InstructionsPrepare a case study on an energy system in British Columbia, Canada, encompassing all...

Question

InstructionsPrepare a case study on an energy system in British Columbia, Canada, encompassing all of the four components (primary and secondary energy supplies, distribution and demand-side management). Please highlight the energy policy linkages to those components. Please research examples of specific companies that provide those components (e.g., BC Hydro, FortisBC and Pacific Northern Gas).The assignment should be:	Approximately 1,000 words or 5      pages in length (APA format), including figures and tables, if      appropriate.	Written at a level and with      language that would be beneficial to a business- person with basic energy      literacy and understanding of energy management.	Comprehensive to ensure that      all key aspects of the energy system construct are highlighted, including      both energy supplies and DSM.	Evidence-based and not      anecdotal.	Inclusive of at least five      citations (see the 3 attachments for references)Microsoft Word - SECTION 2.apr23-pg2.docx 1 SECTION	2	–		 CASE	STUDIES	OF	BEST	PRACTICES	 1. Case	Study:	Electricity	Conservation	in	Ontario	* 2. Case	Study:	Past,	Present	and	Future	of	Energy	Conservation	in	Ontario	** 3. Case	Study:	Selected	Natural	Gas	DSM	Programs	in	Ontario 4. Case	Study:	British	Columbia	* 5. Case	Study:	Nova	Scotia 6. Case	Study:	Energy	Efficiency	in	Alberta 7. Case	Study:	Energy	Service	Performance	Contracts	* *Reprinted	with	permission	from	Econoler,	to	be	published	in	Canadian	Energy	Efficiency	Outlook,	2018	 **Reprinted	with	permission	from	Energy	Regulator	Quarterly	 – 2 – 37 – 47 – 143 – 157 – 187 – 193 2 1. CASE	STUDY:	ELECTRICITY	CONSERVATION	IN	ONTARIO Background	 In	a	world	where	the	effects	of	climate	change	are	becoming	ever	more	apparent	and	more	 widespread,	using	energy	wisely	has	assumed	greater	importance	in	recent	years.	Conservation	 is	the	cleanest	and	most	cost-effective	energy	resource	available.	In	Ontario	and	elsewhere,	it	 has	become	a	key	resource	in	helping	customers	save	energy,	control	costs	and	reduce	their	 environmental	footprint.1		 Over	the	past	few	decades,	Ontario	has	used	a	number	of	approaches	to	drive	greater	demand- side	participation	and	encourage	different	ways	in	which	energy	consumers	can	reduce	their	 usage.	To	this	day,	the	province’s	efforts	in	this	area	are	broad,	encompassing	everything	from	 traditional,	incentive-based	conservation	programs	to	training,	education	and	support;	direct	 load	control;	energy-efficiency	codes	and	standards;	price-based	models	(e.g.,	time-of-use	 rates);	demand	response	auctions;	behind-the-meter	(load-displacing)	generation;	and	energy	 storage,	among	other	related	policies,	programs	and	mechanisms.	 Ontario	Hydro	and	the	Early	Days	of	CDM	 Energy	efficiency	and	conservation	efforts	in	Ontario	date	back	several	decades,	but	the	seed	 that	was	planted	in	the	early	1980s	by	Ontario	Hydro	didn’t	really	flourish	until	years	later.		 For	the	most	part,	the	1980s	in	Ontario	were	dominated	by	supply-side	initiatives,2	including	 large-scale	nuclear	projects	at	the	Pickering,	Darlington	and	Bruce	sites.	Although	there	was	 some	attention	paid	to	conservation,	and	targets	for	load	shifting	and	conservation	were	set	in	 1982	at	1,000	megawatts	(MW)	apiece	by	2000,	the	province’s	supply	situation	meant	that	 demand	management	received	limited	attention	during	this	period.		 By	the	time	Ontario	Hydro	published	its	Demand/Supply	Plan	in	1989,	it	showed	a	notable	shift	 in	the	company’s	long-term	planning	approach,	such	that	resources	on	the	supply	side	and	the	 demand	side	were	considered	concurrently.3	In	addition,	several	new	demand-side	 management	(DSM)	programs	were	created.	Although	this	plan	was	effectively	shelved	after	 the	recession	hit	in	the	late	1980s	and	demand	for	electricity	plummeted,	especially	from	large	 industrial	users,	it	established	DSM	as	an	important	consideration	in	the	context	of	energy	 adequacy	and	reliability	in	Ontario.		 After	the	cancellation	of	Ontario	Hydro’s	DSM	programs	in	1993,	the	provincial	Ministry	of	 Energy	offered	a	number	of	programs	for	commercial,	industrial	and	residential	consumers.	 1 For the purposes of this narrative, conservation and demand management (CDM) will be used  interchangeably with demand-side management (DSM). Both represent the full suite of customer-based  energy solutions.  2 Rebecca Mallinson, Electricity Conservation Policy in Ontario: Assessing a System in Progress  (http://sei.info.yorku.ca/files/2013/03/electricity-conservation-policy-ontario.pdf) – page 145  3 Steven J. Norrie and Peter Love, “Creating a Culture of Conservation in Ontario:  Approaches, Challenges and Opportunities,”( http://ieeexplore.ieee.org/document/5275904/?reload=true)  – page 2  3  However,	these	programs	were	discontinued	in	1995	as	preparations	were	made	for	 deregulation.	The	creation	of	a	wholesale	market	for	electricity	was	expected	to	incentivize	 consumers	to	use	price	signals	as	the	basis	for	their	decisions	on	whether	to	consume	 electricity.4	 Market	Opening	 The	Energy	Competition	Act,	1998,	opened	the	door	to	a	competitive	electricity	market	and	 effectively	split	Ontario	Hydro	into	five	successor	companies,	each	with	specific	roles	and	 responsibilities.	Ontario	Power	Generation	assumed	responsibility	for	power	generation;	Hydro	 One,	transmission;	the	Independent	Electricity	Market	Operator,	now	known	as	the	 Independent	Electricity	System	Operator	(IESO),	market	and	system	operations;	the	Ontario	 Electricity	Financial	Corporation,	debt	and	contract	management;	and	the	Electrical	Safety	 Authority,	training	and	safety	standards.	 In	addition	to	enabling	the	creation	of	a	market	for	electricity,	the	Act	triggered	other	structural	 changes.	Where	Ontario	Hydro	had	been	responsible	for	long-term	planning	in	the	province,	 the	restructuring	of	the	sector	did	not	assign	that	function	to	any	organization,	as	markets	were	 not	expected	to	require	central	planning.5	 After	several	years	of	collaboration	between	government,	stakeholders,	regulators	at	the	 Ontario	Energy	Board	and	technical	experts	at	the	IESO,	Ontario’s	wholesale	electricity	market	 opened	on	May	1,	2002,	introducing	competition	at	the	retail	level.		 Although	local	utilities	engaged	in	some	DSM	measures	in	the	early	2000s,	there	was	limited	 coordination.	It	was	several	years	later,	with	the	creation	in	2005	of	the	Ontario	Power	 Authority	(OPA)	–	which	merged	with	the	IESO	on	January	1,	2015	–	that	centralized	power	 system	planning	and	more	coordinated	energy	conservation	policies,	programs	and	practices	in	 Ontario	were	established.	 The	creation	of	a	wholesale	market	for	electricity	in	Ontario,	coupled	with	extreme	weather	 during	the	summer	of	2002,	resulted	in	volatile	prices	at	the	retail	level.	