Electricity Fundamentals on Canada (EFiC) - Student Manual

Electricity Canada’s

Electricity Fundamentals in Canada Student Handbook Electricity Fundamentals in Canada

Electricity Canada | Electricity Fundamental in Canada: Student Handbook

ABOUT THE COURSE This course aims to provide a variety of electricity stakeholders with a high-level, cross-cutting overview of the entire industry, ranging from nomenclature, to what the future of the industry might look like, through electricity fundamental concepts.

The course consists of a total of nine (9) responsive e-learning micro-modules in Rise 360, as well as a pre-assessment that Electricity Canada may use in the future. Each module will include a 10-question final assessment in which learners must score 100% to successfully complete.

Although the content presentation will be driven by visual and textual elements, each module will also include audio segments, which will serve to provide a general presentation or definition of the major concepts of the module. Besides, each module will feature interactivity mechanics and validation exercises, to foster engagement on one hand, and to allow learners to validate their understanding of the content presented throughout their progression.

Overall Learning Objectives: •

Explain how the electricity industry works in Canada and the role of the Electricity Canada

•

List and present the various sectors of the electricity lifecycle and the role of the related stakeholders: •

Generation

•

Transmission

•

Distribution

•

Associate specific tasks and material to the corresponding sector of the electricity lifecycle

•

Present industry focus areas

•

Identify the various industry stakeholders

•

Correctly use the industry’s terminology

Electricity Canada | Electricity Fundamental in Canada: Student Handbook

TABLE OF CONTENTS Module 1: Introduction to Electricity Fundamentals......................................................................................... 2 1.1 Introduction ............................................................ 3

1.3 A Brief History of Electricity in Canada ................. 9

Electricity in Canada ............................................................ 3

Introduction to Electricity in Canada............................. 9

Reference Documents......................................................... 3

Advent of Electricity............................................................. 9

Electricity Canada.................................................................. 3

The Emergence and Evolution of Grids.......................10

Activity: The Value Proposition......................................... 4

Key Dates for the Electricity Industry in Canada .....11

Cost of Electricity................................................................... 5

Electricity Generation in Canada...................................12

1.2 Electricity – Getting Started ................................... 6

Knowledge Check...............................................................13

Neither Finite nor Unlimited............................................. 6

1.4 The Basics – Generation,Transmission, Distribution .................................................................14

The Atom.................................................................................. 6 What Exactly is Electricity?................................................. 7 Key Terms................................................................................. 7 Knowledge Check................................................................. 8

The Electrical Grid...............................................................14 Transport of Electricity......................................................14 Grid Network.........................................................................15 Key Takeaways.............................................................16

Module 2: GenerationWhere It All Starts..........................................................................................................18 2.1 Introduction ..........................................................19

Geothermal Generation....................................................28

Where Electricity Begins...................................................19

Advantages and Disadvantages of Geothermal Power..............................................................28

Reference Documents.......................................................19 Renewable or Non-renewable........................................19

Knowledge Check...............................................................28

Electricity Generation in Canada...................................20

2.3 Non-renewable Generation .................................29

Canada’s Generation Mix..................................................20

Introduction..........................................................................29

2.2 Renewable Generation .........................................21

Nuclear Generation............................................................30

Introduction..........................................................................21 Hydroelectricity....................................................................21 Hydro Generation and Storage......................................21 Advantages and Disadvantages of Hydroelectric Power...........................................................22 Wind Generation.................................................................22 Advantages and Disadvantages of Wind Power......23 Solar Generation..................................................................24 Advantages and Disadvantages of Solar Power.......24 Landfill Gas and Biomass Generation..........................25 Landfill Gas Generation.....................................................25 Advantages and Disadvantages of Landfill Gas Power.......................................................................................25 Biomass Generation...........................................................26 Advantages and Disadvantages of Biomass Power.26 Tidal Energy Generation...................................................27 Advantages and Disadvantages of Tidal Power.......27

Advantages and Disadvantages of Nuclear Power.......................................................................30 Coal Generation...................................................................31 Advantages and Disadvantages of Coal Power........31 Natural Gas Generation.....................................................32 Advantages and Disadvantages of Natural Gas Power.......................................................................................32 Oil Generation......................................................................33 Advantages and Disadvantages of Oil Power...........33 Hydrogen Generation........................................................34 Renewable Hydrogen........................................................35 Advantages and Disadvantages of Hydrogen Power..................................................................35 Carbon Capture and Storage..........................................36 Cogeneration........................................................................37 Knowledge Check...............................................................37 Key Takeaways.............................................................38

Electricity Canada | Electricity Fundamental in Canada: Student Handbook

Module 3: TransmissionThe Long Haul.............................................................................................................40 3.1 Introduction ..........................................................41

3.2 Transmission Infrastructure..................................43

The Role of Transmission..................................................41

Introduction to Transmission Infrastructure..............43

Reference Documents.......................................................41

Transmission Towers...........................................................43

Transmission in Canada....................................................41

Right-of-Way.........................................................................43

The Transmission Grid........................................................41

Three-Phase Power.............................................................44

Transmission Grid Management....................................42

Ohm’s Law..............................................................................44 Transmission Conductors (Lines)...................................45 Sag, Swing, and Gallop......................................................45 Insulators and Ground Wires...........................................46 Transmission Issues and Impacts...................................46 Knowledge Check...............................................................46 Key Takeaways.............................................................47

Module 4: Distribution Delivering to and Serving the Customer ..................................................................48 4.1 Introduction ..........................................................49

4.3 The Control Room..................................................59

What is Distribution?..........................................................49

What is the Control Room?..............................................59

Reference Documents.......................................................49

Other Control Room Tools................................................60

Local Distribution Company Tasks................................49

Knowledge Check...............................................................60

Distribution Utilities...........................................................50

4.4 Power Outages.......................................................61

Functions of the Distribution Utility.............................50 Smart Grids and Microgrids.............................................51

What is a Power Outage?..................................................61 Power Outage Causes........................................................61

4.2 DistributionInfrastructure and Assets.................52

Quantifying Power Outages............................................62

What is Distribution Infrastructure?.............................52

Mutual Assistance...............................................................63

Substations............................................................................52

Knowledge Check...............................................................63

Substation Operation........................................................53

Key Takeaways.............................................................64

Lines and Cables..................................................................54 Poles.........................................................................................55 Vehicles...................................................................................56 Vehicle Fleet..........................................................................56 Transformers.........................................................................57 Vaults.......................................................................................57 Distribution Switches and Switchgear........................58 Knowledge Check...............................................................58

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Module 5The Meter and Beyond ......................................................................................................................66 5.1 Introduction ..........................................................67

5.3 Behind the Meter...................................................73

Introduction to Metering..................................................67

Introduction to the Open-Access System...................73

Reference Documents.......................................................67

Distributed Energy Resources (DERs)...........................73

Traditional Versus Smart Meters....................................67

Modernizing the Grid.........................................................74

Types of Meters....................................................................67

Importance of Energy Storage.......................................75

The Smart Metering System............................................68

Energy Storage Methods..................................................75

Net Metering.........................................................................68

Economic Challenge of Energy Storage......................76

5.2 Rates and Billing....................................................69

Knowledge Check...............................................................76

Introduction to How Utilities Are Paid.........................69 How Rates Are Set...............................................................69 Types of Expenditures.......................................................69 Billing Determinants..........................................................70 Time of Use Pricing.............................................................70 Conservation and Demand Management (CDM)....71

Electric Vehicles ...................................................................76 Electric Vehicle Sales..........................................................77 Key Electric Vehicle Terms................................................77 Shift to Electric Transportation.......................................78 Knowledge Check...............................................................78 Key Takeaways.............................................................79

CDM Programs.....................................................................71 Knowledge Check...............................................................72

Module 6The Customer .....................................................................................................................................80 6.1 Introduction ..........................................................81

6.2 Emerging Customer Tools.....................................83

What is a Customer?...........................................................81

Introduction to Customer Tools.....................................83

Reference Documents.......................................................81

Emerging Customer Tools................................................83

Customer Interaction.........................................................81

Customer Communication...............................................84

The Customer Experience................................................82

Knowledge Check...............................................................84

Traits and Commitments..................................................82

Key Takeaways.............................................................85

Module 7Industry Focus Areas .........................................................................................................................86 7.1 Introduction ..........................................................87

7.3 Health and Safety..................................................91

Introduction to Industry Focus Areas..........................87

Introduction to Health and Safety................................91

Reference Documents.......................................................87

Employee Safety Strategies.............................................91

Information Protection......................................................87

Knowledge Check...............................................................92

Data Privacy...........................................................................88

7.4 Physical and Cybersecurity...................................93

7.2 Serving Indigenous Communities........................89

Introduction to Physical and Cybersecurity...............93

Electricity Canada’s Commitment to Serving Indigenous Communities.................................................89

Providing Stable and Reliable Power to Canadians.........................................................................93

National Principles for Engagement of Indigenous Peoples....................................................................................89

Protecting the Grid.............................................................93

Knowledge Check...............................................................90

Knowledge Check...............................................................94

Protection of Assets............................................................94

Key Takeaways.............................................................95

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Module 8: The Industry .....................................................................................................................................96 8.1 Introduction ..........................................................97

8.3 The Integrated North American Grid.................107

Introduction to the Industry ..........................................97

Introduction to the Integrated Grid and Trade............................................................................. 107

Reference Documents.......................................................97 Industry Facts........................................................................97 The Industry at a Glance...................................................97 Industry Overview...............................................................98 Industry Entities...........................................................99

Integrated North American Grid................................. 107 Advantages of Integration............................................ 108 Power Grid Network........................................................ 108 FERC and NERC.................................................................. 109

Introduction to the Industry Players............................99

Roadmap to the Integrated Electricity System............................................................. 110

Electricity Canada Members............................................99

Trade..................................................................................... 110

Government Entities....................................................... 100

Knowledge Check............................................................ 111

Provincial Regulators...................................................... 100 Safety and Education...................................................... 101 Suppliers & Additional Participants........................... 101 Knowledge Check............................................................ 102

8.4 Supply and Demand............................................112 Introduction to Supply and Demand........................ 112 Supply and Demand Statistics..................................... 112 Environmental Sustainability....................................... 113

8.2 Market and Regulation........................................103

Greenhouse Gas Reduction.......................................... 113

Introduction to the Electricity Market...................... 103

Emission Statistics............................................................ 114

Independent Electricity Operators............................ 103

Sustainable Electricity Program.................................. 115

Regulation........................................................................... 104

Sustainability Goals......................................................... 115

Regulated vs. Unregulated Business Entities......... 104

Global Price Comparison............................................... 116

Electricity Market Structure.......................................... 105

Knowledge Check............................................................ 116

Regulatory Regime for Large Energy Projects....... 106 Knowledge Check............................................................ 106

Key Takeaways...........................................................117

Module 9: The Future ......................................................................................................................................118 9.1 Introduction ........................................................119

9.2 Leading a Net-Zero Economy..............................121

Introduction to the Future of the Electricity Industry................................................................................ 119

Introduction to How the Canadian Electricity Industry is Leading the Way..................... 121

Reference Documents.................................................... 119

4Ds—The Changing Electricity Landscape............. 121

Reducing Emissions......................................................... 119

Required Changes to Regulated Utilities................. 122

What is Net Zero?............................................................. 119

Transitioning the Operational Model........................ 122

Net Zero 2050—The Federal Government Goal............................................................. 119

New Technologies............................................................ 123 The Flux Capacitor Podcast........................................... 124 The Future Roles of Technology.................................. 124 Knowledge Check............................................................ 124 Key Takeaways...........................................................125

GlossaryElectricity Fundamentals in Canada ................................................................................................126

Electricity Canada | Electricity Fundamental in Canada: Student Handbook

Electricity Canada | Electricity Fundamental in Canada: Student Handbook

MODULE 1 INTRODUCTION TO ELECTRICITY FUNDAMENTALS Welcome to Module 1: Introduction to Electricity Fundamentals.

By the end of this module, you should be able to: •

Explain the role of Electricity Canada

•

Identify key electrical terms and their definitions

•

Outline the history of electricity in Canada

•

List the various sectors of electricity lifecycle

This course uses images, audio, and text; content will appear on your screen as you scroll through the module. Keyboard navigation instructions will be provided for those who are not using a mouse or touchscreen. There is a short, graded assessment at the end.

This module should take approximately 30 minutes to complete.

Lesson list 1.1 Introduction 1.2 Electricity – Getting Started 1.3 A Brief History of Electricity in Canada 1.4 The Basics – Generation, Transmission, Distribution

Electricity Canada | Electricity Fundamental in Canada: Student Handbook

1.1 INTRODUCTION It would be very difficult to find any place or aspect of our lives that is not touched by electricity.

Electricity in Canada Electricity is all around us. It’s a part of our natural world. In modern society, electricity literally powers our lives. Yet, as important as this resource is, how electricity is made and how it ultimately gets to our homes, offices, and factories may not be well understood. Electricity Canada has therefore created an e-learning program to provide an overview of electricity fundamentals in Canada.

Reference Documents To facilitate your understanding of terminology used in this course, please download the glossary of electrical terms.

If you are not using a mouse or touchscreen to navigate the course, please download the keyboard navigation instructions.

Electricity Canada We use electricity every day, but we may not consider everything it allows us to do. Electricity Canada members safely and reliably produce, transmit, and deliver electricity to Canadians from coast to coast to coast around the clock.

We use electricity every day, but we may not consider everything it allows us to do. Electricity Canada members safely and reliably produce, transmit, and deliver electricity to Canadians from coast to coast to coast around the clock.

Founded in 1891, Electricity Canada is the national forum and voice of the evolving electricity business in Canada. Electricity Canada members generate, transmit, and distribute electrical energy to industrial, commercial, residential, and institutional customers across Canada.

We work hard to keep your house warm in the winter and cool in the summer. We help keep your food fresh, your meals hot, your clothes clean, and your house lit. We power some of your favourite tools and toys, and we help you get things done, be it that backyard project, or the report that’s due in the morning. And, we continue to power transportation across the country from personal vehicles to buses to trains. We also provide a variety of conservation programs and complementary tools to help you manage your electricity investment.

Members include integrated electricity utilities, independent power producers, transmission and distribution companies, power marketers, and manufacturers and suppliers of materials, technology, and services that keep the industry running smoothly.

Electricity Canada’s members include the largest and most influential electricity service providers in Canada.

Member CEOs form Electricity Canada’s Board of Directors, and a number sit on Electricity Canada’s Board Executive Committee.

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Module 1: Introduction to Electricity Fundamentals

Electricity Canada runs over 40 councils and committees covering all aspects of electricity including Generation, Transmission, Distribution, Customer, Power Marketers, Legal, Finance, Tax, Accounting, and Human Resources, to name but a few. These members provide electricity to over 95% of Canadian customers.

Electricity Canada hosts over 100 council and committee meetings per year to share and learn industry best practices for the benefit of each utility and its respective customers.

Additionally, Electricity Canada interfaces with over 30 federal government departments and agencies that have an interest in the Canadian electricity sector. Electricity Canada also liaises with government and other officials in the United States on matters of cross-border interest.

As the Voice of Electricity in Canada, Electricity Canada operates an extensive and effective communications program through podcasts, webcasts, newsletters, and various other social media outlets.

Electricity Canada offers a Corporate Partner program that helps facilitate learning and best practices sharing between members and suppliers to the industry. Electricity Canada’s corporate partners provide products and services such as wires, poles, meters, hardware, software, and consulting services in support of the industry.

Over 90 industry vendors participate in Electricity Canada’s Corporate Partner program.

It takes extensive resources and dedicated talent to provide this vital resource to Canadians, but Electricity Canada members are committed to the task as well as planning for the future.

Activity: The Value Proposition Before we get into how the electricity system in Canada works, it’s important to take a moment to consider the value that electricity provides in our day-to-day lives. To help understand this “value proposition,” let’s do a short activity.

•

Get a sheet of paper and take a few minutes to make a list of everything you use electricity for at home or at work/other.

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Tally how many items you wrote down.

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Get a copy of your electricity bill and locate the total amount owing on the bill for a one-month period. (A typical Canadian electricity bill is in the range of $60–$150 per month, depending on the size of your home and your region.)

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Divide this amount by 30. This is how much you pay for electricity per day on average.

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How does this number compare with everything else you pay for in your life and the value you get?

(For example, your transit pass or parking costs, your cell phone bill or even your daily cup of coffee)

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Ask yourself: When was the last time you thought about electricity like this—if ever?

So, after completing this exercise, does electricity deliver good value for what you pay, or not?

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Cost of Electricity Typically, the cost of electricity at a residential level compares roughly to the cost of a cup of coffee per day.

Between 2010 and 2019, the price of electricity in Canada increased about 16% (just shy of the rate of inflation). This compares favourably to other household expenditures such as public transit, property taxes, water and sewage, cell phone service, and Internet service – which increased in price by anywhere from about 20% to nearly 90% during the same timeframe.

Electricity provides a great deal of value. Now let’s look at how this valued resource is made and continues to make its way into our homes, offices, and industries.

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Module 1: Introduction to Electricity Fundamentals

1.2 ELECTRICITY – GETTING STARTED No matter how little or how well one understands electricity, everyone will agree that it has transformed our lives and our world.

Neither Finite nor Unlimited Where does electricity come from? How does it work? Many people never bother to ask, even though it provides much of our energy. There is an expectation that Canadians will flip a switch and lights will go on.

Electricity is neither a finite natural resource nor an unlimited right. As a manufactured energy form, it possesses unparalleled flexibility, but it can only be stored with difficulty. For the most part, it must be used up in the very moment it is produced, or the opportunity to use it is lost forever.

Our need for electrical power is so great, we have created huge power plants and altered the very face of the land on a scale that’s visible from the moon. We have even bent the force of the atom to our will.

The Atom All matter is made up of particles called atoms. Each atom has a centre, called a nucleus, that contains positively charged particles called protons and uncharged particles called neutrons. The nucleus of an atom is surrounded by negatively charged particles called electrons. Electrons are the smallest unit of electric charge.

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What Exactly is Electricity?

Together, all the electrons of an atom create a negative charge that balances the positive charge of the protons in the atomic nucleus. When the balancing force between protons and electrons is upset by an outside force, an atom may gain or lose an electron. When electrons are “lost” from an atom, the free movement of these electrons constitutes an electric current. Electricity is, therefore, a form of energy caused by the flow of electrons. Using electricity as a power source involves harnessing that flow.

Key Terms To control the flow of electrons, it is important to be able to measure or quantify aspects of an electrical charge. Let’s review some key electrical terms used for measurement.

Amperes or Amps The measure of the flow of an electric current, specifically how many electrons flow past a given point in one second.

Voltage or Volts The measure of the force or pressure applied to electrons. In our homes, standard plug-in wall outlets are typically rated at 120 volts. There are also specialized 240-volt outlets for larger electric appliances such as stoves, dryers, hot water tanks, central air conditioning, and electric vehicle charging stations.

Watts (Demand) The measure of electrical power derived by multiplying amps x volts. Watts describes the rate at which electricity is used at a specific moment, and represents the demand placed on electricity supply. For example, a 15-watt LED light bulb draws 15 watts of electricity at any given moment it is turned on.

Watt-hours (Consumption) The measure of electricity consumption over time. Watt-hours are a combination of how much demand for electricity there is (watts) and over what period of time (hours). For example, a 15-watt LED light bulb draws 15 watts of electricity at any given moment, and therefore consumes 15 watt-hours of electricity over the course of 60 minutes.

Kilowatts and Kilowatt-hours One kilowatt (kW) simply equals 1,000 watts, and one kilowatt-hour (kWh) equals 1,000 watt-hours. On your electricity bill, consumption is typically measured in kilowatt-hours because it aligns well with the amounts of electricity used by large appliances and households. An appliance that draws one kilowatt at any given moment when operating (the demand it places on electricity supply) will consume one kilowatt-hour of electricity over the course of 60 minutes.

Megawatts This measure is used in relation to the output of power plants, or the amount of electricity required by large customers or entire cities. One megawatt (MW) simply equals 1,000 kilowatts or 1,000,000 watts.

Gigawatts This measure is used in relation to the output of very large power plants, or collections of such plants. One gigawatt (GW) simply equals 1,000 megawatts or one billion watts—in other words, very large amounts of electricity.

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Module 1: Introduction to Electricity Fundamentals

Knowledge Check •

Atoms: Particles that make up all matter and contain protons, neutrons, and electrons

•

Protons: Positively charged particles in the nucleus of the atom

•

Electrons: Negatively charged particles that are the smallest units of electrical charge

•

Amps: The number of electrons that flow past a given point in one second

•

Volts: A measure of the force or pressure applied to electrons

•

Watts: A measure of electric power derived by multiplying force by flow

Now that you know what electricity is, let’s look back at when electricity became integral to all Canadians.

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1.3 A BRIEF HISTORY OF ELECTRICITY IN CANADA Electricity is the “great enabler” of modern society. From the first light bulb, electricity has enabled more productivity, telecommunications, and a more comfortable lifestyle.

Introduction to Electricity in Canada Electricity is deeply embedded in every facet of modern life in Canada and throughout most of the world.

So much so that it is largely taken for granted and only vaguely understood. But impressive feats of scientific inquiry and practical application have brought us to today’s electric and digital age.

Advent of Electricity The first known stirrings of humanity’s understanding of the natural forces on which electricity depends go back more than 750 years—to Roger Bacon’s 13th-century theories on the magnetism he observed in an iron oxide mineral we know now as magnetite.

The Electric Motor: In 1821, Michael Faraday invented a rudimentary electric motor. He then went on to discover a means of converting mechanical energy into electricity on a large scale in the early 1830s, creating the world’s first electricity generator in 1831.

Milestones: Within a few short years, we had the telegraph in 1846, the telephone in 1876, incandescent lights in 1879, streetcars in 1883, the electric oven in 1892, electric cars in 1893, movies in 1896, radio in 1900 and a myriad of other inventions.

