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About Rodan

Demand Side Engagement and the Implications of Digital Technology in the Grid by Paul Grod, President Rodan Energy Ontario Power Perspectives – April 17, 2012. About Rodan. Leading provider of smart grid solutions to power producers, distributors and consumers.

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About Rodan

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  1. Demand Side Engagement and the Implications of Digital Technology in the Gridby Paul Grod, President Rodan EnergyOntario Power Perspectives – April 17, 2012

  2. About Rodan • Leading provider of smart grid solutions to power producers, distributors and consumers • Engineering and metering for grid connections • Largest IESO Metering Services Provider • Distributed energy (generation and power reduction) aggregator for residential, industrial, commercial and institutional sectors. • OPA’s residential demand response operator • ≃ 250MW of DR under management

  3. Smart Grid – what is it? • Reliable and fast-adapting power grid • Matches supply and demand in real-time • Combines computing and communications to manage/automate two-way flow of electricity • Integrates: • Renewable (intermittent) energy • Distributed generation • Demand response • Smart appliances • The internet of electricity systems

  4. Smart Grid Challenges and Opportunities • New Opportunities • Implement a sustainable energy economy • Create a smarter, more efficient electricity system that delivers direct benefits to consumers and the broader economy • Innovative technologies and services • integration of control systems, metering, IT, and power technology • self-sufficient micro grids • New policy framework to facilitate the plan • Tremendous opportunities for Ontario business

  5. Demand Side Engagement and the Implications of Digital Technology in the Grid • Taking Advantage of Unrealized Opportunities in the Emerging Field of Consumer Engagement • Unrealized Opportunities - Case study • Residential Demand Response Program • RDR has been successful ≃ 240,000 ON homes • Opportunities for deeper penetration • > consumer choice – type of thermostat or switch; communication medium; reduction levels; etc. • Market driven incentives – price or CP incentives • Little to no communication between AMI and HAN • Interoperability with other devices – e.g. smartphones

  6. Demand Side Engagement and the Implications of Digital Technology in the Grid • Addressing the need for the further development in regulatory policy surrounding smart meters and time of use rates • SM&TOU developed with a very limited appreciation of demand side engagement opportunities • AMI and CDM should be viewed together

  7. Demand Side Engagement and the Implications of Digital Technology in the Grid • What are the opportunities and where are the priorities? • Enable utilities to recover for implementing metering and monitoring technologies for commercial and industrial customers • Establish coordinated standards – e.g. metering (LDC, OPA, IESO) – OEB has an opportunity • Long-term commitment to DSM initiatives • Demand response and all other CDM programs expire in 2014 • Implement incentives or cost reduction opportunities for DSM (HOEP is not that vehicle)

  8. Demand Side Engagement and the Implications of Digital Technology in the Grid • Looking at new ancillary services being developed to increase efficiencies in demand side services • Global Adjustment and 5CP • Demand Response • Existing DR1, 2, 3 and peaksaver • IESO Operating Reserve, Regulation Services • Possible new DR offerings – standby power, incenting energy consumption, redesign of DR2

  9. Demand Side Engagement and the Implications of Digital Technology in the Grid • Using rate design, pricing tactics, bill presentment and available digital technology to effectively increase consumer engagement in demand side management • Money talks – demand side needs real, long term, predictable rate and pricing mechanism • Start with the basics – access to meter data in real-time

  10. Demand Side Engagement and the Implications of Digital Technology in the Grid • Considering the business opportunities in the development of new conservation programs - how can we go from concept to action and overcome the challenges in figuring out how to make money in a business if you can’t break into it due to regulatory protectionism? • Need to develop a culture of public private cooperation • LDC’s and service companies must work cooperatively rather than prescriptively to deliver innovation and choice to consumers. • Don’t be afraid to share “your customer”

  11. Source: IESO Smart Grid Forum Report 2011 The Smart Grid

  12. Conclusion • Enhancing Demand Side Engagement • Consumer choice • Long-term predictable rate structures/programs • Encourage innovation and consumer engagement by creating the infrastructure that enables DSM • Renewables, the smart grid and demand response are the killer apps of a sustainable economy • Need for better coordination and a clear long-term roadmap with both the appropriate carrots and sticks

  13. Paul Grod President & CEO RODAN ENERGY SOLUTIONS INC.165 Matheson Blvd. East, Suite 6 Mississauga, ON L4Z 3K2 Canada Tel (905) 625-9900 ext. 225 Fax (905) 625-4307 email: paul.grod@rodanpower.comweb: www.rodanpower.com Q&A – Thank you

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