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OEB Energy Storage Integration advances DERs and battery storage through CDM guidelines, streamlined connection requirements, IESO-aligned billing, grid modernization incentives, and the Innovation Sandbox, providing regulatory clarity and consumer value across Ontario's electricity system.

Key Points

A suite of OEB initiatives enabling storage and DERs via modern rules, cost recovery, billing reforms, and pilots.

✅ Updated CDM guidelines recognize storage at all grid levels.

✅ Standardized connection rules for DERs effective Oct 1, 2022.

✅ Innovation Sandbox supports pilots and temporary regulatory relief.

The energy sector is in the midst of a significant transition, where energy storage is creating new opportunities to provide more cost-effective, reliable electricity service. The OEB recognizes it has a leadership role to play in providing certainty to the sector while delivering public value, and a responsibility to ensure that the wider impacts of any changes to the regulatory framework, including grid rule changes, are well understood. 

Accordingly, the OEB has led a host of initiatives to better enable the integration of storage resources, such as battery storage, where they provide value for consumers.

Energy storage integration – our journey 
We have supported the integration of energy storage by:

Incorporating energy storage in Conservation and Demand Management (CDM) Guidelines for electricity distributors. In December 2021, the OEB released updated CDM guidelines that, among other things, recognize storage – either behind-the-meter, at the distribution level or the transmission level – as a means of addressing specific system needs. They also provide options for distributor cost recovery, aligning with broader industrial electricity pricing discussions, where distributor CDM activities also earn revenues from the markets administered by the Independent Electricity System Operator (IESO).
 
Modernizing, standardizing and streamlining connection requirements, as well as procedures for storage and other DERs, to help address Ontario's emerging supply crunch while improving project timelines. This was done through amendments to the Distribution System Code that take effect October 1, 2022, as part of our ongoing DER Connections Review.
 
Facilitating the adoption of Distributed Energy Resources (DERs), which includes storage, to enhance value for consumers by considering lessons from BESS in New York efforts. In March 2021, we launched the Framework for Energy Innovation consultation to achieve that goal. A working group is reviewing issues related to DER adoption and integration. It is expected to deliver a report to the OEB by June 2022 with recommendations on how electricity distributors can assess the benefits and costs of DERs compared to traditional wires and poles, as well as incentives for distributors to adopt third-party DER solutions to meet system needs.
 
Examining the billing of energy storage facilities. A Generic Hearing on Uniform Transmission Rates is underway. In future phases, this proceeding is expected to examine the basis for billing energy storage facilities and thresholds for gross-load billing. Gross-load billing demand includes not just a customer’s net load, but typically any customer load served by behind-the-meter embedded generation/storage facilities larger than one megawatt (or two megawatts if the energy source is renewable).
 
Enabling electricity distributors to use storage to meet system needs. Through a Bulletin issued in August 2020, we gave assurance that behind-the-meter storage assets may be considered a distribution activity if the main purpose is to remediate comparatively poor reliability of service.
 
Offering regulatory guidance in support of technology integration, including for storage, through our OEB Innovation Sandbox, as utilities see benefits across pilot deployments. Launched in 2019, the Innovation Sandbox can also provide temporary relief from a regulatory requirement to enable pilot projects to proceed. In January 2022, we unveiled Innovation Sandbox 2.0, which improves clarity and transparency while providing opportunities for additional dialogue. 
Addressing the barriers to storage is a collective effort and we extend our thanks to the sector organizations that have participated with us as we advanced these initiatives. In that regard, we provided an update to the IESO on these initiatives for a report it submitted to the Ministry of Energy, which is also exploring a hydrogen economy to support decarbonization.

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UK Renewable Energy Auction secures 10 GW for the grid at record-low costs, led by offshore wind, floating wind, solar, and onshore wind, with inflation-indexed CfDs delivering £37/MWh strike prices and enhanced energy security.

Key Points

Government CfDs add 10 GW of low-cost renewables to the UK grid via offshore wind, floating wind, and solar.

✅ 10 GW capacity: 7 GW offshore wind, 2.2 GW solar, 0.9 GW onshore wind

✅ Record-low £37/MWh offshore; floating wind at £87/MWh CfD strikes

✅ 15-year indexed contracts cut exposure to volatile gas prices

The United Kingdom will add 10 gigawatts (GW) of renewable energy capacity to its power grid at one-quarter the cost of fossil gas after concluding its biggest-ever renewable energy auction for new renewable supplies.