Advancements: We’ve gone from those first remarkable steps to a world of computers, smart phones, routers, instant replay, laser surgery, and satellites, all in the blink of an eye!

Until the mid-1800s, most of our power came from water, wood, wind, or brute force. Today, 99% of our work is powered by machines.

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Module 1: Introduction to Electricity Fundamentals

The Emergence and Evolution of Grids The earliest electricity grids emerged in the late 1800s and were designed to transport electricity over short distances from small-scale generation sources to larger urban centres, where it was put to a limited range of uses.

Thomas Edison installed the world’s first central, steam-generation electricity plant in New York City’s financial district in 1882, and he developed a local grid to deliver direct current (DC) to the light bulbs he had invented just a few years earlier.

Let’s look at the evolution of grids in Canada.

Early Grids Here in Canada, the Niagara Falls Hydraulic Power and Manufacturing Company established a small hydro generation facility in 1881. In 1895, the Adams No. 1 station, also at Niagara Falls, became the world’s first large-scale alternating current (AC) generation plant. This is widely considered to be the advent of modern grid operations, as AC power could be transmitted further and more efficiently.

Around the turn of the century, many more electric engines and appliances were developed, and electricity began regularly meeting needs that extended well beyond lighting.

In the early 1900s, hydropower stations proliferated, including larger projects at more remote sites that offered excellent generating potential, with AC transmission and distribution systems used to deliver the electricity across long distances. This period of extensive development extended into the early decades of the 20th century, with fast-growing Western Canada becoming a focal point for grid development.

Public and Private Models Many of Canada’s early power companies were small, privately held, and often did not stay in business long. In the early 1900s, a trend emerged of transferring private power companies to public ownership. In particular, the distribution grids that supply electricity to end users often became municipally owned.

Provincial legislation in 1906 established the Hydro-Electric Power Commission of Ontario (HEPCO), later known as Ontario Hydro. Investment in generation was left to private parties at this time, with Ontario Hydro having control over transmission in the province, and municipalities owning distribution systems.

Later developments would demonstrate the viability of alternative investment and ownership models.

In 1948, Alberta voted to reject public ownership of electric utilities by an extremely narrow margin— although the province still faced the challenge of fewer than 4% of its farms having access to electricity at around this time.

Albertan farmers formed local co-ops, known as Rural Electrification Associations (REAs), to pool funding and access provincial loans. This model was extremely successful, with 87% of rural Alberta having access to electricity by 1961. In contrast with other Canadian jurisdictions, the Government of Alberta has never owned or operated an electricity utility.

Emergence of a Modern Grid By the post-war period, the essential outlines of the modern electricity grid, which are still largely recognizable today, had emerged. This entails large, centralized generation plants, from which electricity is transmitted across often long distances for connection to local distribution grids.

This model predominated for at least the next half-century, as it proved to be a cost-effective and reliable means of ensuring universal access to electricity. While different ownership structures are in place across the country, there is close oversight of all these vital systems by provincial agencies.

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Key Dates for the Electricity Industry in Canada We discussed how Michael Faraday invented the first electric motor (1821) and electric generator (1831). In 1873, the first arc lamp was switched on outside the Davis hotel in Winnipeg. Let’s now look at some other key dates in the history of Canada’s electricity industry.

Late 1800s: •

1881 – Hydroelectric power becomes the first form of commercial electricity in Canada.

•

1882 – The Parliament Buildings in Ottawa are lit with electricity, a full year before the U.S. Capitol Buildings in Washington, D.C.

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1883 – Hamilton becomes Canada’s first city with an incandescent street light system.

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1885 - A hydropower generating station near Montmorency Falls provides lighting to the City of Québec.

•

1891 – The Canadian Electrical Association is formed.

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1891 – Electric streetcars are introduced to Ottawa. Two years later, they are the first in the world to be electrically heated.

Early 1900s: •

1900 – The Petty Harbour Hydroelectric Plant is completed by the St. John’s Street Railway Company, providing electricity for St. John’s streetcars and business and residential customers.

•

1902 – The Shawinigan Electric Company builds the largest generators and longest transmission line in the world.

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1909 – The first international transmission line between Canada and the United States opens.

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1912 – The Steel Company of Canada opens the world’s first all-electric steel mill, revolutionizing the industry.

•

1918 – Canada launches the world’s first electrically welded ship.

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1921 – Ontario Hydro becomes the largest utility in the world.

•

1932 – The trans-Canada phone system is inaugurated, connecting the country.

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Module 1: Introduction to Electricity Fundamentals Mid – Late 1900s: •

1954 – The first practical solar panel is invented.

•

1962 - Canada’s first nuclear power plant, the Nuclear Power Demonstration Plant, is opened in Rolphton, Ontario.

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1968 – The North American Electric Reliability Council (NERC) is formed.

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1984 - The Annapolis Royal Generating Station, a tidal power generating station, is built in the Bay of Fundy in Nova Scotia.

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1993 – The first commercial wind farm in Canada is completed in Alberta.

2000s: •

2009 – Canada’s first solar farm, the Arnprior Solar Project, is built.

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2010 – Canada’s largest photovoltaic plant, Sarnia Photovoltaic Power Plant, is built.

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2013 – 80% of Canadian electricity is produced greenhouse gas free.

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2014 – SaskPower’s Boundary Dam facility becomes the first power plant in the world to integrate carbon capture and storage technology.

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2016 – North America’s first tidal turbine is installed by Cape Sharp Tidal.

•

2021 – Electricity Canada celebrates 130 years.

Electricity Generation in Canada Today Canada is the fourth-largest generator of electricity in the world. We also boast some of the lowest electricity rates in the world.

Utilities Our electricity utility industry employs more than 90,000 Canadians and contributes $33.1B towards Canada’s GDP (approximately 2.1%). Several of our electricity utilities rank among the largest corporations in the country with service territories larger than many of the countries in Western Europe put together.

Resources Canada enjoys a unique position where electricity is concerned. We have tremendous natural resources in rivers, coal, oil, natural gas, uranium, wind, sunshine, tides, and biomass from which to make power. As pioneers in electricity generation, transmission, and distribution, we now possess a technological base pool of knowledge, and operate efficient and world class utilities.

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Knowledge Check 1821 Michael Faraday invents the first electric motor.

1873 The first arc lamp is switched on outside the Davis hotel in Winnipeg.

1881 Hydroelectric power becomes the first form of commercial electricity in Canada.

1891 The Canadian Electrical Association is formed.

1909 The first international transmission line between Canada and the United States opens.

1921 Ontario Hydro becomes the largest utility in the world.

1932 The trans-Canada phone system connects the country.

1954 The first practical solar panel is invented.

2013 80% of Canadian electricity is produced greenhouse gas free.

Trying to describe our electricity history is more than just a simple matter of numbers or a recitation of how we got things done: it’s a complex tapestry with many skeins. Now let’s look at the main sectors of electricity’s lifecycle.

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Module 1: Introduction to Electricity Fundamentals

1.4 THE BASICS – GENERATION, TRANSMISSION, DISTRIBUTION The elements of generation, transmission, and distribution have been networked together over the past 100-plus years to form the world’s largest machine.

The Electrical Grid The electricity grid is the network through which power is generated, transmitted across long distances, and distributed to our homes, businesses, and institutions. The electricity grid enables how we live, work, and play. It provides the ultimate in “just-in-time delivery,” and its product is largely consumed in real time as it is produced.

Transport of Electricity The three main sectors of electricity’s lifecycle are generation, transmission, and distribution. Electricity travels through the grid at over 150,000 kilometres per second. The graphic below shows how the three sectors of the electricity grid are interconnected.

Generator Electricity is generated or produced from a variety of sources including water, nuclear power, fossil fuels, sun, and wind, among others.

Generator Transformer Once generated, a generation transformer converts what typically starts out as low-voltage electricity to high-voltage for efficient transport.

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Transmission Lines Transmission lines, typically supported by large towers that traverse the country, carry the electricity over long distances.

Distribution Transformer Distribution transformers then convert the high-voltage electricity from the transmission lines back to lowvoltage for local distribution and end use.

Distribution Lines Distribution lines, both underground and overhead, then carry the lower-voltage electricity to homes and other locations where it’s needed, providing the power we rely on every day.

Grid Network Generation, transmission, and distribution will always be important functions along the electricity grid, although new configurations and models are emerging. These involve a greater diversity of more widely distributed generation sources, smart grids, and built-in intelligence and resilience, and a blurring of the lines between the three basic functions.

Distributors, for example, are increasingly connecting and even owning generation sources within their service territories, and some consumers are taking a much more active role in managing their energy demand and how it gets met.

Remarkably, 15% of the world’s population still gets by without electricity. That’s an estimated 1.2 billion people, about half of whom live in Sub-Saharan Africa.

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Module 1: Introduction to Electricity Fundamentals

KEY TAKEAWAYS •

Founded in 1891, Electricity Canada is the national forum and voice of the evolving electricity business in Canada. Electricity Canada members generate, transmit, and distribute electrical energy to industrial, commercial, residential, and institutional customers across Canada.

•

Electricity is a form of energy caused by the flow of electrons. The flow of an electric current is measured in amps, the force or pressure applied to electrons is measured in volts, and the measure of electrical power (or demand) is measured in watts (amps × volts).

•

From the first lamp in 1873 and the first form of commercial electricity in 1881, the Canadian electricity industry has grown by leaps and bounds.

Canada is now the fourth-largest generator of electricity in the world and boasts some of the lowest electricity rates in the world thanks to our tremendous natural resources.

•

The three main sectors of electricity’s lifecycle are generation, transmission, and distribution, and together they form the world’s largest machine.

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Module 1: Introduction to Electricity Fundamentals

MODULE 2 GENERATION WHERE IT ALL STARTS Welcome to Module 2: Generation—Where It All Starts By the end of this module, you should be able to: •

Recall the generation sources Canada uses to generate electricity

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List and explain the different types of renewable generation

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List and explain the different types of non-renewable generation

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Define carbon capture and storage

This course uses images, audio, and text; content will appear on your screen as you scroll through the module. Keyboard navigation instructions will be provided for those who are not using a mouse or touchscreen. There is a short, graded assessment at the end.

This module should take approximately 30 minutes to complete.

Lesson list 2.1 Introduction 2.2 Renewable Generation 2.3 Non-renewable Generation

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2.1 INTRODUCTION There are many ways to generate electricity, which typically involve harnessing mechanical energy to rotate a turbine.

Where Electricity Begins The generation of electricity usually involves harnessing mechanical energy to rotate a turbine. That mechanical energy can be in the form of moving water or wind. It can also be found in the form of steam, which is created using heat sources such as nuclear fusion or the burning of one of a variety of fuels. Solar panels can also directly harness the energy in sunlight and convert it into electricity.

Reference Documents To facilitate your understanding of terminology used in this course, please download the glossary of electrical terms.

If you are not using a mouse or touchscreen to navigate the course, please download the keyboard navigation instructions.

Renewable or Non-renewable Let’s see how much you know about renewable and non-renewable electricity generation sources.

Renewable

Non-renewable

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Hydro

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Nuclear

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Wind

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Coal

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Solar

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Natural gas

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Landfill gas

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Oil

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Biomass

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Hydrogen

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Tidal

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Geothermal

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Module 2: Generation—Where It All Starts

Electricity Generation in Canada Let’s learn about the different ways to generate electricity in Canada, from renewable and non-renewable sources.

You may have heard the term “renewable energy” before. But what does it mean?

Energy is renewable when it comes from sources—like the sun, moving water or wind—that can be continuously used without being depleted. This is in contrast to non-renewable sources such as fossil fuels, the supply of which is finite. Different generation sources generate different amounts of carbon dioxide or greenhouse gases. Renewable sources are generally emissions free, while non-renewable sources have varying levels of greenhouse gases.

Canadian electricity generation is very low-carbon—already over 80 percent emissions-free nationally— although the regional picture varies. British Columbia, Quebec, and some other provinces have extensive river systems that lend themselves well to hydroelectricity. Alberta and Saskatchewan have abundant oil and strong wind resources, while Ontario has invested extensively in nuclear electricity generation.

Canada is an electricity generation powerhouse, and the fourth-largest exporter of electricity in the world.

Renewable technologies are being continuously improved, while costs are falling. The share of renewables in our electricity mix is expected to grow by 12 percent by 2035.

Canada’s Generation Mix As of 2019, the generation mix in Canada included hydro (60%), nuclear (16%), coke and coal (8%), natural gas (8%), and wind, solar and tidal (6% combined).

Hydro and nuclear generation have remained steady in recent years and represented over three quarters of electricity generation in the country in 2019.

Now that we understand the overall picture of electricity generation, let’s learn more about specific generation methods— starting with renewable generation.

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2.2 RENEWABLE GENERATION More than half of Canada’s electricity is generated through renewable sources.

Introduction As we have learned, renewable electricity is generated by sources that can be used continuously without being depleted and are generally free of greenhouse gas emissions. Let’s learn more about the different sources of renewable electricity, and how they generate that electricity.

Hydroelectricity Hydroelectricity involves harnessing the energy in flowing or falling water. Since various regions of Canada have abundant water—and geographic features that lend themselves well to highly efficient hydroelectric projects—this form of generation accounts for 60% of Canada’s electricity.

In some parts of the country “hydro” is commonly used in a generic sense to refer to electricity. This reflects the prevalence of hydroelectricity in the supply mix in those regions. Properly speaking, however, it refers only to electricity generated at a hydroelectric facility.

Hydro Generation and Storage Hydroelectricity is the only renewable source of electricity that is well suited to generate baseload supply, meaning the minimum amount of electricity that we need to have consistently available. It is also dispatchable, meaning grid managers can decide when to use hydroelectricity and when to store potential generation for later use. There are two major kinds of hydroelectricity generation projects including dams and reservoirs and run-of-river projects.

Dams and Reservoirs Most hydroelectricity is generated from projects that use a dam to create a reservoir. Water can be stored in the reservoir, allowing for ongoing generation even in drier seasons, and for generation to be scheduled for periods when other sources of electricity are less available.

Pumped storage projects are becoming more common and operate essentially the same as reservoir-based projects. The difference being that water is pumped to an elevated reservoir, at a time when surplus or lowcost electricity is available for later use.

Given the storage capacity of these two types of projects, hydroelectricity plays a very important role in balancing demand and supply on the electricity grid, and in ensuring that more generation from other renewable sources, like wind and solar, can be integrated into the grid while maintaining reliability.

Run-of-River Another common form of hydroelectric projects is run-of-river, in which the energy in a river or stream is directly harnessed without use of a reservoir. While these projects lack storage capacity, they are lowimpact and add to the diversity of generation supply. They are also well suited to meeting generation needs in remote and off-grid areas.

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Module 2: Generation—Where It All Starts

Advantages and Disadvantages of Hydroelectric Power Advantages •

Many existing and potential sites in Canada

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Well-established technology

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Long-lived projects, with low cost of operation

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Variable scales of projects

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Good storage capacity

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Well suited to backstop intermittent generation sources like wind

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Very low greenhouse gas emissions

Disadvantages •

Regulatory approval can be costly and time consuming

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Local opposition may arise to new development

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New projects typically require transmission line construction to connect to the grid

Wind Generation Wind turbines capture the wind’s kinetic energy, or energy derived from motion. The wind turns the blades of turbine rotors, which are attached to a driveshaft. The driveshaft then spins a generator to create electricity.

Wind turbines come in different sizes and can be deployed in different configurations. In Canada, most wind turbines are utility-scale and feed power directly into the electricity grid. While all existing projects are on-shore, there are various proposals for off-shore wind developments, mainly on the Atlantic coast.

Wind speed The amount of energy is determined by the speed of the wind. Although windmill blades can appear to move slowly at times, internal gearing—much like bicycle gears—allows for efficient electricity production.

Wind turbines can generate electricity at wind speeds ranging upwards from as little as 10 km per hour, with a top safe operational wind speed of some 80 km per hour.

Low cost Wind energy is now one of the lowest-cost options for new electricity generation in Canada, and there has been a sizable increase in the deployment of wind generation in the past decade.

Low environmental impact The production of electricity from wind energy generates no greenhouse gas emissions, no air or water pollution, and no toxic or hazardous waste.

Wind is a renewable source of energy, and while it is intermittent, ongoing development of energy storage and other technological advances are improving our ability to incorporate it into electricity grids without negatively impacting reliability.

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Advantages and Disadvantages of Wind Power Advantages •

No fuel costs

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No emissions or waste

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Low-cost, commercially viable source of power

Disadvantages •

Intermittent energy source (requires the wind to be blowing)

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Possible need for additional transmission infrastructure to connect dispersed wind farms

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Environmental concerns regarding noise, interaction with birds and land use issues

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Not well suited to provide baseload or always-available generation

In 2019, Canada had over 13,000 MW of installed wind capacity.

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Module 2: Generation—Where It All Starts

Solar Generation The sun is our most abundant source of clean, renewable energy. Unlike other forms of generation, solar generation doesn’t require any spinning turbines or generators and is more akin to charging a battery. A solar panel contains photovoltaic cells, the crucial component of which is silicon. Silicon has conductive properties that enable it to absorb sunlight and convert it into electricity—initially direct current electricity—which is then turned into useable alternating current with built-in inverter technology.

Solar energy is deployed at wide-ranging scales. Single solar panels powering such things as road signs and parking meters have become a common sight. Many homes and commercial buildings have rooftop solar installations—generating electricity for their own use and potentially to sell back to the grid.

Most of Canada’s solar generation, however, comes from utility-scale solar farms, which generate large amounts of electricity which is then sold for use on provincial electricity grids.

Solar energy can also be harnessed in other ways besides the photovoltaic or PV methods described above.

Solar thermal systems, for example, capture sunlight and use it directly to heat water for in-home or other use, without converting the solar energy into electricity.

Advantages and Disadvantages of Solar Power Advantages •

No fuel costs

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No emissions or waste

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Silent, non-disruptive operation

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Suitable for use in remote areas not connected to the grid

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Scalable in size—from a rooftop to a large solar farm

Disadvantages •

Possible need for additional transmission infrastructure to connect dispersed projects

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Cost competitiveness remains a challenge

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Intermittent energy source, particularly in some regions

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Not well suited to provide baseload or always-available generation

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Solar farms can occupy large tracts of land

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Disposal of end-of-life solar panels presents a challenge

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Landfill Gas and Biomass Generation Landfill gas and biomass generation are both methods by which we can use existing facilities and processes to generate electricity as a by-product.

Landfill Gas Generation Landfill gas generation effectively turns garbage into a source of electricity. A landfill gas generation plant drills wells in landfills to collect biogas, which can then be used as a fuel source. This gas—an important component of which is methane—is produced naturally as organic garbage decomposes. It is typically burned using on-site generating equipment to produce electricity.

Landfill gas generation facilities are, in some cases, developed by electricity utilities or their affiliates, potentially in partnership with a municipality; and in other cases, by private companies, who sometimes develop them as supplemental fuel sources at their own industrial facilities.

Capturing and combusting landfill gas prevents methane from escaping into the atmosphere. This is a significant environmental benefit since methane has more than 20 times the potency of carbon dioxide in terms of its global warming potential – and landfills account for one fifth of Canada’s methane emissions.

Advantages and Disadvantages of Landfill Gas Power Advantages •

Captures methane that would otherwise be released to the atmosphere

•

Provides a benefit from an otherwise non-productive garbage collection location

Disadvantages •

Quality of the methane may vary thus requiring treatment to make it useable

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Module 2: Generation—Where It All Starts

Biomass Generation Biomass generation is the process of generating electricity by burning organic materials. This produces high-pressure steam that drives a turbine to make electricity. The most common biomass materials used to produce energy are plants, wood, and organic waste. Examples include low-value agricultural by-products such as straw, sawdust, and other wood waste, municipal garbage streams, and alcohol fuels.

Biomass is considered a renewable energy source because the energy within it comes from the sun and because the materials used can regrow in a relatively short time. Plants and trees take in carbon dioxide from the atmosphere and convert it into biomass as they grow, and this same carbon dioxide is released as they either decompose or are burned (meaning there is no net increase in carbon emissions over the plant’s full lifecycle).

Biomass use is important within the forest products industry, for example. Manufacturing facilities commonly use what would otherwise be waste sawdust and other residuals as a fuel to meet what can be significant proportions of their on-site electricity and heating requirements.

Advantages and Disadvantages of Biomass Power Advantages •

Reliable, non-intermittent source of power

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Uses potential waste as fuel

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Creates revenue stream for biomass suppliers

Disadvantages •

High fuel and operating costs

•

Requires extensive space and infrastructure

•

Some adverse environmental impacts (e.g. ash and particulate releases)

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Tidal Energy Generation Tidal power is a form of hydroelectricity that converts the energy in the movement of tides into useable forms of power. Tidal power is generated when tides rotate submerged turbines; or when their energy is harnessed via a “barrage,” or a dam built across an inlet. Similar generation can be achieved by submerging turbines in flowing rivers.

Although not yet widely used, tidal energy has potential. Canada has been active in testing tidal generation technologies, particularly in Nova Scotia, where the Bay of Fundy offers exceptional tide heights.

An experimental tidal generation station—one of very few of its kind in the world—operated for an extended period of time in the Bay of Fundy. Today, the Fundy Ocean Research Centre for Energy operates as Canada’s leading test centre for tidal stream energy technology.

Advantages and Disadvantages of Tidal Power Advantages •

Costs are expected to decline as technology develops

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Intermittent, but predictable source of green energy

Disadvantages •

Investment is needed to advance research and development

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High upfront capital costs

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Potentially intrusive to marine life and ecosystems

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Module 2: Generation—Where It All Starts

Geothermal Generation Geothermal energy involves harnessing the internal heat of the Earth’s crust to produce electricity.

Geothermal generation is most widely used in regions that are volcanically and tectonically active. Iceland and California are among various jurisdictions around that world that generate significant amounts of electricity using heat from geothermal sources.