Prices	were	eventually	 frozen	in	2003	to	reduce	the	impact	on	ratepayers.	On	the	supply	side,	the	market	was	not	 open	long	enough	before	the	price	freeze	to	attract	new	entrants	willing	to	invest	in	new	 generation	resources.	As	a	result	of	these	and	other	factors,	Ontario	started	to	experience	 energy	shortfalls,	and	IESO-issued	public	appeals	to	conserve	energy	became	commonplace.	 Culture	of	Conservation	 In	June	2003	the	government	created	the	Electricity	Conservation	&	Supply	Task	Force	(ECSTF),	 which	was	established	to	develop	an	action	plan	for	attracting	new	generation,	promoting	 																																																													 4 Rebecca Mallinson, Electricity Conservation Policy in Ontario: Assessing a System in Progress  (http://sei.info.yorku.ca/files/2013/03/electricity-conservation-policy-ontario.pdf) – page 148  5 Steven J. Norrie and Peter Love, “Creating a Culture of Conservation in Ontario:  Approaches, Challenges and Opportunities,”( http://ieeexplore.ieee.org/document/5275904/?reload=true)  – page 2  4 conservation	and	enhancing	the	reliability	of	the	transmission	grid.6	Comprising	19	leaders	from	 across	the	sector,	the	task	force	met	on	a	weekly	basis	and	heard	expert	testimony	from	dozens	 of	stakeholders.	Its	final	report,	published	in	January	2004,	was	titled	Tough	Choices:	 Addressing	Ontario’s	Power	Needs.			 Among	the	recommendations	were	a	call	to	create	a	“conservation	culture”	in	Ontario	and	an	 acknowledgement	that	conservation	could	play	an	important	role	in	ensuring	security,	 adequacy,	affordability,	reliability	and	sustainability,	both	financial	and	environmental.	The	 report	also	explicitly	noted	that	demand	reduction	should	be	given	the	opportunity	to	compete	 with	supply-side	alternatives	and	be	evaluated	on	a	level	playing	field.7	 For	conservation	to	achieve	its	full	potential,	the	ECSTF	argued,	a	lead	organization	needed	to	 champion	conservation	efforts,	coordinate	activities	by	the	different	players,	and	assess	the	 relative	costs	and	benefits	of	different	programs	to	ensure	consistency	and	alignment	with	 government	policy.8	This	call	for	a	lead	conservation	agency	was	echoed	by	the	Ontario	Energy	 Board	in	a	report	to	the	Minister	of	Energy	issued	in	March	2004.9	 The	Electricity	Restructuring	Act,	2004,	came	into	force	in	December	of	that	year	and	enabled	 the	creation	of	the	OPA,	whose	responsibilities	included	forecasting	demand	for	electricity,	 undertaking	power	system	planning,	developing	an	integrated	power	system	plan,	and	 promoting	electricity	conservation,	among	others.	 CDM	and	the	IPSP	 In	addition	to	other	functions,	the	OPA	served	as	the	focal	point	for	conservation-related	 activities	in	the	province.	In	its	early	days,	it	designed	and	launched	a	range	of	conservation	 programs	delivered	by	local	distribution	companies	(LDCs)	as	well	as	industry	associations	and	 private	companies.10		 As	an	agency	of	the	government,	the	OPA/IESO	is	subject	to	directives	from	the	Minister	of	 Energy	related	to	different	aspects	of	its	business.	One	of	the	most	important	directives,	which	 was	dated	June	13,	2006,	called	for	the	development	of	an	Integrated	Power	System	Plan	(IPSP)	 to	meet	a	number	of	policy	goals.		 The	directive	provided	some	degree	of	flexibility	in	how	to	achieve	the	first	goal,	which	was	 focused	on	conservation.	Calling	for	a	reduction	in	peak	demand	of	6,300	MW	by	2025,	the	 6 Courtney Pratt and Bruce Boland, Electricity Conservation and Supply Task Force, Tough Choices:  Addressing Ontario’s Power Needs- Final Report to the Minister (2004) – page i  7 Courtney Pratt and Bruce Boland, Electricity Conservation and Supply Task Force, Tough Choices:  Addressing Ontario’s Power Needs- Final Report to the Minister (2004) – page ii  8 Courtney Pratt and Bruce Boland, Electricity Conservation and Supply Task Force, Tough Choices:  Addressing Ontario’s Power Needs- Final Report to the Minister (2004) – page 44  9 https://www.oeb.ca/documents/cases/RP-2003- 0144/pressrelease_report_finalwithappendices_030304.pdf - page ii  10 Peter Love, Past, Present and Future of Energy Conservation in Ontario  (http://www.energyregulationquarterly.ca/articles/the-past-present-and-future-of-energy-conservation- in-ontario#sthash.FyTfolD5.dpbs) – page 33   5  directive	used	a	broad	definition	of	conservation	that	included	codes	and	standards	related	to	 energy	efficiency	as	well	as	load-displacing	generation,	including	small-scale	natural	gas-fired	 cogeneration	and	tri-generation	facilities	on	the	customer	side	of	the	meter,	among	other	 options.		 In	July	2006,	the	Minister	directed	the	creation	of	a	three-year,	$400-million	fund	to	help	LDCs	 deliver	CDM	programs.11	In	addition	to	recognizing	that	LDCs	have	a	legitimate	role	in	delivering	 CDM,	the	Minister	also	affirmed	that	LDCs	should	be	provided	with	stable,	multi-year	funding	to	 deliver	these	programs	and	the	relationship	between	the	OPA	and	LDCs	should	be	managed	 contractually.12	 There	were	a	number	of	challenges	associated	with	reintroducing	electricity	conservation	 programs	after	a	decade	of	relative	inactivity.	These	included	the	need	to	rebuild	the	DSM	 program	industry,	disagreements	regarding	the	proposed	roles	and	responsibilities	of	various	 players	in	the	sector,	questions	about	the	legitimacy	of	DSM	as	a	resource,	and	alignment	and	 cooperation	between	electricity	and	gas	to	make	conservation	action	easier	for	customers.	 Despite	these	initial	hurdles,	Ontario	met	its	interim	target	of	1,350	MW	of	peak	demand	 reduction	by	the	end	of	2007	–	the	first	step	towards	meeting	the	2025	target.		 The	Energy	Conservation	Leadership	Act,	2006	contained	a	number	of	provisions	and	 requirements,	including	ones	related	to	energy	use	by	public	agencies.	The	Act	enabled	the	 government	to	set	specific	targets	for	energy	conservation	by	these	agencies	and	require	the	 preparation	of	annual	energy	conservation	plans.	These	plans	–	to	be	made	publicly	available	–	 were	expected	to	include	itemized	descriptions	of	energy-consuming	technologies	and	 operations,	summaries	of	annual	energy	usage,	descriptions	of	current	and	proposed	activities	 and	measures	to	conserve	energy,	and	summaries	of	progress	and	achievements	in	energy	 conservation.	 Conservation	and	the	Green	Energy	Act	 Other	sections	of	this	chapter	will	address	the	evolution	of	Ontario’s	legislative	and	regulatory	 framework	for	energy	conservation	in	greater	detail.	Some	of	the	most	important	changes	stem	 from	the	enactment	of	the	Green	Energy	Act,	2009,	(GEA)	in	May	of	that	year.	While	much	of	 this	Act	was	focused	on	mechanisms	to	accelerate	the	adoption	of	renewable	generation,	it	 also	included	a	fresh	focus	on	conservation.	