Electricity Planning in the West of Thunder Bay area Local Advisory Committee Meeting #2 April 19-20, 2016
Electricity Planning in the West of Thunder Bay area Local Advisory Committee Meeting #2
April 19-20, 2016
2
West of Thunder Bay Regional Planning Process and Timeline
3
Recap: Nov 2015 LAC Meeting West of Thunder Bay Electricity System
- Demand Forecast
- Local Generation Resources
- Regional and Bulk Transmission System
Bulk and Regional Electricity Needs
- Desire to minimize the impact of power outages to customers
- Potential growth may exceed existing bulk system capability – timing is uncertain
- Interests in community energy planning and community-based solutions
Role and Scope of the Local Advisory Committee (LAC)
Potential Areas of Interests
- Update on the northwest electricity planning activities
- Cost responsibility
- Cost-benefit analysis of supply alternatives
- Impact of climate change and low carbon policy
- Availability of natural gas and its implications on electricity supply
- Imports: Technical and commercial considerations
- Community-based solutions and community energy planning
- Impact of power outages to customers
- Customer support programs
LAC Meeting #2
Potential areas of focus
in future LAC meetings
3 3
4
Discuss key areas of focus for future LAC meetings
Clarify the study scope and review the draft outcomes from
the West of Thunder Bay Integrated Regional Resource Plan (IRRP)
Provide an update on the electricity planning activities in the Northwest
Purpose
5
Update on Northwest Electricity Planning Activities
5
6
Development work is currently underway for two bulk transmission projects in Northwest Ontario
Northwest Bulk
Transmission Line
East-West Tie
Expansion
Priority projects identified in Ontario’s 2013 Long Term Energy Plan
6
7
East-West Tie Expansion
7
East-West Tie
Expansion
Scope:
- A new double circuit 230 kV line,
approximately 400 km in length,
from Wawa to Lakehead (near
Thunder Bay) via Marathon
Purpose
- Increase the power transfer
capability with Northeastern Ontario
to supply demand growth forecasted
for the Northwest in the coming
decade
- Maintain reliability given a changing
supply mix in the region
- Improve flexibility and efficiency of
the Northwest system
8
East-West Tie Expansion
Status:
- IESO submitted a need update report to the OEB, which continues to recommend the
East West Tie expansion
- Expected In-service date of 2020
- Project proponent (Nextbridge) will continue development work and will initiate third
round of community open houses in Spring 2016
8
9
NW Bulk Transmission Line
Northwest Bulk Transmission Line
9
Purpose
- Provide adequate bulk electricity
system capability to supply potential
growth in West of Thunder Bay and
North of Dryden areas
Scope:
- A new double-circuit 230 kV line
between Thunder Bay and
Atikokan and a single-circuit 230
kV line from Atikokan to Dryden
- Alternate routes may be
considered as part of the
development work
10
Northwest Bulk Transmission Line
Status:
– In October 2014, a letter was provided to Hydro One describing the need, scope and
timing for the project and requesting initiation of development work
– A number of solution options are feasible and under consideration (e.g. transmission,
generation, imports)
– Hydro One is carrying out early development work to shorten the lead time of the
project and maintain the viability of the transmission option
– IESO is working with Hydro One to develop the preliminary planning specifications, in-
service date and project schedule
11
Regional Electricity Planning Activities in the Northwest
1
1
12
Remote Community Connection Plan Scope:
– 25 communities are currently
supplied by remote diesel
generators
The Plan Requires:
– 1,000 – 1,500 km of transmission
– 875 – 950 km of distribution
– 9 – 11 transformer stations
– 21 distribution stations
– Capital cost ~$1 billion
Key Drivers:
– Costs of diesel are high
– Using diesel generation impacts the
environment and quality of life (e.g.
Noise, diesel exhaust, possible
spills, service outages)
– Communities face growth and
development constraints
13
Remote Community Connection Plan
Status :
– The 2014 Draft Remote Community Connection Plan concluded that is economic to connect 21
of the 25 Remote First Nation Communities in Northwestern Ontario
The IESO will:
– Continue to engage with all 25 communities and consider comments from ongoing community
engagement in ongoing planning
– Issue a reference plan in support of proponents developing projects
– Continue to work with communities that are not planned for connection to develop Electricity
Service Plans that are supported by each community
First Nation Transmission Proponents will:
– Develop a detailed plan for how the transmission lines will be routed and built
– Obtain financing and conduct development work, design, engineering and procurement for
transmission projects
– Undertake approval processes (OEB, EA, etc.)
