Value-based need for local demand- and supply-side investments
- Ontario Hydro (Canada)
Ontario Hydro produces over 90% of the electricity used in Ontario. The system load peaks in winter at about 24,000 MW, and has an annual load factor of about 68%. Various areas in the Province are approaching the limits of the regional transmission facilities and transformer capacities to serve local residents growing demand for electricity. In response to this. Ontario Hydro, in conjunction with the affected municipal utilities, is undertaking Local Integrated Resource Planning initiatives to find the most desirable plan of demand-side management (DSM) programs, transmission & distribution (T&D) upgrades, and local generation considering the needs of each area. One such initiative is the Toronto Integrated Electrical Service (TIES) study of how best to meet the future electricity needs of downtown Toronto businesses and residents. This document estimates the economics of installing DSM in the John, Esplanade, and Terauley (JET) transformer station areas of downtown Toronto, as an option to defer the need for the T&D reinforcements. The value based societal benefits of DSM are estimated, including its effect on the customer`s value of electricity service, as well as the savings from delaying T&D upgrades. The societal benefits of DSM are estimated, including its value in delaying needed T&D upgrade investments, saving electricity generation fuel burn, and reducing local customers electricity service interruptions. The cost-effectiveness of the DSM depends on the comparison of the benefits with the costs of the program, and this is estimated in alternative forecasts of load and supply-side scenarios. Although the quantitative results presented here are specific to the Toronto situation, the paper introduces a simple evaluation technique which may be used in analyzing the benefit-cost of demand-and supply-side investments in other Local Integrated Resource Planning exercises.
- OSTI ID:
- 192227
- Report Number(s):
- CONF-9501113--
- Country of Publication:
- United States
- Language:
- English
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