For	example,	the	GEA	made	energy	conservation	 core	to	LDCs’	business	operations,	by	establishing	that	mandatory	targets	must	be	met	as	a	 condition	of	their	licences.13		 In	addition	to	aggregating	several	existing	policies	related	to	conservation	and	energy	 efficiency,	the	GEA	included	some	important	new	provisions,	including	ones	pertaining	 																																																													 11 http://ieso.ca/-/media/files/ieso/document-library/ministerial-directives/2006/20060713-coordination- and-funding-of-ldc-activities-to-deliver-cdm-programs.pdf   12 Rebecca Mallinson, Electricity Conservation Policy in Ontario: Assessing a System in Progress  (http://sei.info.yorku.ca/files/2013/03/electricity-conservation-policy-ontario.pdf) – page 156  13 http://www.energy.gov.on.ca/en/files/2014/09/conservation-first-en.pdf    6  specifically	to	government-owned	and/or	-managed	facilities.	It	called	on	the	provincial	 government	to	be	guided	by	several	conservation-oriented	principles:	clear	and	transparent	 reporting	of	energy	consumption,	water	use	and	greenhouse	gas	(GHG)	emissions	associated	 with	government	facilities;	planning	and	designing	government	facilities	to	ensure	the	efficient	 use	of	energy	and	water;	making	environmentally	and	financially	responsible	investments	in	 government	facilities;	and	using	renewable	energy	sources	to	provide	energy	for	government	 facilities.14	These	requirements	will	be	explained	in	greater	detail	in	another	section	of	this	 chapter.	 The	GEA	also	paved	the	way	for	tracking	and	reporting	on	energy	consumption	and	GHG	 emissions	by	the	broader	public	sector,	including	municipalities,	universities,	schools	and	 hospitals	(also	known	as	the	MUSH	sector),	as	detailed	in	Ontario	Regulation	(O.	Reg.)	397/11,	 which	will	be	discussed	in	the	Legal/Regulatory	section	of	this	chapter.	 Save	on	Energy	 The	OPA	worked	collaboratively	with	LDCs	to	deliver	CDM	programs	under	the	2011-2014	CDM	 Framework.	In	January	2011,	a	suite	of	programs	was	introduced	under	the	saveONenergy	 brand.	Administered	by	the	LDCs,	these	programs	offered	a	variety	of	incentives	for	energy	 efficiency	and	demand	management	activities.	They	also	engaged	homeowners	and	businesses	 on	cost-effective	ways	to	improve	their	living	and	work	spaces	while	saving	on	annual	energy	 costs,	helping	the	province	meet	its	energy	needs	and	reducing	or	deferring	the	need	to	build	 new	generation	in	the	future.	 Business	programs	were	the	primary	driver	of	savings	from	the	2011-2014	conservation	 programs,	accounting	for	58	percent	of	the	overall	energy	savings	achieved.	Between	2011	and	 2014,	the	suite	of	business	programs	saved	more	than	4,000	gigawatt-hours	(GWh)	of	energy	 and	reduced	peak	demand	by	389	MW,	with	the	Retrofit	program	responsible	for	the	largest	 savings,	proportionally.15	 Programs	for	residential	customers,	meanwhile,	ranged	from	incentives	to	remove	old,	 inefficient	appliances	to	coupons	that	encouraged	the	purchase	of	energy-efficient	products	 such	as	compact	fluorescent	lightbulbs,	programmable	thermostats,	power	bars,	dimmer	 switches	and	motion	sensors.	Between	2011	and	2014,	residential	programs	saved	1,169	GWh	 of	energy	and	253	MW	of	demand	in	the	province	–	equivalent	to	powering	approximately	 122,000	homes	for	one	year.16		 After	2014,	Ontario	transitioned	to	the	2015-2020	Conservation	First	Framework	(CFF).		This	 framework	will	be	covered	in	the	next	section,	which	describes	the	main	stakeholders	on	the	 conservation	file	in	Ontario	in	2017	and	beyond.	 																																																													 14 https://www.ontario.ca/laws/statute/09g12   15 2011-2014 Conservation Results Report (http://www.ieso.ca/-/media/files/ieso/document- library/conservation-reports/annual/conservation-results-report-2011-2014.pdf) – page 4  16 2011-2014 Conservation Results Report (http://www.ieso.ca/-/media/files/ieso/document- library/conservation-reports/annual/conservation-results-report-2011-2014.pdf) – page 3  7 Although	the	IESO	plays	an	important	role	with	respect	to	administering	formal	CDM	programs	 and	catalyzing	innovation	through	the	Conservation	Fund,	the	LDC	Innovation	Fund	and	other	 mechanisms,	there	is	a	great	deal	of	work	being	done	in	the	conservation	space	in	Ontario	by	 other	parties,	including	consumers,	tech	companies,	aggregators,	incubators,	academic	 institutions	and	other	innovators.		 For	example,	many	Ontario	LDCs	are	exploring	other	ways	to	meet	their	customers’	energy	 needs,	increase	resilience	and	security	in	their	service	area,	and	unlock	new	value	from	their	 system	by	introducing	new	products,	services	and	technologies.	In	some	cases	the	primary	 function	of	these	efforts	may	not	be	to	reduce	total	consumption	or	lower	peak	demand,	but	 some	of	the	options	being	tested	involve	solar/storage	systems,	microgrids,	dynamic	pricing	 models,	enhanced	telemetry	and	communication	systems,	sensors	and	controllers,	electric	 vehicle	integration,	distribution	automation	and	other	technologies.	  8  CDM	Programs	in	Ontario	(2015-2020)	 	 Province-wide	Save	on	 Energy	Programs	for	 Residential	Customers		 Province-wide	Save	on	 Energy	Programs	for	Business	 Customers	 Programs	for	Eligible	 Transmission-Connected	 Customers	 Coupon	(transitioning	to	Deal	 Days)	 Retrofit	 Industrial	Accelerator		 Program	(IAP)	–	includes	all	 Save	on	Energy	programs	for	 business	customers	 Heating	and	Cooling		 Small	Business	Lighting	 Dispatchable	Loads	 New	Home	Construction		 High-Performance	New	 Construction	 Demand	Response	Auction	 Whole	Home	(delivered	in	 coordination	with	gas	utilities)	 Existing	Building	 Commissioning	 Capacity-Based	Demand	 Response	(transitional	 program	for	some	existing	 loads)	 	 Process	and	Systems	Upgrade	 Industrial	Conservation	 Incentive	(ICI)	–	also	available	 to	eligible	distribution- connected	customers	 	 Energy	Manager	 	 	 Energy	Performance	Program	 (EPP)	 	 	 Business	Refrigeration	 Incentive	(BRI)	 	 	 Monitoring	&	Targeting	 	 	 Training	&	Support	 	 	 Audit	 	 	 	 9 Organizations/Groups	and	their	Role	in	CDM	 Organization/Group	 Key	CDM-Oriented	Responsibilities	 Ministry	of	Energy	 • Establishes	the	policy	framework, including	through	the	province’s	Long- Term	Energy	Plan • Develops	energy-efficiency	product standards • Sets	reporting	requirements • Shows	conservation	leadership Ministry	of	Municipal	Affairs	and	Housing	 • Sets	Building	Code	requirements Ontario	Energy	Board	(OEB)	 • Regulates	the	electricity	and	gas sectors • Approves	licences,	rates	and	fees • Regulates	gas	DSM Independent	Electricity	System	Operator	 (IESO)	 • Operates	the	electricity	grid	to	ensure supply	and	demand	are	balanced • Oversees	provincial	and	regional electricity	planning,	which	includes consideration	of	CDM	to	manage demand	growth	or	defer	the	need	for major	infrastructure	in	a	local	area • Administers	the	wholesale	electricity markets • Administers	the	DR	auction • Provides	oversight	of	the	CDM portfolio	for	electricity • Designs	and	delivers	some	