The “remarkable new UK renewable auction” will meet one-eighth of the country’s current electricity demand at record low prices of just £37 per megawatt-hour for offshore wind and £87 for floating offshore systems (a dynamic echoed as wind power gains in Canada across other markets), tweeted Carbon Brief Deputy Editor Simon Evans.

“The government is increasing its reliance on a local supply of renewables amid soaring UK power prices driven by a surge in the cost of natural gas following Russia’s invasion of Ukraine,” Bloomberg Green reports. Offshore wind energy “will add about seven gigawatts of clean power capacity to the nation’s fleet from 2026, bringing Britain closer to its target of installing 50 gigawatts by the end of the decade.”

The awards also include 2.2 gigawatts (that’s 2.2 billion watts) of solar and 900 megawatts of onshore wind, even as the UK faces a renewables backlog on some projects, Bloomberg says.

“Eye-watering gas prices are hitting consumers across Europe,” said UK Business and Energy Secretary Kwasi Kwarteng. “The more cheap, clean power we generate within our own borders, the better protected we will be from volatile gas prices that are pushing up bills.”

Citing government figures, Bloomberg says wind generation costs came in 5.8% lower than the previous auction in 2019, reflecting momentum in a sector set to become a trillion-dollar business this decade. Some of the winning bidders included Ørsted, Iberdrola’s Scottish Power unit, Vattenfall, and a consortium of AB Ignitis Grupe, EDP Renovaveis, and Engie.

“Offshore wind power costs have fallen dramatically in recent years as the UK supported the industry to scale up and industrialize production of larger, more efficient turbines,” the news story states. Now, “the decline in price developers are willing to accept comes even after the cost of wind turbines rose in recent months as prices increased for key metals like steel and supply chain disruptions created expensive delays.”

The 15-year, fixed-price contracts will be adjusted for inflation when the turbines are ready to start delivering electricity, offering lessons for the U.S. wind sector on contract design.

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Electric Fleet Grid Planning aligns utilities, charging infrastructure, distribution upgrades, and substation capacity to meet megawatt loads from medium- and heavy-duty EV trucks and buses, enabling managed charging, storage, and corridor fast charging.

Key Points

A utility plan to upgrade feeders and substations for EV fleets, coordinating charging, storage, and load management.

✅ Plans distribution, substation, and transformer upgrades

✅ Supports managed charging and on-site storage

✅ Aligns utility investment with fleet adoption timelines

As more electric buses and trucks enter the market, future fleets will require a lot of electricity for charging and will challenge state power grids over time. While some utilities in California and elsewhere are planning for an increase in power demand, many have yet to do so and need to get started.

This issue is critical, because freight trucks emit more than one-quarter of all vehicle emissions. Recent product developments offer growing opportunities to electrify trucks and buses and slash their emissions (see our recent white paper). And just last week, a group of 15 states plus D.C. announced plans to fully electrify truck sales by 2050. Utilities will need to be ready to power electric fleets.

Electric truck fleets need substantial power
Power for trucks and buses is generally more of an issue than for cars because trucks typically have larger batteries and because trucks and buses are often parts of fleets with many vehicles that charge at the same location. For example, a Tesla Model 3 battery stores 54-75 kWh; a Proterra transit bus battery stores 220-660 kWh. In Amsterdam, a 100-bus transit fleet is powered by a set of slow and fast chargers that together have a peak load of 13 MW (megawatts). This is equivalent to the power used by a typical large factory. And they are thinking of expanding the fleet to 250 buses.

California utilities are finding that grid capacity is often adequate in the short term, but that upgrade needs likely will grow in the medium term.
Many other fleets also will need a lot of "juice." For example, a rough estimate of the power needed to serve a fleet of 200 delivery vans at an Amazon fulfillment center is about 4 MW. And for electric 18-wheelers, chargers may need up to 2 MW of power each; a recent proposal calls for charging stations every 100 miles along the U.S. West Coast’s I-5 corridor, highlighting concerns about EVs and the grid as each site targets a peak load of 23.5 MW.

