Electricity transmission and distribution in Ontario : a look ahead

This paper addressed changes and challenges that can guide the Ontario government in developing a policy framework for sustainable development in the electric power industry, particularly the power distribution and transmission sector. The government is taking action to adopt a balanced approach to energy policy that combines features of both regulated and competitive industries. It is taking a more responsible approach to electricity pricing that ends subsidies in order to reflect the true cost of electricity. The major issues facing the wires sector are: improving efficiencies by consolidating activities, streamlining operations and unbundling power transmission and distribution into separate entities; developing distributed generation; and, investing in new transmission to relieve congestion. It was noted that distributed generation will become more important as coal-fired generation facilities are replaced. Distributed generation offers many benefits for the wires sector, including delaying the need to upgrade the existing wires network, offering local solutions to transmission constraints, reducing system losses, improving load factor and improving the reliability of supply. An increase in distributed generation will likely mean that more of Ontario's electricity supply will come from small-scale renewable generation facilities. The government promotes private sector investment to assist in the rebuilding of the electricity sector