province- wide	CDM	programs	for	electricity • Supports	LDCs	in	designing	CDM programs	for	electricity • Provides	funding	for	LDCs	to	pilot innovative	CDM	program	ideas • Makes	strategic	CDM	investments through	the	Conservation	Fund • Provides	central	support	services	to LDCs • Works	with	gas	utilities	on	areas	of common	interest • Manages	CDM	programs	for transmission-connected	customers  10  • Manages	centrally	delivered	CDM	 programs	(Whole	Home	Program,	 Energy	Performance	Program	and	 training	incentives)	 Local	Distribution	Companies	(Electric)	 • Work	with	the	IESO	to	design	and	 deliver	CDM	programs	for	electricity	 • Work	directly	with	customers	on	CDM	 projects		 Channel	Partners	 • Cross-sell	CDM	programs	with	other	 products,	e.g.,	lighting	and	HVAC	 • Provide	input	and	feedback	that	may	 be	considered	in	the	design	of	CDM	 programs	 • Provide	energy	services	to	customers	 • Deliver	CDM	programs	under	contract	 with	LDCs	and/or	the	IESO	 Delivery	Agents	 • Deliver	CDM	programs	to	customers	on	 behalf	of	LDCs	and/or	the	IESO	 Municipal	Governments	 • Develop	corporate	and	community	 energy	plans	 • Provide	input	into	regional	energy	 plans	 • Develop	and	implement	policy	 • Show	conservation	leadership	 Non-governmental	Organizations	(NGOs)	 • Promote	CDM	programs	and	provide	 services	to	their	customers	 Canadian	Standards	Association	 	 • Develops	energy-efficiency	product	 standards	 Natural	Resources	Canada	(NRCan)	 • Administers	federal	Energy	Efficiency	 Regulations	which	establish	energy	 efficiency	standards	for	energy-using	 products	 • Oversees	the	ENERGY	STAR®	initiative,	 a	voluntary	partnership	between	the	 Government	of	Canada	and	industry	to	 promote	energy	efficiency	 Local	Distribution	Companies	(Gas)	 • Design	and	deliver	DSM	programs	for	 natural	gas	conservation	 • Work	directly	with	customers	on	DSM	 11 projects	 Indigenous	Communities	 • Develop	community	energy	plans • Provide	input	into	regional	electricity plans Most	activity	related	to	energy	conservation	in	Ontario	has	stemmed	from	government	policy	 in	one	way,	shape	or	form.	The	Ontario	Ministry	of	Energy	sets	broad	energy	policy,	but	works	 closely	with	other	ministries,	including	the	Ontario	Ministry	of	the	Environment	and	Climate	 Change,	as	well	as	other	agencies,	organizations	and	stakeholder	groups.	 As	noted	above,	2015	marked	the	start	of	a	new	approach	to	CDM	for	electricity	in	Ontario,	 with	the	launch	of	the	2015-2020	Conservation	First	Framework	(CFF).	This	framework	had	its	 origins	in	the	government’s	2013	Long-Term	Energy	Plan	(LTEP),	released	on	December	2,	2013.	 The	2013	LTEP	set	a	long-term	conservation	target	of	30	terawatt-hours	(TWh)	in	2032,	which	 represents	a	16-percent	reduction	in	the	forecast	gross	demand	for	electricity	compared	to	the	 2010	LTEP.17	 Conservation	First	Framework	 While	it	excludes	energy	savings	attributable	to	planned	changes	to	building	codes	and	product	 standards,	the	CFF	consolidates	many	of	the	province’s	planned	actions	in	support	of	energy	 conservation	goals	over	a	six-year	period.	It	emphasizes	the	importance	of	a	coordinated	effort	 at	all	stages	of	the	energy	planning	process,	as	well	as	more	effective	collaboration	among	 sector	partners	(especially	the	province’s	60+	LDCs)	and	between	the	gas	and	electricity	sectors.	 The	overarching	goal	of	the	CFF	is	to	reduce	energy	consumption	by	7	TWh	through	 conservation	programs	delivered	by	LDCs	to	residential	and	business	customers	across	the	 province	by	December	31,	2020.	An	additional	1.7	TWh	of	energy	savings	are	to	be	achieved	 through	conservation	projects	undertaken	by	transmission-connected	customers	under	the	 Industrial	Accelerator	Program	(IAP)	banner,	for	which	the	IESO	has	sole	responsibility.18	 With	a	total	budget	of	$2.2	billion,	the	framework	includes	an	expanded	role	for	LDCs	 compared	to	previous	frameworks.	Another	key	difference	between	the	CFF	and	the	2011-2014	 framework	is	that	there	are	no	demand	reduction	targets	under	the	CFF.	Instead,	each	LDC	is	 assigned	a	share	of	the	budget,	and	the	7	TWh	energy	savings	target,	which	they	can	pursue	 individually	or	in	partnership	with	other	LDCs.	 To	support	LDCs	in	the	delivery	of	conservation	programs,	the	IESO	provides	central	services	 including	evaluation,	measurement	and	verification	(EM&V);	market	research;	capability	 17 http://www.energy.gov.on.ca/en/files/2014/10/LTEP_2013_English_WEB.pdf   18 http://ieso.ca/-/media/files/ieso/document-library/ministerial-directives/2014/20140725-industrial- accelerator-program.pdf    12  building	(including	training);	administrative	infrastructure;	and	technical	support.	It	also	designs	 and	delivers	certain	province-wide	CDM	programs.	 The	IESO	provides	these	tools,	support	and	guidance	to	LDCs	to	help	them	meet	their	targets,	 as	outlined	in	six-year	Conservation	and	Demand	Management	(CDM)	plans	submitted	to	the	 IESO	by	each	LDC.	These	plans	enable	LDCs	to	design	and	manage	their	own	program	offerings,	 giving	them	greater	flexibility	to	align	conservation	programs	with	local	needs	and	providing	 more	customer	choice.	The	CFF	also	delivers	long-term,	stable	funding,	which	gives	LDCs	 greater	certainty	as	they	design	and	deliver	the	programs	described	in	their	CDM	plans.		 Through	recommendations	from	customers,	stakeholders,	LDC	working	groups,	and	the	EM&V	 process,	program	enhancements	are	continuously	implemented	to	ensure	current	program	 offerings	meet	LDC,	customer	and	system	needs	across	the	province.	 Collaboration	is	a	key	focus	of	the	CFF	and	helps	to	distinguish	it	from	previous	frameworks.	 With	a	view	to	maximizing	efficiencies	and	minimizing	costs,	the	IESO	works	closely	with	LDCs,	 which	are	also	encouraged	to	partner	with	other	LDCs	to	meet	energy	reduction	targets	and	 achieve	efficiencies	in	program	delivery.		 Another	key	difference	between	the	frameworks	is	that	only	incremental	energy	savings	are	 counted	under	the	CFF.	LDCs	will	only	be	credited	for	savings	that	persist	to	the	end	of	the	 framework	(2020).	In	practical	terms,	even	if	projects	deliver	savings	for	the	first	three	years,	 they	will	not	count	towards	the	LDCs’	targets	if	they	do	not	persist	to	2020.	This	approach	to	 target	allocation	and	attribution	can	be	viewed	as	better	for	the	ratepayer,	as	LDCs	exercise	 greater	due	diligence	to	determine	which	projects	they	fund.		 With	an	emphasis	on	transparency,	inclusivity,	accountability,	collaboration	and	efficiency,	the	 Conservation	First	Implementation	Committee	(CFIC)	supports	the	enhancement	of	existing	 province-wide	programs	and	the	development	of	new	province-wide	programs	in	order	to	meet	 provincial	conservation	targets	in	the	most	cost-effective	way	possible.		 