Electricity Market Reform: What still needs to be done?
A Canadian Perspective
Cynthia Chaplin Executive Director, CAMPUT
Presentation to the ACCC/AER Regulatory Conference Brisbane, 1 August 2019
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A Canadian Perspective Cynthia Chaplin Executive Director, CAMPUT - - PowerPoint PPT Presentation
Electricity Market Reform: What still needs to be done? A Canadian Perspective Cynthia Chaplin Executive Director, CAMPUT Presentation to the ACCC/AER Regulatory Conference Brisbane, 1 August 2019 1 Overview Context Market Structures
Cynthia Chaplin Executive Director, CAMPUT
Presentation to the ACCC/AER Regulatory Conference Brisbane, 1 August 2019
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345kV and higher
Source: Canadian Electricity Association
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Hydro 60% Nuclear 15%
Natural Gas 9%
Coal 9% Wind 4% Biomass/Geothermal 2% Petroleum <1% Solar <1%
Source: National Energy Board
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Oil and Gas 26% Electricity 11% Transportation 25% Heavy Industry 11% Buildings 11% Agriculture 10% Waste & Others 6%
Source: Environment and Climate Change Canada, Air Pollutant Emissions Database (2016). Visual Created by the Canadian Electricity Association
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Procurement Projects MW Average Price Round #1 3 wind 600 1 3.7 cents/kwh Round #2 3 wind 2 360 3.8 cents/kwh Round #3 3 wind 400 4.0 cents/kwh Round #4 CANCELLED
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1 200 MW more than planned 2 Minimum 25% Indigenous equity ownership
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Source: National Energy Board
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51% 8% 22% <1% 19%
Coal Water Nuclear Electricity Production 156 TWh Natural Gas Solar/Wind/ Bioenergy
2005
58% 10% 23% 9%
Water Nuclear Electricity Production 160 TWh Natural Gas Solar/Wind/ Bioenergy
2015
Source: IESO
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$0 $20 $40 $60 $80 $100 $120 $140 $160 $180 20 40 60 80 100 120 140 160 180 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Average Unit Cost of Electricity Service Real $2016/MWh Ontario Demand (TWh)
Ontario Demand (TWh) = Grid Connected + Embedded Generation Unit Cost of Electricity Service
Source: IESO
14 Doug Ford @fordnation
We promised the people of Ontario that we would lower their hydro rates and that started by addressing leadership at Hydro One. I was pleased to learn this afternoon that the CEO and all board members will be resigning.
5:25 PM · Jul 11, 2018 ·
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33% 25% 22% 18% 2%
Water Nuclear Installed Capacity 39 GW Natural Gas Solar/Wind/ Bioenergy
2015
Demand Response
37% 16% 26% <1% 21%
Coal Water Nuclear Installed Capacity 31 GW Natural Gas Solar/Wind/ Bioenergy
2005
Source: IESO
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91% 9% Grid-Connected Embedded
Existing supply at year-end 2015: 39.4 GW 0% 20% 40% 60% 80% 100%
Nuclear Natural Gas Waterpower Wind
Share of grid- connected resources
0% 20% 40% 60% 80% 100%
Waterpower Wind
Solar
Demand Response
Share of embedded resources
Source: IESO
Natural Gas Bioenergy Bioenergy
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Proponent Price Plans Non-Price Tools London Hydro Quick-ramping critical peak pricing (CPP) Real-time information application (RT) Alectra Utilities Variable peak pricing (Dynamic) Enhanced TOU with low overnight (Overnight) Enhanced TOU (Enhanced) Behavioural communications provided through bill inserts (Nudge reports) Oshawa PUC Super-peak TOU Seasonal TOU with CPP Smartphone application and web portal engagement platform CustomerFirst group of six mostly northern utilities Enhanced TOU (Enhanced) Seasonal TOU Thermostats
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Pricing Plans
Quick-ramping critical peak pricing (CPP) – provides customers with a 1 hour critical peak pricing window under 15 minutes advanced notice between 4pm and 9pm. Customers received a discounted off-peak rate and standard TOU time periods
Variable peak pricing (Dynamic) – A two-period price plan that features an on peak price (effective 3pm-9pm weekdays) that varies with system conditions – low, medium, high or critical peak.
Enhanced TOU with low overnight (Overnight) – An additional off-peak lower-priced period from 12am to 6am, coupled with higher mid- and on-peak rates with standard TOU time periods
Enhanced TOU (Enhanced) – 4:1 on-to-off-peak differential; time periods unchanged relative to status-quo TOU rates
Super-peak TOU– 3-period model with 4:1 super-to-off-peak ratio June through August (off-peak 7pm to 7am; on-peak 7am to 1pm; super-peak 1pm to 7pm); 2-period rate September through May (off-peak 7pm to 7am; on-peak 7am to 7pm)
Seasonal TOU with CPP – 2-period model June through August and December through February (off-peak 7pm to 7am; on- peak 7am to 7pm); flat rate for the remaining six months of the year; 20 CPP events scheduled throughout the year between 4pm and 9pm
All price plans charge off-peak prices on weekends and holidays Non-price Tools
Real-time information application (RT) – Allows customers to use a smartphone application to monitor their electricity consumption in real-time and turn off appliances in their homes remotely
Behavioural communications provided through bill inserts (Nudge reports) – Provides customers with on-peak electricity consumption feedback relative to historical benchmarks, as well as specific recommendations for how households can alter their behaviour to reduce on-peak usage
Thermostats – Examines the impacts of thermostats as enabling technologies
Smartphone application and web portal engagement platform – Provides personalized insights, recommendations and tools for managing electricity usage
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Executive Director CAMPUT
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