Geothermal heat pumps or temperature exchange systems—which can be used to both heat and cool buildings—are relatively common in Canada today. Geothermal is not yet being used to generate electricity, but that may soon change.

In 2021, the federal government announced an investment in the Clarke Lake Geothermal Development project in northeastern British Columbia. This wholly owned and Indigenous-led project is expected to become one of the first commercially viable geothermal electricity production facilities in the country, and to generate between 7-15 MW of electricity.

Advantages and Disadvantages of Geothermal Power Advantages •

Reliable, non-intermittent source of power

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Low operating costs

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No emissions or waste

Disadvantages •

High upfront capital costs

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Possible need for additional transmission infrastructure to connect dispersed projects

Knowledge Check Solar generation: Uses the conductive properties of silicon to convert sunlight into electricity Wind generation: Uses turbines to convert moving air into electricity Hydroelectricity: Converts the kinetic energy of moving water into electricity Landfill generation: Burns the biogas produced by garbage and converts it to electricity Biomass generation: Burns plant matter to generate electricity Tidal generation: Generates electricity using turbines submerged in the ocean Geothermal generation: Generates electricity by drawing the internal heat energy from the Earth’s crust

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2.3 NON-RENEWABLE GENERATION Non-renewable energy comes from sources that will, at some point, run out and not be replenished.

Introduction Most non-renewable energy sources are fossil fuels, such as coal, petroleum, and natural gas. Carbon is the main element in fossil fuels, and that’s why the time period during which fossil fuels formed (about 300-360 million years ago) is called the Carboniferous Period.

Let’s learn more about the process by which the raw materials of fossil fuels are created.

1. Prehistoric swamps: All fossil fuels formed in a similar way. Hundreds of millions of years ago, even before the dinosaurs, Earth had a very different landscape and was covered with wide, shallow seas and swampy forests.

2. Dead organisms: Plants, algae, and plankton grew in these ancient wetlands. They absorbed sunlight and created energy through photosynthesis. When they died, the organisms drifted to the bottom of the sea or lake, and energy was stored in their remains.

3. Fossilization: Over time, these dead organisms were crushed under the seabed. Rocks and other sediment piled on top of them, creating high heat and pressure underground. In this environment, the plant and animal remains eventually turned into fossil fuels (coal, petroleum, and natural gas).

Today, there are huge underground pockets (called reservoirs) of these non-renewable sources of energy around the world.

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Module 2: Generation—Where It All Starts

Nuclear Generation Unlike many other non-renewable energy sources, nuclear generation does not rely on fossil fuels. Instead, nuclear power comes from the process of nuclear fission, in which a heavy atomic nucleus is split, resulting in the release of large amounts of energy. In the carefully controlled environment of a nuclear reactor, this energy is used to generate heat and then steam, which in turn rotates turbines to generate electricity.

Uranium fuel Nuclear power is considered non-renewable, primarily because the uranium fuel source it currently relies on is finite. However, it is not a fossil fuel, and it is a significant producer of electricity that is generated without creating greenhouse gases.

Baseload generator Nuclear generation is a large and reliable source of baseload electricity generation—that is, the minimum amount of electricity that we need to have consistently available. Nuclear power plants are well suited to this role in part because they cannot be easily turned on and off.

Small Modular Nuclear Reactors (SMRs) Small Modular Nuclear Reactors (SMRs), or micro nuclear units, are also being actively developed in Canada, and have the potential to replace fossil fuel-based generation in remote communities and at industrial sites.

Advantages and Disadvantages of Nuclear Power Advantages •

Non-emitting with zero carbon emissions

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Provides reliable, always-available baseload generation

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Can provide significant centrally generated electricity

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Low cost over time

Disadvantages •

High upfront capital costs and long project timeframes

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Public perception regarding potential safety concerns

•

Questions regarding disposal of nuclear waste

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Coal Generation Coal is an abundant and inexpensive energy source with a long history. It provides 40% of the world’s electricity. Traditionally, coal is crushed and turned to powder, then burned to produce steam, which in turn rotates turbines to generate electricity.

Recent advances have allowed “clean coal”-based electricity production through scrubbing technology which traps carbon emissions prior to release to the atmosphere. This has moderated some of the environmental concerns. Coal can also be converted to cleaner burning liquid hydrocarbons and synthetic gas.

In 2005, coal represented 18% of Canada’s generation mix. By 2019, coal generation had been reduced to 8%. Ontario eliminated coal generation in 2014, and federal regulations require a phase out of traditional coal-fired electricity generation across the country by 2030.

Advantages and Disadvantages of Coal Power Advantages •

Coal is plentiful in supply and inexpensive

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Relatively inexpensive to build coal generation plants

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Provides reliable, always-available baseload generation

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Coal is easy to burn and produces high energy

Disadvantages •

High intensity of greenhouse gas emissions

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Emits heavy metals such as mercury

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Has been linked with acid rain

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The coal extraction process can be detrimental to the environment

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Module 2: Generation—Where It All Starts

Natural Gas Generation Natural gas is found in underground reservoirs. It is the cleanest burning of all the fossil fuels and emits approximately half the carbon emissions of coal when used to produce electricity.

Natural gas is burned to produce steam, which in turn rotates turbines to generate electricity. Natural gas generation plants have the advantage of being able to start up and shut down with relative ease, making them an effective means of meeting electricity demand spikes.

Alternative uses Natural gas can also be used as a fuel source for combustion-engine-based electricity generation, which is often used for emergency back-up purposes.

Transition fuel As efforts have intensified to reduce carbon emissions, natural gas has been widely used as a replacement for coal and oil in electricity generation. In this context, it is sometimes referred to as a transition fuel, meaning one that will help bridge the gap between traditional fossil fuel dependence and larger-scale use of renewables.

Advantages and Disadvantages of Natural Gas Power Advantages •

Abundant

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Inexpensive

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Easily transported

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Produces less overall pollution than other fossil fuels

Disadvantages •

Produces greenhouse gases

•

Public concern about production—especially when gas is extracted using fracking

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Oil Generation Oil can be burned to generate steam for electricity production, or oil distillates can be used to run a diesel engine which powers a generator. In Canada, however, oil as a fuel for electricity production has been largely replaced by natural gas, due to its cost, efficiency, and other advantages.

Diesel generation continues to be used in remote locations such as the North, or in other areas not easily served by the electricity grid.

In terms of cleanliness and greenhouse gas emissions, oil falls between coal and natural gas, with natural gas being the cleanest of these three fossil fuels.

Advantages and Disadvantages of Oil Power Advantages •

Has been in plentiful supply

•

Has an established transportation system

Disadvantages •

Produces greenhouse gases

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More expensive than coal and natural gas

•

Less efficient than natural gas

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Module 2: Generation—Where It All Starts

Hydrogen Generation Although not a large electricity generation source today, hydrogen is garnering much interest. It is odourless and colourless, and the most abundant element in the universe. But it does not exist freely in nature and must be produced using other energy sources. It is therefore referred to as an energy carrier.

Grey hydrogen This most common form of hydrogen is generated from natural gas or methane through steam reforming.

Blue hydrogen This form of hydrogen is produced in the same way as grey hydrogen, but the resulting greenhouse gas emissions are captured and stored.

Green hydrogen This form of hydrogen is produced using clean renewable electricity and an electrolysis process, and results in no greenhouse gas emissions.

While hydrogen is renewable in and of itself, production of hydrogen today overwhelmingly relies on non-renewable sources such as coal, natural gas, and oil. These are used to separate hydrogen from oxygen through a steam reforming process.

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Renewable Hydrogen Hydrogen contains a large amount of energy in its chemical bond. It is a clean-burning fuel, and when combined with oxygen in a fuel cell, produces heat and electricity with only water vapour as a by-product.

As utilities continue to transition to renewables, there is growing interest in the production of green hydrogen. Hydro-Québec, Evolugen, BC Hydro, and ATCO, for example, are among the companies that have readied themselves to enter the renewable hydrogen industry.

Ease of transport Hydrogen can be stored in tanks, transported by road and sea, and even piped through the existing natural gas grid to power households and industry, to produce chemicals, and to fuel cars, trains, and trucks.

The hydrogen economy If renewable hydrogen becomes commercially viable to produce, it could become an important new export opportunity for Canada while helping the world to decarbonize.

Some envision a future “hydrogen economy,” where hydrogen is produced from a variety of energy sources, stored for later use, piped to where it is needed, and then converted cleanly into heat and electricity.

Advantages and Disadvantages of Hydrogen Power Advantages •

Significant decarbonization potential, particularly as green hydrogen becomes more viable

•

Can be used immediately or can be stored and transported for later use

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Can be used for both electricity generation and as a fuel for transportation and other uses

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Hydrogen vehicles have better range than electric vehicles

•

Many countries have identified hydrogen as a key element of their future energy strategies

Disadvantages •

Hydrogen can be volatile and is highly flammable

•

Production (particularly of blue and green hydrogen) remains expensive

•

Conversion of vehicle fleets, industrial processes, etc. will be required

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Module 2: Generation—Where It All Starts

Carbon Capture and Storage In addition to the various specific means of producing electricity, further technologies and processes come into play with respect to electricity generation. One of these is carbon capture and storage. Many electricity generation methods generate carbon, but technologies exist that allow the capture and storage of that carbon, rather than allowing its release into the atmosphere.

Why do we need carbon capture and storage?

While innovations in renewable energy are exciting solutions, we do not yet have the technology and infrastructure to make a complete switch to 100% renewables. In the meantime, we must seek ways to reduce emissions from familiar electricity generation sources.

Fossil-fuel-fired electricity remains widespread in Canada and is relatively inexpensive and reliable. The most common fossil fuels used for electricity production are coal and natural gas. However, burning these fuels emits greenhouse gases.

For instance, coal use accounts for 60% of greenhouse gas emissions from electricity production in Canada, while natural gas use accounts for approximately 30%.

Why is carbon capture the solution?

Carbon Capture and Storage (CCS) is the only currently available technology that can reduce emissions from fossil fuel-fired power plants. It has the potential to remove significant proportions of the CO2 emitted from such plants and allows us to strike a balance between emissions reduction and economic growth.

Likewise, as we move toward a lower carbon economy, CCS may find applications in other sectors such as petroleum extraction and processing.

How does carbon capture and storage work?

CCS is a process that extracts and collects the CO2 from a waste gas stream in a power plant. Those potential emissions are then compressed and injected into deep geological formations, whereas they would otherwise go into the atmosphere during electricity production and fuel processing.

CCS is a technological innovation that can be retrofitted to current fossil fuel plants or incorporated into new designs.

Key risk mitigation factors include how we transport the captured C02 and how we choose and manage storage sites to avoid any leakage.

Carbon pricing A carbon price, whether it is a tax or part of a trading system, increases the cost of carbon-emitting operations—including electricity generation—making investment in lower-emitting technologies more attractive.

Pricing carbon can drive innovation and encourage people and businesses to pollute less. However, relying on a carbon price alone to achieve Canada’s international climate-related targets is not enough.

Although Canada has more than an 80% greenhouse-gas-free electricity mix, we must continue to reduce our contribution to climate change, and CCS technology may be an important means of doing so.

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Cogeneration Cogeneration provides the opportunity to generate both electricity and heat from one source and put both to beneficial use. Cogeneration can be very beneficial at industrial and other sites where there is an ongoing need for both electricity and thermal energy (in the form of hot water or steam).

A cogeneration system can be powered by a variety of fuels including natural gas (the most common choice), biomass, biogas, and waste heat. The use of two energy streams from a single source, together with overall system efficiency, drives savings in both electricity and heating costs.

As larger customers convert to cogeneration options, they can in some cases operate largely independently from the grid, relying on their own self-generated electricity. However, these customers still require grid connection for power back-up purposes, and therefore pay grid standby charges.

Knowledge Check •

Nuclear generation is well suited to baseload generation because it cannot be easily turned on and off.

•

Coal is abundant and inexpensive and provides 40% of the world’s electricity supply.

•

Natural gas is the cleanest-burning fossil fuel, and it is relatively easy to start up or shut down.

•

The use of oil as a fuel for electricity production has largely been phased out in Canada.

•

Hydrogen is the most abundant element in the universe, and scientists and engineers are currently exploring its potential application as carriers of electricity.

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Module 2: Generation—Where It All Starts

KEY TAKEAWAYS •

As of 2019, the generation mix in Canada included hydro (60%), nuclear (16%), coke and coal (8%), natural gas (8%), and wind, solar, and tidal (6% combined)

•

The different renewable methods of generation include:

•

•

•

Hydro

•

Landfill Gas

•

Wind

•

Biomass

•

Solar

•

Tidal

•

Geothermal

The different non-renewable methods of generation include: •

Nuclear

•

Natural Gas

•

Coal

•

Oil

•

Hydrogen

Carbon capture and storage is a process that extracts and collects the CO2 from a waste gas stream in a power plant—preventing their emission as harmful greenhouse gases.

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Module 3: Transmission—The Long Haul

MODULE 3 TRANSMISSION THE LONG HAUL Welcome to Module 3: Transmission—The Long Haul.

By the end of this module, you should be able to: •

List the functions of the transmission system

•

Explain the role of the control centre

•

Identify and define the components of the transmission infrastructure

•

Outline design considerations for making a safe and efficient transmission system

This course uses images, audio, and text; content will appear on your screen as you scroll through the module. Keyboard navigation instructions will be provided for those who are not using a mouse or touchscreen. There is a short, graded assessment at the end.

This module should take approximately 20 minutes to complete.

Lesson list 3.1 Introduction 3.2 Transmission Infrastructure

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3.1 INTRODUCTION The transmission system is the electricity “superhighway.”

The Role of Transmission Electricity transmission is the process of transporting electricity from often remote areas where it is generated—usually over long distances—to the populated areas where local electricity distribution grids will deliver it to customers.

Electricity travels across the transmission grid at high voltages—above 100 kilovolts—for efficiency.

Transmission lines typically consist of overhead power lines; however, some comparatively short distances are covered with underground transmission lines, usually within densely populated areas. Transmission can also occur through submarine power cables.

Reference Documents To facilitate your understanding of terminology used in this course, please download the glossary of electrical terms.

If you are not using a mouse or touchscreen to navigate the course, please download the keyboard navigation instructions.

Transmission in Canada The transmission system serves as a bridge between where bulk electricity is generated and where it is used. It moves electricity efficiently and safely across long distances and connects provincial, regional, and national grids. It is the generation system that converts mechanical energy to electricity and the distribution system that transports lower-voltage electricity.

The Transmission Grid The electricity grid as a whole is the network through which electricity is generated, transmitted, and distributed. In this module, we will focus on the transmission system, which includes the control centre, transmission towers, and transmission lines.

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Module 3: Transmission—The Long Haul

Transmission Grid Management Proper management of transmission is essential to ensuring the safe and efficient transport of electricity.

In each province and territory, transmission systems are monitored, controlled, and managed centrally from a control centre. Control centres can restore, divert, and interrupt power transmission remotely in response to equipment failures and other issues. They are also able to dispatch crews to investigate and restore unplanned outages.

Control centres also authorize planned outages to allow for inspection, maintenance, repair, and replacement of, or additions to transmission infrastructure. There is a close interconnection with control functions at the level of local distribution grids.

Control centres are an important feature of both transmission and distribution systems and function in a similar way in both contexts.

There are a growing number of interconnections between provincial transmission systems, and across the Canada-United States border. This enables trade in electricity and supply-demand balancing across wider geographic areas. Furthermore, the increasing number of interconnections improves reliability of supply and the efficiency of electricity use.

Transmission utilities must adhere to reliability standards established by the North American Electric Reliability Corporation or NERC. NERC’s mission is to ensure the overall reliability of the bulk electricity system in North America. Working with approximately 1,400 bulk electricity transmitters, NERC establishes and monitors shared reliability standards.

Now let’s look at the components of the transmission system and how they work together to safely and efficiently transport electricity.

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3.2 TRANSMISSION INFRASTRUCTURE Transmission lines transport electricity long distances as efficiently as possible.

Introduction to Transmission Infrastructure Canada has migrated from what was once predominantly localized generation, to the current model of large-scale generation at centralized locations, thus requiring transmission infrastructure.

The primary elements of the transmission infrastructure include transmission towers, rights-of-way, conductors, insulators, and ground wires.

Transmission Towers Transmission towers carry the conductors or transmission lines and are typically built from steel, wood, or composite materials.

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Tower heights range from 25 to 100 metres depending on the transmission voltage level, and the distance between towers ranges from 250 metres to 500 metres.

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Towers are built to be tall because high voltage requires high clearance from the ground and ample separation from other conductors. Height is also required to safely straddle rivers, roads, bridges, railways, and distribution lines.

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Given their height and their often-remote locations, building and maintaining these towers can be challenging. Many transmission companies utilize crane-size bucket trucks, specialized helicopters, and even drones to accomplish this.

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Where adverse weather prevents flight-based access for maintenance purposes, other devices such as snowmobiles and off-road vehicles are used.

Right-of-Way A right-of-way is a path where transmission towers and lines are placed. It is typically 30 to 100 metres wide, but can be wider to accommodate multiple tower lines, and to allow utility personnel faster access to the lines for inspection, maintenance, and repair.

Corridors Rights-of-way corridors require a significant amount of land, and routes must be approved through established government processes.

Utilities endeavour to use as direct a route as is feasible, with due regard to environmental and other values and land uses.

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Module 3: Transmission—The Long Haul Clearance Transmission lines themselves are not insulated, and therefore tree and vegetation growth in rights-of-way must be carefully controlled.

Any point of contact with—or even close proximity to—a high-voltage conductor can cause an arc, or discharge of electricity from the line, which can damage the infrastructure and start fires.

The higher the transmission voltage, the greater the clearance required and the wider the right-of-way.

With an increasing frequency and scope of forest fires in some regions, transmission rights-of-way also provide the important supplemental benefit of acting as a fire break.

Three-Phase Power In Canada, transmission lines are designed and constructed using a three-phase model. Each transmission line consists of three bundled lines or conductors (referred to as either phases A, B, and C, or phases red, white, and blue).

The advantages of three-phase circuits include: •

They can transmit more power at the same voltage and amperage than one- or two-phase models.

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They use smaller and less expensive conductors and associated infrastructure.

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It is easier to maintain a balanced flow of power across three-phase circuits.

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They are less prone to overheating and to line losses of electricity.

Ohm’s Law To ensure the efficiency of electricity transmission, it is important to understand how voltage, current, and resistance are related.

Ohm’s Law is a formula used to calculate the relationship between voltage, current, and resistance in an electrical circuit. Named for German physicist Georg Ohm (1789 – 1854), Ohm’s law addresses the key quantities at work in circuits: E=I×R When spelled out, it means voltage = current × resistance, or volts = amps × ohms, or V = A × Ω.

To students of electronics, Ohm’s Law (E = IR) is as fundamentally important as Einstein’s Relativity equation (E = mc2) is to physics.

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Transmission Conductors (Lines) Transmission conductors are simply the lines across which electricity moves on its journey from generation stations to the local distribution grid. Voltages on these lines are typically in the range of 100 to 760 kilovolts.

Conductor material Transmission lines are most often made with a steel core with an outer layer of aluminum. The aluminum layer is where the electricity is carried, while the steel core provides strength.

Conductor size Conductor size depends on voltage level, the amount of power being transmitted across it, and the distance covered.

Conductors are sized to strike the right balance between being large enough to operate efficiently, while also minimizing weight and material costs.

Design considerations High-voltage transmission across well-designed lines lowers both the current and resistance within the conductors, thereby reducing line losses.

Distances between towers is another important design consideration that must account for factors such as temperature extremes, icing, and wind, and the key variables of line sag, swing, and gallop.

Sag, Swing, and Gallop While exposed to the elements, power lines can undergo stresses that alter their length and movement.

These factors are taken into consideration during the design of the transmission grid.

Sag Transmission lines expand and contract with changing temperatures, lengthening in the heat and shortening in the cold. Engineers therefore prescribe the right amount of sag between each tower to accommodate this.

The required sag depends on both external considerations, such as weather, and internal considerations, such as the amount of electricity travelling across the line. Greater loads cause more sag.

Swing and Gallop In windy conditions, transmission lines will swing side to side and may also “gallop” in more severe weather conditions (a wave-like, up-and-down motion). These considerations must also be factored into determinations of height, width, and spacing clearance requirements.

Weights are often added to transmission lines to suppress both swing and gallop and to help keep the overall structure steady in the wind. Large and brightly coloured “marker balls” are also hung from transmission lines for visibility from the ground and for aircraft.

Lines that are weighted down by heavy ice build-up are especially vulnerable to wind damage, and this has been a major factor in large-scale outages resulting from ice storms.

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Module 3: Transmission—The Long Haul

Insulators and Ground Wires Insulators and ground wires provide support and protection for transmission lines.

Insulators or insulating supports are used to attach transmission lines to transmission towers. They are made of either glass, porcelain, or polymers (a plastic-like material). They support the weight of the lines without allowing current to flow from the lines to the tower and into the ground. Insulators must have high mechanical strength to support the long length of lines in high wind and ice conditions, and they must have high electrical resistance to minimize current leakage. Insulators must also shed rainwater and be selfcleaning of contamination to maintain their insulating qualities.

Ground wires or earth wires are bare steel lines located at the top of the transmission tower. They serve to shield the line by intercepting potentially highly damaging lightning strikes before they can hit the currentcarrying transmission lines below.

Transmission Issues and Impacts Transmission is important to bridge the gap between generation and distribution, to move electricity efficiently across long distances, and to connect provincial, regional, and national grids. However, there are some disadvantages to this transmission system.

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Transmission lines traverse long corridors, creating environmental impacts and potential conflicts with other land uses.

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Large towers and other infrastructure need to be built and maintained within these corridors.

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High voltage is dangerous, and separation is needed in both tower height and right-of-way width.