Comprising	representatives	from	the	IESO,	LDCs,	natural	gas	companies,	the	Ministry	of	Energy,	 the	Ontario	Energy	Board	(OEB)	and	the	Electricity	Distributors	Association	(EDA),	the	CFIC	 establishes	processes	and	provides	oversight	to	LDC	working	groups	that	help	in	the	design	of	 cost-effective,	customer-centric	and	results-driven	programs.		 In	addition,	the	CFIC	provides	recommendations	on	the	adoption	of	proposed	new	province- wide	programs	and	potential	program	enhancements,	and	monitors	province-wide	program	 results	and	LDC	progress	towards	target	achievement.	It	also	helps	to	develop	new	tools	and	 services,	and	provides	limited	guidance	and	input	to	the	IESO	related	to	potential	revisions	to	 the	allocation	of	targets	and	budgets	among	LDCs.19	 One	of	the	most	important	enhancements	made	in	the	development	of	the	CFF	was	to	increase	 LDC	flexibility	with	respect	to	program	design	and	delivery.	Compared	to	the	2011-2014	 																																																													 19 http://ieso.ca/-/media/files/ieso/document-library/conservation/cfic/cfic-and-working-groups- charter.pdf -- page 1   13  framework,	LDCs	have	substantially	greater	latitude	to	choose	which	programs	work	best	in	 their	own	service	territories.		 As	a	result,	in	addition	to	offering	standard,	province-wide	programs,	many	LDCs	have	 introduced	local	programming	options	that	are	closely	aligned	with	their	customer	base,	load	 profile	and	conservation	priorities	–	including	programs	related	to	swimming	pool	efficiency,	 home	energy	reports,	Wi-Fi-enabled	smart	thermostats,	variable-frequency-drive	pumps	for	 agricultural	uses	and	others.	 Further	information	on	CFF	programs,	including	early	results	and	key	programs,	can	be	found	in	 the	Policies	and	Strategies	section	of	this	chapter.	 Market	Transformation	 With	a	view	to	maximizing	the	energy,	employment,	economic	and	environmental	benefits	of	 conservation,	the	IESO	has	taken	a	market	transformation	approach	to	promoting,	facilitating	 and	driving	conservation	in	Ontario.	This	process	takes	a	strategic,	long-term	view	of	the	 market	and	the	cost-effectiveness	of	energy	conservation	measures.	It	includes	interventions	 designed	to	identify	and	reduce	barriers	to	participation;	leverage	new	opportunities	and	new	 technologies;	accelerate	the	adoption	of	energy-efficient	products,	services,	practices	and	 measures;	and	drive	enduring	changes	in	behaviour	–	not	just	on	the	part	of	energy	consumers	 but	the	market	itself.	 To	accelerate	this	market	transformation,	many	of	the	CDM	programs	delivered	in	Ontario	 involve	not	just	LDCs,	customers	and	the	IESO	–	but	also	other	“channel	allies.”	These	third	 parties	may	include	manufacturers,	distributors,	retailers,	consultants,	engineers,	contractors,	 electricians,	technologists	and	other	individuals	or	organizations	involved	in	the	sales,	service	or	 installation	of	energy-efficient	equipment.	As	a	result	of	the	close	relationship	they	share	with	 their	customers,	these	trusted	partners	are	becoming	an	increasingly	important	channel	 through	which	to	more	deeply	engage	electricity	consumers,	increase	program	participation	 and	maximize	energy	savings.	 Conservation	Fund	 The	IESO’s	Conservation	Fund	is	another	important	player	in	the	CDM	space,	serving	as	a	key	 incubator	of	new	ideas,	technologies	and	solutions.	Created	in	2005,	the	Conservation	Fund	 supports	innovative	conservation	technologies,	practices,	research	and	programs	that	have	the	 potential	to	deliver	significant	energy	savings.	It	seeks	projects	that	will	lead	to	large-scale	 transformation	in	the	marketplace	or	a	change	in	consumer	behaviour,	demonstrate	the	 energy-saving	potential	of	emerging	technologies	and	investigate	novel	conservation	concepts.		 Since	2005,	the	Conservation	Fund	has	provided	financial	support	for	more	than	200	innovative	 energy	projects	across	Ontario,	some	of	which	have	evolved	from	pilots	to	province-wide	 programs.	The	fund	has	invested	more	than	$52	million,	leveraging	an	additional	$142	million	 from	applicants	and	partners.		 One	of	the	more	interesting	projects	receiving	support	from	the	Conservation	Fund	in	recent	 years	is	the	POWER.HOUSE,	which	was	initiated	by	a	local	utility	(PowerStream,	now	known	as	 14 Alectra)	to	study	the	feasibility	of	distributed	energy	resources	as	an	alternative	to	the	 traditional	wires	solution	for	delivering	electricity	to	the	customers.	The	funding	has	enabled	 the	LDC	to	pilot	a	Virtual	Power	Plant	using	residential	solar-storage	technology	with	20	 residential	customers	within	its	service	territory.	The	data	generated	will	enable	the	LDC	and	 the	IESO		to	evaluate	the	customer,	conservation,	grid	and	utility	business	benefits	of	 integrated	solar-storage	systems.20	 Several	other	themes	have	dominated	recent	Conservation	Fund	applications	and	inquiries.	For	 example,	there	is	a	growing	interest	in	heat	pumps,	especially	among	customers	with	existing	 electric	baseboard	heating,	and	from	residential	real	estate	developers	who	see	heat	pumps	as	 a	key	enabling	technology	for	meeting	net	zero	energy	and	other	high-performance	building	 standards	in	the	Canadian	climate.			 Other	recent	proposals	have	focused	on	microgrids	and	district	energy	systems	–	an	 increasingly	attractive	model	for	municipalities,	universities	and	other	energy	users	with	 multiple	buildings,	a	commitment	to	environmental	sustainability	and	a	critical	need	for	an	 uninterrupted	supply	of	power.	In	addition	to	the	potential	cost	savings	associated	with	 producing	their	own	electricity,	many	of	these	consumers	are	keen	to	enhance	their	resilience	 against	outages	caused	by	extreme	weather	events	and	other	circumstances.	 Social	benchmarking	is	another	conservation	tool	that’s	showing	promise	in	Ontario.	In	the	 context	of	electricity	usage,	social	benchmarking	enables	users	to	compare	their	electricity	 usage	with	other	(similar)	users’.	In	some	cases,	participating	customers	receive	detailed	home	 energy	reports,	enabling	them	to	monitor,	track,	compare	and	reduce	their	energy	usage.		 Three	social	benchmarking	pilots	that	received	support	from	the	Conservation	Fund	in	recent	 years	enabled	residential	customers	to	compare	their	household’s	energy	consumption	against	 that	of	similar	homes	in	their	neighbourhood,	which	often	resulted	in	a	drop	in	consumption.		 LDC	Innovation	Fund	 The	IESO	also	supports	LDC-led	program	design	and	market	testing	of	new	initiatives	through	 the	central	services	budget.	Testing	and	learning	from	small-scale	pilot	programs	will	contribute	 to	the	success	and	cost	effectiveness	of	the	full-scale	launch	of	a	new	program.	Through	the	 piloting	process,	LDCs	have	the	opportunity	to	market	test	the	delivery	mechanisms	and	savings	 realization	of	new	program	offerings	before	including	them	in	their	CDM	plan	and	budget.	This	 reduces	the	program	performance	risk	to	the	LDC	and	allows	the	LDC	to	fine-tune	delivery	 options	on	a	smaller	scale.	 The	IESO	has	funded	more	than	30	pilots	through	the	LDC	Innovation	Fund	and	submissions	are	 ongoing.	