Ontario Energy Storage System Interconnection Modernization
By Stem, Inc.
January 25, 2019
Energy Storage Solutions (ESS) are a rapidly emerging technology that offers electricity consumers a cost-effective and flexible energy management option. ESS deployed as a load displacement resource can give customers control of their consumption profiles to reduce electricity costs along with meeting their electricity service needs.
The regulatory framework for the connection of ESS in Ontario restricts the deployment of load displacement ESS for electricity consumers in the province, specifically due to:
- Unpredictable treatment by Local Distribution Companies (LDCs);
- Lack of definition of energy storage resources or their treatment by LDCs in the Distribution System Code (DSC);
- Inconsistent application of the load displacement exclusion from the DSC; and
- Contradictions with the Conservation First Framework.
Based on Stem’s robust experience in advanced energy storage for commercial and industrial facilities, ESS can offer significant advantages to Ontario electricity consumers. To unlock the full value of energy storage, Stem has the following recommendations for Ontario’s regulatory framework with respect to connections to the grid:
1. Define a separate LDC responsibility for the treatment of energy storage in the DSC;
2. Require consistent treatment of load displacement resources across Ontario;
3. Establish an expediated connection process for load displacement resources;
4. Require LDCs to develop resources to aid siting of distributed energy resources in their service territory; and
5. Clarify connection cost responsibility for customer load reduction activities.
The recommendations will allow Ontario’s electricity consumers to lower their electricity costs and serve their evolving energy needs to meet the challenges of the future.
Stem prepared the following report on best practices for the safe and reliable interconnection of energy storage systems for the Ontario Energy Board. Read more here.