Britain to shift to smart grid, meter systems

Ontario EV Battery Storage ROI leverages V2B, V2G, two-way charging, demand response, and second-life batteries to monetize peak pricing, cut GHG emissions, and unlock up to $38,000 in lifetime value for commuters and buildings.

Key Points

The economic return from V2B/V2G two-way charging and second-life storage using EV batteries within Ontario's grid.

✅ Monetize peak pricing via workplace V2B discharging

✅ Earn up to $8,400 per EV over vehicle life

✅ Reduce gas generation and GHGs with demand response

The payback that usually comes to mind when people buy an electric vehicle is to drive an emissions-free, low-maintenance, better-performing mode of transportation.

On top of that, you can now add $38,000.

That, according to a new report from Ontario electric vehicle education and advocacy nonprofit, Plug‘n Drive, is the potential lifetime return for an electric car driven as a commuter vehicle while also being used as an electricity storage option amid an energy storage crunch in Ontario’s electricity system.

“EVs contain large batteries that store electric energy,” says the report. “Besides driving the car, [those] batteries have two other potentially useful applications: mobile storage via vehicle-to-grid while they are installed in the vehicle, and second-life storage after the vehicle batteries are retired.”

Pricing and demand differentials
The study, prepared by the research firm Strategic Policy Economics, modeled a two-stage scenario calculating the total benefits from both mobile and second-life storage when taking advantage of differences in daytime and nighttime electricity pricing and demand.

If done systematically and at scale, the combined benefits to EV owners, building operators and the electricity system in Ontario could reach $129 million per year by 2035, according to the report. Along with the financial gains, the province would also cut GHG emissions by up to 67.2 kilotons annually.

The math might sound complicated, but the concepts are simple. All it requires is for drivers to charge their batteries with low-cost electricity overnight at home, then plug them into two-way EV charging stations at work and discharge their stored electricity for use by the building by day when buying power from the grid is more expensive.

“Workplace buildings could avoid high daytime prices by purchasing electricity from EVs parked onsite and enjoy savings as a result,” says the report.

Based on average commuting distances, EVs in this scenario could make half their storage capacity available for discharge. Drivers would be paid out of the building’s savings, effectively selling electricity back to the grid and earning up to $8,400 over the life of their vehicle.

According to the report, Ontario could have as many as 18,555 vehicles participating in mobile storage by 2030. At this level, the daily electricity demand would be reduced by 565 MWh. This, in turn, would reduce demand for natural gas-fired electricity generation, a fossil-fuel electricity source, avoiding the expense of gas purchases while reducing GHG emissions.

The second-life storage opportunity begins when the vehicle lifespan ends. “EV batteries will still have over 80% of their storage capacity after being driven for 13 years and providing mobile storage,” the report states. “Those-second life batteries could provide a low-cost energy storage solution for the electricity grid and enhance grid stability over time.”

Some of the savings could be shared with EV owners in the form of a rebate worth up to 20 per cent of the batteries’ initial cost.

Call to action
The report concludes with a call to action for EV advocates to press policy makers and other stakeholders to take actions on building codes, the federal Clean Fuel Standard and other business models in order to maximize the benefits of using EV batteries for the electricity system in this way, even as growing adoption could challenge power grids in some regions.

“EVs are often approached as an environmental solution to climate change,” says Cara Clairman, Plug’n Drive president and CEO. “While this is true, there are significant economic opportunities that are often overlooked.”

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Ontario Utilities Hurricane Irma Aid mobilizes Hydro One and Toronto Hydro crews to Tampa Bay, Florida, restoring power outages with bucket trucks, lineworkers, and mutual aid alongside Florida Power & Light after catastrophic damage.

Key Points

Mutual aid sending Hydro One and Toronto Hydro crews to Florida to restore power after Hurricane Irma.

✅ 205 workers, 52 bucket trucks, 30 support vehicles deployed

✅ Crews assist Tampa Bay under FPL mutual aid agreements

✅ Weeks-long restoration projected after catastrophic outages

Hurricane Irma has left nearly 7 million homes in the southern United States without power and two Ontario hydro utility companies are sending teams to help out as part of Canadian power crews responding to the disaster.