Participating	LDCs	have	developed	pilots	for	residential,	commercial,	industrial,	 institutional	and	multi-residential	customers	using	technologies	that	include	smart	thermostats,	 air	source	heat	pumps,	rooftop	heating,	ventilation	and	air	conditioning	system	controllers,	 solar-powered	attic	fans	and	Electrically	Commutated	Motor	(ECM)	fan	retrofits	in	existing	 home	furnaces,	among	other	funded	projects.	 20 http://blog.powerstream.ca/2015/09/powerstream-offer-unique-residential-solar-storage-program/   15  Industrial	Conservation	Initiative	 As	important	as	formal,	incentivized	CDM	programs	and	other	funding	mechanisms	are,	they	do	 not	represent	the	only	option	available	to	the	IESO	to	reduce	energy	consumption	in	the	 province.	In	addition,	the	IESO	has	a	full	suite	of	other	tools	available	–	including	demand	 response	(DR).	 Amendments	to	the	Electricity	Act,	1998,	enabled	the	creation	of	the	Industrial	Conservation	 Incentive,	or	ICI,	which	is	administered	by	the	IESO.	The	ICI	is	a	form	of	voluntary	DR.	Customers	 that	choose	to	participate	in	the	program,	referred	to	as	Class	A,	are	charged	the	global	 adjustment	based	on	their	percentage	contribution	to	the	top	five	peak	Ontario	demand	hours	 over	a	12-month	base	period.	The	global	adjustment	is	a	financial	mechanism	used	to	recover	 the	costs	associated	with	investments	in	conservation	and	generation,	and	is	charged	to	all	 electricity	consumers	in	Ontario	in	different	ways.	Class	A	customers	that	take	action	and	shift	 their	consumption	away	from	the	peak	hours	can	reduce	their	price	exposure	and	total	energy	 costs	quite	significantly.		 The	initiative	was	introduced	by	the	government	in	2010	to	encourage	load	shifting	and	provide	 opportunity	for	rate	relief	to	large-volume	industrial	electricity	customers.	Initially	they	were	 required	to	have	an	average	monthly	peak	demand	greater	than	5	MW,	but	program	eligibility	 has	been	expanded	several	times	with	the	threshold	for	participation	now	sitting	at	500	 kilowatts	(kW)	for	certain	designated	consumers.21		 In	addition	to	offering	advantages	to	customers,	the	ICI	is	making	a	material	difference	to	the	 province	as	a	whole	by	reducing	peak	demand	and	deferring	the	need	to	build	costly	new	 generation	or	transmission	resources.	Although	other	factors	must	be	considered	when	making	 year-over-year	comparisons	of	peak	demand	–	including	the	effects	of	embedded	generation,	 which	reduces	demand	for	grid-supplied	energy,	and	structural	changes	to	the	economy	that	 have	reduced	the	province’s	energy	intensity	–	the	ICI	is	clearly	having	the	desired	effect	of	 incentivizing	large	loads	to	shift	their	consumption	away	from	peak	hours.	In	2016,	peak	 demand	was	reduced	by	approximately	1,000	MW	as	a	result	of	actions	taken	by	Class	A	 customers	through	the	ICI	program.	 Other	Demand	Response	Programs	 In	its	role	as	market	and	system	operator,	the	IESO	considers	DR	an	important	tool	that	 contributes	to	reliability.	By	the	early	2000s,	the	IESO	had	already	introduced	several	DR	 programs	for	participants	in	Ontario.	These	included	the	Emergency	Demand	Reduction	 Program,	Hour	Ahead	Demand	Response,	Transitional	Demand	Response	Program	and	the	 Emergency	Load	Reduction	Program.	The	IESO	also	facilitated	the	integration	of	dispatchable	 loads	into	the	Ontario	energy	market.	The	various	programs	had	different	guiding	principles,	 operational	objectives,	eligibility	criteria	and	activation	triggers,	but	all	helped	–	in	different	 ways	–	to	support	reliability	when	supply	was	tight.		 																																																													 21 ICI eligibility requirements are established in O. Reg. 429/04  (https://www.ontario.ca/laws/regulation/040429)    16  Although	the	programs	mentioned	above	were	discontinued	as	the	province’s	needs	changed,	 Ontario’s	dispatchable	loads	can	still	reduce	their	demand	for	electricity	by	more	than	450	MW.			 DR	in	Ontario	has	continued	to	evolve	over	the	past	decade	or	more.	Through	ministerial	 directives	issued	in	2005	and	2006,	the	OPA	was	required	to	procure	up	to	500	MW	of	DR,	 which	resulted	in	the	creation	of	three	DR	programs:	DR1,	DR2	and	DR3.22	DR1	–	a	voluntary	 load-shedding	program	–	was	eventually	discontinued,	as	was	DR2,	a	mandatory	load-shifting	 program.		 DR3,	a	mandatory,	contract-based	program	evolved	into	the	Capacity-Based	Demand	Response	 (CBDR)	program,	a	transitional	program	that	brings	DR3	participants	into	the	wholesale	 electricity	market.	This	program,	which	currently	represents	159	MW	of	DR	capacity,	provides	 availability	and	utilization	payments	to	both	aggregated	and	individual	loads	that	can	reduce	 their	consumption	at	times	of	peak	demand	and	when	it	is	economic	for	them	to	do	so.	These	 resources	are	considered	in	the	IESO’s	economic	dispatch	process	alongside	bids	from	 dispatchable	loads	and	offers	from	other	resources.		 The	DR	capacity	within	the	CBDR	program	will	decline	over	time	as	contracts	expire	and	 participation	in	the	transitional	program	comes	to	an	end.	As	this	capacity	expires,	participants	 will	have	the	opportunity	to	compete	against	other	providers	of	DR	capacity	through	the	IESO’s	 DR	auction,	a	competitive	process	through	which	demand-side	resources	are	selected	to	be	 available	to	reduce	their	electricity	consumption	during	defined	periods.	The	DR	auction	is	an	 annual	event	that	was	implemented	in	December	2015.		 Further	down	the	road,	following	a	planned	redesign	of	Ontario’s	wholesale	market	over	the	 next	four	to	six	years,	these	demand-side	resources	are	expected	to	compete	against	other	 resource	types	–	including	generation	and	imports	–	in	a	capacity	auction	to	meet	Ontario’s	 resource	adequacy	needs.	 Development	of	an	incremental	capacity	auction	that	can	accommodate	a	range	of	resource	 types	–	on	the	supply	side	and	the	demand	side	–	is	one	of	the	priorities	of	the	IESO’s	Market	 Renewal	program,	a	coordinated	set	of	projects	that	will	result	in	a	fundamental	redesign	of	 Ontario’s	electricity	markets.	When	fully	implemented,	it	will	provide	increased	opportunities	 for	all	participants	in	Ontario’s	electricity	market,	with	greater	competition,	flexibility	and	 transparency	resulting	in	efficiency	gains	for	the	entire	sector,	including	customers	and	 suppliers.		 These	efforts	are	part	of	the	IESO’s	long-term	focus	on	delivering	superior	reliability	 performance	in	a	changing	environment	and	driving	to	a	more	efficient	and	sustainable	 marketplace.	 The	DR	auction	is	already	having	the	desired	effect	of	attracting	DR	new	entrants	and	driving	DR	 prices	down.	