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Toronto Calgary Moscow Almaty Atyrau Caracas Rio de Janeiro

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Toronto Calgary Moscow Almaty Atyrau Caracas Rio de Janeiro

Task Force on Distributed Generation

Steering Committee MembersMarch 5, 2003

George Vegh416-203-4430george.vegh@tor.macleoddixon.com

Toronto Calgary Moscow Almaty Atyrau Caracas Rio de Janeiro

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Agenda

• Introduction and Background

• Reasons for Distributed Generation (Mark Wolnik, Markham Energy Corporation)

• DG & Distribution Companies (Darius Vaiciunas, Collingwood PUC)

Toronto Calgary Moscow Almaty Atyrau Caracas Rio de Janeiro

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Agenda

• Toronto Hydro’s Perspective on DG (Richard Lu and Joe Bailey, Toronto Hydro)

• Next Steps -- Open Discussion

Toronto Calgary Moscow Almaty Atyrau Caracas Rio de Janeiro

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The Industry Task Force

• The Task Force is an ad hoc voluntary association of people and institutions interested in issues respecting the development of distributed generation.

• It is open to all who wish to contribute to the energy required to address these issues.

Toronto Calgary Moscow Almaty Atyrau Caracas Rio de Janeiro

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The Industry Task Force

• Task Force activities moved forward by Steering Committee

• Steering Committee will take comments made by Task Force Members and circulate proposed positions on DG issues for circulation among Ministry, OEB, IMO and other interested agencies.

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Context

• Distributed Generation• small -- typically less than 10 MW

• local -- close to load

• decentralized -- connected to distribution, but not centrally planned

• smart -- complements, but will not replace power stations and transmission grids

Toronto Calgary Moscow Almaty Atyrau Caracas Rio de Janeiro

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Future of Distributed Generation

• Part of the solution to Energy Challenge• U.S. Department of Energy has

targeted that 20% of all new capacity in the U.S. (30 GW) to be satisfied by DG by 2010.

• Gas Technology Institute projects expenditures of $10 billion (U.S.) in DG capital expenditure by 2015.

Toronto Calgary Moscow Almaty Atyrau Caracas Rio de Janeiro

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Policy Barriers to DG

• National Association of Regulatory Utility Commissioners:• burdensome distribution system

operating requirements

• bundled distribution tariffs

• market power in generation

• ambiguous regulatory authority

Toronto Calgary Moscow Almaty Atyrau Caracas Rio de Janeiro

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The Way for Ontario

• The presence or absence of distributed generation will have an impact on the future of Ontario’s energy needs.

• Task Force Members believe that we are all better off to start shaping that future now.