Toronto Hydro is sending 30 staffers to aid in the restoration efforts in Tampa Bay while Hydro One said Sunday night that it would send 175 employees after receiving a request from Florida Power and Light.

“I've been on other storms down in the states and they are pretty happy to see you especially when they find out you're from Canada,” Dean Edwards, one of the Hydro One employees heading to Florida, told CTV Toronto.

Most of the employees are expected to cross the border on Monday afternoon and arrive Wednesday.

Among the crews, Hydro One says it will send 150 lines and forestry staff, as well as 25 supporting resources, including mechanics, to help. Crews will bring 52 bucket trucks to Florida, as well as 30 other vehicles, reflecting their Ontario storm restoration experience with large-scale deployments, and pieces of equipment to transport and replace poles.

Hurricane Irma has claimed at least 45 lives in the Caribbean and United States thus far. Officials estimate that restoring power to Florida will take weeks to bring power back online.

“I’m sure a lot of people wish they could go down and help, fortunately our job is geared towards that so we're going to go down there to do our best and represent Canada,” said Blair Clarke, who’s making his first trip over the border.

Hydro One has reciprocal arrangements with other North American utilities to help with significant power outages, and its employees have provided COVID-19 support in Ontario as part of broader emergency efforts. All the costs are covered by the utility receiving the help.

In the past, the utility has sent crews to Massachusetts, Michigan, Florida, Ohio, Vermont, Washington, DC, and the Carolinas, while Sudbury Hydro crews have worked to reconnect service after storms at home as well. In 2012, 225 Hydro One employees travelled to Long Island, N.Y., to help out with Hurricane Sandy.

“This is what our guys and gals do,” Natalie Poole-Moffat, vice president of Corporate Affairs for Hydro One, told CP24. “They’re fabulous at it and we’re really proud of the work they do.”

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ERCOT Ancillary Services Clawback and VOLL Pricing summarize PUCT and IMM actions on load shed, real-time pricing adders, clawbacks, and settlement corrections after the 2021 winter storm in the Texas power grid market.

Key Points

Policies addressing clawbacks for unprovided AS and correcting VOLL-based price adders after load shed ended in ERCOT.

✅ PUCT ordered clawbacks for ancillary services not delivered.

✅ IMM urged price correction after firm load shed ceased.

✅ ERCOT's VOLL adder raised costs by $16B during 32 hours.

Potomac Economics, the Independent Market Monitor (IMM) for the Electric Reliability Council of Texas (ERCOT), filed a report with the Public Utility Commission of Texas (PUCT) that certain payments were made by ERCOT for Ancillary Services (AS) that were not provided, even as ERCOT later issued a winter reliability RFP to procure capacity during subsequent seasons.

According to the IMM (emphasis added):

There were a number of instances during the operating days outlined above in which AS was not provided in real time because of forced outages or derations. For market participants that are not able to meet their AS responsibility, typically the ERCOT operator marks the short amount in the software. This causes the AS responsibility to be effectively removed and the day-ahead AS payment to be clawed back in settlement. However, the ERCOT operators did not complete this task during the winter event, echoing issues like the Ontario IESO phantom demand that cost customers millions, and therefore the "failure to provide" settlements were not invoked in real time.

Removing the operator intervention step and automating the "failure to provide" settlement was contemplated in NPRR947: Clarification to Ancillary Service Supply Responsibility Definition and Improvements to Determining and Charging for Ancillary Service Failed Quantities; however, the NPRR was withdrawn in August 2020 amid ongoing market reform discussions because of the system cost, some complexities related to AS trades, and the implementation of real-time co-optimization.

Invoking the "failure to provide" settlement for all AS that market participants failed to provide during the operating days outlined above will produce market outcomes and settlements consistent with underlying market principles. In this case, the principle is that market participants should not be paid for services that they do not provide, even as a separate ruling found power plants exempt from providing electricity in emergencies under Texas law, underscoring the distinction between obligations and settlements. Whether ERCOT marked the short amount in real-time or not should not affect the settlement of these ancillary services.

On March 3, 2021, the PUCT ordered (a related press release is here) that:

ERCOT shall claw back all payments for ancillary service that were made to an entity that did not provide its required ancillary service during real time on ERCOT operating days starting February 14, 2021 and ending on February 19,2021.

