What is a smart grid?

The definition of a smart grid varies somewhat from source to source – below are a few definitions from a paper by the Canadian Electricity Association that altogether encompass what a smart grid is:

“A smart grid is a modern electricity system. It uses sensors, monitoring, communications, automation and computers to improve the flexibility, security, reliability, efficiency, and safety of the electricity system.”

“The smart grid takes the existing electricity delivery system and makes it ‘smart’ by linking and applying seamless communications systems that can: gather and store data and convert the data to intelligence; communicate intelligence omnidirectionally among components in the ‘smart’ electricity system; and allow automated control that is responsive to that intelligence.”

“An automated, widely distributed energy delivery network, the Smart Grid will be characterized by a two-way flow of electricity and information and will be capable of monitoring everything from power plants to customer preferences to individual appliances.  It incorporates into the grid the benefits of distributed computing and communications to deliver real-time information and enable the near-instantaneous balance of supply and demand at the device level.”

How can a smart grid affect Canada’s energy market?

Smart grid implementation can help generate new jobs in the energy market, encourage more renewable energy generation, as well as increase the reliability, resiliency, and flexibility of the power system so that energy prices are less affected by severe weather conditions. Additionally, the implementation of a smart grid would help place Canada on track for reaching net-zero emissions by 2050.

Since smart grid technology modernizes the safe and secure delivery of electricity as well as provides foundations for new market structures, it’s possible that a lesser proportion of distribution charges from consumer power bills would go towards maintenance of the power system in the long run.

The demand response of consumers would also be improved, meaning that they would be able to better actively respond to price signals and system conditions by adjusting their electricity usage. This is because smart grid technologies support greater levels of demand response by providing better monitoring, control, and automation of almost all aspects of consumers’ energy use (e.g., through smart meters.)

 Overall, improved demand response can help reduce peak demand and decrease occurrences of power outages.

Smart grid examples

One example of a smart grid is the Biden Smart Grid, which is yet to be implemented. The priority of the Biden Smart Grid has been pushed up by the recent failure of Texas’ massive electrical grid due to severe weather conditions.

Priorities of the Biden Smart Grid include creating well-paying job growth in sectors such as clean energy and building electric vehicles, reducing greenhouse emissions, as well as major upgrades in grid communications.

Another example of a smart grid is South Africa’s Smart Grid vision – below are the key drivers of the establishment of a smart grid system in South Africa as outlined by the Global Transmission Report:

• Growing energy demand.
• Capacity expansion and diversified mix.
• Energy independence and security.
• Environment and climate change.
• Technology advancement.
• Increased efficiency via grid operations.
• Advanced customer services.
• Infrastructure reliability and security.

What is the Smart Grid Program?

As defined by Natural Resources Canada (NRCan), the Smart Grid Program is one of NRCan’s targeted national programs addressing key infrastructure required to advance the goals of the Pan Canadian Framework on Clean Growth and Climate Change.

Overall, the objective of the Smart Grid Program is to accelerate the development of smart grids to reduce GHG emissions and generate economic and social benefits such as new jobs. Over the course of four years, $100 million will be invested in deployment and demonstration projects that will help provide solutions for reducing greenhouse gas emissions, smart grid management and reducing the economic impact on consumers.

Which energy initiatives are covered by the Smart Grid Program?

• Energy market and rate innovation.
• Solar energy.
• Wind power.
• Advanced Inverter Functions.
• Energy storage.
• Load Management.
• EV Integration.
• Artificial Intelligence.

A closer look at the main smart grid projects across Canada

In this section, we have covered smart projects in only deregulated provinces – however, there are more programs in other provinces as well that are not deregulated.

EPCOR (Alberta): Epcor Smart Grid System (ESGS)

• The ESGS is a 4-year project spanning from 2018-2022.
• It will receive total contributions worth $10,677,000 from NRCAN.

EPCOR will deploy a solar photovoltaic facility with an integrated battery energy storage system and an Intelligent Distributed Energy Management System (DERMS) software that will altogether reduce the peak load demand at the E.L. Smith Water Treatment Plant and will allow for the addressing of capacity shortfalls in the power system infrastructure.

EQUS REA (Alberta): Canada’s 1st Member-Owned Rural Smart Grid Project

• EQUS REA is a 3-year project spanning from 2018-2021.
• It will receive total contributions worth $2,261,363 from NRCan.

The EQUS REA smart grid project will address challenges such as accessibility and communications, terrain, and distance when it comes to providing service to rural customers. Through deploying an ultra-rural radio frequency mesh network, renewable energy sources will be renewed alongside EV charging stations. Additionally, battery storage will be installed.

Overall, this smart grid project will improve customer engagement and awareness as well as response times and repairs for outages in rural areas.

ENMAX Power (Alberta): Integrating Distributed Generation into Secondary Networks in Large Urban Centres

• This is a 4-year project spanning from 2018-2022.
• It will receive total contributions worth $1,426,000 from NRCan.

This ENMAX project aims to develop and demonstrate a solution for accommodating bi-directional power flows on the urban electrical grid. This would allow for urban centres such as Calgary to have a greater capacity for allowing generation from renewable and distributed energy. While this project will consider solar photovoltaics, it can also expand to consider other generation types and resources.

Successful completion of this project could lead to significantly reduced greenhouse gases and other benefits to the energy market and the environment.

Ultimately, this project will demonstrate how solar photovoltaics and other forms of distributed generation and energy resources can be safely integrated into secondary and spot networks.

SaskPower (Saskatchewan): SaskPower Distribution Modernization Program

• This is a 4-year project spanning from 2018-2022.
• It will receive a total contribution worth $5,272,960 from NRCan.