Utilities need distribution planning
These examples show the need for more power at a given site than most utilities can provide without planning and investment. Meeting these needs often will require changes to primary and secondary power distribution systems (feeders that deliver power to distribution transformers and to end customers) and substation upgrades. For large loads, a new substation may be needed. A paper recently released by the California Electric Transportation Coalition estimates that for loads over 5 MW, distribution system and substation upgrades will be needed most of the time. According to the paper, typical utility costs are $1 million to $9 million for substation upgrades, $150,000 to $6 million for primary distribution upgrades, and $5,000 to $100,000 for secondary distribution upgrades. Similarly, Black and Veatch, in a paper on Electric Fleets, also provides some general guidance, shown in the table below, while recognizing that each site is unique.

California policy pushes utilities toward planning
In California, state agencies and a statewide effort called CALSTART have been funding demonstration projects and vehicle and charger purchases for several years to support grid stability as electrification ramps up. The California Air Resources Board voted in June to phase in zero-emission requirements for truck sales, mandating that, beginning in 2024, manufacturers must increase their zero-emission truck sales to 30-50 percent by 2030 and 40-75 percent by 2035. By 2035, more than 300,000 trucks will be zero-emission vehicles.

California utilities operate programs that work with fleet owners to install the necessary infrastructure for electric vehicle fleets. For example, Southern California Edison operates the Charge Ready Transport program for medium- and heavy-duty fleets. Normally, when customers request new or upgraded service from the utility, there are fees associated with the new upgrade. With Charge Ready, the utility generally pays these costs, and it will sometimes pay half the cost of chargers; the customer is responsible for the other half and for charger installation costs. Sites with at least two electric vehicles are eligible, but program managers report that at least five vehicles are often needed for the economics to make sense for the utility.

One way to do this is to develop and implement a phased plan, with some components sized for future planned growth and other components added as needed. Southern California Edison, for example, has 24 commitments so far, and has a five-year goal of 870 sites, with an average of 10 chargers per site. The utility notes that one charger usually can serve several vehicles and that cycling of charging, some storage, and other load management techniques through better grid coordination can reduce capacity needs (a nominal 10 MW load often can be reduced below 5 MW).

Through this program, utility representatives are regularly talking with fleet operators, and they can use these discussions to help identify needed upgrades to the utility grid. For example, California transit agencies are doing the planning to meet a California Air Resources Board mandate for 100 percent electric or fuel cell buses by 2040; utilities are talking with the agencies and their consultants as part of this process. California utilities are finding that grid capacity is often adequate in the short term, but that upgrade needs likely will grow in the medium term (seven to 10 years out). They can manage grid needs with good planning (school buses generally can be charged overnight and don’t need fast chargers), load management techniques and some energy storage to address peak needs.

Customer conversations drive planning elsewhere
We also spoke with a northeastern utility (wishing to be unnamed) that has been talking with customers about many issues, including fleets. It has used these discussions to identify a few areas where grid upgrades might be needed if fleets electrify. It is factoring these findings into a broader grid-planning effort underway that is driven by multiple needs, including fleets. Even within an integrated planning effort, this utility is struggling with the question of when to take action to prepare the electric system for fleet electrification: Should it act on state or federal policy? Should it act when the specific customer request is submitted, or is there something in between? Recognizing that any option has scheduling and cost allocation implications, it notes that there are no easy answers.

Many utilities need to start paying attention
As part of our research, we also talked with several other utilities and found that they have not yet looked at how fleets might relate to grid planning. However, several of these companies are developing plans to look into these issues in the next year. We also talked with a major truck manufacturer, also wishing to remain unnamed, that views grid limitations as a key obstacle to truck electrification. 

Based on these cases, it appears that fleet electrification can have a substantial impact on electric grids and that, while these impacts are small at present, they likely will grow over time. Fleet owners, electric utilities, and utility regulators need to start planning for these impacts now, so that grid improvements can be made steadily as electric fleets grow. Fleet and grid planning should happen in parallel, so that grid upgrades do not happen sooner or later than needed but are in place when needed, including the move toward a much bigger grid as EV adoption accelerates. These grid impacts can be managed and planned for, but the time to begin this planning is now.

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Kootenay Lake Electric-Ready Ferry advances clean technology in BC, debuting as a hybrid diesel-electric vessel with shore power conversion planned, capacity and terminal upgrades to cut emissions, reduce wait times, and modernize inland ferry service.

Key Points

Hybrid diesel-electric ferry replacing MV Balfour, boosting capacity, and aiming for full electric conversion by 2030.