On March 4, 2021, the IMM filed another report and recommended that:

the [PUCT] direct ERCOT to correct the real-time prices from 0:00 February 18,2021, to 09:00 February 19, 2021, to remove the inappropriate pricing intervention that occurred during that time period.

The IMM approvingly noted the PUCT's February 15, 2021 order, which mandated that real-time energy prices reflect firm load shed by setting prices at the value of lost load (VOLL).1

According to the IMM (emphasis added):

This is essential in an energy-only market, like ERCOT's, where the Texas power grid faces recurring crisis risks, because it provides efficient economic signals to increase the electric generation needed to restore the load and service it reliably over the long term.

Conversely, it is equally important that prices not reflect VOLL when the system is not in shortage and load is being served, and experiences in capacity markets show auction payouts can fall sharply under different conditions. The Commission recognized this principle in its Order, expressly stating it is only ERCOT's out-of-market shedding firm load that is required to be reflected in prices. Unfortunately, ERCOT exceeded the mandate of the Commission by continuing to set process at VOLL long after it ceased the firm load shed.

ERCOT recalled the last of the firm load shed instructions at 23:55 on February 17, 2021. Therefore, in order to comply with the Commission Order, the pricing intervention that raised prices to VOLL should have ended immediately at that time. However, ERCOT continued to hold prices at VOLL by inflating the Real-Time On-Line Reliability Deployment Price Adder for an additional 32 hours through the morning of February 19. This decision resulted in $16 billion in additional costs to ERCOT's market, prompting legislative bailout proposals in Austin, of which roughly $1.5 billion was uplifted to load-serving entities to provide make-whole payments to generators for energy that was not needed or produced.

However, at its March 5, 2021, open meeting (related discussion begins around minute 20), although the PUCT acknowledged the "good points" raised by the IMM, the PUCT was not willing to retrospectively adjust its real-time pricing for this period out of concerns that some related transactions (ICE futures and others) may have already settled and for unintended consequences of such retroactive adjustments.  

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Alberta Wind Energy Policy Changes highlight TransAlta's Riplinger cancellation amid UCP buffer zones for pristine viewscapes, regulatory uncertainty, and market redesign debates, reshaping Alberta's renewables investment climate and clean energy diversification plans.

Key Points

UCP rules and market shifts reshaping wind siting, permits, and finance, increasing uncertainty and delays for new projects.

✅ 35-km buffer near pristine viewscapes limits wind siting

✅ TransAlta cancels 300 MW Riplinger project

✅ Market redesign uncertainty chills renewables investment

The winds of change are blowing through Alberta's energy landscape today, and they're not necessarily carrying good news for renewable energy development. TransAlta, a major Canadian energy company, recently announced the cancellation of a significant wind farm project, citing a confluence of factors that create uncertainty for the future of wind power in the province. This decision throws a spotlight on the ongoing debate between responsible development and fostering a clean energy future in Alberta.

The scrapped project, the Riplinger wind farm near Cardston, Alberta, was envisioned as a 300-megawatt facility capable of providing clean electricity to the province. However, TransAlta pointed to recent regulatory changes implemented by the United Conservative Party (UCP) government, following the end of the renewable energy moratorium in Alberta, as a key reason for the project's demise. These changes include the establishment of a 35-kilometer buffer zone around designated "pristine viewscapes," which significantly restricts potential wind farm locations.

John Kousinioris, CEO of TransAlta, expressed frustration with the lack of clarity surrounding the future of renewable energy policy in Alberta. He highlighted this, along with the aforementioned rule changes, as major factors in the project's cancellation. TransAlta has also placed three other power projects on hold, indicating a broader concern about the current investment climate for renewable energy in the province.

The news has been met with mixed reactions. While some residents living near the proposed wind farm site celebrate the decision due to concerns about potential impacts on tourism and the environment, others worry about the implications for Alberta's clean energy ambitions, including renewable energy job growth in the province. The province, a major energy producer in Canada, has traditionally relied heavily on fossil fuels, and this decision might be seen as a setback for its goals of diversifying its energy mix.

The Alberta government defends its changes to renewable energy policy, arguing that they are necessary to ensure responsible development and protect sensitive ecological areas. However, the TransAlta decision raises questions about the potential unintended consequences of these changes. Critics argue that the restrictions might discourage investment in renewable energy and the province's ability to sell clean power to wider markets altogether, hindering Alberta's progress towards a more sustainable future.