Knowledge Check •

Control centres: Restore, divert, and interrupt power transmission remotely

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Transmission towers: Carry the conductors or transmission lines over long distances

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Rights-of-way: Allow utility personnel faster access to lines for maintenance and repair

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Transmission conductors: Carry electricity from the generation station to the distribution grid

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Insulators: Attach transmission lines to transmission towers

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Ground wires: Shield the line by intercepting lightning strikes

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KEY TAKEAWAYS •

The transmission system bridges the gap between generation and distribution in the electricity cycle, moves electricity efficiently across long distances, and connects provincial, regional, and national grids.

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Control centres monitor and manage transmission systems remotely, so that they can restore, divert, or interrupt power transmission when necessary.

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The primary elements of the transmission infrastructure include transmission towers, rights-of-way, conductors, insulators, and ground wires.

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Conductor size, material and tower placement must be addressed in the design of the transmission grid to account for environmental factors and provide safe and efficient transport of electricity.

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Module 3: Transmission—The Long Haul

MODULE 4 DISTRIBUTION DELIVERING TO AND SERVING THE CUSTOMER Welcome to Module 4: Distribution—Delivering to and Serving the Customer.

By the end of this module, you should be able to: •

List and describe the different components of distribution infrastructure

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Explain what the control room is and how it works

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List and describe the different kinds of power outages, including those caused by external and internal factors

This course uses images, audio, and text; content will appear on your screen as you scroll through the module. Keyboard navigation instructions will be provided for those who are not using a mouse or touchscreen. There is a short, graded assessment at the end.

This module should take approximately 35 minutes to complete.

Lesson list 4.1 Introduction 4.2 Distribution Infrastructure and Assets 4.3 The Control Room 4.4 Power Outages

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4.1 INTRODUCTION There is a great amount of infrastructure devoted to distributing electricity to the final consumer.

What is Distribution?

At some point along its journey from generation to customer, electricity will be “stepped down” or decreased from the high voltage at which it has travelled across transmission lines to lower voltages closer to what customers require. From here onward, we are within the local distribution grid. The distribution grid performs important functions that allow the safe and reliable delivery of electricity for use in homes, businesses, and institutions.

Reference Documents To facilitate your understanding of terminology used in this course, please download the glossary of electrical terms.

If you are not using a mouse or touchscreen to navigate the course, please download the keyboard navigation instructions.

Local Distribution Company Tasks A Local Distribution Company can be responsible for all these tasks.

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Plan: Review performance and analyze distribution asset reliability, project consumer demand growth, and develop capital and maintenance plans.

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Design: Apply utility engineering standards and project management rigour to projects and execute the capital and maintenance plans.

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Build: Bring engineering designs to construction and completion.

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Operate: 24/7 operation of distribution facilities.

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Maintain: Maintain and repair physical assets/infrastructure, such as transmission lines.

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Restore: Manage power outages and communicate with customers during such outages.

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Meter: Measure the customer’s consumption.

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Bill: Obtain all the usage information and bill the customer.

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Collect: Manage payment collection and disconnection for non-payment.

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Customer Care: Manage the ongoing relationship with customers.

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Module 4: Distribution – Delivering to and Serving the Customer

Distribution Utilities The distribution utility, or Local Distribution Company, is the entity responsible for the safe, reliable delivery of electricity to the final user.

Distribution utilities are diverse. In Ontario, for example, dozens of distribution utilities serve individual markets often consisting of a single municipality. Whereas in most of British Columbia, an integrated provincial utility performs the distribution function (along with generation and transmission).

The key distinguishing feature is that the distribution utility (or the larger utility playing that role) has a direct relationship with individual customers—connecting and maintaining their electricity supply, providing them with supplemental services, and issuing and collecting on customer bills.

Functions of the Distribution Utility A Local Distribution Company’s role includes a number of functions.

System Operation Distribution utilities operate the local grid, consisting in part of the overhead and underground wires that crisscross neighbourhoods, with a strong focus on safe and reliable delivery and on leveraging technology to ensure quick responses when outages occur.

System Planning, Maintenance and Expansion Distribution utilities continuously assess grid maintenance and expansion requirements, driven by both population growth and electrification. The need for capital investment is carefully planned and balanced with the need for customer affordability.

Billing and Customer Service Distribution utilities typically bill customers for all costs associated with their electricity and strive for service excellence. Payment for associated transmission and generation charges are passed along to the appropriate parties.

Enabling System Transformation Distribution utilities are adapting to, and helping drive customer involvement in energy system transformation, by enabling such things as rooftop solar generation and electric vehicle charging.

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Smart Grids and Microgrids Through the use of telecommunications and digital devices, smart grids allow the collection of data from across the grid, for real-time analysis and action.

Smart grids provide an open operating environment into which many digital devices can be integrated, including customer-facing equipment such as smart meters, utility management, and other information systems and technology.

Smart grids help enable the integration of many sources of generation, including renewable resources such as solar and wind, and battery storage (potentially drawing on electric vehicles as a storage platform). They are able to deploy the best available resource to match the precise profile of demand at a given time. This can help to minimize the need for additional large and centralized generation and associated transmission facilities.

Smart grids also allow more localized management of the grid, and balancing of supply and demand, and can support automated and self-healing grid capability in response to reliability threats.

A microgrid is a local network that has sufficient decentralized electricity generation sources to generally meet its demand needs. They can therefore be disconnected from the wider grid to operate as standalone entities if this becomes necessary due to conditions such as weather, or preferable due to prevailing electricity prices. While largely self-sufficient, microgrids usually do maintain an interconnection to the wider grid.

Microgrids can also be used to provide backup support to the wider grid (by providing surplus electricity), thereby improving the security of supply.

Microgrids can be deployed as complete stand-alone entities where there is no feasible transmission connection to a centralized generation source, for example on islands or in remote areas.

Microgrids can effectively manage various sources of distributed or decentralized generation, especially from renewable energy sources such as solar and wind. Battery storage can also be deployed within a microgrid. The costs of such systems are becoming increasingly competitive, making them more viable alternatives to the diesel-based generation that is commonly used in remote off-grid communities in Canada today.

While not yet widely developed in Canada, various utilities are implementing microgrids as pilot projects in diverse service territories to gain more real-world experience with their implementation.

Next, let’s take a closer look at the infrastructure that facilitates the distribution of electricity.

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Module 4: Distribution – Delivering to and Serving the Customer

4.2 DISTRIBUTION INFRASTRUCTURE AND ASSETS Electricity distribution infrastructure takes many forms—from whole buildings to poles and wires. In addition, there are other assets such as vehicles that play an important role within distribution infrastructure operations.

What is Distribution Infrastructure?

Distribution infrastructure includes substations, transmission lines, poles, transformers, vaults and switchgear. Each element of infrastructure has an important role to play in ensuring that electricity makes its way to the end consumer as efficiently and safely as possible.

Substations Substations serve as vital nodes between electricity generation, transmission, and distribution systems.

Substations are where voltage is transformed either from low-to-high, or high-to-low among other important functions. They commonly serve as an offramp from the electricity superhighway. Electricity may pass through several substations at different voltage levels as it flows from the generator to the end user.

Substations can be found at various inter-connections.

Generation Stations Substations can be found at generation stations, where electricity may need to be “stepped up” to a level at which it can be moved across transmission lines.

Transmission or Distribution Grids Substations can be found within either a transmission or distribution grid, where a change in voltage levels is needed.

Between Grids Substations can be found between the transmission grid and the distribution grid, where electricity needs to be “stepped down” to a level at which it can be moved across distribution lines and used.

Between the Grid and the Consumer Substations can be found between the grid and a large industrial or commercial electricity customer.

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Substation Operation How a Substation Operates Substations may be owned and operated by an electricity utility or by large industrial or commercial customers. They are generally unattended and remotely operated. The basic operation of a typical substation is as follows.

1. From Generation to the Substation: The substation is connected to the high-voltage transmission system.

2. Stepping Down the Voltage: Electricity travels through a station power transformer, which reduces the transmission voltage to a lower distribution-level voltage.

3. The Main Circuit Breaker: The distribution-level voltage electricity is fed through station distribution switchgear, which is analagous to the electric switch box found in a home.

4. Distribution Switchgear: From the distribution switchgear, multiple distribution circuits, or feeders, exit the station to supply the overhead and underground distribution system which feeds homes and businesses.

5. Distribution Feeders: Each circuit breaker feeds electricity into individual distribution feeders, which carry it to end users via the distribution grid of wires and cables. An individual feeder may connect directly to a combination of industrial, commercial, and institutional customers, and through additional transformers, it will also connect to individual residential customers.

Summary Substations regulate voltage and efficiently move electricity down various pathways, each appropriate to the needs of the end users connected to it. They also provide protective gateways, allowing the flow of electricity to be stopped along a particular pathway if necessary.

Substations are also primary hubs for the monitoring and control of the distribution system. Most substations have a programmable remote terminal unit (RTU), which is the point of connection back to the utility control room, enabling both data acquisition and control measures.

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Module 4: Distribution – Delivering to and Serving the Customer

Lines and Cables Some of the most visible infrastructure owned and maintained by an electricity distribution utility consists of the power lines that serve the local community. In high-density areas, such as an urban downtown and many residential areas, much of this infrastructure is buried underground.

Distribution lines are made of copper or aluminum and are supported on insulators mounted on poles (in the case of overhead lines). Distribution insulators provide separation between the energized distribution lines and the structures that carry them.

Buried Cables and Overhead Lines The term “lines” is typically used to describe this infrastructure when it is overhead, and the term “cables” is used to describe it when it is underground. Cables are typically installed in concrete-encased “duct banks,” which are accessed via maintenance holes. There are benefits and drawbacks to each approach.

Buried Pros: Eliminates tree contact and other forms of interference, reduces the risk of fire, and improves reliability (fewer outages due to vehicle accidents, animal contact, and weather). Relatively easy to build during the initial construction of a new development or subdivision.

Cons: Installing or replacing underground lines after initial road or subdivision construction can be 5 to 10 times more expensive than above-ground wires. They are also more difficult to maintain, as most of the infrastructure is not readily visible or accessible.

Overhead Pros: Less expensive, more visible, and easier to maintain.

Cons: More subject to tree, animal, vegetation, weather, and other interference.

Maintenance and Upkeep A core responsibility for electricity utilities is to make sure the grid remains intact, including periodically replacing poles, wires, and other critical components as they age. Utilities must constantly monitor and remove any potential sources of interference, through activities such as tree trimming and vegetation control.

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Poles Overhead wires are fixed to poles. In Canada, poles are typically constructed from the wood of tall trees.

However, concrete, and composite materials are becoming more widely used under certain circumstances.

Utility Poles The standard utility pole ranges 12 to 20 metres in height and typically lasts about 50 years before needing to be replaced. Poles are usually buried more than two metres in depth, but the higher the pole, the deeper it must be buried.

Composite poles Composite poles are made from a fibreglass-like material and are more expensive than their wood counterparts. They are easier to handle, especially in larger sizes and tight locations, but are more difficult to climb. Composite poles are expected to last longer and are sometimes used in difficult-to-serve regions, or where woodpeckers have damaged wooden poles.

Spacing Poles are typically set anywhere from 25 to 150 metres apart and provide the structure upon which insulators and distribution lines are mounted.

Which Lines Are Electricity Lines?

Utility poles have multiple uses. Besides carrying primary distribution lines, utility poles also carry lines used for telecommunications, including phone and cable TV lines. These multi-use arrangements are handled through contracts among the companies involved, and some poles are, in fact, owned by telecommunications companies.

Typically, the primary distribution conductors or lines are in the top-third portion of the pole. The middle third is used for distribution transformers and secondary wires. The lower third is used for telecommunications lines—both for utility communications use and for other telecommunications service providers.

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Module 4: Distribution – Delivering to and Serving the Customer

Vehicles Vehicles are another important component of distribution utility operations.

Utilities deploy an extensive array of vehicles, each with a specialized purpose. Today’s utility vehicles are highly advanced to enable safe, efficient and precise work.

Bucket Trucks Bucket trucks are an iconic utility vehicle and have greatly improved the capability of electricity workers to do their jobs.

Today’s bucket trucks provide far easier and safer options than working directly on a pole. Different bucket trucks are designed to reach different heights and manage different weights of materials. Their booms can typically reach 12 to 24 metres, with specialized trucks available with significantly longer reaches to service the transmission system.

Vehicle Fleet There are many other kinds of vehicles deployed by modern electrical utilities.

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Pickup trucks are multi-purpose vehicles for transporting people and equipment on and off road.

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Step vans often include an enclosed area allowing for specialized work to be done inside the van.

Various sizes are deployed for substation work, cable work, and fault finding.

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Pole-handling backhoes are equipped with a pole claw for safe and efficient distribution pole installations.

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A backyard bucket is used in smaller locations such as urban backyards, at heights of up to 14 metres.

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Vacuum trucks are equipped with pressurized water jets to create holes and are then able to vacuum up the resulting sludge.

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Cable handling vehicles, such as trailers and trucks, are used for large cable pulling and installation.

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Specialized computer and communication vehicles are designed for managing the distribution system’s intricate connections to telecommunications and computing systems.

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Electrical utilities use a range of trailers, including pole-carrying trailers, cable trailers, overhead tension stringing trailers and others.

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Drones are becoming increasingly popular as a tool for job planning, as well as assessing outages or equipment malfunctions.

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Helicopters are mostly used in transmission work, both to inspect and access towers and lines.

As part of their commitment to environmental sustainability, electrical utilities continue to electrify many components of their vehicle fleets.

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Transformers Distribution transformers scale the voltage of the electricity to customer needs. Transformers are typically filled with an insulating fluid such as mineral oil, which provides protection and cooling for the internal electrical components. Two types of transformers are found within the distribution system: pad mounted transformers and pole mounted transformers.

Pad Mounted Transformers A pad mounted transformer is ground mounted on a concrete base. Since all energized connection points are securely enclosed in a grounded metal housing, a pad mounted transformer can be installed in relatively close proximity to homes or businesses.

Pad mounted transformers are used with underground distribution lines, to step down the primary voltage on the line to the lower secondary voltage supplied to customers. A single transformer may serve one large building or many homes.

Pole Mounted Transformers Pole mounted transformers are typically cylindrical and are usually placed below the level of the overhead primary conductors or wires. They vary in physical sizes and voltage levels and often weigh several hundred kilograms each. They can be used to connect residential or commercial customers and can supply multiple customers. These transformers add flexibility to the grid—making it easy to add or remove customers—and the transformers themselves can also be easily changed or moved.

The only people who should ever have direct contact with a transformer are utility employees. Through signage and public education, utilities work to dissuade people from climbing on or otherwise coming into direct contact with this equipment.

Vaults Vaults are rooms or structures that allow utility workers easy access to equipment.

Customer Vaults Customer vaults are most often located at or above ground level providing access to subterranean equipment, such as switchgear, transformers, cables, and service connections. Vaults can vary in size and are often placed within customer buildings to allow for higher reliability and safe, easy access. Vaults need to be maintained regularly to prevent equipment degradation and damage caused by moisture, dirt, and salt.

Maintenance Chambers Maintenance chambers are where primary cables are placed and can be “pulled” to connect customers.

They are typically four metres long, two metres wide and over two metres high, and are found two metres or more under street level. One or two workers will enter a maintenance chamber at a time while being monitored by colleagues above ground for safety.

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Module 4: Distribution – Delivering to and Serving the Customer

Distribution Switches and Switchgear Switchgear allows electricity to be controlled either manually or remotely. It can be used to reroute electricity—much like changing tracks on a train system—as required for safety or power-restoration purposes. Distribution switchgear is typically pad mounted in a large green box similar to a pad mounted transformer. Switchgear is sometimes located in a substation, a vault or is mounted on poles.

It is now common for leading utilities to install digital switches, paving the way for an automated and remote-controlled grid, and providing improved power reliability and restoration. Digital switches also help to manage increasingly multi-directional flows of electricity on the grid.

Knowledge Check Substations serve as vital nodes within an electricity distribution system. Lines and cables are visible infrastructure, with lines being found overhead and cables buried underground. Utility poles are also used for telecommunications infrastructure, in addition to electricity distribution. Transformers scale the voltage of electricity to meet customers’ needs. Vaults allow utility workers easy access to equipment, and switchgear is used to reroute electricity as required.

Now that we understand the different kinds of infrastructure that facilitate the distribution of electricity, let’s see where that infrastructure is monitored and controlled from.

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4.3 THE CONTROL ROOM An electrical utility monitors the transmission and distribution of electricity from a central facility.

What is the Control Room?

Modern utilities at both the transmission and distribution level now manage a vast array of infrastructure stretching across large service territories. The control room is much like the brain of the grid, helping to track and deliver safe, reliable and efficient electricity. It is where utility operations are managed 24/7/365, and where the grid is managed and monitored throughout build-out, operation, maintenance, and restoration activities.

Control centres are an important feature of both distribution and transmission systems, and function in a similar way in both contexts.

Supervisory Control and Data Acquisition (SCADA) A Supervisory Control and Data Acquisition (SCADA) system collects and uses the information required to effectively manage a network. These systems are commonly deployed across a variety of large and complex networks, including not just electricity grids but also manufacturing operations and mass transit systems, for example. Even for smaller and more localized utilities, a modern distribution grid is much more efficiently managed through remote and automated systems rather than manual processes.

Let’s learn more about how a SCADA works.

Acquisition The process begins with data acquisition, which involves a network of sensors and monitors that collect data on key operating conditions and parameters, which are then transmitted back to the control room.

Real-time Monitoring and Analysis Control room operators monitor data and related analysis in real time, and are warned when problems arise (or may be about to). The “supervisory control” function kicks in when a problem is detected and enables remote and often automated troubleshooting.

Outages and Rerouting On distribution grids, SCADA systems monitor for conditions that can result in power outages and can reroute electricity supplies in response. In this way, the impacts of outages can be minimized and restoration efforts expedited, with many of the essential steps in doing so being identified and even implemented directly and remotely from the control room.

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Module 4: Distribution – Delivering to and Serving the Customer

Other Control Room Tools The SCADA system interacts and exchanges data with a range of other systems, software platforms and databases.

Geographic Information System (GIS) A GIS creates, manages, maps, and analyzes various types and layers of data relating to the location of poles, wires, switchgear, transformers, and other distribution assets.

Customer Information System (CIS) A CIS is the central repository of customer data including location, contact information, metering and billing information, and outage status.

Outage Management System (OMS) An OMS monitors the current network state—based on SCADA, GIS and CIS inputs—and predicts, identifies and responds to outages.

Automated Distribution Management System (ADMS) An ADMS provides a higher level of predictive, analytical and other intelligent capacities than an OMS. These capabilities more fully enable automated outage restoration.

Outage Reporting System This database allows for an integrated view and analysis of both real time and historical data sourced from a number of the tools available to the control room.

Knowledge Check SCADA systems collect and use the information required to effectively manage a network. The SCADA system interacts and exchanges data with a range of other systems, software platforms and databases.

The “supervisory control” function kicks in when a problem is detected and enables remote and often automated troubleshooting.

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4.4 POWER OUTAGES Most of us take electricity for granted. However, when the power goes out, it becomes headline news!

What is a Power Outage?

A power outage (also called a blackout, power failure, or power cut) is the planned, or more often unwanted, loss of electrical power to an end user. Power outages can occur throughout the grid, for many reasons. Power outages often impact a single neighbourhood or local community but can potentially be city-wide or even province-wide or beyond.

Power Outage Causes The electricity system in Canada is expansive, and although the grid is engineered to provide safe and reliable service, at times issues can arise. Some of the external causes of power outages are shown below.

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Interruptions can be caused by electrical distribution equipment being exposed to abnormal environments, such as road salt spray, humidity, corrosion, vibration, fire, or flooding.

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Adverse weather conditions such as extreme rain, ice, snow, wind, extreme temperatures, freezing rain or frost can all cause damage to distribution infrastructure.

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The energy released during a lightning strike is usually mitigated through specialized equipment.

However, lightning strikes can sometimes cause major damage.

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In urban areas, trees are sometimes allowed to get too close to power lines, creating safety and reliability issues. Electrical utilities usually have robust tree-trimming programs to manage this problem.

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Other foreign objects can cause power outages, including events such as animal contact (squirrels and birds), vehicle accidents, unsafe excavations, vandalism, and even objects such as metallic balloons.

Defective Equipment Defective equipment includes failure of electrical distribution system components primarily due to aging.

Large capital investments keep these failures in check by replacing aging equipment.

Loss of Supply Loss of supply can occur due to problems on the provincial transmission system.

Scheduled Outages Scheduled outages are planned in advance for construction or preventative maintenance. This is the only category that utilities can fully control.

Unknown Sometimes an outage will occur and even after investigation, no obvious cause can be found. Power gets restored and the event is registered as unresolved.

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Quantifying Power Outages Utilities are very good at analyzing, interpreting, and reacting to outage data. Considerable effort goes into understanding the root causes of why the power goes out, the trends over time, and the customer impacts.

This knowledge becomes the foundation for grid maintenance and capital programs.

Utilities use standardized terminology and metrics to describe and track the performance of the grid and describe power outages.

Momentary outages From time to time, the power can go out briefly. These are called momentary outages. They are often the outcome of the grid protection system doing what it has been designed to do, by isolating failed equipment and restoring power to the remainder of the customers.

System Average Interruption Frequency Index (SAIFI) The System Average Interruption Frequency Index (SAIFI) is the average number of interruptions per customer in a given year. The total number of customers who experienced at outage is divided by the total number of customers served.

System Average Interruption Duration Index (SAIDI) The System Average Interruption Duration Index (SAIDI) is the average duration of all interruptions in a given year per customer. The total length of all interruptions is calculated and then divided by the total number of the utility’s customers.

Customer Average Interruption Duration Index (CAIDI) The Customer Average Interruption Duration Index (CAIDI) is the average duration of all interruptions in a given year per impacted customer. The total length of all interruptions is calculated and then divided by the total number of the utility’s customers that were impacted by them. It can also be thought of as average time to restore service.