Compared	to	the	prices	set	during	the	first	auction	in	2015,	clearing	prices	for	the	 2016	auction	fell	sharply:	a	12-percent	decrease	for	the	summer	commitment	period	and	a	17- 																																																													 22 https://eco.on.ca/reports/2009-energy-report-vol-1-rethinking-energy-conservation-in-ontario/   17 percent	decrease	for	the	winter	commitment	period,	reflecting	meaningful	competition	 between	existing	resources	and	new	entrants.23	 Conservation	and	Electricity	Planning	 Electricity	planning	in	Ontario	happens	at	various	levels:	provincial,	regional	and	local.	While	 there	are	intersections	between	and	among	the	various	plans	that	are	developed	and	 implemented,	each	type	of	planning	has	its	own	requirements,	considerations,	processes	and	 stakeholders.		 At	the	provincial	level,	planning	focuses	on	the	flow	of	power	across	the	province.	This	bulk	 electricity	system	delivers	power	to	regional	systems,	which	in	turn	deliver	power	to	 transmission-connected	customers	and	local	distribution	companies	in	the	region.	At	this	level,	 province-wide	conservation	programs	and	targets	are	considered	in	planning.	 Regional	planning	is	the	process	of	identifying	and	meeting	electricity	needs	for	a	specific	local	 area	and	integrates	local	electricity	priorities	and	customer	needs	(e.g.,	community	energy	 planning)	with	provincial	policy	directions,	including	those	outlined	in	the	Long-Term	Energy	 Plan,	as	well	as	system	needs.	 Regional	planning	has	been	conducted	on	an	as-needed	basis	in	Ontario	for	many	years.	In	 2010,	the	OEB	concluded	that	a	structured	approach	to	regional	planning	was	required.24	In	 2013,	this	process	was	formalized.25		 To	ensure	communities	in	Ontario	have	a	safe,	reliable	source	of	electricity	supply,	the	IESO	 works	closely	with	transmitters,	distributors,	customers,	communities	and	other	affected	 stakeholders	to	develop	20-years	electricity	plans	for	many	regions	across	Ontario.	These	plans	 identify	electricity	needs	that	could	arise	within	a	20-year	timeframe;	consider	infrastructure,	 generation,	conservation	programs,	DR,	distributed	energy	resources,	and/or	other	provincial	 supply	resources;	and	develop	near-term	and	longer-term	recommended	actions.	Regional	 planning	is	an	ongoing	process,	with	each	region’s	electricity	plan	revisited	every	five	years	at	 minimum.	 As	part	of	the	regional	planning	process,	LDCs,	the	IESO	and	the	transmitter	work	 collaboratively	to	explore	potential	applications	of	CDM	that	could	alleviate	local	constraints	 and	defer	(or	eliminate)	the	need	for	costly	investment	in	wires-based	infrastructure.		 There	is	no	single	demand-side	measure	that’s	effective	or	appropriate	in	all	areas.	Every	 community’s	electrical	infrastructure,	load	characteristics,	building	stock	and	customer	 demographics	are	different.	As	a	result,	the	feasibility	of	CDM	solutions	must	be	undertaken	 and	evaluated	in	a	way	that’s	site-	and	case-specific.	What	works	in	one	area	may	not	be	viable	 – or	even	appropriate	–	somewhere	else	in	the	province. 23 http://www.ieso.ca/en/corporate-ieso/media/news-releases/2016/12/ieso-announces-results-of-demand- response-auction   24 https://www.oeb.ca/industry/policy-initiatives-and-consultations/renewed-regulatory-framework- electricity   25 https://www.oeb.ca/industry/tools-resources-and-links/information-regional-infrastructure-planning   18 Currently	there	is	limited	data	to	assess	the	cost	and	viability	of	targeted	demand-side	solutions	 such	as	targeted	demand	response,	energy	storage,	small	scale	generation	and	other	 distributed	energy	resources	at	a	local	level	(e.g.,	at	the	transformer	station	level.	With	the	 support	of	the	Conservation	Fund,	local	achievable	potential	studies	(which	assess	the	 conservation	potential	of	a	particular	area)	are	in	the	works	in	several	parts	of	the	province.	 When	complete,	these	local	achievable	potential	studies	should	provide	valuable	data	that	can	 be	leveraged	by	LDCs	and	the	IESO	to	determine	whether	CDM	solutions	are	technically	feasible	 and	cost-competitive	in	those	specific	areas.		 Local	planning,	by	contrast,	is	typically	carried	out	by	the	LDC	and	focuses	on	delivering	power	 from	the	regional	system	to	individual	homes	and	businesses.	As	part	of	this	process,	LDCs	work	 to	achieve	their	individual	conservation	targets	and	assist	municipalities	in	community	energy	 planning.	 19 Leveraging	the	Value	of	Smart	Meter	Data	 Access	to	good	data	is	a	growing	focus	in	Ontario.	As	is	the	case	in	other	jurisdictions	around	 the	world	where	investments	are	being	made	in	smart	grid	infrastructure,	the	increased	 digitalization	of	Ontario’s	grid	is	starting	to	enable	better	coordination,	communication,	 analytical	capability	and	asset	management.		 Ontario	took	an	early	lead	in	the	development	of	a	smart	grid	by	mandating	the	installation	of	 smart	meters	and	the	transition	to	time-of-use	prices.	Some	4.7	million	smart	meters	were	 installed	in	homes	and	small	businesses	earlier	this	decade	and	are	now	sending	enormous	 quantities	of	energy	consumption	data	to	a	centralized	database	known	as	the	Meter	Data	 Management/Repository	(MDM/R),	which	is	managed	by	the	IESO	in	its	role	as	the	Smart	 Metering	Entity.	26		 Although	most	LDCs	in	the	province	have	been	using	the	MDM/R	for	billing	purposes,	the	true	 value	of	the	data	it	contains	remains	largely	untapped.	At	the	direction	of	the	OEB27,	the	IESO	 has	begun	collecting	enhanced	data,	and	is	working	with	stakeholders	to	explore	ways	to	 extract	the	full	value	of	Ontario’s	smart	meter	data	while	ensuring	all	customer	privacy	 provisions	are	protected.		 A	Data	Strategy	Advisory	Council	was	created	in	mid-2017	to	provide	input	into	the	review	and	 development	of	products	and	processes	for	the	implementation	of	third-party	access	to	this	 data.	With	representation	from	LDCs,	municipalities,	gas	and	water	companies	and	various	 other	service	providers,	this	group	will	help	define	the	path	forward.	In	addition	to	exposing	 opportunities	for	the	public	and	private	sectors	to	develop	new	products,	services	and	 technologies,	the	data	captured	in	the	MDM/R	could	be	used	to	further	refine	Ontario’s	CDM	 program	offerings.	 26 The IESO’s role as SME is established in O. Reg. 393/07  (https://www.ontario.ca/laws/regulation/070393)   27 http://www.rds.ontarioenergyboard.ca/webdrawer/webdrawer.dll/webdrawer/rec/552233/view/dec_orde r_es_SME_20161124.PDF   20  Codes	and	Standards	 Turning	to	other	CDM	activity	in	Ontario	that’s	not	incented,	administered	or	overseen	by	the	 IESO,	codes	and	standards	are	another	important	contributor	to	energy	conservation,	 representing	approximately	one-third	of	total	energy	savings.	Appliance	and	product	standards	 in	Ontario28	apply	to	household	and	commercial	appliances	such	as	water	heaters,	furnaces	and	 other	space	heating	equipment,	air	conditioners,	lamps	and	other	lighting	products,	motors,	 pumps,	electronic	equipment	and	other	related	products.	The	federal	government	also	 regulates	equipment	standards.	 