Adding to the uncertainty is the ongoing process of redesigning Alberta's energy market. The aim is to incorporate more renewable energy sources, including solar energy expansion across the grid, but the details of this redesign remain unclear. This lack of transparency makes it difficult for companies like TransAlta to make sound investment decisions, further dampening enthusiasm for renewable energy projects.

The future of wind energy development in Alberta remains to be seen. TransAlta's decision to scrap the Riplinger project is a significant development, and it will be interesting to observe how other companies respond to the changing regulatory landscape, as a Warren Buffett-linked developer pursues a $200 million wind project in Alberta. Striking a balance between responsible development, protecting the environment, and fostering a clean energy future will be a crucial challenge for Alberta moving forward.

This situation highlights the complex considerations involved in transitioning to a renewable energy future, where court rulings on wind projects can influence policy and investment decisions. While environmental concerns are paramount, ensuring a stable and predictable investment climate is equally important. Open communication and collaboration between industry, government, and stakeholders will be key to navigating these challenges and ensuring Alberta can harness the power of wind energy for a sustainable future.

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Cloud Data Centers Environmental Impact highlights massive electricity use, carbon emissions, and cooling demands, with coal-heavy grids in China; big tech shifts to renewable energy, green data centers, and cooler climates to boost sustainability.

Key Points

Energy use, emissions, and cooling load of cloud systems, and shifts to renewables to reduce climate impact.

✅ Global data centers use 3-5% of electricity, akin to airlines

✅ Cooling drives energy demand; siting in cool climates saves power

✅ Shift from coal to renewables lowers CO2 and improves PUE

A hidden environmental price makes storing data in the cloud a costly convenience.

Between 3 to 5% of all electricity used globally comes from data centers that house massive computer systems, with computing power forecasts warning consumption could climb, an amount comparable to the airline industry, says Ben Brock Johnson, Here & Now’s tech analyst.

Instead of stashing information locally on our own personal devices, the cloud allows users to free up storage space by sending photos and files to data centers via the internet.

The cloud can also use large data sets to solve problems and host innovative technologies that make cities and homes smarter, but storing information at data centers uses energy — a lot of it.

"Ironically, the phrase 'moving everything to the cloud' is a problem for our actual climate right now," Johnson says.

A new study from Greenpeace and North China Electric Power University reports that in five years, China's data centers alone will consume as much power as the total amount used in Australia in 2018. The industry's electricity consumption is set to increase by 66% over that time.

Buildings storing data produced 99 million metric tons of carbon last year in China, the study finds, with SF6 in electrical equipment compounding warming impacts, which is equivalent to 21 million cars.

The amount of electricity required to run a data center is a global problem, but in China, 73% of these data centers run on coal, even as coal-fired electricity is projected to fall globally this year.

The Chinese government started a pilot program for green data centers in 2015, which Johnson says signals the country is thinking about the environmental consequences of the cloud.

"Beijing’s environmental awareness in the last decade has really come from a visible impact of its reliance on fossil fuels," he says. "The smog of Chinese cities is now legendary and super dangerous."

The country's solar power innovations have allowed the country to surpass the U.S. in cleantech, he says.

Chinese conglomerate Alibaba Group has launched data centers powered by solar and hydroelectric power.

"While I don't know how committed the government is necessarily to making data centers run on clean technology," Johnson says. "I do think it is possible that a larger evolution of the government's feelings on environmental responsibility might impact this newer tech sector."

In the U.S., there has been a big push to make data centers more sustainable amid warnings that the electric grid is not designed for mounting climate impacts.

Canada has made notable progress decarbonizing power, with nationwide electricity gains supporting cleaner data workloads.

Apple now says all of its data centers use clean energy. Microsoft is aiming for 70% renewable energy by 2023, aligning with declining power-sector emissions as producers move away from coal.

Amazon is behind the curve, for once, with about 50%, Johnson says. Around 1,000 employees are planning to walk out on Sept. 20 in protest of the company’s failure to address environmental issues.

"Environmental responsibility fits the brand identities these companies want to project," he says. "And as large tech companies become more competitive with each other, as Apple becomes more of a service company and Google becomes a device company, they want to convince users more and more to think of them as somehow different even if they aren't."