✅ Doubles vehicle capacity; runs with MV Osprey 2000 in summer

✅ Hybrid-ready systems installed; shore power to enable full electric

✅ Terminal upgrades at Balfour and Kootenay Bay improve reliability

An electric-ready ferry for Kootenay Lake is scheduled to begin operations in 2023, aligning with first electric passenger flights planned by Harbour Air, the province announced in a Sept. 3 press release.

Construction of the $62.9-million project will begin later this year, which will be carried out by Western Pacific Marine Ltd., reflecting broader CIB-supported ferry investments in B.C. underway.

“With construction beginning here in Canada on the new electric-ready ferry for Kootenay Lake, we are building toward a greener future with made-in-Canada clean technology,” said Catherine McKenna, the federal minister of infrastructure and communities.

The new ferry — which is designed to provide passengers with a cleaner vessel informed by advances in electric ships and more accessibility — will replace and more than double the capacity of the MV Balfour, which will be retired from service.

“This is an exciting milestone for a project that will significantly benefit the Kootenay region as a whole,” said Michelle Mungall, MLA for Nelson-Creston. “The new, cleaner ferry will move more people more efficiently, improving community connections and local economies.”

Up to 55 vehicles can be accommodated on the new ship, and will run in tandem with the larger MV Osprey 2000 to help reduce wait times, a strategy also seen with Washington State Ferries hybrid-electric upgrades, during the summer months.

“The vessel will be fully converted to electric propulsion by 2030, once shore power is installed and reliability of the technology advances for use on a daily basis, as demonstrated by Harbour Air's electric aircraft testing on B.C.'s coast,” said the province.

They noted that they are working to electrify their inland ferry fleet by 2040, as part of their CleanBC initiative.

“The new vessel will be configured as a hybrid diesel-electric with all the systems, equipment and components for electric propulsion,” they said.

Other planned projects include upgrades to the Balfour and Kootenay Bay terminals, and minor dredging has been completed in the West Arm.

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US Wind and Solar Outlook 2026 projects cheap renewables displacing coal and gas, with utility-scale additions, rooftop solar growth, improved grid reliability, and EV V2G integration accelerating decarbonization across the electricity market.

Key Points

An analysis forecasting wind and solar growth, displacing coal and gas as utility-scale and rooftop solar expand.

✅ Utility-scale solar installs avg 21 GW/yr through 2026.

✅ 37.7 GW wind in pipeline; 127.8 GW already online.

✅ Small-scale solar could near 100 TWh in 2026.

A recent report from the Institute for Energy Economics and Financial Analysis (IEEFA) predicts that cheap renewables in the form of wind and solar will push coal and gas out of the energy market space. Already at 9% of US generation, the report predicts that wind and solar will supply almost 30% of US electricity demand by 2026, consistent with renewables nearing one-fourth of U.S. generation projections for the near term.

“The Solar Energy Industries Association now expects utility-scale installations to average more than 21,000MW a year through 2026, following a year when U.S. solar generation rose 25% and with a peak of 25,000MW in 2023,” IEEFA writes. “Continued growth is also expected in U.S. wind generation, mirroring global trends where China's solar PV expansion outpaced all other fuels in 2016, with 37.7GW of new capacity already under construction or in advanced development, which would be added to 127.8GW in existing installed capacity.”

Meanwhile, with wind and solar growth booming, fossil fuels are declining, as renewables surpassed coal in 2022 nationwide. “Coal and natural gas are now locked into an essentially zero-sum game where increases in one fuel’s generation comes at the expense of the other. Together, they are not gaining market share, rather they are trading it back and forth, and the rapid growth in renewable generation will cut even deeper into the market share of both.”

And what of rooftop solar? Some states in Australia now have periods where the entire state grid is powered just by solar on the roofs of private citizens. As this revolution progresses in the USA, especially if a tenfold national solar push moves forward, what impact will it make on fossil fuel generators — which are expensive to build, expensive to maintain, expensive to fuel, and rely on an expensive distribution network.

“EIA estimates that this ‘small-scale solar’ produced 41.7 million MWh of power in 2020, when solar accounted for about 3% of U.S. electricity, a 19 percent increase from 2019. This growth will likely continue in the years ahead as costs continue to fall and concerns about grid reliability rise. Assuming a conservative 15 percent annual increase in small-scale solar going forward would push the sector’s generation to almost 100 million MWh in 2026.”

