GREENSTONE-MARATHON Integrated Regional Resource Plan Local Advisory Committee Meeting #3 May 11-12, 2016
Presentation Outline • Review of Action Items from LAC #2 • Summary of IRRP Findings and Recommendations – Updates to near-term plan – Medium and long-term discussion and recommendations • Next Steps 2
LAC MEETING #2 ACTION ITEMS 3
LAC Meeting #2 Action Items Action Items Delivery Review timeline statements for in- Acknowledged in LAC #2 minutes service of the new 230 kV line from the last minutes Look into growth assumed by the Approx. 0.85 kW coincident peak LDC for new jobs associated with demand per new person, or 1 MW for mining activity 1200 new people Share more details on available Industrial Conservation Initiative: support programs http://www.ieso.ca/Documents/settle ments/May_2015- ICI_Backgrounder.pdf Industrial Accelerator Program: http://www.ieso.ca/Pages/Participate/I ndustrial-Accelerator- Program/default.aspx
LAC Meeting #2 Action Items Action Items Delivery Communicate to Hydro One the Connected Joe Donio with Hydro One. availability of First Nation Hydro One developing a process for Community growth Data First Nation communities to provide. Confirm which new mine and Approximately 5 MW near processing loads will be associated Beardmore. Detailed data is not with Beardmore mine and where they available at this stage in the mine will be located development. Look into scenario where Geraldton Approximately 20% additional load at mine uses self generation and Longlac TS under Scenario A can be Beardmore mine uses all capacity on accommodated without further A4L, and organic growth in upgrade. Greenstone area associated with the Geraldton mine cannot be accommodated without upgrades. 5
LAC Meeting #2 Action Items Action Items Delivery Confirm Analysis of Little Jackfish Cap and trade has not been finalized. includes current cap and trade figures. Carbon scenario for Little Jackfish analysis assumed $20/t in 2016, growing to $50/t in 2032 Circulate draft IRRP for review by Completed LAC 6
SUMMARY OF IRRP 7
Near-term (present-5 years) Needs: Greenstone Subsystem Forecast Scenarios Scenario A Scenario B Scenario C • LDC demand growth • LDC demand growth • LDC demand growth (including two sawmill re- (including two sawmill re- (including two sawmill re- starts) from existing starts) from existing starts) from existing stations stations stations • No large industrial • Geraldton area mining • Geraldton area mining projects materialize project project • Pipeline conversion project: • 4 oil pumping stations The Greenstone-Marathon IRRP working group does not consider any of these forecast scenarios to be of greater or lesser likelihood. 8
Near-term (present-5 years) Needs: Greenstone Sub-system Greenstone Sub-system Forecast Scenarios 120 115 110 Scenario C: approx. 90 MW incremental LMC required 105 100 95 90 85 80 75 Demand [MW] 70 65 60 55 Scenario B: approx. 30 MW incremental LMC required 50 45 40 35 30 25 20 15 10 Scenario A: Existing System is sufficient 5 0 2015 2016 2017 2018 2019 2020 Year Scenario C Scenario B (new) Scenario B (old) Scenario A Voltage Limit 9 LMC: Load Meeting Capability
Recommended Near-term Plan: Stage 1 Need • Geraldton mine materializes Recommendation • Install +40 MVar reactive compensation (either synchronous condenser or STATCOM) at mine site New gas DG • Install grid-connected generation in the Reactive form of two 10 MW natural gas gensets Compensation at the Geraldton mine site Timing • Coincident with Geraldton mine in- service Net present value cost • $5 M – Reactive Compensation • $60 M – Customer Generation 10
Recommended Near-term Plan: Stage 2 Need • In addition to the Geraldton mine, pipeline conversion project proceeds Recommendation • Install new 230 kV transmission supply New 115 kV line • Install new 115 kV connection line New 230 kV line East of Nipigon Timing Route • Coincident with pipeline project OR connection to grid West of Marathon Route Net present value cost • $160 million • If timelines communicated by the Geraldton mine developer are delayed, it may be more economic to advance the new 230 kV line to be in-service coincident with the Geraldton mine, if there is certainty that the pipeline is proceeding. 11