Feeders Experiencing Multiple Interruptions (FEMI) Feeders Experiencing Multiple Interruptions (FEMI) measures how many interruptions each feeder or primary circuit experiences. This measurement helps utilities focus on improving the worst performing feeders.

Customers Experiencing Multiple Interruptions (CEMI) Customers Experiencing Multiple Interruptions (CEMI) measures how many outages individual customers have experienced. This allows focused utility work on improving service to those customers with higher CEMI scores.

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Mutual Assistance Mutual assistance is when utilities help each other on an urgent but non-profit basis when responding to large-scale power outages. Support is typically offered in the form of experienced crews and additional equipment.

There are many regional mutual assistance arrangements between utilities. One example of a larger outage arrangement is the North Atlantic Mutual Assistance Group (NAMAG) which exists for the benefit of 36 million electricity customers in the north-eastern U.S. and neighbouring parts of Canada.

Mutual assistance pre-planning includes: •

A process for identifying and prioritizing events as they occur

•

Analysis of anticipated support requirements

•

Pre-organization of actual support arrangements

•

Pre-arranged contracts to cover terms and conditions and to support international travel

Knowledge Check Momentary outages are often the outcome of the grid protection system doing what it has been designed to do, by isolating faulted equipment and restoring power to the remainder of the customers.

The System Average Interruption Frequency Index (SAIFI) is the average number of interruptions per customer in a given year.

The System Average Interruption Duration Index (SAIDI) is the average duration of all interruptions in a given year per customer.

The Customer Average Interruption Duration Index (CAIDI) is the average duration of all interruptions in a given year per impacted customer. It can also be thought of as average time to restore service.

Feeders Experiencing Multiple Interruptions (FEMI) measures how many interruptions each feeder or primary circuit experiences. This measurement helps utilities focus on improving the worst performing feeders.

Customers Experiencing Multiple Interruptions (CEMI) measures how many outages individual customers have experienced. This allows focused utility work on improving service to those customers with higher CEMI scores.

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KEY TAKEAWAYS •

Distribution infrastructure includes substations, transmission lines, poles, transformers, vaults, and switchgear.

•

The control centre is where utilities gather and analyze data about their infrastructure, which allows them to quickly respond to incidents.

•

Power outages can be caused by a multitude of factors, including severe weather or temperature events, tree contact, or interference from foreign objects. You also know that there can be internal causes of power outages, such as equipment malfunctions or scheduled outages.

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Module 5: The Meter and Beyond

MODULE 5 THE METER AND BEYOND Welcome to Module 5: The Meter and Beyond.

By the end of this module, you should be able to: •

Describe the features of smart meters versus traditional meters

•

Explain how utility rates are set and billing amounts are determined

•

Explain Distributed Energy Resources

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List the common methods and advantages of energy storage

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Identify key advancements in the electric vehicle sector

This course uses images, audio, and text; content will appear on your screen as you scroll through the module. Keyboard navigation instructions will be provided for those who are not using a mouse or touchscreen. There is a short, graded assessment at the end.

This module should take approximately 30 minutes to complete.

Lesson list 5.1 Introduction 5.2 Rates and Billing 5.3 Behind the Meter

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5.1 INTRODUCTION Distribution utility customer meters represent the “cash register” of the electricity system.

Introduction to Metering Meters are used to measure how much electricity is consumed by utility customers. This information is used for billing purposes, and it helps to gauge demand. We will look at different types of metering, how utilities are paid, and how rates are set.

Reference Documents To facilitate your understanding of terminology used in this course, please download the glossary of electrical terms.

If you are not using a mouse or touchscreen to navigate the course, please download the keyboard navigation instructions.

Traditional Versus Smart Meters

Types of Meters

Traditional meter

Traditional meter

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Is electromechanical

•

Measures how much electricity is used (kWhs)

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Has spinning dials

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Is electromechanical

•

Is read manually

•

Has spinning dials

•

Is manually read

Smart meter •

Is digital

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Is read using telecommunications

•

•

May have remote disconnect and reconnect features

Measures how much and when electricity is used (kWhs)

•

Is digital

•

Measures when electricity is used

•

Uses telecommunications to read

•

May have remote disconnect and reconnect features

•

May provide a “last gasp” power outage message

Smart meter

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The Smart Metering System There have been significant advances in metering since the traditional meter, including the introduction of smart meters, Advanced Metering Infrastructure, and sub-metering.

Smart meters measure how much electricity is consumed and when. The measurement is digital, and telecommunications infrastructure is used to collect the data for billing purposes. Some smart meters can communicate a “last gasp” message when the power goes out—helping utilities to precisely identify outages and communicate with impacted customers. For commercial customers, specialized meters provide additional features such as power quality measurements.

Advanced Metering Infrastructure or AMI is an integrated system of smart meters, data management systems and communication networks that enables a two-way flow of information between utilities and customer meters. Usage information is communicated from the meter to the utility, and the technology can be equipped to remotely turn on or off the flow of electricity at a specific meter (without the need for utility staff to physically be at the location).

In addition to the bulk meter used by utilities to determine overall building consumption, individual submeters can be used. Sub-metering is a system, not typically owned by a distribution utility, that allows a landlord, property management firm, condominium association, homeowners association, or other form of multi-tenant property to bill tenants individually for electricity use.

Sub-metering provides building and facility managers more granular visibility into energy use and equipment performance, creating opportunities for improved efficiency and cost savings.

Sub-metering may also refer to monitoring the electrical consumption of individual equipment within a building, such as heating and air conditioning, indoor and outdoor lighting, refrigeration, kitchen equipment and more.

Net Metering Net metering is a process that measures customer-produced electricity (typically from solar or wind) and subtracts that from consumption, so the customer only pays for the net electricity consumed.

For example, if a particular customer consumed a total of 750 kilowatt-hours of electricity in a month but generated 250 kilowatt-hours via solar panels on their roof, then the total utility bill would be for only 500 kilowatt-hours. Should the customer produce more electricity than they consume, then the billing credit would roll forward (within applicable limits) on the customer’s utility bill.

Now that you have learned about the different types of meters, let’s look at how rates are established and utilities are paid.

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5.2 RATES AND BILLING Rates are set through regulatory processes designed to be transparent and to rigorously protect customer interests.

Introduction to How Utilities Are Paid Utilities are paid based on the electricity rates charged to their customers. Rates charged cover the actual costs of electricity, including the initial and ongoing costs of generation, transmission, and distribution; the costs of all ancillary services; and electricity market costs and taxes.

Regulated utilities are not allowed to earn profits in the way that private companies are, but they are permitted to earn a regulated rate of return, which will enable them to attract the capital they need for ongoing investment in their infrastructure.

How Rates Are Set Electricity rates are typically set on a multi-year basis through an extensive review process involving the utility, the associated regulatory body, and key stakeholders. This process is designed to include a full and transparent view of all costs associated with the full electricity supply chain, along with forecasted customer requirements. The regulatory process includes the opportunity for stakeholder input in the interests of helping ensure reasonable rates are set.

1. Prices are set based on a forecast of how much it will cost to supply customers with the electricity they are expected to use over the next rate period and the capital investment needed to support and expand the electricity grid.

2. Distribution utilities—as the customer-facing part of the electricity system—issue and collect on customer bills and transfer portions owed to generators and other supply-chain participants.

3. Regulators review prices regularly and reset them if necessary. Regulation varies from one province to another, and rates can vary from one utility to another within the same province. Variables impacting rates include the generation supply mix, the distance the electricity must travel, and the population of customers being served.

4. Remaining variances between forecast and actual costs, whether a surplus or shortfall, are factored into the next price-setting review.

Types of Expenditures Capital expenditures Capital expenditures refer to investments in infrastructure and equipment, which typically have a multiyear service life. The cumulative value of all such capital investments is what utilities are allowed to earn a rate of return on (the “rate base”). For accounting purposes, these assets depreciate over multiple years, often beyond the rates that are being set.

Expenditures on large information and technology solutions, including both hardware and software, may also be capitalized. There is a lot of discussion now regarding “capitalizing the cloud”—meaning allowing utilities to include the value of their growing investments in cloud-based software in their rate base, even though these are not tangible in the same way that traditional capital investments are.

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Module 5: The Meter and Beyond OM&A expenditures Operating, Maintenance and Administration (OM&A) expenditures are annual expenses and are not depreciated. Such expenses include internal support functions such as regular infrastructure inspection and maintenance, and corporate services such as finance, human resources, customer care, legal, and regulatory. Utilities are allowed to recover approved OM&A costs but are not allowed to earn a rate of return on these expenditures.

Billing Determinants Billing amounts are determined differently for residential and commercial customers.

Residential For residential customers, bills are based on how much electricity is consumed (consumption or kilowatt hours) and in many cases, also on when the electricity is consumed.

Smart metering technology allows for a variety of billing options which include the following: •

Time of use billing – the rate you pay depends on time of day

•

Critical peak price billing – time of use pricing is in effect except for certain peak periods when price reflects generation cost

•

Flat rate billing – the rate is fixed and not based on generation cost or consumption

Commercial For commercial customers billing determinants can include the following: •

Consumption – total electricity consumed as measured in kilowatt hours; time of day rates may also apply

•

Demand – the peak amount of electricity consumed during the billing period (or annually) as measured in kilowatts

•

Power factor – a measure of the efficiency of the customer’s facility

Time of Use Pricing In many jurisdictions, utilities have implemented time of use (TOU) pricing. The rate you pay depends on the time of day the electricity is consumed.

•

TOU pricing better reflects the true cost of power because customers are charged more for electricity during peak hours, when it’s more expensive to produce.

•

This pricing option has been enabled by smart meters which can measure both how much and when electricity is consumed.

•

The purpose of this pricing model is to “flatten the demand curve” by encouraging customers to shift their use from peak times to off-peak times.

•

In Canada, the demand for electricity is usually greater during the day than at night. While there may be an abundance of capacity overall, TOU rates can help avoid the requirement for additional generation and transmission capacity.

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Conservation and Demand Management (CDM) Although there are pros and cons to all forms of electricity generation, most people can agree on the merits of conservation and minimizing demand.

Conservation Electricity conservation typically means using fewer kilowatt hours of electricity and reducing overall consumption. This can be accomplished by simple low and no cost measures along with more complex and costly measures.

Conservation can include simple steps such as turning off lights and drawing window drapes to keep the sun out and rooms cool. Other steps may include turning the heat down in the winter or raising the temperature of an air conditioning unit in the summer. Many residential and commercial buildings now have automated energy management systems that can turn off or shift electricity loads to another time.

Demand management Demand management involves processes and protocols to help minimize the demand for electricity during specific periods of time to flatten out the demand curve and to help avoid the need to build additional generation and transmission facilities.

Examples of such mechanisms include time of use pricing and programs that incentivize and enable both residential and commercial customers to curtail nonessential use during high-demand times.

Smart meters that enable lower prices during off-peak hours and higher prices during on-peak hours can encourage both conservation and demand management.

CDM Programs Electricity Canada’s member companies are leaders in the provision of Conservation and Demand Management programs. These programs: •

Respond to the needs of utility customers

•

Are cost-effective and a complementary alternative to address infrastructure constraints

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Contribute to meeting climate change targets

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Can be maximized through an integrated and collaborative approach between government bodies and utilities

•

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Module 5: The Meter and Beyond

Knowledge Check •

Conservation refers to reducing electricity consumption.

•

Demand management involves processes and protocols to help minimize the demand for electricity.

•

Capital expenditures are investments in infrastructure and equipment that depreciate.

•

OM&A expenditures are annual expenses that are not depreciated.

•

Time of use pricing refers to electricity rates that are different at peak hours versus non-peak hours.

•

Rate base is the value of capital investments that earn a rate of return.

•

Regulation involves reviewing prices and resetting if necessary.

Now that you know about rates and pricing, let’s look at issues related to supply and demand.

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5.3 BEHIND THE METER Today’s electricity grid is no longer the exclusive domain of traditional electricity utilities supplying electricity to customers in the conventional fashion.

Introduction to the Open-Access System The electrical grid is becoming a more open-access system that includes new generation, storage, and energy-management options that are situated “behind the electricity meter.” These systems are located within a customer’s home, facility, or property—but are nevertheless integrated within the grid as a whole.

Distributed Energy Resources (DERs) The meter used to be a firm and one-way demarcation point. The customer was charged for the electricity that flowed through the meter, and nothing flowed back in the other direction. The utility was not concerned with how the electricity was used. Today, that is changing, mainly because of the growth in distributed energy resources.

DERs Distributed Energy Resources, or DERs for short, are sources of electricity connected to a local distribution system that can store or generate electricity or adjust consumption.

DERs consist of the array of small-scale energy technologies that are increasingly commonly owned by consumers. They can include the following: •

Rooftop solar panels

•

Home batteries

•

Electric cars and chargers

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Smart home appliances (washers, dryers, refrigerators, home heating, AC cooling, pool pumps, etc.)

Applications DERs can talk to each other and respond to grid signals delivered via the internet or smart meters.

They provide localized generation to help offset the need for increased centralized generation and transmission resources.

They also enable customers to adjust their energy use based on electricity pricing and other signals.

In some cases, it may be possible to utilize DERs to go off grid for a short period of time—like the way a microgrid operates—thus improving overall system reliability.

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Module 5: The Meter and Beyond Evolution An energy evolution is underway as more residential and commercial customers invest in these technologies, putting tremendous energy-management capabilities into the homes and hands of consumers.

It is likely that as prices come down, more people will purchase electric cars, smart appliances, and home energy management systems that can coordinate and control home energy use. This action will not only reduce household power bills but will transform the energy system.

Distribution utilities will have an important role in managing grid connections, as required for these technologies, and may in some instances also become owners and operators of DERs. Adaptation Challenges A growing percentage of Canadian electricity is expected to be supplied to the distribution system from DERs, such as rooftop solar and battery storage. In the process, households and businesses will become less reliant on big power stations. This will create challenges for the current electricity system to overcome such as how to manage voltage levels and how to predict supply and demand.

Modernizing the Grid Canadian utilities are modernizing the grid so that it can cope with the increase of DERs. Regulation, standards, and testing Regulations for generation, standards adherence, dependability of household devices, and testing of new software platforms are being updated.

Virtual power plants DERs have been likened to “virtual power plants” that can be controlled remotely by aggregators and market operators. These virtual power plants can capture the collective potential of varied DERs, like electric vehicles and smart appliances, to help reliably balance supply and demand.

“Peaker” plants Fossil fuel powered “peaker” plants are used to meet high demand, and solar panels and wind turbines can be disconnected from the grid during periods of overproduction.

Battery energy storage Battery and other energy storage technologies are now taking the lead and proving to be very efficient and cost effective in providing the solution to many grid challenges.

Storage allows utilities to supply reserve power to effectively reduce energy-demand peaks and to address the intermittent nature of some renewable generation.

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Importance of Energy Storage Energy storage involves capturing electricity when it is produced so that it can be used later. Storage can also include “pre-generation,” whereby a resource, such as water, is kept in storage and run through a hydroelectric station when needed.

Advantages of convenient and economical energy storage include: •

Increased grid flexibility

•

Simplified integration of renewables and distributed generation

•

Improved power quality

•

Limited periods of generation asset overload

•

Continued service in the event of a power outage

Energy Storage Methods Today, energy storage technologies are the key to modernizing the electricity system. Scientists and engineers are creating new solutions and modifying existing ones to meet our current and future needs.

Electricity companies in Canada are committed to staying at the forefront of this emerging opportunity.

Hydro reservoirs Canada’s extensive hydro reservoir system uses the natural landscape to store water until it is needed for electricity production.

Pumped hydro Pumped hydro sites achieve availability benefits by pumping water into a reservoir when electricity demand is low and then draining it through generators to produce electricity when demand is high.

Flow and solid-state batteries Battery storage applications are being focused on locations along the distribution system where customers are most likely to need additional electricity—primarily as a backup to the main power grid in the case of an outage.

Other energy storage methods include: •

Compressed air

•

Flywheels

•

Thermal storage

•

Superconducting magnetic energy storage

•

Electrochemical capacitors

•

Hydrogen (including power-to-gas)

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Module 5: The Meter and Beyond

Economic Challenge of Energy Storage The challenge so far has been to store energy economically, but costs are coming down. A 2015 Deutsche Bank report predicted that “the cost of storage will decrease from about 14 cents per kilowatt hour today to about two cents per kilowatt hour.”

Storing energy economically Economical energy storage has a major impact on the adoption of electric vehicles, residential storage units like the Tesla Powerwall, and utility-scale battery storage applications. Recently, battery prices have dropped rapidly, making electricity storage more viable for households and businesses.

Balancing demand and supply Charging batteries during off-peak periods and discharging during the peak times of day help balance the demand and supply of electricity locally and nationally.

Managing power quality Storage can also help manage power quality on the electricity grid, which means the grid can more effectively serve the growing range of devices and machinery powered by electricity.

Integrating renewable energy Storage can help integrate renewable electricity and can also avoid expensive upgrades to the network. We all benefit from the flexibility electricity storage offers.

Knowledge Check The cost of energy storage is in fact falling, since the price of batteries is decreasing. Battery storage applications are used primarily as a backup to the main power grid in the case of an outage. Hydro reservoirs use the natural landscape to store water, whereas pumped hydro sites use man-made pumps and reservoirs to store water.

Electric Vehicles The Canadian transportation sector is responsible for one quarter of national greenhouse gas emissions.

Electric vehicles (EVs) provide the opportunity to decrease this percentage by transitioning from a predominantly fossil-fuel-driven sector to a cleaner electricity-powered future.

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Electric Vehicle Sales In 2020, over 3.5% of vehicles sold in Canada were electric (up from less than 1% in 2016), and the trend is headed in a strongly upward direction.

Sales are highly dependent on financial incentives. British Columbia has the highest share of new zeroemission vehicle sales, with battery-electric and plug-in hybrids accounting for 8.4% of overall vehicle sales.

Quebec is next at 6.8%, although nearly half of electric cars in Canada are registered in the province. British Columbia and Quebec account for 76% of all zero-emission, light-vehicle registrations.

Data Source: Electric Mobility Canada. Electric Vehicle Sales in Canada. Data Retrieved: July 2021; Visual Created by the Electricity Canada

Key Electric Vehicle Terms There are various types of vehicles, named according to their power source and often referred to by their acronyms.

•

ICE: Internal Combustion Engine (gas)

•

HEV: Hybrid Electric Vehicle (mostly gas, some electric)

•

PHEV: Plug-in Hybrid Electric Vehicle (mostly electric, some gas)

•

BEV: Battery Electric Vehicle (battery only)

•

ZEV: Zero Emissions Vehicle (no emissions)

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Shift to Electric Transportation In 2021, the Canadian Government announced that it will require 100% of car and passenger truck sales to be zero emission by 2035—an advance of five years from the previous goal of 2040.

Meeting demand The shift to electrification of transportation is accelerating worldwide, and the ability of the electricity sector to effectively meet this growing demand is pivotal to its long-term success. EV numbers are growing exponentially as car manufacturers release more models.

Supporting growth Many electricity utilities in Canada are uniquely positioned to support the growth in electrified transportation—not only through power production, but also through strategic investments in distribution and fast-charging infrastructure.

Updating regulations Regulatory innovation through provincial and territorial government directives is needed to create appropriate rate classes for different charging needs and to allow utilities to include upfront infrastructure costs (associated with deploying fast chargers) within the investments on which they can earn a regulated return.

Preparing the grid Utilities are further preparing their grids for the predicted growth in electricity demand with trials for smart charging when electricity demand and prices are low. Emerging technology also has the potential to turn EVs into a large fleet of mobile batteries, which could be aggregated to supply energy to the grid.

Knowledge Check In 2020, over 3.5% of vehicles sold in Canada were electric (up from less than 1% in 2016).

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KEY TAKEAWAYS •

There have been significant advances in metering since the traditional meter, including the introduction of smart meters. Smart meters measure how much and when energy is consumed and can be read, disconnected, and reconnected remotely.

•

Electricity rates are typically set on a multi-year basis through an extensive review process involving the utility, the associated regulatory body, and key stakeholders. Billing rates can be based on amount of consumption as well as time of use.

•

Distributed Energy Resources are sources of electricity connected to a local distribution system that can store or generate electricity or adjust consumption. Canadian utilities are modernizing the grid to cope with the increase of DERs.

•

Energy storage involves capturing electricity when it is produced so that it can be used later. Common energy storage methods are hydro reservoirs, pumped hydro, and batteries, among others.

•

Electric car sales are increasing as the transportation sector works toward the goal of zero emissions by 2035. The shift to electric vehicles involves meeting increasing demand, supporting growth, updating regulations, and preparing the grid.

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Module 6: The Customer

MODULE 6 THE CUSTOMER Welcome to Module 6: The Customer.

By the end of this module, you should be able to: •

Explain the concepts of “good customer service” and “good customer experience”

•

Describe the different tools that utilities use to enable a good customer experience

This course uses images, audio, and text; content will appear on your screen as you scroll through the module. Keyboard navigation instructions will be provided for those who are not using a mouse or touchscreen. There is a short, graded assessment at the end.

This module should take approximately 17 minutes to complete.

Lesson list 6.1 Introduction 6.2 Emerging Customer Tools

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6.1 INTRODUCTION The sole purpose of the electricity industry is to serve those who use electricity—our customers.

What is a Customer?

To reflect our sole purpose, we refer specifically to “customers.” Electricity customers are individuals or organizations that pay the bill, while electricity consumers include anyone that uses electricity. At times, these terms are used interchangeably. For an electricity service provider, the term “customer” reflects a modern customer-centric perspective, versus the former term of “rate payer,” which reflected a now outdated utility-centric perspective. Within utilities, customers are generally classified in categories such as residential, commercial, industrial, and large users, among others.

Reference Documents To facilitate your understanding of terminology used in this course, please download the glossary of electrical terms.

If you are not using a mouse or touchscreen to navigate the course, please download the keyboard navigation instructions.