For	new	houses	and	large	buildings,	the	energy-efficiency	requirements	contained	in	Ontario’s	 Building	Code,	administered	by	the	Ministry	of	Municipal	Affairs	and	Housing,	are	among	the	 most	rigorous	in	North	America.	With	every	iteration	of	the	Code,	requirements	related	to	 energy	performance	have	been	strengthened	for	new	construction.	Two	CDM	programs	within	 the	CFF	are	designed	around	the	Code,	and	provide	incentives	to	customers	that	bring	their	 homes/buildings	above	and	beyond	the	requirements	of	the	Code	(New	Home	Construction	 and	High	Performance	New	Construction).	 Unlike	new	buildings,	there	are	no	energy-efficiency	requirements	for	retrofitting	existing	 buildings.	Like	other	provinces	and	territories,	Ontario	is	watching	developments	at	the	federal	 level	with	interest.	Energy-efficiency	requirements	are	being	considered	for	existing	buildings	 and,	potentially,	a	National	Energy	Retrofit	Code	for	Buildings	that,	once	available,	could	be	 voluntarily	adopted	by	provinces	as	part	of	their	energy-efficiency	regulations.		 Although	the	energy-efficiency	requirements	contained	in	Ontario’s	Building	Code	are	 progressive	by	North	American	standards,	when	viewed	from	an	international	perspective,	they	 fall	slightly	behind	other	leading	European	jurisdictions.	As	indicated	in	the	Government	of	 Ontario’s	2016	Climate	Change	Action	Plan,	however,	the	Ontario	Building	Code	is	moving	 towards	net	zero	carbon	emission	homes	and	small	buildings	by	2030.29	Further	information	on	 codes	and	standards	can	be	found	in	the	Legal/Regulatory	section	of	this	chapter.	 	 	 																																																													 28 Appliance and product standards in Ontario are captured under O. Reg. 404/12, under the Green  Energy Act, 2009 (https://www.ontario.ca/laws/regulation/120404)   29 https://www.ontario.ca/page/climate-change-action-plan#section-5    21  Policies	and	Strategies	 In	Ontario,	conservation	goals,	targets	and	priorities	are	factored	into	energy	policy	and	 planning	at	different	points	–	most	importantly	during	the	long-term	planning	process.	The	 Minister	of	Energy	is	responsible	for	issuing	a	long-term	energy	plan30	that	sets	out	the	 Government	of	Ontario’s	goals	and	objectives	with	respect	to	energy	–	a	process	that	replaces	 the	Integrated	Power	System	Plan	framework	under	which	the	IESO,	OEB	and	other	 stakeholders	previously	operated.	 Ontario	produced	its	first	Long-Term	Energy	Plan	in	2010,	which	was	reviewed	and	updated	in	 2013	with	input	from	residents,	businesses	and	other	stakeholders	in	communities	across	 Ontario.	The	government	also	issued	a	discussion	paper	in	2013	entitled	Conservation	First:	A	 Renewed	Vision	for	Energy	Conservation	in	Ontario.	In	this	document,	the	government	reaffirms	 its	commitment	to	prioritizing	conservation	in	energy	planning,	stating	conservation	should	be	 the	first	resource	considered	in	meeting	Ontario’s	electricity	needs.31	 Ontario’s	latest	Long-Term	Energy	Plan	is	expected	to	be	released	in	the	fall	of	2017.	The	 government	has	indicated	five	principles	will	guide	decision-making	related	to	the	2017	plan:	 affordability,	reliability,	clean	energy,	community	and	Indigenous	engagement,	and	 conservation	and	demand	management.	 	 Ontario	Planning	Outlook	 As	required	by	legislation,	the	IESO	provided	a	technical	report	to	inform	government	planning	 and	prioritization.	Published	on	September	1,	2016,	the	IESO’s	Ontario	Planning	Outlook	 (OPO)32	is	a	technical	report	that	provides	a	10-year	review	(2005-2015)	and	a	20-year	outlook	 (2016-2035)	for	Ontario’s	electricity	system.	This	sweeping	report	covers	a	broad	range	of	 considerations,	including	costs,	conservation	and	demand	management,	supply	resources	 (including	energy	storage),	capacity,	reliability,	market	and	system	operations,	transmission	and	 distribution,	and	emissions	from	the	electricity	sector.	 The	OPO	examines	how	conservation	and	other	low-carbon	resources	can	support	reliable	and	 efficient	operations	over	a	range	of	possible	demand	outlooks.	Each	of	the	four	demand	 scenarios	assumes	the	achievement	of	three	key	targets	set	in	the	2013	LTEP:		 - 30	TWh	of	total	energy	savings	by	2032	 - 7	TWh	of	energy	savings	through	LDC	programs	delivered	under	the	CFF	and	1.7	TWh	of	 savings	through	the	IAP	by	2020	 - demand	response	to	meet	10	percent	of	peak	demand	by	2025.	 																																																													 30 The Ministry of Energy’s role is enshrined in the Energy Statute Law Amendment, S. O. 2016 c. 10 (also  known as Bill 135 (https://www.ontario.ca/laws/statute/S16010)  31 http://www.energy.gov.on.ca/en/files/2014/09/conservation-first-en.pdf  page 4  32 http://www.ieso.ca/sitecore/content/ieso/home/sector-participants/planning-and-forecasting/ontario- planning-outlook    22  It	delves	into	the	many	factors	that	are	expected	to	impact	demand	for	electricity	over	the	next	 20	years,	including	population	growth,	commercial	and	industrial	sector	activity

Sumita Mitra · Accepted Answer

5
Energy system in British Columbia, Canada:
Introduction:
British Columbia is the province in Canada which is blessed with abundance of hydropower availability and infrastructure. In fact, so much so that close to 91% of electricity is produced from hydropower in this province. One of the largest producers being BC Hydro and caters to around 95% of the population in the BC province. As far as the infrastructure is concerned the province has binary power plants and is generated in closed loop so that there is no release of emissions. In this province, primarily, most systems are “public utilities” and regulated by the BC Utilities Commission unless the services are provided by the local government. Various other smaller players also operate and produce electricity through hydroelectric plant and other facilities like solar, biomass and wind. The company that is used as a reference for this case study discussion is BC Hydro.
(Graph taken from: Energy BC)
Primary and secondary energy supplies in BC Hydro:
BC hydro caters to almost entire population in this province. The primary energy supplies being electricity needs of the people which is generated from hydroelectricity. The organisation do not decide on their electricity rates. It is in fact regulated by the BC utilities commission, which actually control the electricity distribution and logistics along with the sale on behalf of BC hydro. The secondary supplies of power also happen from wind, solar and biomass facilities in the province. The focus is also on to increase the proportion of renewable energy,

Instructions Prepare a case study on an energy system in British Columbia, Canada, encompassing all of the four components (primary and secondary energy supplies, distribution and demand-side...

Answer To: Instructions Prepare a case study on an energy system in British Columbia, Canada, encompassing all...

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