers, power consumers and utilities to the smarter grid•Manage over 350MW of demand response resources•Monitor over $9 Billion in annual electricity supply on behalf of our clients•Over 60 utilities and ISOs throughout North America trust Rodan to provide DR capacity and manage DR resources on their behalf•Our Network Operations Centre controls and operates several hundred thousand homes and businesses by operating multiple leading software platforms for the residential and commercial/industrial markets

Presentation Outline

1.Overview of demand response in Ontario2.Residential case study – peaksaver3.Electricity Market dynamics4.Future of DR in Ontario

State of Demand Response in Ontario

•North American leader in CDM•Demand reduction of >1,700 MW since 2005 (includes DR & EE)•Demand response resources

• 600MW – Dispatchable Load/Operating Reserve • 400MW – DR 2 & 3• 300MW - Global Adjustment (+5MW customers)• 150MW – PeakSaver (residential & small commercial)• 10MW Regulation (IESO pilot)

Case Study: peaksaver ®

Understanding the Smart Home or Business

The Smart GridSource: IESO Smart Grid Forum Report 2011

Case Study: peaksaver ®

•More than 230,000 residential and small business participants•150 MW of demand response capacity. •Delivered by 80 local electricity distribution companies•Managed by the Ontario Power Authority (OPA)•Rodan is the OPA’s Dispatch Administrator and Aggregation Operator•Rodan’s NOC operates multiple technologies allowing utilities to operate a wide variety of devices offering greater choice to their customer•Able to deliver province-wide, regional or local control

Case Study: peaksaver ®

Ontario’s Electricity Market Dynamics

Ontario’s Electricity Market Dynamics

Peak Demand 2012 - 24,600MWHighest peak 2006 – 27,000MWGeneration capacity of 38,000MW6300MW of CDM by 2015

12

Historical Projected

Source: IESO/OPA

Ontario GDP

Energy Per Capita

Population

Ontario’s Electricity Market Dynamics

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

22,000

24,000

26,000

28,000

30,000

0

20

40

60

80

100

120

140

160

180

200

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Peak

Dem

and

(MW

)

Ener

gy C

onsu

mpti

on (T

Wh)

Ontario electricity demand is declining

13

Historical Projected

Source: IESO/OPA

Peak Demand

Energy Consumption

Ontario’s electricity demand is declining

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2005 2012 2015

Inst

alle

d Ca

paci

ty (M

W)

Coal Nuclear Natural Gas Hydro Non-Hydro Renewables Demand Response

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2005 2012 2015

Inst

alle

d Ca

paci

ty (M

W)

Coal Nuclear Natural Gas Hydro Non-Hydro Renewables Demand Response

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

2005 2012

Inst

alle

d Ca

paci

ty (M

W)

Coal Nuclear Natural Gas Hydro Non-Hydro Renewables Demand Response

14

7,600

10,900

4,900

8,100

31,600 MW

10,000

8,400

3,000

670

38,300 MW

12,900

3,300

3,300 MW

100

4,300 MW 2,000 MW

5,100 MW

300 MW2,900 MW

670 MW

12,900

9,300

8,900

8,700

700

40,500 MW

700 MW 500 MW5,700 MW

30 MW

Source: IESO/OPA. Figures have been rounded.

Ontario’s electricity resource mix (2005-15)

0

20

40

60

80

100

120

140

160

180

200

2013 2014 2015 2016 2017 2018 2019 2020

Ener

gy P

rodu

ction

(TW

h)

15

Ontario Energy Demand

Potential Surplus Energy

Supply to exceed demand until 2020

Future of DR in Ontario

•Do we need DR in a surplus supply environment?•Long Term Energy Plan calls for 7,100MW of demand reduction by 2030

• Energy efficiency (residential and C&I)• Building code updates and standards for

appliances and products• Demand response programs to help reduce

peak demand• Time-Of-Use rates

•Move to a more robust intelligent load management

17

Opportunities for DR in a surplus supply

Conclusion

•Ontario a NA leader in smart grid and CDM•Supply surplus and soft demand is a detractor to DR •DR needs to have a long-term, consistent commitment•Evolution to intelligent load management which adds operating flexibility to traditional peak load management.

Paul Grod, President & CEO

RODAN ENERGY SOLUTIONS INC. 165 Matheson Blvd. East, Suite 6

Mississauga, ON L4Z 3K2(905) 625-9900 x225

paul.grod@rodanpower.com

www.rodanenergy.com

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