Customer Interaction A customer calls up their local electricity utility to ask a question about their billing. When this routine interaction has concluded, the customer proceeds to ask some questions about the environmental impact of the utility: Does the utility use coal generation, solar and wind power, or nuclear generation? What is the utility doing to curb their carbon emissions?

How should the customer service representative respond?

Tell the customer the truth—that their utility is making every effort to be environmentally responsible in the provision of electricity, and this includes the use of a responsible mix of generation. The mix includes renewable sources such as solar and wind, but the electricity supply may also include other sources such as nuclear and hydroelectric generation along with coal and gas in order to provide a baseline of service.

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Module 6: The Customer

The Customer Experience Today, utilities are transitioning from the concept of providing good customer service to providing a good customer experience. But what is the difference?

Customer service is typically focused on the transactional level of providing a service—for example, how pleasant a call centre representative was to deal with.

Customer experience, however, is focused on the image of the utility and the experience the customer has with its operations, including environmental sustainability, corporate social responsibility, community presence, operational and service quality, and other considerations.

When dealing with customers, modern utilities are focused on being easy to do business with, caring, efficient, and knowledgeable. In their day-to-day interactions with customers, they are providing tools and technologies to help deliver customer choice, convenience, control, and communication. This is, of course, in addition to the fundamental requirements of providing safe and reliable electricity and timely and accurate billing.

Traits and Commitments When thinking about providing a quality customer experience, keep in mind the traits of a quality customer experience, as well as the commitments expected of an enterprise concerned with delivering it.

Traits •

Easy to do business with

•

Caring

•

Efficient

•

Knowledgeable

Commitments •

Choice

•

Convenience

•

Control

•

Communication

Now that you understand what we mean by “customer experience,” let’s take a closer look at the tools utilities use to ensure they are delivering a quality customer experience.

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6.2 EMERGING CUSTOMER TOOLS Utilities use many kinds of tools for understanding and communicating with their customers.

Introduction to Customer Tools Customer tools refer to a range of services, processes, and technologies that utilities use to better understand their customers.

Surveys and Benchmarks It is common practice for utilities to survey their customers regularly to benchmark performance and take steps to continually meet and exceed customer expectations. Through Electricity Canada, the utilities can jointly share their best practices for the benefit of all electricity professionals.

Key Accounts Many utilities have also engaged in the best practice of serving their key accounts—typically the largest and most influential customers—with a key accounts program. This entails personalized and customized products and services for large commercial and industrial customers. Some utilities use their key accounts program to serve the MUSH sector—municipalities, universities, schools and hospitals—as well as for the benefit of critical service providers such as fire, ambulance, and police services.

Emerging Customer Tools To help deliver an excellent customer experience, utilities are providing diverse customer-focused tools.

Let’s look at some examples: •

Many utilities offer websites and smartphone apps that allow users access to information about their accounts, including billing, payment, conservation and demand management programs, and usage trends and prediction options.

•

Many utilities now offer online power outage maps, providing information and restoration estimates.

•

Some utilities employ biometric identification tools in their customer contact centre, which allow customers to use their voice to securely identify themselves.

•

Some utilities have integrated with smart speaker services such as Alexa and Google Home.

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Module 6: The Customer

Customer Communication Utilities recognize that one size does not fit all when it comes to communicating with customers. Utilities are taking an “omni-channel” approach as they seek to meet their customers where they are. These channels can include voice, web, print, social media, and chat (among others), in addition to traditional face-to-face interactions such as focus groups and community meetings.

To support these types of customer-facing tools while delivering efficient service, internally utilities are turning to technology solutions such as Robotic Process Automation (BOTS) and Artificial Intelligence.

With the overall digitization of the grid, and the ongoing progression of the “Internet of Things,” more customer-facing and internal tools will be delivered to help make the overall experience as seamless as possible for customers.

Knowledge Check Surveys and benchmarks allow utilities to gather feedback from their customers and improve their processes and best practices. Giving important customers key accounts allows them to design a more personalized customer service experience. Websites and smartphone apps can enable all customers to access their account information, including balances, at any time. Biometrics, such as voice recognition technology, allow customers to securely access their accounts. Online outage maps can provide customers with real-time information about power outages and estimated restoration times.

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KEY TAKEAWAYS •

Good customer service prioritizes individual transactions or interactions with customers, whereas a good customer experience is focused on the image of the utility, and the experience the customer has with its operations.

•

Utilities are using a wide variety of tools, from surveys and benchmarks to mobile apps, outage maps, and biometrics, to enable a good customer experience.

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Module 7: Industry Focus Areas

MODULE 7 INDUSTRY FOCUS AREAS Welcome to Module 7: Industry Focus Areas.

By the end of this module, you should be able to: •

Explain what is restricted under Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA)

•

List the goals and principles for engagement of Indigenous communities

•

Identify employee safety strategies

•

Describe the measures utilities are taking to protect their physical and cyber assets

This course uses images, audio, and text; content will appear on your screen as you scroll through the module. Keyboard navigation instructions will be provided for those who are not using a mouse or touchscreen. There is a short, graded assessment at the end.

This module should take approximately 25 minutes to complete.

Lesson list 7.1 Introduction 7.2 Serving Indigenous Communities 7.3 Health and Safety 7.4 Physical and Cybersecurity

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7.1 INTRODUCTION The protection of customers and employees and the security of data and infrastructure are priorities of Electricity Canada.

Introduction to Industry Focus Areas The electricity industry continuously monitors evolving trends, issues, risk factors, and societal expectations, and embeds the consideration and management of them into its activities. Key focal areas include: •

Data privacy

•

Serving Indigenous communities

•

Health and safety

•

Physical and cybersecurity

Reference Documents To facilitate your understanding of terminology used in this course, please download the glossary of electrical terms.

If you are not using a mouse or touchscreen to navigate the course, please download the keyboard navigation instructions.

Information Protection Let’s first look at data privacy.

•

Names and addresses of customers

•

Banking information

•

Customer electricity usage information

•

Employee records

All of the above are examples of protected information.

The utility can only use this information for the purpose for which it was collected and cannot disclose this information without the individual’s consent.

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Data Privacy Electricity utilities fall under Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) and must therefore obtain an individual’s consent when they collect, use, or disclose that individual’s personal information.

All Canadians have the right to access their personal information held by an organization. They also have the right to challenge its accuracy.

Personal information can only be used for the purposes for which it was collected. If a utility is going to use it for another purpose, it must again seek consent. Personal information must be protected by appropriate safeguards.

•

Utilities collect a significant amount of data that they must protect. This includes personal information such as names, addresses, contact numbers, email addresses, and banking information; and

•

electricity usage information such as metering data, including consumption and demand.

The amount and granularity of data have increased several-fold—from millions to billions of data points— through increased digitization of the grid in the form of smart meters and other technologies. This data is of great use to utilities for planning and operational purposes. But this same information could be of significant interest to bad actors. Utilities must therefore remain vigilant in the protection of customer data.

Now that you have learned about the importance of data privacy, let’s look at some other key industry focus areas.

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7.2 SERVING INDIGENOUS COMMUNITIES Electricity Canada and its members are committed to engaging with and serving Indigenous communities.

Electricity Canada’s Commitment to Serving Indigenous Communities Electricity Canada and its members are committed to working with the Indigenous Peoples of Canada to advance the following goals: •

Nurture meaningful long-term relationships

•

Enhance mutually beneficial economic relationships and business opportunities

•

Further consider and reflect Indigenous perspectives in the activities of Electricity Canada and its members

National Principles for Engagement of Indigenous Peoples Electricity Canada and its members have committed to adhere to the following principles to build more positive and mutually beneficial relationships with Indigenous communities.

Respect Indigenous culture, traditional values, and rights Respect the culture of all Indigenous Peoples, their interests, values, practices, beliefs, traditional knowledge, and Indigenous and Treaty rights recognized and affirmed under the 1982 Constitution Act. Nurture constructive relationships Seek to establish and nurture constructive long-term relationships with Indigenous Peoples based on mutual respect, trust, collaboration, and accountability.

Enhance communications Promote fair, timely, transparent, reciprocal, and meaningful communications with Indigenous Peoples.

Foster Indigenous capacity building Work collaboratively to support programs and initiatives such as education, mentorship, skills training, and employment.

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Module 7: Industry Focus Areas Promote economic prosperity Foster mutually beneficial business arrangements that provide benefits to the sector while promoting the economic prosperity and social well-being of Indigenous Peoples.

Facilitate Crown consultation The duty to consult rests with the Crown. Accordingly, Electricity Canada and its members will engage with Indigenous Peoples, as appropriate, to facilitate consultation in a meaningful and timely manner.

These principles are intended to further complement and support the existing relationships between Indigenous Peoples and Electricity Canada members.

Knowledge Check As part of its National Principles for Engagement with Indigenous Peoples, Electricity Canada is committed to: Respect Indigenous culture, traditional values, and rights; nurture constructive relationships; enhance communication; foster Indigenous capacity building; promote economic prosperity; and facilitate Crown consultation.

Another key industry focus area for Electricity Canada is Health and Safety. Electricity Canada is engaged in promoting the health and safety of employees and all Canadians.

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7.3 HEALTH AND SAFETY Safety is a primary focal point for all utilities and other entities that make up the Canadian electricity industry.

Introduction to Health and Safety Electricity is essential to daily life, but it is also dangerous and can injure or kill. Safety is therefore deeply embedded in the design and maintenance of the electrical system and in every facet of how industry jobs are performed.

Employee Safety Strategies The following are key components of the safety strategies typically followed by utilities.

Tracking and Analysis Utilities consistently track, report, and analyze key safety metrics—such as near miss incidents, injuries requiring medical treatments, injuries resulting in time away from work, and the severity of injuries—as a basis for continuous improvement.

Targeted Safety Plans Utilities typically have specific annual plans—targeting factors that have been identified as contributing to injuries and setting out specific and trackable corrective actions.

Oversight and Enforcement Provincial regulators and safety authorities monitor utility safety performance and intervene with site visits and enforcement actions as needed.

Audits and Certifications Utilities routinely perform comprehensive audits on their safety systems and practices, often as a means of acquiring or maintaining International Organization for Standardization (ISO) certification or other independent certifications.

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Module 7: Industry Focus Areas Employee Awareness and Training Utilities typically deliver a significant number of hours of safety-related training to each employee each year, focusing on those in trades and other higher-risk roles.

Public Safety Electricity utilities and regulators also take a very diligent approach to safeguarding public safety around electricity infrastructure.

This includes professionally engineered designs, use of tested and approved equipment, access control, extensive signage, and in some cases, proactive programming to help Canadians of all ages become more aware of potential electricity safety risks.

Overall, rigorous attention to safety-related detail is consistently promoted to ensure that the production and delivery of electricity are never to the detriment of either employee or public safety and well-being.

Knowledge Check It is typically provincial regulators and safety authorities that monitor utility safety performance and intervene with site visits and enforcement actions as needed.

Now that we have learned about the importance of health and safety, let’s look at how Electricity Canada is addressing security concerns.

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7.4 PHYSICAL AND CYBERSECURITY The security of our electricity system is fundamental to our quality of life and our economy.

Introduction to Physical and Cybersecurity The electrical system is one of ten critical infrastructure sectors as defined by Canada’s National Strategy for Critical Infrastructure. The electricity sector is especially crucial because all the other critical infrastructure sectors depend on it. It is therefore vital that we identify emerging threats and protect the security, reliability, and stability of the integrated North American power grid.

Providing Stable and Reliable Power to Canadians While Canada’s electricity system falls within provincial jurisdiction, there are federal and cross-border bodies involved in helping to make the system safe and reliable.

•

At the federal level, Public Safety Canada helps to develop management tools and facilitate information sharing in support of strengthening and maintaining the security and reliability of the Canadian electricity system.

•

In the United States, this role is shared by the Department of Energy and the Department of Homeland Security. By participating in security forums at every level of government and on both sides of the border, Electricity Canada helps to ensure that the knowledge and expertise of the Canadian electricity industry contribute to our shared security.

Protecting the Grid The North American Electric Reliability Corporation (NERC) enforces Critical Infrastructure Protection Standards (CIP). All entities connected to the bulk transmission system must be CIP-certified and must adhere to the standards and provide regular reporting.

Valuable steps forward could include: •

Increased funding and capacity for national computer emergency readiness teams

•

Development of integrated, cross-border incident response plans for cyber and physical security threats of national significance

•

Deployment of standardized, automated platforms for machine-to-machine information sharing

•

Robust government interface with the electricity sector’s official information sharing and analysis centre

Electricity Canada strongly believes that the sharing of threat information between sectors and among governments across North America is our first line of defence in securing the integrity of our systems.

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Protection of Assets Electricity Canada provides members with national coordination and programming to enhance protection of the power grid from physical and cyber threats and to promote healthy and safe electricity workplaces.

Protection of physical assets The protection of physical electricity assets and infrastructure is critical to ensuring a safe and reliable North American electricity system.

Copper theft from Canada’s electricity infrastructure is dangerous, expensive, and a threat to system reliability. Electricity Canada has been active on the issue since 2014, advocating for Criminal Code amendments that create sentencing options more proportional to the impacts of copper theft.

Protection of cyber assets Cyber attacks on electricity assets and infrastructure have grown exponentially, compounded by the recent increase in system automation and emerging grid technologies.

Today, cyber security has emerged as a dramatically heightened focal point for various reasons: •

The global importance of the electricity system

•

Utility automation and integration with telecommunications and the Internet

•

Increased access to the Internet worldwide

Together, this makes the electricity system a significant potential target for industrial hacking and for holding system operators at ransom.

Electricity Canada engages with relevant authorities, such as the Federal Ministry of Public Safety and Emergency Preparedness, with respect to measures and initiatives to protect Canadians and our critical infrastructure from cyber threats.

Knowledge Check Public Safety Canada maintains the security and reliability of the Canadian electricity system.

The Department of Energy and The Department of Homeland Security maintain the reliability and security of the U.S. electricity system.

The North American Electric Reliability Corporation enforces Critical Infrastructure Protection Standards (CIP).

The Federal Ministry of Public Safety and Emergency Preparedness makes initiatives to protect critical Canadian infrastructure from cyber threats.

Electricity Canada advocates for Criminal Code amendments for the protection of physical assets.

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KEY TAKEAWAYS •

Electricity utilities fall under Canada’s Personal Information Protection and Electronic Documents Act (PIPEDA) and must therefore obtain an individual’s consent when they collect, use, or disclose that individual’s personal information.

•

Electricity Canada and its members are committed to working with the Indigenous Peoples of Canada to nurture meaningful long-term relationships, enhance mutually beneficial economic and business opportunities, and reflect Indigenous perspectives in the activities of Electricity Canada and its members.

•

Safety is deeply embedded in the design and maintenance of the electrical system and in every facet of how industry jobs are performed.

•

Several agencies work together with Canadian electricity companies to provide stable and reliable power to Canadians, and Electricity Canada provides members with national coordination and programming to enhance protection of the power grid from physical and cyber threats.

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Module 8: The Industry

MODULE 8 THE INDUSTRY Welcome to Module 8: The Industry.

By the end of this module, you should be able to: •

List key facts about the Canadian electricity industry

•

Identify the roles of the key industry entities

•

Explain how the Canadian electricity industry is regulated

•

Describe the value of the Integrated North American Grid

•

List key supply and demand statistics and the sustainability goals for improving performance

This course uses images, audio, and text; content will appear on your screen as you scroll through the module. Keyboard navigation instructions will be provided for those who are not using a mouse or touchscreen. There is a short, graded assessment at the end.

This module should take approximately 40 minutes to complete.

Lesson list 8.1 Introduction 8.2 Industry Entities 8.3 Market and Regulation 8.4 The Integrated North American Grid 8.5 Supply and Demand

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8.1 INTRODUCTION The Canadian electricity industry supports the quality of life and economic well-being enjoyed by Canadians.

Introduction to the Industry We often take electricity for granted, but there are many entities at work and a great deal of planning and cooperation required to make electricity constantly available to Canadians. In this module, we will look at these entities and their important roles in keeping the Integrated North American Grid running smoothly.

We will also look at issues related to the electricity market, regulation, and supply and demand.

Reference Documents To facilitate your understanding of terminology used in this course, please download the glossary of electrical terms.

If you are not using a mouse or touchscreen to navigate the course, please download the keyboard navigation instructions.

Industry Facts In Canada, the national average of electricity availability is indeed over 99%, and 80% of electricity produced in Canada is emissions free. Canada is a net exporter of electricity, as we export nearly five times more than we import. The electricity industry accounts for a little more than 2% of the national GDP.

The Industry at a Glance Before we take a closer look at the entities and issues related to the Canadian electricity industry, we will present a brief overview of the impacts of the electricity sector.

At a glance, the Canadian electricity sector employs over 90,000 skilled workers and provides clean electricity, 80 percent of which is emissions free. Furthermore, we have reduced our greenhouse gas emissions by 54 percent since 2000.

Economically, the electricity industry contributes 33.1 billion dollars towards Canada’s GDP. This arguably represents “the first” two percent plus of Canada’s GDP, because without electricity, the country’s economy could not function.

We generate 633 terawatt hours of electricity and export 57.3 terawatt hours. We also provide 2.3 billion dollars of net trade revenue.

Lastly, the Canadian electricity industry provides a high level of reliable service, with electricity being available 99.93 percent of the time on a national average.

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Industry Overview Here is a recap of the industry facts.

•

Over 90,000 employees

•

Over $33 billion GDP

•

Over $2 billion net trade revenue

•

633 TWh generation

•

57.3 TWh net exports

•

Over 80% non-emitting

•

Greenhouse gas reduction of 54% since 2000

Now that we have seen an overview of the industry, let’s look at some key industry entities.

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INDUSTRY ENTITIES Across Canada there are approximately 150 electricity service providers.

Introduction to the Industry Players Forty of the largest and most influential electricity service providers are Electricity Canada members serving some 15 million accounts, which represent 90% of the customers in Canada. In addition to service providers, there are many entities and organizations that make up the electricity ecosystem in Canada.

Electricity Canada Members Here are the Electricity Canada member companies as of 2021.

British Columbia: •

New Brunswick:

Ontario:

BC Hydro, Fortis BC

Alberta:

•

Alectra

•

NB Power

•

Algonquin Power,

•

Saint John Energy

•

Altalink, ATCO

•

Elexicon

•

Canadian Power

•

Fortis Ontario

•

Capital Power

•

Hydro One

•

City of Red Dee

•

Hydro Ottawa

•

Fortis Alberta, Epco

•

•

Enma

Independent Electricity System Operator (IESO)

•

Heartland Generation

•

London Hydro,

•

Medicine Hat

•

Oakville Enterprises Corporation

•

TC Energy,

•

Ontario Power Generation

•

TransAlta

•

Toronto Hydro

•

Utilities Kingston

•

Westario Power Inc.

Saskatchewan: •

SaskPower

•

Saskatoon Light & Power

Manitoba: •

Manitoba Hydro

Nova Scotia:

Quebec:

•

Nova Scotia Power

Prince Edward Island: •

Maritime Electric

Newfoundland: •

Newfoundland and Labrador Hydro

•

Newfoundland Power

Northwest Territories: •

Northwest Territories Power Corporation

Yukon •

Yukon Energy

Nunavut

•

Hydro Quebec

•

Evolugen

•

RioTinto

•

Quiliq Energy Corporation

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Government Entities Although utilities are traditionally the customer-facing entities, many other entities play an important role in Canada’s electricity system, including the government.

Federal Electricity Canada interfaces with over 30 federal government departments and agencies including Natural Resources Canada, Public Safety Canada, Transport Canada, Indigenous and Northern Affairs Canada, Measurement Canada, Office of Energy Efficiency, and Fisheries and Electricity Canada, to name but a few.

Provincial The mandates of various provincial ministries—including environment, infrastructure, municipal affairs, and others—also have a direct impact on the electricity industry.

Municipal In some parts of Canada, local distribution utilities are wholly or partially owned by local municipalities, who in turn have a role in their governance.

Provincial Regulators Policy setting and oversight of the operation of the electricity system happens primarily at the provincial level and is discharged by independent regulatory agencies.

British Columbia:

Quebec:

Northwest Territories:

British Columbia Utilities Commission

Régie de l’énergie du Québec

Northwest Territories Public Utility Board

New Brunswick:

Alberta:

Yukon:

Alberta Utilities Commission

New Brunswick Energy and Utilities Board

Saskatchewan:

Nova Scotia:

Nunavut

Saskatchewan does not have a public utilities commission or board; rather, there is direct ministerial responsibility for relevant utilities.

Nova Scotia Utility and Review Board

Nunavut’s Utility Rates Review Council advises the relevant minister.

Manitoba:

Prince Edward Island: Prince Edward Island Regulatory and Appeals Commission

Manitoba Public Utilities Board

Newfoundland:

Ontario:

Newfoundland and Labrador Board of Commissioners of Public Utilities

Ontario Energy Board

Yukon Utilities Board

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Safety and Education Safety and education are closely related. The electricity industry in Canada is constantly striving to improve services and safety through the ongoing training of its members.

Safety Organizations Various provincial agencies have specific regulatory responsibilities and authorities to promote and ensure electrical safety. Examples include Ontario’s Electrical Safety Authority and Technical Safety BC. Educational Institutions A wide range of post-secondary institutions across the country offer engineering, trades, and other specialized programs intended to prepare people for the diverse range of careers in the electricity industry.

Associations Associations represent specific subsets of the electricity industry (such as distribution) and can be nationally or provincially focused.. Associations have standards of membership that help to encourage proper education of electricity professionals and safe work environments.

Suppliers & Additional Participants Suppliers to the industry include Electricity Canada’s Corporate Partners.

Electricity Canada’s Corporate Partners represent valued suppliers to the industry. These organizations provide products and services such as wires, poles, tranformers, switchgear, software and consulting services to name but a few. For a current list of Electricity Canada’s Corporate Partners: https://electricity.ca/ membership/membership-list/#corporate-partners There are various additional roles related to electricity supply including: Electricity Retailers Private companies that buy electricity and resell it to consumers under contract and for a profit (an alternative for consumers to buying electricity from a regulated distribution company).

