1. The Emerging World “Behind the Meter” and its implications. Mark Winfield Scott Weiler Julia Zeeman York University

2. Introduction Origins in ‘Unlocking the Potential of Smart Grids” project Role of electricity in low-carbon and sustainable energy transitions Technological revolutions in electricity sector Smart Grids Distributed Generation Storage Renewable energy technologies

3. Introduction Role of Niches as key points of innovation in SETs Interagency spaces created by Ontario’s complex institutional landscape Local Distribution Companies (LDCs) as niches

4. “Behind the meter” An unregulated space Focal point for technological and business model innovation Potential for disruption of traditional utility models

5. IN FRONT OF THE METER BEHIND THE METER Grid Edge Highly Regulated Vertically Integrated Centrally Controlled Meter is the Grid Edge Regulated Grid Ends

6. Behind the Meter Activities occurring outside regulatory control Impact the functioning of the grid BTM StorageBTM GenerationInternet of Things

7. Smart Home

8. Behind The Meter Solar Grid Parity in Ontario Rising Grid Costs Environmental Awareness Prosumer Culture

9. Behind The Meter Storage Not viable with current TOU Complementary to solar Provides Security Reliability Luxury Add-on New Homes

10. Load Defection Utility Response Utility Defensive Response Move away from Rate- Based To Fix rate model Implications Reduces Incentive CDM Impedes BTM

11. Grid Defection Grid: Two Key Value Propositions Reliability Low-cost Implications Solar-plus-storage & Grid Defection Shrinking Rate-base More Defection Death Spiral Flat Rate Model

12. Where do LDCs Fit in the Picture? Is there a viable business model that doesn’t reduce the incentives for BTM activities and allows LDC’s to maintain the grid infrastructure under the scenario of decreased load demand?

13. LDCs incumbent to catalyst? Access to low cost funding Pre-existing customers Access to load data of customers Control existing infrastructure

17. LDC: PowerStream and Rogers Communications Project Title Residential Conservation and Energy Management (REM) Funding:Smart Grid Fund Business Model: Customer Side Business Model Concept:●Home energy management system (Rogers own service) ●Increase customer control to reduce energy demand. ●Aggregation of energy saving, offset new generation

18. LDC: PowerStream Project Title Virtual Power Plant (the third pathway) Funding: Conservation Fund Business Model: Customer Side Business Model Concept: ●Aggregate DE assets to increase grid reliability and resiliency. ●Customers reduce their bill by offsetting their load. ●Customers pay installation fee, PowerStream installs, owns, maintains and operates the solar-storage system

19. Erth Corporation Project Title Solar and Wind Energy Funding: N/A Business Model: Utility Side Business Model Concept: ●Develop Utility size Solar and Wind projects ●Turn-key installations; design, approvals, construction, grid connection, metering and commissioning. ●Erth is active across Ontario, other provinces and Australia

20. Oakville Enterprises Corporation (Oakville Hydro) Project Title Geo- Exchange Funding: N/A Business Model: Customer side and Utility side business model Concept: ●Rent system or sells them directly to customers. ●Emission free heating and cooling ●Sandpiper Generation owns and operates renewable electricity generating assets.

21. Conclusion LDC role BTM world limited by existing regulatory and institutional structures Need to identify model that provides for viability of grid infrastructure provision and role in SETs