Ontario’s Electricity System Deliverability Risks Requires Innovations in the Distribution System

—- Press Release —-  For Immediate Release

New PWU discussion paper examines how mitigating Ontario’s electricity system deliverability risks requires innovation

Toronto, ON – September 11, 2024 — The fourth discussion paper in a series by the Power Workers’ Union (PWU), Ontario’s Electricity System Deliverability Risks Requires Innovations in the Distribution System – Power Workers’ Union (pwu.ca), was released today.  These papers are offered to prompt discussion on better ways for Ontario to meet its growing electricity demand at a lower cost, with lower carbon emissions and in a more reliable, affordable and timely manner.

Ontario’s Powering Ontario’s Growth (POG) report laid out a pathway to ensure Ontario has the energy needed to power economic growth and electrification over the next three decades while maintaining its clean electricity advantage. The previous PWU discussion papers commented on how the IESO’s Annual Planning Outlook (APO) and approach to procuring the needed resources is not addressing this objective. This paper considers that the delivery system infrastructure will be equally challenged to meet the growing demand and advances policy ideas to support a reliable and cost-effective transition of Ontario’s electricity system.

A transition plan for improving the infrastructure of Ontario’s electricity system is required maximize the use of the capacity of Ontario’s existing distribution and transmission components while deferring the need to upgrade them and to “buy time” to develop the required delivery system infrastructure.

“The rapid growth in electricity demand exceeds our ability to build the necessary infrastructure and the opportunities for necessary mitigation of this risk exist in the distribution system,” said Jeff Parnell, President of the PWU. “Innovations to incent consumer behind-the-meter (BTM) technology adoption choices that support grid performance and enable AI-powered aggregated demand side management (DSM) are critically needed.”

The paper argues that without embracing these new innovations in Ontario’s future supply mix, procurements, and delivery system planning, the province will be unnecessarily exposed to the significant risk that its delivery system will be outpaced by demand growth and a greater need for transition bulk system assets that will get stranded.

About the Power Workers’ Union

The Power Workers’ Union (PWU), proudly Canadian, represents over 18,000 highly skilled and dedicated men and women in Ontario’s electricity sector. For over seventy years, the men and women of the PWU have been critical to keeping the province’s lights on.  The PWU remains a strong supporter and advocate for the prudent and rational reform of Ontario’s electricity sector and recognizes the importance of planning for low-cost, low-carbon energy solutions to enhance the competitiveness of Ontario’s economy.

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