Competitive Electricity Service Providers Private companies that provide ancillary electricity-related services to both customers and utilities, largely relating to improved efficiency of energy use.

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Module 8: The Industry Independent System Operators (ISOs) Provincial agencies that oversee the supply and flow of electricity across their respective jurisdictions and ensure the sufficiency of supply at any given time.

Power Marketers Private companies that buy large blocks of electricity and sell it to large users. Marketers have no financial stake in the assets used to generate electricity and buy energy and transmission services from traditional utilities for resale. By purchasing from numerous sellers, marketers strive to take advantage of time-specific price differentials.

Intervenors Typically represent consumer stakeholders such as people with low incomes, school boards, large electricity users, and others who want to make their views known during electricity rate-setting processes.

Reliability Organizations such as the North American Electric Reliability Corporation (NERC) will be covered later in this module.

Knowledge Check Associations represent a specific subset of the industry and have membership standards.

Intervenors represent consumer stakeholders in rate-setting processes.

Utilities are traditionally the customer-facing entities.

Electricity retailers are private companies that buy electricity and resell it to consumers.

Provincial regulators set policy and oversee the operation of electricity systems.

Independent System Operators (ISOs) are provincial agencies that oversee the supply and flow of electricity.

Power marketers are private companies that buy large blocks of electricity and sell it to large users.

Now that we have explored the industry players, let’s look at the electricity market and how it is regulated.

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8.2 MARKET AND REGULATION The industry’s ability to forecast needs and react and adapt to unexpected situations seamlessly is critical.

Introduction to the Electricity Market The electricity market is large and complex. It functions in real time and manages energy requirements and expectations on a minute-by-minute basis. Historically, managing the flow and pricing of electricity was about matching centralized generation (supply) with customer demand or load. Today’s reality, however, is becoming much more complex.

Independent Electricity Operators The role of provincial Independent System Operators (ISOs) is to effectively oversee both the physical and financial aspects of the flow of electricity.

Oversee Cross-Border Trade ISOs are interconnected to assist with cross-border electricity trade. Although ISOs don’t own electrical infrastructure, they take on the combined roles of “air traffic control” and “stock market” for the electricity industry.

Manage New Realities of Traffic Flow There is a larger number of more varied generation sources being connected through multiple pathways and at multiple price points, and a growing range of means by which demand can also be influenced and moderated.

Extensive tools are in place to manage new realities. What was once a one-way street—with a fairly simple traffic flow from generation to transmission to distribution—has transformed into a multi-lane, multidirectional electricity superhighway.

Balance the Generation Mix ISOs must balance the mix of steady generation provided by nuclear and hydro facilities, more intermittent generation from sources such as wind and solar, and periodic needs for “peaking” generation provided by natural gas generation units. Energy storage options and increasing levels of customer-generated electricity will also increasingly factor into that calculation.

Striking the right balance involves carefully forecasting a complex mix of variables, along with the ability to react and adapt to ever-changing conditions.

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Regulation Canada has a strong regulatory structure in support of the electricity system with regulation split between federal and provincial/territorial governmental bodies.

Federal Regulation The Canadian federal government has responsibilities for electricity regulation in the following areas: •

Resource management in northern and offshore areas

•

Nuclear safety

•

Interprovincial and international trade

•

Trans-boundary environmental impacts

•

Environmental impacts where federal lands, investments, or powers apply

•

Codes, standards, and labelling related to conservation and demand

•

Other policies of a national interest

Provincial and Territorial Regulation Provincial and territorial governments have responsibilities for electricity regulation in the following areas: •

Resource management within provincial boundaries

•

Intra-provincial trade and commerce

•

Intra-provincial environmental impacts

•

Generation, transmission, and distribution of electrical energy

•

Conservation and demand response policies

•

Electricity pricing

Regulated vs. Unregulated Business Entities Electricity utilities across Canada are regulated. This reflects both the vital importance of electricity and the fact that utilities continue to operate at least largely as monopolies. The investments they make, the rates they charge, and other aspects of how they conduct business are all therefore subject to strict regulatory oversight designed to safeguard the public interest.

To pursue business opportunities outside the scope of their core regulated activities, some utilities have formed competitive unregulated business affiliates. Stringent measures are in place to ensure that these affiliates do not receive any competitive advantage based on their relationship with the regulated utility.

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Electricity Market Structure The electricity market structure in Canada is similar in many provinces and territories; however, some provinces have distinctive structures. In many provinces, utilities are vertically integrated, meaning they provide a full scope of services encompassing generation, transmission, and distribution within their service territories.

Most provinces also have wholesale open access markets for electricity, meaning that private generators can negotiate contracts to sell electricity to the provincial electricity system operator.

British Columbia:

Ontario:

•

Vertically integrated Crown corporation serves 94% of customers

•

Wholesale and industrial open access

Prince Edward Island:

•

Non-vertically integrated system

•

Wholesale open access

•

Retail open access

•

Non-vertically integrated system

•

Vertically integrated Crown corporation

•

Fully competitive wholesale market

•

Wholesale open access

•

Expanding Independent Power Producer involvement

•

Retail open access

Saskatchewan: • •

Vertically integrated Crown corporation Wholesale open access

Manitoba: •

Vertically integrated Crown corporation

•

Wholesale open access

Procures electricity from New Brunswick through long-term contracts and from the New England market

Newfoundland:

Quebec:

Alberta:

•

New Brunswick: •

Vertically integrated Crown corporation

•

Wholesale open access

•

Vertically integrated Crown corporation

•

Separate, investor-owned utility also provides distribution services

Northwest Territories: •

Vertically integrated Crown corporation

•

Investor-owned distribution utility serves several communities

Yukon:

Nova Scotia: •

Vertically integrated investor-owned utility

•

Vertically integrated Crown corporation

•

Wholesale open access

•

Investor-owned distribution utility serves several communities

Nunavut •

Vertically integrated Crown corporation

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Regulatory Regime for Large Energy Projects When undertaking large energy projects, many legislative and regulatory requirements must be considered throughout the planning, environmental assessment, permitting, and follow-up stages. The chart below shows key acts and land use plans.

Knowledge Check Federal

Provincial/Territorial

•

Resource management in northern and offshore areas

•

Resource management within provincial boundaries

•

Nuclear safety

•

•

Interprovincial and international trade

Intra-provincial trade, commerce, and environmental impacts

•

Trans-boundary environmental impacts

•

Generation, transmission, and distribution of electrical energy

•

Codes, standards, and labelling related to conservation and demand

•

Conservation and demand response policies

•

Electricity pricing

Now that we have learned about the electricity market and how it is regulated, let’s look at the integrated North American grid.

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8.3 THE INTEGRATED NORTH AMERICAN GRID There are over 35 electricity transmission interconnections between the Canadian and U.S. power systems, forming a highly integrated grid.

Introduction to the Integrated Grid and Trade Although there are several east-west interconnections between Canadian provinces, the majority of electricity trade occurs on a north-south basis between Canadian provinces and U.S. states. Every Canadian province along the U.S. border is already electrically interconnected with a neighbouring U.S. state or states, with many provinces boasting multiple international connections.

Integrated North American Grid Integration is set to continue expanding, with multiple cross-border transmission projects currently in various stages of development. Integration of this type across a large geographic area results in an electricity grid that is more flexible, reliable, and secure—on both sides of the border. Below is a map of major Canada–U.S. Transmission Interconnections.

Electricity Canada believes that there is no better example of the promise and benefit of electricity-related integration between nations than that of Canada and the United States.

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Advantages of Integration Canada and the United States enjoy a mutually beneficial and robust trade in electricity, and this collaboration has successfully served Canadian and American communities and businesses for over 100 years. This bilateral relationship is a global model for the cooperative planning and operation of a vast and complex electricity system.

Integration of this kind between neighbours improves environmental and grid performance in a number of important ways.

•

More than 80% of Canadian electricity is generated from non-emitting sources, compared to just 39% for the U.S., providing our southern neighbour with a leg-up in its decarbonization efforts.

•

Agreements between U.S. and Canadian electricity suppliers and trade in electricity markets allow for storage, off-peak sale, and a more efficient use of resources—particularly renewables.

•

Integrated grids have greater resilience in the face of extreme climate events or prolonged weather events, like cold snaps or heat waves, which can result in high costs or even blackouts.

•

Integration improves affordability, as more efficient price signals and larger markets help to keep downward pressure on costs and to expand access to competitively priced resources.

Power Grid Network The completion of additional integration projects will mark yet another important phase in the bilateral legacy of playing to our respective national strengths to optimize environmental performance across North America.

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FERC and NERC Two entities play particularly important roles with respect to the interconnections between the Canadian and U.S. electricity grids—the Federal Energy Regulatory Commission (FERC) and the North American Electric Reliability Corporation (NERC).

FERC FERC is an independent U.S. government agency that regulates the interstate transmission of electricity, natural gas, and oil. FERC reviews proposals to build liquified natural gas (LNG) terminals and interstate natural gas pipelines, as well as licensing hydroelectric projects. FERC is also responsible for the American oversight of NERC. NERC NERC, originally created in 1968, develops and enforces reliability standards; annually assesses seasonal and long-term reliability; monitors the bulk power system; and educates, trains, and certifies industry personnel.

NERC’s jurisdiction spans the continental United States, Canada, and the northern portion of Baja California, Mexico—a bulk power system that serves more than 334 million people. It falls under the oversight of FERC and governmental authorities in Canada.

NERC enforces Critical Infrastructure Protection (CIP) Standards, and conducts extremely valuable technical research, while providing services and operational guidance that are essential to maintain grid reliability.

North American Reliability Corporation Regions NERC encompasses six operating regions: •

WECC – Western Electricity Coordinating Council

•

MRO – Midwest Reliability Organization

•

TRE – Texas Reliability Entity

•

SERC – Southeast Reliability Corporation

•

RFC – Reliability First Corporation

•

NPCC – Northeast Power Coordinating Council, Inc.

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Roadmap to the Integrated Electricity System Electricity Canada has developed a roadmap to better leverage our integrated continental electricity system through expanded collaboration between Canada, the United States, and Mexico.

The roadmap consists of the following recommendations: •

Increase trade in clean electricity and support electricity trade missions in the United States

•

Promote the electrification of transportation

•

Streamline permitting processes for cross-border transmission projects

•

Pursue joint innovation and research and development projects

•

Support clean electrification in remote and Indigenous communities

•

Coordinate carbon pricing mechanisms

•

Examine climate adaptation risks and practices

•

Enhance electricity grid security and reliability

•

Collaborate on energy information

•

Ensure meaningful consultation within the electricity industry.

Trade Electricity trading between Canada and the United States began in 1901. Today, although electricity trade flows both ways across the border, Canada is an overall net exporter of electricity

Approximately 9% of Canada’s electricity generation is exported to the United States, with Quebec being the largest exporting province.

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Canada’s exports have trended upward over time.

For the period of 1990–2020, Canada’s net trade revenue from electricity also grew. In 2020, net Canadian trade revenue was over $2B.

Knowledge Check More than 80% of Canadian electricity is generated from non-emitting sources, compared to just 39% for the U.S.

Now that we have learned about the importance of the North American Grid, let’s look at issues related to electricity supply and demand.

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8.4 SUPPLY AND DEMAND Canada exports almost five times more electricity than it imports.

Introduction to Supply and Demand In 2020, Canada exported 68 TWh and imported 10 TWh for a net export of 58 TWh.

Supply and Demand Statistics We have seen changes in demand and generation mix over the past several decades.

Growth in Demand Demand for electricity is seeing steady growth largely driven by commercial, institutional, and residential demand. In 2019, the total electricity demand in Canada was 550.4 TWh, which was more than 100 TWh higher than in 1990.

Demand by Sector The main sectors using electricity in Canada include industry (38%), residential (31%) and commercial and institutional (25%) for a total of 94%. The remainder is consumed by the transportation, public administration, and agricultural sectors.

Generation Fuel Type Coal, coke, oil, and diesel generation have been in decline as fuel sources for electricity generation, while natural gas, solar, and wind generation have been on the rise in Canada in recent decades.

Generation Mix As of 2019, the generation mix in Canada for electricity utilities was made up of hydro (60%), nuclear (16%), coke and coal (8%), and natural gas (8%), with wind, solar and tidal contributing a further 6%.

Hydro and nuclear generation have remained steady in recent years, representing over three quarters of electricity generation in the country in 2019.

Generation Sources by Province The predominant generation sources for the five provinces with the largest generating capacity are as follows: •

British Columbia—Hydro

•

Alberta—Natural gas

•

Ontario—Nuclear

•

Quebec—Hydro

•

Newfoundland and Labrador—Hydro

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Environmental Sustainability Since 2000, the Canadian electricity industry has reduced its greenhouse gas emissions by 54%.

Greenhouse Gas Reduction In broad terms, these greenhouse gas reductions have been achieved by transitioning away from fossil fuel generation and improving efficiency. Other harmful emissions have also been reduced.

Action 1: Ongoing efforts to transition away from fossil fuel generation: •

Ontario’s 2014 elimination of coal-based generation was ranked at the time as the single largest greenhouse gas reduction initiative in North America to date (Reference: Clean Energy Canada).

•

Other Canadian jurisdictions are also advancing towards a 2030 requirement for the national elimination of conventional coal-based generation.

•

Concurrently, generation from non-emitting sources such as wind and solar continues to grow, and interconnections between provincial transmission grids continue to expand.

Action 2: A continuous focus on efficiency: •

Efforts are being made to leverage the generating capacity of existing infrastructure.

•

Steps are being taken to lower the carbon intensity of utilities’ own operations through a variety of measures, including truck fleet electrification and improved energy efficiency at offices and shops.

Action 3: The electricity industry has achieved other impressive environmental improvements between 2000 and 2019, including the following: •

Sulphur oxide (S0x) emissions reduced by 66%

•

Nitrogen oxide (NOx) emissions reduced by 63%

•

Mercury (Hg) emissions reduced by 72%

•

Particulate matter 2.5 emissions reduced by 88%

While the electricity sector has significantly reduced its greenhouse gas emissions, total Canadian emissions continue to rise, with transportation being a significant contributor to this overall increase.

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Emission Statistics In 2019, greenhouse gas emissions in Canada totalled 730 million tonnes, with the electricity sector making up 9% of that total. Efforts continue to transition away from fossil fuel generation and to better leverage renewable and non-emitting generation.

Among major sectors including transportation, oil and gas, buildings, agriculture, waste, and others, electricity leads in net overall reduction of carbon dioxide emissions.

Greenhouse Gas (GHG) Emissions by Economic Sector in Canada, 2019 •

Oil and gas 26%

•

Electricity 9%

•

Transportation 25%

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Heavy industry 11%

•

Buildings 13%

•

Agriculture 10%

•

Waste and others 6%

With transportation contributing 25% of total Canadian greenhouse gas emissions, electrification of cars and other modes of transportation represent a particularly important opportunity to reduce national emissions—and one in which the electricity sector will necessarily play a leading role.

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Sustainable Electricity Program Participation in Electricity Canada’s Sustainable Electricity Program is mandatory for the Association’s utility members, and the program is designed to promote the integration of sustainability in business decisionmaking along with continuous performance improvement. The foundational elements of the program are as follows: •

All Corporate Utility Members agree and adhere to the Sustainable Development - Corporate Responsibility Policy.

•

All Corporate Utility Members report on their Sustainable Electricity key performance indicators, which are synthesized in an annual report.

•

Individual company sustainability performance is verified.

•

A Public Advisory Panel provides feedback on the members’ sustainability performance.

A number of Electricity Canada companies have taken the additional step of becoming formally designated as Sustainable Electricity Companies™, pursuant to requirements under the program.

Sustainability Goals In 2016, Electricity Canada adopted a new set of strategic pillars and performance indicators for the Sustainable Electricity Program, as a basis for better assessing and communicating the electricity sector’s sustainability goals and performance objectives.

Goal 1: Low-Carbon Future •

Climate change management and mitigation

•

Internal energy efficiency and customer conservation programs

•

Electrification of transportation, buildings, and processes

Goal 4: Risk-Management Systems •

Environmental stewardship

•

Employee, contractor, and public health and safety

•

Security management systems and standards

Goal 2: Infrastructure Renewal and Modernization •

Investments in new and refurbished infrastructure

•

Integration of renewable energy

•

System reliability and resiliency against severe weather impacts

Goal 3: Building Relationships •

Early engagement and consultation with local communities, stakeholders, and Indigenous Peoples

•

Enhancement of the customer experience

•

Support for low-income customers

Goal 5: Business Innovation •

Investments in innovation and technology advancement

•

Engagement of regulators, supply chain partners, and other stakeholders

•

Employee recruitment, training, and retention

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Global Price Comparison Although there are regional differences in the prices that Canadians pay for electricity, overall, pricing for both residential and industrial customers remain competitive globally.

Residential Canada’s residential pricing remains one of the lowest among the G7 countries.

Industrial Industrial pricing is also cost competitive, providing the second-lowest cost among G7 countries, with only the United States being lower. However, electricity pricing can become a key factor when deciding where to locate businesses; thus, the United States’ price advantage presents a challenge that Canadian electricity utilities are sensitive to.

Knowledge Check Greenhouse gas reductions have been achieved by transitioning away from fossil fuel generation and improving efficiency, and the electricity sector makes up 9% of the total greenhouse gas emissions. While the electricity sector has reduced its greenhouse gas emissions, Canada’s total emissions are actually increasing. Canada’s residential and industrial pricing is one of the lowest among G7 countries.

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KEY TAKEAWAYS •

The Canadian electricity sector employs over 90,000 skilled workers, provides clean electricity that is 80% emissions free, and offers 99.93% reliability of service.

•

Industry entities include federal, provincial, and municipal governing authorities, regulators, safety organizations, educational institutions, associations, suppliers, intervenors, and reliability organizations.

•

Canada has a strong regulatory structure in support of the electricity system with regulation split between federal and provincial/territorial government bodies.

•

There are over 35 electricity transmission interconnections between the Canadian and U.S. power systems. This Integrated North American Grid helps to make the provision of electricity more environmentally friendly, efficient, resilient, and affordable.

•

There have been changes in demand and generation mix over the past several decades. Greenhouse gas reductions have been achieved by transitioning away from fossil fuel generation and improving efficiency, and Electricity Canada’s Sustainable Electricity Program has set goals for a more sustainable future.

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Module 9: The Future

MODULE 9 THE FUTURE Welcome to Module 9: The Industry.

By the end of this module, you should be able to: •

Explain net-zero emissions and Canada’s initiatives to achieve it

•

List the 4Ds for changing the electricity landscape

•

Identify the new technologies being applied to reach net-zero emissions

This course uses images, audio, and text; content will appear on your screen as you scroll through the module. Keyboard navigation instructions will be provided for those who are not using a mouse or touchscreen. There is a short, graded assessment at the end.

This module should take approximately 30 minutes to complete.

Lesson list 9.1 Introduction 9.2 Leading a Net-Zero Economy

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9.1 INTRODUCTION The electricity industry continues to innovate and adapt to support the emergence of a cleaner and greener global village.

Introduction to the Future of the Electricity Industry In this module, we will explore the Canadian government’s net-zero emissions target and the proactive initiatives already underway within the Canadian electricity industry that align with it.

Reference Documents To facilitate your understanding of terminology used in this course, please download the glossary of electrical terms.

If you are not using a mouse or touchscreen to navigate the course, please download the keyboard navigation instructions.

Reducing Emissions Reduction of fossil fuel-generated electricity, digitization of system operations, and enabling more players in the electricity market can help the industry progress to net-zero emissions. Decentralization through using multipath grids, as opposed to one-way delivery, can also allow for the incorporation of new forms of renewable generation from many sources.

What is Net Zero?

Achieving net-zero emissions means we reduce our greenhouse gas emissions as much as is feasible, and then use technologies that can capture carbon before it is released into the air or offset remaining emissions through actions such as tree planting. This is essential to keeping the world safe and livable for our children and grandchildren.

Net Zero 2050—The Federal Government Goal Canada has joined over 120 countries in committing to be at net-zero emissions by 2050, including all other G7 nations (the United Kingdom, the United States, Germany, Italy, France, and Japan).

Canada’s strengthened climate plan has put the country on track to not only meet, but exceed its 2030 Paris Agreement emissions-reduction goal—but we can’t stop there. That is why the Government of Canada is committed to moving to net-zero emissions by 2050.

The government, however, cannot achieve net-zero emissions on its own. This goal will require support and engagement from all parts of society, including provinces, territories, Indigenous Peoples, youth, and businesses.

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The recently passed Canadian Net-Zero Emissions Accountability Act has formalized Canada’s intent to achieve net-zero emissions by the year 2050 and establish a series of interim emissions-reduction targets at five-year milestones. It will also require a series of plans and reports to support accountability and transparency and to help ensure Canada reaches its milestones as targeted.

A number of cities and provinces have already made net-zero-by-2050 commitments, including Vancouver, Hamilton, Guelph, Toronto, and Halifax, along with Newfoundland and Labrador and most recently Quebec. Prince Edward Island has also pledged to reach net-zero greenhouse gas emissions by 2040. Other provinces have indicated interest.

The transition to a cleaner while still prosperous economy needs to be both an immediate priority and a sustained effort over the years and decades ahead. The only way to meet this long-term goal is for Canada to keep innovating, advancing, and building on existing measures.

Now that you have learned about Canada’s net-zero target, let’s look at how the electricity industry can contribute to this goal.

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9.2 LEADING A NET-ZERO ECONOMY The Canadian electricity industry has already taken impressive steps resulting in a cleaner environment.

Introduction to How the Canadian Electricity Industry is Leading the Way In support of the Canadian government’s Net Zero by 2050 commitment, the Canadian electricity industry has made efforts to modernize the grid and develop new technologies to lower our carbon footprint.

However, there is more to be done—particularly as electricity assumes a place of even more central importance within our economy.