The SaskPower Distribution Modernization Program will modernize and upgrade the SaskPower electrical grid through investment in both control from the Provincial Distribution Control Centre as well as central monitoring.

SaskPower’s workforce efficiency will be improved through upgrading existing substation and feeder sensors, the deployment of telecommunications and integrating information from the Advanced Metering Infrastructure. In the future, integration of distributed energy resources and energy storage will be made possible through this project.

SSM PUC (Ontario): Sault Smart Grid

• This is a 3-year project spanning from 2018-2021.
• It will receive a total contribution worth 11,807,000 from NRCan.

PUC distribution will deploy a community-scale smart grid in Sault Ste. Marie will cover 100% of the PUC service area. Overall, this project will improve PUC’s system efficiency, resiliency, and reliability through the integration of complementary smart grid technologies such as distribution automation as well as the enhancement of existing Advanced Metering Infrastructure.

Additionally, this project will also be an enabling platform for renewable energy that also expands customer opportunities for taking advantage of enhanced energy services and solutions.

Braceridge Generation (Ontario): Smart, Proactive, Enabled, Energy Distribution; Intelligently, Efficiently, Responsive (SPEEDIER) Project

• This is a 4-year project spanning from 2018-2022.
• It will receive total contributions worth $2,900,000 from NRCan.

This project will modernize the Town of Parry Sound’s electricity grid in order to facilitate a shift towards a carbon-neutral smart community. This will be done through Distributed Energy Resource Management to increase visibility and control of loads and variable renewable generation.

Additionally, solar, energy storage systems and automation technologies will be deployed to reduce the load on the transmission station as well as reduce dependency on far away energy resources.

Another goal for this project is to develop smart residential demand management systems through controllable hot water tanks, EV chargers and battery storage.

London Hydro (Ontario): West 5 Smart Grid Project

• This is a 4-year project spanning from 2018-2022.
• It will receive total contributions worth $5,084,000 from NRCan.

This project looks to enable the development of the West 5 Net-Zero Energy community and microgrid in London, Ontario, to demonstrate Canadian leadership in the field of integrated smart energy system technologies. Overall, this project aims to be Canada’s first large-scale, fully integrated, net-zero energy community.

Below are the innovations that will be integrated into the West 5 Smart Grid Project:

• Microgeneration.
• Renewable sources of energy.
• Tighter building envelopes.
• Smarter heating and cooling systems.
• Direct current generation, distribution, and energy storage.
• System monitoring.
• Vehicle to grid storage.
• Improved electric vehicle charging infrastructure.

Alectra Utilities (Ontario): Power, House Hybrid; Minimizing GHGs and Maximizing Grid Benefits

• This is a 4-year project spanning from 2018-2022.
• It will receive total contributions worth $1,160,000 from NRCan.

Alectra will work towards demonstrating significant reductions in total household greenhouse gases alongside the provision of energy for space and water heating, transportation, and appliances via controllable electrical and thermal energy technologies to be installed in 10 Markham homes.

Alectra Utilities (Ontario): GridExchange

• This is a 3-year project spanning from 2018-2021.
• It will receive total contributions worth $1,850,000 from NRCan.

Alectra will demonstrate the ability of blockchain software technology to provide real-time transparency, tracking and management of Distributed Energy Resources’ participation in providing energy services.

Through a blockchain software platform, Alectra will issue requests for the POWER.HOUSE systems to provide hypothetical market services. All aspects of market participation will be transacted through and recorded using this blockchain platform.

In support of participation, customers will receive compensation through virtual currency – this currency can be exchanged for goods and services at participating merchants or as other forms of value in the marketplace.

Independent Electricity System Operator (IESO) (Ontario): York Region Non-Wires Alternatives Demonstration Project

• This is a 4-year project spanning from 2018-2022.
• It will receive total contributions worth $5,000,000 from NRCan.

This project will focus on developing an interoperability framework, assessing division of grid functions, transmission-distribution coordination requirements and the value of higher-distributed energy resource (DERs) for both local and wholesale-level needs to defer investments in traditional infrastructure.

Overall, this will lead to the design of a Non-Wires Alternatives market for third-party service providers that is interoperable with participation in the IESO’s wholesale markets on a demonstration basis. Additionally, this will also lead to the development of communication and dispatch protocols for the IESO, local distribution companies, DERs and aggregators and deployment of information and communication technology infrastructure needed for demonstration purposes.

Lakefront Utilities (Ontario): Digital Utility Platform

• This is a 4-year project spanning from 2018-2022.
• It will receive total contributions worth $164,153 from NRCan.

Through the deployment of Utilismart’s Digital Utility platform, increases in distributed energy resources and EV charging penetration alongside replacement of overloaded transformers and feeders will help develop a more reliable and resilient grid. Plus, customers will have more support in their conversation efforts since they can be provided historical data, conservation tips as well as detailed billing.

Hydro-Quebec (Quebec): Smart Grid Deployment Off-grid Networks

• This is a 4-year project spanning from 2018-2022.
• It will receive total contributions worth $11,000,000 from NRCan.

Hydro-Quebec will deploy a microgrid control system as well as a battery energy storage system through 13 Indigenous communities.  Through using higher-order automation, Hydro-Quebec will improve the performance of its thermal generating assets and allow for the future integration of renewable energy.

Hydro-Quebec (Quebec): Lac-Megantic Microgrid

• This is a 3-year project spanning from 2018-2021.
• It will receive total contributions worth $3,384,000 from NRCan.

This project will be a demonstration and deployment of Distributed Energy Resource technologies in an innovative micro-grid that will see increased adoption of decentralized renewable energy generation. Additionally, this project will test control of DER technologies like batteries, solar panels, vehicle charging stations and home automation equipment in an intelligent micro-grid to help support the grid and reduce environmental impacts.