Implementation Considerations • The plan elements are driven by industrial customer development and therefore, in accordance with the Ontario Energy Board’s Transmission System Code, benefitting customers are responsible for the related costs • The IESO is available to provide support for any regulatory and / or environmental approvals • The IESO does not have a direct role in agreements between customers and proponents • Customers and proponents need to establish agreements • Aligning with recommended planning solutions could improve likelihood of proponents and customers obtaining approvals 12
Implementation – From Plan to Project Provide information Cost recovery Participate in Customer for load forecast and partnership engagements, public agreements meetings Develop and Cost recovery Environmental Project Proponent provide input into and partnership assessment, engage construction and options agreements and consult, leave to commissioning construct etc. Provide on-going Partnership Participate in Communities input/participate on agreements engagements, public LACs meetings Plan Agreements & Approvals Project Develop IRRP with Performs SIA; Provides Performance IESO customer, evidence to support validation proponent, and needs and community input recommendations in IRRP for approvals 13
Medium and Long-term Planning Drivers • Additional mining claims in the Greenstone area • Ring of Fire supply • Cost considerations of Little Jackfish • Community energy opportunities • Others 14
Medium and Long-term Plan Recommended Actions 1. Upgrading of circuit A4L from Alexander SS to Beardmore TS – Should be retained as an economic option for supplying additional mining in Greenstone by mine developers in the area – Mine developers should engage Hydro One, the transmission owner of circuit A4L – Lead time of approximately 5 years 15
Medium and Long-term Plan Recommended Actions 2. A multi-use infrastructure corridor to the Ring of Fire should consider the need for a new transmission line – Transmission supply continues to be more economic than self- generation for supplying the Ring of Fire mines and surrounding remote communities – Parties and communities investigating a multi-use corridor to the Ring of Fire should engage the IESO for scope of new transmission – The IESO will engage when aware planning is being conducted – The IESO will update its plans as more information is available 16
Medium and Long-term Plan Recommended Actions 3. Detailed study of cogeneration options in the Town of Marathon may have merit – Town of Marathon may wish to perform a detailed feasibility or engineering study that considers private sector customers, in addition to municipal facilities – IESO can support studies within its mandate – An engineering study may be eligible for funding through “Save on Energy” 17
Next Steps • Implementation of the near-term and medium-term plan requires action from new customers to engage proponents. This action consists of the customer establishing an agreement with the service provider. • The IESO will support individual customers and proponents within the context of the Working Group’s recommendations as documented in the IRRP, but does not have a direct role in agreements between customers and proponents. 18
Next Steps • The following summarizes possible implementation agreements: Stage Recommended Near-term Facilities Implementation Agreement Relevant agreements such as, but not Synchronous condenser or STATCOM limited to, Reactive Power Service and/or Capacity Agreement Stage 1 Relevant agreements such as, but not New 2x10 MW gas engine generating limited to, Capacity and Energy facility Agreement Detailed planning as appropriate, New 230 kV line, 115 kV line, 230/115 kV Connection Application, Connection Stage 2 autotransformer station, switching, and Assessment and Approvals, Cost voltage control devices Recovery, and other agreements consistent with TSC Medium - term Actions Implementation Agreement Mine developers in Greenstone should retain the Detailed planning as appropriate, option of replacing sections of A4L Connection Application, Connection Assessment and Approvals, Cost Recovery, and other agreements consistent with TSC 19
Next Steps • The IESO will continue to perform planning activities related to long-term initiatives such as supply to the Ring of Fire, the connection of remote First Nation communities, and community energy projects. • The IESO will continue to engage First Nation communities, Métis community councils, as well as Municipalities and other major interest groups through the LAC and on an as-needed basis. 20
QUESTIONS 21
APPENDICES 22
Appendix A: Near-term Plan 23
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