For more information on the Remote Community Connection Plan, please see:
Website: http://www.ieso.ca/Pages/Ontario%27s-Power-System/Regional-Planning/Northwest-Ontario/Remote-Community-
Connection-Plan.aspx
14
North of Dryden
Drivers:
– Connection of Remote Communities
– Potential growth in the mining sector
– Development of the Ring of Fire
Study Scope:
– Supply to Pickle Lake sub-system
– Supply to Red Lake sub-system
– Supply to Ring of Fire sub-system
15
North of Dryden
Status
– Final IRRP published in January 2015
– Recommendations are being implemented by the appropriate proponents
Recommendations
– New single circuit 230 kV transmission line from the Dryden/Ignace area to Pickle Lake
– Upgrading the existing 115 kV lines from Dryden to Ear Falls (E4D) and from Ear Falls
to Red Lake (E2R) (for the Red Lake subsystem) and install the necessary voltage
control devices
For more information on the North of Dryden area regional planning activities, please see:
Website: http://www.ieso.ca/Pages/Ontario's-Power-System/Regional-Planning/Northwest-Ontario/North-of-Dryden.aspx
Community Engagement: http://www.ieso.ca/Pages/Participate/Regional-Planning/Northwest-Ontario/North-of-Dryden.aspx
16
Greenstone-Marathon Scope
– Supply to Greenstone
– Supply to North Shore
– Supply to Marathon Area
Key Drivers
– Mining development
– Gas to oil pipeline conversion
– Recovery of forestry industry
– Growth in communities
Status:
– An Interim IRRP report has been developed with community input to facilitate
decision making related to electricity supply for near-term industrial and community
developments in the area
– The final IRRP is currently under development
– Third LAC meeting: May 12, 2016
For more information on the Greenstone & Marathon regional planning activities, please see:
Website: http://www.ieso.ca/Pages/Ontario's-Power-System/Regional-Planning/Northwest-Ontario/Greenstone-Marathon.aspx
Community Engagement: http://www.ieso.ca/Pages/Participate/Regional-Planning/Northwest-Ontario/Greenstone-Marathon.aspx
17
Thunder Bay
Scope
– Supply to Thunder Bay and
surrounding area
Key Drivers
– Community growth
– Potential mining growth
– Pipeline conversion
– Impact of growth in the Greenstone
area on Thunder Bay electricity system
For more information on the Thunder Bay area regional planning activities, please see:
Website: http://www.ieso.ca/Pages/Ontario%27s-Power-System/Regional-Planning/Northwest-Ontario/Thunder-Bay.aspx
Community Engagement: http://www.ieso.ca/Pages/Participate/Regional-Planning/Northwest-Ontario/Thunder-Bay.aspx
18
Local/Community Energy Planning Activities
19
Review Key Outcomes from West of Thunder Bay IRRP
20
Types of Electricity Planning
Integrates local electricity
priorities with provincial policy
directions & system needs
Examines local electricity
needs and priorities at the
community-level
Addresses provincial
electricity system needs
and policy directions
Ministry of Energy
IESO
IESO
Local Distribution
Companies
Transmitters Local Distribution
Companies
Key Participants
Transmitters
First Nations communities & Métis, municipalities and industry stakeholders
21 ç
Scope of Regional Planning Process
• A process for identifying and meeting electricity needs for a region
- Carry out by local utilities, transmitter and the IESO (“Technical Working Group”)
- Revisit at a minimum every 5 years
• Key Outcomes: A 20-Year Electricity Plan
- Work with communities to understand the electricity needs and local priorities
- Identify need for infrastructure, generation, conservation programs and/or
innovative solutions
- Layout a high-level near-term implementation plan and long-term roadmap
• Projects identified in the plan will still need to consider:
- Project details/specification and siting/routing
- Approval processes (e.g. environmental assessment, regulatory approval)
- Project-level stakeholder and community engagement
- Project funding and cost-allocation
• Project-related considerations are beyond the scope of regional planning
- Will be considered as part of project development process
22
Electricity System in West of Thunder Bay
23
Atikokan Biomass Generation
Solar Generation
Hydroelectric Generation
Power output can vary depending on
factors such as cloud cover, location,
time of day, and seasons
Power output is reduced to less than a
1/3 of its capacity during dry water
Installed Capacity: 220 MW
Installed Capacity: 200 MW
Installed Capacity: 35 MW
Ontario Power Generation has a contract
with the IESO until 2024
Contract terms limit annual fuel
consumption and electricity production
Local Generation Resources
Hydroelectric output is highly variable and
it depends on various water conditions
24
West of Thunder Bay Electricity Demand Growth
0
100
200
300
400
500
600
Win
ter
Pe
ak D
em
and
(M
W)
High
Reference
Low
Historic
The West of Thunder Bay electricity system is a source of supply to the North of Dryden.
Electricity requirements in this area are also affected by the significant potential for
development in the area north of Dryden.
By early 2020s, mining projects
& gas to oil pipeline conversion
(if approved) are expected to
come in service
Additional mining
& value-added
forestry products
Today
Note: West of Thunder Bay demand forecast (shown above) does not include growth in the North of Dryden area.
