The following conversations are excerpted from “Power Perspectives,” a recent IESO publication.
Q: What changes in the energy landscape are having a major impact on the IESO’s priorities now?
A: There are so many changes happening simultaneously in the energy sector that it’s tough to point to any one in particular as having more impact. That’s what makes this stage in the sector’s transformation so exciting and, at times, so daunting.
Take distributed energy resources (DERs), which are reshaping the way we manage market and system operations. DERs currently make up 10 per cent of the province’s total installed capacity and are expected to increase in the years to come. As they do, there will be important implications for the reliability and affordability of our electricity system. It’s critical that we manage any operability issues that arise, but it’s just as important that we explore potential reliability-related services that DERs might offer to support the provincial grid and help keep costs down.
“The DER train has left the station, no question, and there’s no turning back. From our perspective, this is not a runaway train by any means. It’s a positive development because DERs are providing more options for consumers to meet their needs and giving the IESO – as the grid operator – more tools to maintain reliability. It means the electricity sector will need to evolve to be more in sync with what consumers want, how they live and what’s important to them. Yes, there are potential downsides. We know that, and we’re doing our due diligence. Our key priority, as always, is to manage the risks.” — Katherine Sparkes, the IESO’s Director of Innovation, Research and Development, as reported in IESO Power Perspectives.
Another priority for us is cybersecurity. We’ve made great strides in recent months developing strategic relationships across the security ecosystem. We’ve also seen the value of providing information, intelligence and advice to other sector players with a view to protecting our integrated systems. In a nutshell, we’re focused on reliability, affordability and security, especially as they contribute to resilience.
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Q: Beyond innovation and market renewal, what other areas of focus will be on your agenda in the year ahead?
A: Supporting competition is a key area of focus – and that’s why we’re gradually enabling more resource types to take part in upcoming capacity auctions. We’re also looking at a competitive transmission procurement process that will enable new transmitters to participate in Ontario’s electricity market and encourage Indigenous community participation in the electricity sector. Competition will drive down costs, whether that’s by reducing barriers to competition, exploring new ways to acquire resources, or unlocking the value of new and existing resources.
Another key area of focus is business transformation. As an organization, the IESO must be aligned and ready to meet the challenges ahead. Our multi-year HR Strategic Roadmap calls for us to continue building the foundation for a high-performing and agile workforce and supports the development of highly effective managers and leaders who can help the IESO deliver on its mandate.