4Ds—The Changing Electricity Landscape The electricity industry is undergoing highly consequential change driven by evolving customer and societal expectations around decarbonization, decentralization, digitization, and democratization.

Decarbonization Decarbonization is reducing CO2 emissions.

Canada’s electricity industry is committed to ongoing efforts to decarbonize the sector through the further reduction of fossil fuel-generated electricity along with other initiatives. For example, efforts are ongoing to green the vehicle fleets owned, managed, and operated by electricity utilities.

Decentralization Decentralization is driving the adoption of microgrids and distributed energy resources, especially in remote communities with limited access to provincial and territorial grids.

The grid is under transformation. Originally designed for one-way delivery of electricity from generation through transmission and distribution to the customer, it is now rapidly changing to a multipath grid allowing the incorporation of many new forms of renewable generation from many sources, including solutions from the customer side of the electricity meter.

Digitization Digitization is propelling tremendous improvements in communications technology to optimize system operations, using advanced technologies such as artificial intelligence, blockchain, and robotics. These technologies have reduced costs and enabled greater efficiencies across the electricity value chain and for consumers.

New capabilities enabled through the “Internet of Things” are allowing many new electricity management technologies and tools to help improve the grid and drive its ongoing development.

Democratization Democratization is enabling new players to enter the electricity market, whether as proponents of distributed energy resources, suppliers of technology, or providers of supplemental services to customers.

Decarbonization is the most prevalent trend in the industry, given the urgency to act on climate change and the meteoric rise of clean energy investments.

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Required Changes to Regulated Utilities These trends are having a transformative impact on the electricity industry. It will be important for regulation to keep pace with these changes - changes that will enable regulated utilities to adapt to these trends and continue to leverage their expertise and asset bases as they proceed.

Modernization of Regulated Utilities Many electricity companies have started to build innovation-based capacities and business offerings through non-regulated subsidiaries. While existing regulations are relatively risk averse, there may be opportunity to allow these innovations to occur within the rate-regulated system as well.

Promotion of Innovation Ongoing responsive and proactive regulatory support is encouraged to help foster electricity industry innovation, modernization, improved service delivery, and customer energy management solutions.

Adaptation to the “Prosumer” We are seeing the emergence of “prosumers” in place of traditional “consumers.” A prosumer is potentially both a producer and a consumer of electricity, and likely wants to take a much more active role in the management of their energy needs. Utilities will need to adapt their services accordingly.

Transitioning the Operational Model Overall, the grid is transitioning from the traditional Distribution Network Operations (DNO) model to a Distribution System Operations (DSO) model.

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Distribution Network Operations (DNO) Model Under the DNO model, electricity has traditionally flowed unidirectionally from generation through transmission and distribution to end customers, with a relatively small number of large industry players at each of those key stages.

Distribution System Operations (DSO) Model The DSO model entails an integrated, interactive, and neural network of power systems with built-in intelligence. The system will do the following: •

Seamlessly integrate multiple sources of generation, of varying scales and increasingly skewing to renewables and non-emitting sources

•

Deploy more multifaceted transmission and interconnection arrangements, with more generation located closer to electricity end users, and often even on customer premises

•

Ensure continued delivery of reliable and affordable electricity, while enabling consumers to contribute to efficient grid operation through demand management, storage, and generation as they may choose

Inherent within this emerging model are tremendous opportunities for further decarbonization.

New Technologies Several new technologies are also showing great promise.

Grid-Scale Storage The ability to store electricity for later use will be an important asset as Canada changes how it generates power and sees increased demand. Storing unused capacity for later will allow for more efficient use of intermittent renewables and increase system reliability. Small-scale storage is installed in Canada already, including in remote communities where it will help reduce the use of diesel.

Small Modular Nuclear Reactors (SMRs) SMRs offer the opportunity to provide affordable and reliable electricity without a grid connection. They could be used to backstop intermittent renewables such as wind and solar, to replace diesel generation, and to support heat intensive industrial processes. SMRs are still a nascent technology, but they are a promising potential future source of non-emitting baseload power. A potential global market for SMRs represents an opportunity for Canada’s nuclear industry.

Hydrogen Hydrogen might be the simplest atom, but it is a complex energy solution. Produced with non-emitting energy or in conjunction with carbon capture, it is a clean fuel with a variety of potential uses. Excess wind power, for example, could be used to make hydrogen for future electrical generation. Hydrogen’s characteristics allow it to represent storable and portable electricity, with the opportunity to seize new market opportunities.

Carbon Capture, Utilization and Storage (CCUS) Building the grid of tomorrow will not just mean scaling up new non-emitting generation technologies. It will also have to mean identifying ways of making existing technology non-emitting. Canadian electricity companies are leaders in CCUS already, with SaskPower’s Boundary Dam facility becoming the first power plant in the world to integrate it in 2014. It is now working towards the next phase in which captured carbon will be used to create commercially valuable products (in this case, carbon nanotubes that can be used to reinforce concrete).

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The Flux Capacitor Podcast The Electricity Canada continues to lead the conversation regarding the future of the industry, in part through a popular podcast called The Flux Capacitor. It features future-focused discussions with business and thought leaders in the electricity industry. Episodes touch on how we create, move, trade, and use energy, with each guest adding their own expertise and perspective to the conversation.

The Flux Capacitor podcast explores questions such as: •

What will be the impacts of technological change?

•

How will markets and customer demands respond to new technology?

•

What will social and technological changes mean for regulators, society, and the electricity industry?

The Future Roles of Technology As the future of electricity in Canada unfolds, technology, regulation, policy, and economics will all play important roles. Key variables and considerations related to each are noted below.

Technology How fast will new and potentially disruptive technologies roll out and be commercialized, particularly with respect to energy storage and the electrification of transportation?

Regulation How will regulation adapt to the changing face of the sector—for example, at what point will distributed energy resources represent sufficient competition to incumbent utilities that rate regulation will need to be redesigned?

Policy What role should incentives tied to specific outcomes have? And if some future policies are intended to meet societal goals, should the costs be more broadly shared by all taxpayers?

Economics As new technologies integrate and overtake legacy systems, will some electricity assets become “stranded” (i.e., experience serious value erosion)? As with any critical infrastructure, this would have impacts extending well beyond the shareholder.

Wherever there is change—whether it involves technology, regulation, policy, or economics—there is opportunity, and Canada’s electricity sector has shown it is up to the challenges ahead!

Knowledge Check •

Enabling new players to enter the electricity market is democratization.

•

Improving communication technology to optimize system operations is digitization.

•

Diverting carbon emissions created from electricity generation is carbon capture, utilization and storage.

•

Changing to multipath grids and new forms of generation is decentralization.

•

Providing affordable electricity without grid connection is done by small modular nuclear reactors.

•

Reducing the use of fossil fuels to decrease CO2 emissions is decarbonization.

•

Storing electricity for later use is grid-scale storage.

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KEY TAKEAWAYS •

Achieving net-zero emissions means reducing greenhouse gas emissions, capturing carbon before it is released into the air, and offsetting remaining emissions. The Government of Canada is committed to moving to net-zero emissions by 2050.

•

The 4Ds for changing the electricity landscape are decarbonization, decentralization, digitization, and democratization.

•

The grid is transitioning from the traditional Distribution Network Operations (DNO) model, which involves unidirectional electricity flow via a small number of players, to a Distribution System Operations (DSO) model, which involves multifaceted generation and transmission.

•

New technologies for reaching net-zero emissions include grid-scale storage, small modular nuclear reactors (SMRs), hydrogen, and carbon capture utilization and storage (CCUS).

•

Technology, regulation, policy, and economics will play important roles in this transition to net-zero emissions.

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Module 7: Industry Focus Areas

GLOSSARY ELECTRICITY FUNDAMENTALS IN CANADA The electricity industry, much like other industries, has its own “language” and terminology. The following are some commonly used terms and acronyms along with their meanings.

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A Advanced Metering Infrastructure (AMI) An integrated system of smart meters, data management systems, and communication networks that enables a two-way flow of information between utilities and customer meters.

Alternating Current (AC) Electricity that flows in undulating waves – continuously changing from an upward to a downward direction as it moves forward. It is both easier to generate AC (due to the way generators turn) and easier to transport it, and the grid is on the whole less expensive to operate with AC. The standard electricity that comes out of power outlets in our homes is therefore alternating current.

Amperes (Amps) A measure of how many electrons flow past a given point in one second. It is the measurement of the flow or volume of the electric current.

Atoms The base units of matter. They are made up of three particles: protons, neutrons, and electrons. The smallest unit of electric charge is the negative charge on an electron; it is not possible to split that amount of charge into pieces. Together, all the electrons of an atom create a negative charge that balances the positive charge of the protons in the atomic nucleus. Electrons are extremely small compared to all the other parts of the atom.

Automatic Meter Reading (AMR) The technology of automatically collecting consumption, diagnostics, and status data from meters.

Auto-Reclose When switches automatically try to establish a reconnection of a circuit after a fault has caused a power outage.

B Baseload Power The minimum amount of electricity needed to be supplied to the grid at all times to meet steady and often essential levels of demand. Electricity utilities seek to have access to constantly operating and highly reliable generation sources to meet their baseline needs. Nuclear and hydro generation are excellent sources of baseload power generation.

Biomass Generation Generating electricity by burning organic materials.

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Glossary Bulk Meter Used by utilities to determine the overall consumption within a building.

C Customer Average Interruption Duration Index (CAIDI) The average duration of all interruptions in a given year per impacted customer. The total length of all interruptions is calculated, and then divided by the total number of the utility’s customers that were impacted by them. It can also be thought of as average time to restore service.

Carbon Capture and Storage (CCS) The process of extracting and collecting carbon dioxide to prevent harmful emissions from entering the atmosphere.

Carbon Capture Utilization and Storage (CCUS) Diverting carbon emissions created from electricity generation to be used to create commercially valuable products.

Circuit The path by which electricity is transmitted. In its generic sense, an “electricity circuit” refers to any system enabling the flow of electrons, from generation to end use. However, the term commonly refers to a particular segment of transmission or distribution infrastructure, such as a feeder line.

Cogeneration Generating both electricity and thermal energy from one source.

Conductor A substance (typically metallic) in which electrons are bound or held very loosely, allowing them to move through it easily.

Conservation and Demand Management (CDM) Conservation is using less electricity. Demand Management is managing electricity usage with the ability to shift when it is used. Demand Management can also be referred to as Demand Response.

Consumer Anyone that uses electricity.

Control Room A central facility used by a utility to monitor the transmission and distribution of electricity.

Customer Individuals or organizations that pay the electricity bill.

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Customer Information System (CIS) The central repository of customer data including location, contact information, metering and billing information, and outage status.

Customers Experiencing Multiple Interruptions (CEMI) A measurement of customers experiencing multiple interruptions. The index depicts repetition of outages across the period being reported and can be an indicator of recent portions of the system that have experienced reliability challenges.

D Decarbonization Reducing the use of fossil fuels to decrease carbon dioxide emissions.

Decentralization Changing to multipath grids and new forms of generation.

Democratization Enabling new players to enter the electricity market.

Digitization Improving communication technology to optimize system operations.

Direct Current (DC) Electricity that flows in a straight line. DC can come from multiple sources, including batteries, solar cells, fuel cells, and some modified alternators. AC electricity can also be converted into DC using a rectifier. DC is not capable of travelling the same long distances that AC is and is primarily used when a device (such as a smartphone or laptop) needs to store power in batteries for future use.

Dispatchable A source of electricity generation is dispatchable if it can be turned on or off with relative ease in response to demand levels. This applies to generation sources such as hydro-electricity and natural gas. This contrasts with intermittent generation sources that depend on availability of wind and sunlight.

Distributed Energy Resources (DERs) Sources of electricity connected to a local distribution system that can store or generate electricity or adjust consumption. They include an array of small-scale energy technologies that can be owned by consumers.

Distribution Lines A system of conductors, both underground and overhead, that carry lower-voltage electricity to homes, industry, and other users.

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Glossary Distribution Network Operations (DNO) Model Grid structure in which electricity flows unidirectionally from generation through transmission and distribution to end customers, with a relatively small number of large industry players at each stage.

Distribution System Operations (DSO) Model Grid structure that entails an integrated, interactive, and multifaceted neural network of power systems with built-in intelligence.

Distribution Transformer A device that converts high-voltage electricity from transmission lines to lower-voltage electricity for local distribution and end use.

Electro Magnetic Field (EMF) Much like the sun, power lines, smart phones, microwave ovens, computers, and other appliances send out a stream of invisible energy waves. Electric and magnetic fields (EMFs) are produced anywhere electricity is used, including at home and in the workplace.

Electron A subatomic particle that has a negative electric charge.

Estimated Time of Restoration (ETR) The estimated time that it will take to restore power after a power outage.

F Federal Energy Regulatory Commission (FERC) An independent U.S. government agency that regulates the interstate transmission of electricity, natural gas, and oil.

Feeder A line of circuit carrying electricity from a substation to end-use customers. A primary feeder will connect either directly to large-volume industrial commercial and institutional customers, or to transformers (pad or pole mounted) from which secondary feeders connect to residential customers.

Feeders Experiencing Multiple Interruptions (FEMI) Measures how many interruptions each feeder or primary circuit experiences. This measurement helps utilities focus on improving the worst performing feeders.

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G Generator A device that converts mechanical energy from an external source to electrical energy as an output.

Generator Transformer A device that converts low-voltage electricity to high-voltage for efficient transport.

Geographical Information System (GIS) Creates, manages, maps, and analyzes various types and layers of data relating to the location of poles, wires, switchgear, transformers, and numerous other distribution assets.

Geothermal Generation Harnessing the internal heat of the Earth’s crust to produce electricity.

Gigawatt (GW) A measure of the output of very large power plants, or collections of such plants. One gigawatt (GW) equals 1,000 megawatts or one billion watts – in other words, very large amounts of electricity.

Gigawatt Hours (GWh) A unit of energy representing one billion (1 000 000 000) watt-hours and is equivalent to one million kilowatt-hours. Gigawatt hours are often used as a measure of the output of large electricity power stations.

Grid An interconnected network of electricity delivery from producers to consumers.

Grid-scale Storage Storing electricity for later use on a large scale.

Ground Wires (Overhead Shield Wires; Earth Wires) Bare steel conductors supported at the top of transmission towers to shield the line by intercepting lightning strikes before they can hit a current-carrying transmission line below.

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Glossary

H Hydroelectricity Electricity derived from harnessing the energy in flowing or falling water.

I Independent System Operators (ISOs) Provincial agencies that oversee the supply and flow of electricity across their respective jurisdictions and ensure the sufficiency of supply at any given time.

Insulating Supports (Insulators) Glass, porcelain, or polymer used to attach transmission lines to transmission towers. They support the weight of the lines without allowing current to flow from the lines to the tower and into the ground.

K Kilo Volt Ampere (kVA) A measure of apparent power. Apparent power is broken down into the components of active power (KW) and reactive power (kVAR). One kilovolt-ampere is 1,000 volt-amperes.

Kilo Volt Ampere Reactive (kVAR) A measure of reactive power, also referred to as wasted or inductive power. Reactive power is the portion of electricity that helps establish necessary electric and magnetic fields within AC equipment such as generators, transformers, and motors; it is therefore not available for use as active power. Reactive power contrasts with real or active power, measured in kilowatts.

Kilowatt (kW) One kilowatt (kW) equals 1,000 watts. It is a measurement of real or active power. Active power provides energy for motion, heat, light, and sound. It is a measurement of demand on the grid. Peak demand is the equivalent of “the high-water mark” or highest demand on the grid over a specified period of time.

Kilowatt-hours (kWh) A measure of electricity consumption over time. One kilowatt-hour (kWh) is one hour of using electricity at 1,000 watts. It is a measurement of consumption on the grid and is a typical measurement of electricity usage reported on customer bills.

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L Landfill Gas Generation Generating electricity by converting biogas collected from landfills.

Load In the basic sense of the term, load simply refers to anything that draws electricity from the grid. Load could relate to the electricity requirements of a specific household appliance, or of an industrial process, or of a neighbourhood or city.

M Megawatt (MW) A measure of the output of power plants or the amount of electricity required by large customers or entire cities. One megawatt (MW) equals 1,000 kilowatts or 1,000,000 watts.

Megawatt Hours (Mwh) A megawatt hour is equal to 1,000 Kilowatt- hours (kWh). It is equal to 1,000 kilowatts of electricity used continuously for one hour.

Microgrid A local network that has sufficient decentralized electricity generation sources to generally meet its demand needs.

N Net Metering A process that measures customer produced or stored electricity (typically from solar, wind, or battery) and subtracts that from consumption, so the customer only pays for the net electricity consumed.

Non-renewable Electricity Electricity generated from sources that will at some point run out and not be replenished.

North American Electric Reliability Corporation (NERC) NERC’s mission is to ensure the overall reliability of the bulk electricity system in North America.

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Glossary Nuclear Generation Electricity derived from the process of nuclear fission, in which a heavy atomic nucleus is split, resulting in the release of large amounts of energy.

O Ohm’s Law A formula used to calculate the relationship between voltage, current, and resistance in an electrical circuit (Voltage = Current Resistance).

Outage Management System (OMS) Monitors the current network state – based on SCADA, GIS, and CIS inputs – and predicts, identifies, and responds to outages.

P Personal Information Protection and Electronic Documents Act (PIPEDA) A Canadian law relating to data privacy. It governs how private sector organizations collect, use, and disclose personal information in the course of commercial business.

Personal Protective Equipment (PPE) Items to help protect and keep people safe while doing their jobs, such as hard hats, rubber gloves, hearing protection, and fire-retardant clothing.

Power Factor (PF) A measure of energy efficiency of an AC power system. It is defined as the ratio of the real power actively consumed, to the apparent power flowing in the circuit (which includes wasted or reactive power, as measured by kVAR). In the case of a 1.0 power factor (most efficient), the real power equals the apparent power. In the case of a 0.5 power factor (less efficient), real power is approximately half of the apparent power. Systems with higher power factors result in less loss of electricity.

Power Quality The degree to which the voltage, frequency, and waveform of a power supply system conform to established specifications.

Prosumer Someone who is both a producer and consumer of electricity.

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R Renewable Electricity Electricity generated from sources that can be used continuously without being depleted and are generally free of greenhouse gas emissions.

Right-of-Way A cleared path where transmission towers and lines are placed to allow utility personnel faster access to the lines for inspection, maintenance, and repair.

S Short Circuit Occurs when electricity flows in an unimpeded or uncontrolled way across an unintended pathway. This may be a result of physical damage to a power line (e.g., a tree branch falls on it) in which case excessive current flows through the broken line without reaching its intended end users. This creates a safety hazard, a risk of damage to equipment to which the short-circuited line is connected, and—in the the case of a damaged power line—a power outage for customers connected to it.

Small Modular Nuclear Reactors (SMRs) Nuclear fission reactors that are smaller than conventional nuclear reactors. In areas lacking sufficient lines of transmission and grid capacity, SMRs can be installed into an existing grid or remotely off-grid, providing low-carbon power for industry and consumers.

Smart Meters Smart meters measure how much electricity is consumed and when. They are typically digital, and telecommunications infrastructure is used to collect the data for billing purposes. Some smart meters can communicate a “last gasp” message when the power goes out – helping utilities to identify outages and communicate with affected customers more precisely. For commercial customers, specialized meters provide additional features such as power quality measurements.

Sub-Metering A system, not typically owned by a distribution utility, that allows a landlord, property management firm, condominium association, homeowners association, or other form of multi-tenant property to bill tenants for individually metered and measured electricity use.

Substations Facilities where voltage is transformed either from low to high, or high to low among other important functions.

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Glossary Supervisory Control and Data Acquisition (SCADA) A system of software and hardware elements that allows an electricity utility to collect, view, and assess real-time data with respect to grid operations; and to control and modify those operations (often remotely) in response, for example, to circumstances with the potential to result in outages.

Switchgear Equipment that regulates and protects a power system either manually or remotely, using a variety of controls housed in a metal enclosure.

System Average Interruption Duration Index (SAIDI) The average duration of all interruptions in a given year per customer.

System Average Interruption Frequency Index (SAIFI) The frequency of interruptions as measured by the average number of interruptions per customer in a given year.

T Terawatt One million kilowatts.

Terawatt-hours (TWh) A terawatt-hour is a unit of energy equal to outputting one trillion watts or one million watts for one hour.

This value is large enough to express annual electricity generation for entire countries and is often used when describing major energy production or consumption.

Tidal Energy Generation A form of hydroelectricity that converts the energy and movement of tides into useable forms of power.

Time-of-Use Pricing A rate the customer pays for the electricity that depends on the time of day the electricity was consumed.

Transformers Scale voltage up and down. Within a distribution grid, transformers can be pole mounted or pad mounted.

Transmission Lines A system of conductors supported by large towers that traverse the country and carry electricity over long distances.

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U Uninterrupted Power Supply (UPS) A backup power supply system usually involving a battery or fuel-sourced generation.

Utilities Organizations that provide basic services to help keep people comfortable and allow buildings to function properly. Common utilities include electric, water, sewer, gas, trash, and recycling. Technology subscriptions like cable TV, internet, security, and phone service can also be considered utilities.

V Vaults Rooms or structures that allow utility workers easy access to equipment.

Voltage (Volts) A measure of the force or pressure, originating at a power source and applied to charged electrons, which in turn moves the electrical current along a circuit.

W Watt A measure of electrical power derived by multiplying Amps x Volts. Watts describes the rate at which electricity is being used at a specific moment, and represents the demand placed on electricity supply. For example, a 15-watt LED light bulb draws 15 watts of electricity at any given moment it is turned on.

Watt-hours (Wh) A measure of electricity consumption over time. Watt-hours are a combination of how much demand for electricity there is (watts) and over what period of time (hours). An example is a 15-watt LED light bulb which draws 15 watts of electricity at any one moment, and therefore consumes 15 watt-hours of electricity over the course of 60 minutes.

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Notes

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Glossary

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