Stopping coal-fired electricity imports on smog days : a review of the OPA's proposed 250 MW demand response program

This paper proposed an alternative to importing coal-fired electricity from the Ohio Valley on smog alert days in Ontario. It was suggested that the Ontario Power Authority (OPA) should pay large electricity consumers to shift some of their consumption from peak to off-peak hours. It was observed that demand response programs which pay consumers to shift demands to off-peak hours can provide multiple benefits to Ontario, including reduced air pollution on smog-alert days, a reduction in the spot price of electricity and reduced price volatility. In addition, demand response programs reduce the risk of blackouts and brownouts, as well as the need for new electricity generation and transmission infrastructure. It was noted that the Independent Electricity System Operator (IESO) and the OPA are planning to introduce demand response programs for the summer of 2006. However, the IESO's emergency load reduction program will be operated only during emergency situations to avoid the need for voltage reductions, while the OPA proposes to introduce a non-emergency demand response program which will be activated during most smog-alert days. Various amendments to the proposed program were suggested in this paper, including the establishment of price parity with coal-fired electricity imports; the provision of notification by 3 PM of the need for demand reductions the following day; no capping on the quantity of demand reductions that the OPA will purchase at a lower cost than electricity imports; and that the OPA's proposed Capacity Building Demand Response Program should proceed as quickly as possible without a pre-determined MW cap. 4 refs., 6 figs