25
Needs considered in Regional Planning
Scope of the
Regional Planning
Process
Planning Process Types of Needs
Needs associated with the local distribution system and the 230kV bulk system transmission are beyond
the scope of regional planning process and will be addressed in separate planning processes. However,
these issues and their implications will be documented as part of the regional planning process.
26
West of Thunder Bay: Needs Summary
Types of
Planning Needs Status
Bulk
Potential growth in North of Dryden and
West of Thunder Bay areas may exceed
capability on the 230kV bulk system
Timing is uncertain. It depends on if and when growth materializes. This will be
addressed as part of the bulk transmission planning process
Regional
Limited supply margin remaining on a
transformers station supplying the City of
Kenora and surrounding areas.
A new transformer station will be required in about 2 years to supply a large
customer in the Kenora area that has historically been fed directly from a dam. It is
expected that this will have minimal impact on increasing the local demand.
This new transformer station can potentially provide a second source of supply to the
City of Kenora and surrounding areas.
Potential growth may exceed capability on
the Dryden 115kV subsystem
Timing is uncertain. Growth will only exceed system capability under high growth
scenarios.
End of Life Replacement of Dryden and
Moose Lake transformer stations within the
next 5 years
The two transformer stations will be replaced according to current standards. These
end of life replacements will not have regional implications over the planning period.
Transmission reliability performance on
Sam Lake TS and Fort Frances MTS
Based on historical reliability performance statistics, Sam Lake TS and Fort Frances
MTS are within the provincial planning standards
Distribution Distribution reliability performance
Majority of feeders in this area perform well relative to other feeders in the province,
with the exception of the two feeders supplying from Shabaqua and Margach DS.
These two feeders are 3 - 4 times longer than other feeders across the province, and
are more exposed to trees, wildlife and poor weather. This will be addressed as part
of the distribution system planning process.
Community Greater coordination is required between
community and regional planning
A number of communities have expressed interests and are in the process of
developing community energy plans. 26
27
Options to provide additional supply capacity on Dryden 115kV subsystem under “high growth” scenario
Option 1: Reduce load on the115kV system by connecting future or
existing load to the 230kV system
Option 2: A new 115/230kV autotransformer in the Dryden area
Option 3: Generation connected to the Dryden 115kV subsystem
Given the uncertainty with the demand growth, it is important to
continue to monitor load growth and development in Dryden and West
of Thunder Bay areas. No decision is required at this time. This need
will be revisited in the next round of the regional planning process.
28
Potentials Area for Coordination: Community Energy Planning and Regional Planning Activities
This is an opportunity to coordinate and to better understand: Status of local growth and developments
Local planning priorities Local energy planning activities (e.g. community energy planning)
Impact of potential supply interruptions or outages Potential, feasibility and challenges of implementing community-based energy solutions
A number of communities in the West of Thunder Bay area are in the process of
developing community energy plans.
29
Draft Recommendations
• Continue to explore opportunities to improve service reliability
– Identify mitigation measures to improve distribution reliability, where applicable
– Explore opportunities for community-based solutions or a wires solution (e.g.
switching facilities) to further improve outage restorations.
– Need to take cost-allocation of investments into consideration
• Monitor the growth and development in the area and revisit potential
supply needs in the next round of the regional planning process
– Keep the communities informed on the status and developments related to the
230kV bulk transmission needs and solutions
– Revisit Dryden 115kV and Kenora transformer station needs in the next
iteration of West of Thunder Bay regional electricity planning process
• Coordinate/Align Regional Planning with Local Energy Planning
– Identify ways to coordinate regional planning and community energy planning
activities
30
1. What are your thoughts on the needs and options identified
through the regional planning process?
2. What are your thoughts on the draft recommendations for
the West of Thunder Bay regional electricity plan?
3. How should we continue to engage with communities?
– To monitor the local growth and development in the area
– To share insights on community-based solutions
– To understand the impact of supply interruptions
– To coordinate energy planning activities
Discussion Questions
31
Finalize the report in consideration of your input
Publish the West of Thunder Bay Integrated Regional Resources Plan (IRRP) report by end of July 2016
Schedule the 3rd Local Advisory Committee meeting
Next Steps
32
For Discussion: Potential Area of Focus for Future LAC Meetings
Cost responsibility Cost-Benefit Analysis of
Supply Alternatives
Impact of climate change and low carbon
policy
Availability of Natural Gas and Its implications
on electricity supply
Imports: Technical and Commercial
Considerations
Community-based solutions and
community energy planning
Impact of power outages to customers
Customer Support Programs
Topics identified from previous LAC meeting
Most of these topics are beyond the scope of regional planning. However, we are opened to
continue the discussion on these topics in future LAC meetings depending on your interests.
32