Energy Mix at NB Power “A Transformation to Smart Grid”

1. Energy Mix at NB Power “A Transformation to Smart Grid” New Brunswick Energy Institute – Institut de l’énergie Nouveau-Brunswick Michel Losier, Program Director of PowerShift Atlantic Neil Larlee, Director of Strategic Planning November 21, 2013

2. Canadian Electricity Landscape • Electricity Generation in Canada by Fuel Type, 2012

3. Canadian Electricity Landscape • Selected World Residential Electricity Prices, 2009

4. Canadian Electricity Landscape Canada’s Market Structure

5. Title Points • Low and Stable Energy Prices • Energy Security • Reliability of the Electrical System • Environmental Responsibility • Effective Regulation • 40% renewable by 2020

6. NB Power Strategic Direction Sustainable Electricity Reduce Debt by $1 Billion Smart Grid (Siemens) Vision Top Performer (more effective and more productive) Reduce and Shift Demand Strategy Enabler

7. Connected to Atlantic Canada, Quebec and New England NB Power and Atlantic Canada (Peak - 200MW) Wind Generation NB – 294 MW (Peak – 3100 MW) Wind Generation- NB – 294 MW NS – 317 MW PEI – 164 MW NFLD – 55 MW Quebec – 1057 MW Canada – 5511 MW Wind Generation NB – 294 MW NS – 324 MW PEI – 164 MW Total - 800 MW Canada – 6568 MW (Peak - 2000MW) Reduce and Shift Demand

8. Smart Grid in New Brunswick Why?

9. Thursday, January 24th – bitter cold morning (-32 °C wind chill ) Peak 3117 MW Oil fired units were required to cover this peak Peak 3117 MW (Thurs 7-10 am) 2850 MW (Wed – supper time) Valley 2460 MW (2-3 am)

10. Typical Household Energy Usage – New Brunswick

11. Energy Efficiency (Reduce) and Load Shifting (Shift) Customer Issue: Investment (Efficiency programs) Customer Issue: Behaviour Customer Issue: Trust Reduce and Shift Demand

12. A Customer Project (with Technology) A new Partnership with new solutions

13. What have customers told us? • A responsible transition towards a sustainable future “a gradual reduction of fossil dependency over time” • Reliability, comfort, competitive rates, ability to better manage bills, choice and ease of use

14. Market Trends

16. Trends: Wind Energy Source: Greentech Media, “Four Charts That Prove the Future of Clean Energy Is Arriving, “We are living it, and it is gaining force.” September 18, 2013

17. Trends: Solar Energy Source: Greentech Media, “Four Charts That Prove the Future of Clean Energy Is Arriving, “We are living it, and it is gaining force.” September 18, 2013

18. Trends: LEDs Source: Greentech Media, “Four Charts That Prove the Future of Clean Energy Is Arriving, “We are living it, and it is gaining force.” September 18, 2013

19. Trends: Electric Vehicles Source: Greentech Media, “Four Charts That Prove the Future of Clean Energy Is Arriving, “We are living it, and it is gaining force.” September 18, 2013

20. Game Changers? Rooftop Solar Electric Vehicles Reduce and Shift Demand

21. NB Power and Siemens A 10 Year Partnership Up to 40 new technology jobs Center of Competency and R&D team Innovation in New Brunswick

22. Smart Grid – Why New Brunswick? • An Integrated Utility • High electric heat penetration • Robust Distribution Network • Broadband Infrastructure • 40% renewable by 2020 Reduce and Shift Demand

23. Electric Thermal Storage In the home Electric Thermal Storage (Potential solution for the future) Existing Baseboard (60% of New Brunswick homes)

24. NB Power Strategic Direction Sustainable Electricity Reduce Debt by $1 Billion Smart Grid (Siemens) Vision Top Performer (more effective and more productive) Reduce and Shift Demand Strategy Enabler

25. Energy mix at NB Power “A Transformation to Smart Grid” New Brunswick Energy Institute – Institut de l’énergie Nouveau-Brunswick Michel Losier, Program Director of PowerShift Atlantic Neil Larlee, Director of Strategic Planning November 21, 2013