Toronto: People who are planning investments connected to the Ontario power system may wish to focus on connecting to the high priority transmission facilities identified in the Long Term Energy Plan, rather than awaiting the outcome of the Economic Connection Test process. This is one conclusion that could be drawn from the comments of Colin Andersen, Ontario Power Authority CEO, speaking at the APPrO conference on November 15. It may have been somewhat of a surprise for FIT applicants and others who had been encouraged to look to the ECT as the primary source from which most new transmission plans would emerge.
“I know lots of people wonder about the ECT, but I think what we really should be thinking about is keeping pace with the capacity that is still available and will come available as we work our way through the next couple of years,” Mr. Andersen said, suggesting that there will be enough transmission capacity to connect all contracted renewable generators anticipated to 2018, simply because of the “high priority facilities” that Hydro One is already responsible for building.
In a directive from the Ministry of Energy on February 17, 2011, the OEB was instructed to amend Hydro One’s license to oblige it to proceed with five priority transmission projects, the first three of which are for enabling generation, as follows:
• New conductors on an existing transmission line west of London, Ontario
• A new transmission line west of London
• Transfer capacity enhancements in SW Ontario (upgrades to as many as 15 stations and reactive compensation)
• A new line forming part of the East-West Tie along Lake Superior
• A new transmission line to Pickle Lake.
Mr. Andersen noted that, “the identification of those five projects accomplished what the ECT might have done,” although the ECT might have taken longer. He indicated that a very significant parallel concern will be the need to reallocate connection capacity from FIT projects that go dormant or are abandoned in the next two to three years. A certain amount of project attrition is normal, he suggested, and it will be important to move quickly to identify any capacity that is freed up so that it can be used by active projects.
The Economic Connection Test (ECT) was designed as part of the FIT program to establish clarity as to what grid enhancements would be built when, and to ensure that new transmission facilities were built on the most economic basis possible. However, the ECT process proved more complicated to carry out than anticipated, creating difficulties meeting expected timelines for releasing the results.
Mr. Andersen indicated that three of the five priority transmission projects underway will be sufficient to accommodate the additional renewable power connections anticipated to 2018 (amounting to 10,700 MW of new non-hydro renewables as noted elsewhere).
“The ECT will still be a useful thing to do as a planning tool,” said Mr. Andersen. “There is not an immediate need to use it to meet the 10,700 [MW target for new renewables].”