Power Purchase and Grid Connection Procedures

1. Building Your Biogas System Workshop 10th March 2009 Power Purchase and Grid Connection Procedures Aidan Foss ANF Energy Solutions Inc. amfoss@ieee.org

2. ANF Energy Solutions • DG grid connection specialists • No project ownership • Current projects • Increasing involved in research due to new connection issues

3. REVENUE METER REVENUE METER M M M REVENUE METER The Grid Connection POWER EXPORTER NET METERING UTILITY FEEDER HV DISCONNECT HV EQUIPMENT OWNED BY FARMER HV FUSE HV FUSE INTER-TIE TRANSFORMER INTER-TIE TRANSFORMER LV DISCONNECT LV FUSE TO OTHER LOADS INTER-TIE CIRCUIT-BREAKER LV DISCONNECT TO DIGESTER & POWERHOUSE LOADS LV FUSE GENERATOR CIRCUIT-BREAKER GENERATOR CIRCUIT-BREAKER BIOGAS GENERATOR BIOGAS GENERATOR

4. Getting Connected • Power Purchase Options • Grid Access • Grid Connection Costs • Grid Connection Process

5. Power Purchase Options: • Embedded Retail Generator – market price • Net Metering – to 500kW • RESOP – Renewable Energy incentive • CESOP – Clean Energy incentive - ?? • Green Energy Act – will replace RESOP

6. Renewable Energy Standard Offer Program (RESOP) • Launched in Nov 2006 • 11c/kWh + 3.52c/kWh for peak • 20 year contract with OPA • Up to 10MW, 50kV • Requires a CIA • Green, Yellow & Orange zones • Driver for flood of projects • Suspended in May 2008 • Biogas OK to 5MW • Will be superseded by Green Energy Act

7. Grid Access Rights • No guaranteed access rights • Distribution Code has limited capacity • Until 12 February 2009, Distribution Code was ‘First-come First-served’ for all generation in 10kW-10MW range

8. Hydro One Queue • Capacity limits due to feeder, switchgear and transformers • Speculative projects ahead in the queue could delay your application by 2-3 years per project

9. Hydro One Queue Analysis • From Hydro One queue 31-Oct-08 • Over 80% in 9-10 MW range • Blockages started in windy areas – Great Lakes • Blanket applications in Eastern Ontario Aug/Sept 07 • Small biogas being shut out from many agricultural areas

10. Wind & Farm Biogas

11. Distribution Code Modification 12th February 2009 Amendment • Up to 250kW: Queue exempt on feeders below 15kV • Up to 500kW: Queue exempt on feeders above 15kV

12. Grid Connection Costs • All costs up-front – unlike load customer • Distribution Network designed for load customers • Deep Entry – Watch out for $$$: • Protection upgrades • Anti-islanding protection • Recloser replacement • Voltage regulators

13. The Single-phase Hydraulic Recloser • Extensively deployed across Ontario • Restores load customers in 1-2 seconds • Simple, reliable • Can be a big problem for generation

14. Grid Connection Process • Initial Feasibility Assessment • Connection Impact Assessment • Gives queue position • 12 months to CCRA • Connection Cost Estimate • Connection Cost Recovery Agreement • Connection Agreement

15. Grid Connection Process • Distribution Code timescales not met – Hydro One swamped • Generator responsibility for connection design, equipment procurement and protection design • No simplified process for small generation

16. Terryland Farm 180kW Biogas • Form A submitted Sept 2006 • CIA issued May 2007 • Commissioned August 2007 • Major delay due to Anti-islanding Protection

17. Fepro Farms 499kW Biogas • July 2007 – 1st Form B and CIA • Highlighted several areas of unclear connection policy • Pilot for new Anti-islanding protection strategy • Scheduled for March 2009