Google and Facebook are talking about building data centers in cooler places like Finland and Sweden instead of hot deserts like Nevada, he says.

In Canada, cleaning up electricity is critical to meeting climate pledges, according to recent analysis.

Computer systems heat up and need to be cooled down by air conditioning units, so putting a data center in a warm climate will require greater cooling efforts and use more energy.

In China, 40% of the electricity used at data centers goes toward cooling equipment, according to the study.

The more data centers consolidate, Johnson says they can rely on fewer servers and focus on larger cooling efforts.

But storing data in the cloud isn't the only way tech users are unknowingly using large amounts of energy: One Google search requires an amount of electricity equivalent to powering a 60-watt light bulb for 17 seconds, magazine Yale Environment 360 reports.

"In some ways, we're making strides even as we are creating a bigger problem," he says. "Which is like, humanity's MO, I guess."

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Toronto Electricity Demand Growth underscores IESO projections of rising peak load by 2050, driven by population growth, electrification, new housing density, and tech economy, requiring grid modernization, transmission upgrades, demand response, and local renewable energy.

Key Points

It refers to the projected near-doubling of Toronto's peak load by 2050, driven by electrification and urban growth.

✅ IESO projects peak demand nearly doubling by 2050

✅ Drivers: population, densification, EVs, heat pumps

✅ Solutions: efficiency, transmission, storage, demand response

Toronto faces a significant challenge in meeting the growing electricity needs of its expanding population and ambitious development plans. According to a new report from Ontario's Independent Electricity System Operator (IESO), Toronto's peak electricity demand is expected to nearly double by 2050. This highlights the need for proactive steps to secure adequate electricity supply amidst the city's ongoing economic and population growth.

Key Factors Driving Demand

Several factors are contributing to the projected increase in electricity demand:

Population Growth: Toronto is one of the fastest-growing cities in North America, and this trend is expected to continue. More residents mean more need for housing, businesses, and other electricity-consuming infrastructure.

• New Homes and Density: The city's housing strategy calls for 285,000 new homes within the next decade, including significant densification in existing neighbourhoods. High-rise buildings in urban centers are generally more energy-intensive than low-rise residential developments.
• Economic Development: Toronto's robust economy, a hub for tech and innovation, attracts new businesses, including energy-intensive AI data centers that fuel further demand for electricity.
• Electrification: The push to reduce carbon emissions is driving the electrification of transportation and home heating, further increasing pressure on Toronto's electricity grid.

Planning for the Future

Ontario and the City of Toronto recognize the urgency to secure stable and reliable electricity supplies to support continued growth and prosperity without sacrificing affordability, drawing lessons from British Columbia's clean energy shift to inform local approaches. Officials are collaborating to develop a long-term plan that focuses on:

• Energy Efficiency: Efforts aim to reduce wasteful electricity usage through upgrades to existing buildings, promoting energy-efficient appliances, and implementing smart grid technologies. These will play a crucial role in curbing overall demand.
• New Infrastructure: Significant investments in building new electricity generation, transmission lines, and substations, as well as regional macrogrids to enhance reliability, will be necessary to meet the projected demands of Toronto's future.
• Demand Management: Programs incentivizing energy conservation during peak hours will help to avoid strain on the grid and reduce the need to build expensive power plants only used at peak demand times.

Challenges Ahead

The path ahead isn't without its hurdles.  Building new power infrastructure in a dense urban environment like Toronto can be time-consuming, expensive, and sometimes disruptive, especially as grids face harsh weather risks that complicate construction and operations. Residents and businesses might worry about potential rate increases required to fund these necessary investments.

Opportunity for Innovation

The IESO and the city view the situation as an opportunity to embrace innovative solutions. Exploring renewable energy sources within and near the city, developing local energy storage systems, and promoting distributed energy generation such as rooftop solar, where power is created near the point of use, are all vital strategies for meeting needs in a sustainable way.

Toronto's electricity future depends heavily on proactive planning and investment in modernizing its power infrastructure.  The decisions made now will determine whether the city can support economic growth, address climate goals and a net-zero grid by 2050 ambition, and ensure that lights stay on for all Torontonians as the city continues to expand.
 

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