The Joker in the story might be the impact from electric vehicle adoption. Sales are set to surge and there’s more and more interest in V2G technology, even as wind and solar could provide 50% by 2050 in broader forecasts.

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UK Petrol Shortages Drive EV Adoption as fuel crisis spurs electric vehicles, plug-in car demand, home charging, lower running costs, zero-emission mobility, ULEZ compliance, accelerating the shift from diesel to battery EVs.

Key Points

Fuel shortages push drivers to EVs, boosting inquiries and sales while highlighting the convenience of home charging.

✅ Surge in EV dealer inquiries and test drives

✅ Home charging avoids queues and fuel shortages

✅ Policy signals: ULEZ expansion, 2030 ICE ban

Sellers of plug-in vehicles say petrol shortages are driving people to adopt the new technology as the age of electric cars accelerates worldwide.

As petrol stations in parts of the UK started running out of fuel on Friday, business at Martin Miller’s electric car dealership in Guildford, Surrey, started soaring.

After what ended up being his company EV Experts busiest day ever, interest does not appear to be dying down. This week the diary is booked up with test drives and the business is low on stock amid supply constraints.

“People buy electric cars for environmental reasons, for cost-saving reasons and because the technology’s great, even though higher upfront prices remain a concern,” he said. “But Friday was one of those moments where people said, ‘Do you know what, this is a sign that we need to go electric’.”

While scenes of chaos play out at petrol stations across the country amid shortages, for many electric vehicle (EV) dealers the fuel crisis has led to an unexpected surge in inquiries and sales, even as some question an electric-car revolution narrative today.

EVA England, a non-profit representing new and prospective EV drivers, reports a rise in electric car inquiries and in interest at EV dealers, particularly in the last week.

“Saturday was bonkers but Friday even surpassed that, it was very strange,” said Miller, who founded his company four years ago. “I’ve now got trade-in cars with no petrol to move them.”

Along with existing factors such as the expansion of London’s ultra-low emission zone, the fuel crisis has proved to be another trigger point, he said. “People were using it as ‘this is the moment where I’m not going to put this off any longer’.”

The EV market is no longer the preserve of innovators and early adopters, he said, with the most popular models the Nissan Leaf, Volkswagen ID 3 and Jaguar I-Pace.

Ben Strzalko, the owner of Electric Cars UK in Leyland, Lancashire, said that as a small business it would take a few months to feel the knock-on effect of the fuel crisis on sales.

But every time there are problems with petrol or diesel, he said they acted as “one more tick for people making that transition to electric cars”.

He said “a lot of electric car owners will be chuffed to bits this last week” being able to plug in their cars at home. And as an EV driver himself, he admitted feeling a little smug as he drove past queues of 20 cars outside petrol stations over the weekend in his Tesla.

Matt Cleevely, the owner of Cleevely Electric Vehicles in Cheltenham, Gloucestershire, which specialises in used EVs, had a surge of inquiries over the weekend and on Monday morning from customers citing the fuel crisis as a reason for switching to electric.

He expects enthusiasm to continue rising, with petrol shortages adding “fuel to the fire”.

Although he feels sorry for non-EV drivers who have been unable to get fuel, he said as an electric car owner it was “very nice” not to have to worry about where to get petrol at the weekend.

“It’s very convenient that we’ve been able to just fuel up on our driveway. It’s one of the biggest pros of having an electric vehicle.”

The National Franchised Dealers Association also said multiple dealers have reported a spike in EV enquiries since the start of the crisis.

The Society of Motor Manufacturers and Traders reported “bumper growth” in the sale of plug-in cars in July, reflecting broader global market growth in recent years, with battery electric vehicles comprising 9% of sales. Plug-in hybrids accounted for 8% of sales and hybrid electric vehicles nearly 12%. Also in July, more electric vehicles were registered than diesel for the second consecutive month.

The UK has pledged to ban the sale of new petrol and diesel cars by 2030 and of new hybrids by 2035, a timeline that aligns with expectations that within a decade most driving could be electric.

Warren Philips, the volunteer communities director at EVA England, said the tipping point for EVs had already been reached but the fuel crisis “underlines how electric cars could work for the majority of people”.

He added: “The interest is already there, this just adds to it. And going forward with things like Cop26, with the climate crisis, with the cost of fuel probably going to rise … people will start looking at electric cars where you just skip that entire step.”

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