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Toronto Hydro CR Report 2016

OUR CITY G4-DMA RESEARCH AND DEVELOPMENT Management approach to research and development activity Corresponding Toronto Hydro’s Material Issue is Grid Investment Toronto Hydro does not perform research and development work directly, but does support innovation by participating in pilot projects that test available technologies for system automation, demand response, protection, energy storage and electric vehicles. Research and development pilot projects are selected based on technologies and/or processes that can provide near-term grid benefits, including load balancing, extended asset lifetime and improved power quality. These projects can result in economic benefits for the customer through cost avoidance and environmental benefits by reducing the amount of generation capacity required to meet electricity requirements of the city. The selection criteria also consider the internal resources required to complete the various projects. Toronto Hydro collaborates with, among others, developers, government, MaRS Discovery District, and Ryerson University’s Centre for Urban Energy (CUE), to assess what technologies or processes have applications for the distribution grid assets and customer needs. HYDROSTOR PROJECT Toronto Hydro has worked with the technology company Hydrostor, as well as a consortium of government, academic and engineering organizations to develop the Underwater Compressed Air Energy Storage (“UWCAES”). Energy storage systems are designed to store electricity during off-peak hours when demand is low and electricity is cheapest. Electricity can be generated during times of high demand or during short-term power outages. The Hydrostor system, located approximately three kilometres offshore from Toronto Island, efficiently converts electrical energy to compressed air. This air is then sent to a series of flexible accumulators located 55 metres below the surface of Lake Ontario. When energy is required, the weight of the water pushes air back to the surface where the system directs it through an expander, driving a generator, thus supplying energy to the grid and completing the storage cycle. The system’s mechanical plant and control centre are located on Toronto Island next to Toronto Hydro’s municipal station (Island MS). The UWCAES technology offers storage with minimal environmental impact and can be expanded with additional accumulators underwater as needed. The system provides a peak capacity of 660 kW for approximately one hour. The system is undergoing upgrades and will be evaluated through 2017 for demand response, price arbitrage and other applications. 28 TORONTO HYDRO I 2016 CORPORATE RESPONSIBILITY REPORT


Toronto Hydro CR Report 2016
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