OPG President and CEO Jeff Lyash on Ontario’s clean electricity potential
A conversation with Jeff Lyash, President and CEO of Ontario Power Generation and Chair of the Electric Power Research Institute
Why is it the right time to make electrification of our transportation systems a priority in Ontario?
Over the past 10 years, OPG has virtually eliminated greenhouse gas (GHG) and smog-causing emissions from its power generation by shutting down its coal plants, investing in and preserving our nuclear generation assets, expanding our hydroelectric fleet, and establishing a good mix of renewable and gas generation. Our transition to a diverse and clean generation portfolio has reduced the carbon intensity in Ontario’s power system by 82 per cent, resulting in clean, smog-free air for all Ontarians.
Meanwhile, the transportation sector remains the largest emitter of GHGs in the province, accounting for approximately 35 per cent of current emissions. With national climate change commitments moving many auto manufacturers toward electrification, now is the right time for Ontario and OPG to mobilize our clean electricity to help decarbonize the transportation sector. Just as coal closure was a major action in the fight against climate change, electrifying transportation with Ontario’s clean energy is emerging as a path to a cost-effective, low-carbon future.
With that said, we must act now to prepare for the not-so-distant future when millions of electric vehicles (EVs) will be on our roads. OPG forecasts that 25 to 45 per cent of electricity demand growth over the next 20 years could be driven by EVs. We want to maintain and grow the amount of low-carbon-intensity energy we produce to meet this demand, as well as demand from other rapidly changing industries. Transportation electrification will create new economic opportunities both for auto manufacturers and electricity producers, and OPG is poised to play a leading role.
What kind of leadership role does OPG wish to take in the movement towards electricity-powered transportation?
OPG has long played a key role in supporting EVs – we founded the Plug’n Drive consumer awareness and advocacy group, and partnered with GM to help launch its Chevrolet Volt. We want to continue to lead in advocating for EVs and delivering the clean electricity that will help transform transportation in Ontario.
Electrifying the transportation sector would boost electricity demand in the long term, help lower electricity prices by spreading fixed costs out over larger demand, and reduce carbon emissions – all good things for Ontarians. To that end, we want to be at the forefront of adoption and innovation to position ourselves as a leader in this rapidly evolving sector. Part of this is raising public awareness of the many environmental and cost-savings benefits associated with electric vehicles. OPG is also exploring opportunities to electrify transporta- tion more broadly across Ontario in a number of key areas, including personal vehicles, fleet vehicles, school buses and cargo/trucking, and we will be studying the impact this shift will have on the electricity system.
How does OPG’s electrification strategy touch on your own employees, vehicles and infrastructure?
We recognize that we need to start changing mindsets and habits internally if we want to lead outside the company. We’re taking a number of actions within the company to spur employee adoption of EVs and prepare for transportation electrification. This includes transitioning our fleet of 250 cars, SUVs and minivans by replacing gas-powered vehicles with EVs, where feasible.
We’re also working on a pilot project to test electric boats in our hydroelectric operations, and we’ll soon be piloting electric pickup trucks. In 2017, we installed 32 EV charging spots for employees and visitors at a number of OPG sites. By the end of 2018, we’ll have a minimum of 50 charging spots available through OPG’s workplace charging program.
Where do you see the most promising opportunities in innovation in electric mobility, and what role does OPG wish to play in driving innovation?
We are currently investigating vehicle-grid integration as an area that will help us manage the electricity demand from EVs, such that we optimize the use of clean baseload power to maximize the reduction of GHGs and reduce the per unit cost of electricity. Vehicle-grid integration allows for a bi-directional flow of power between EVs and the grid. In this scenario, OPG would have access to vehicle batteries and have the ability to aggregate these batteries to feed the residual power back into the grid during times of peak demand.
We are also looking into what happens with EV batteries after they’ve completed their life cycle under the hood. Could there be a way we can combine thousands of these used batteries to store electricity? It’s a novel idea that could reduce waste and offer a method to store energy in off-peak times.
Can you describe any partnerships in the area of electric mobility and why they are valuable?
We’re very proud to have established Plug’n Drive – a non-profit organization that promotes EVs and their environmental and economic benefits. We continue to support Plug’n Drive through the sponsorship of its newly opened Electric Vehicle Discovery Centre in Toronto. It’s the world’s first experiential EV hub, where consumers can test drive EVs and learn about batteries and charging, and it’s completely free.
On an operational level, OPG is working closely with EV charger providers and businesses to help in the transition of our vehicle fleet to electric, grow Ontario’s charging network and look for innovative ways to increase adoption of EVs. We’re also looking to work with auto manufacturers and other businesses as we explore commercial business opportunities around transportation electrification.
What are the potential challenges that our communities could face in the transition to electrified transportation?
One of the biggest challenges will be educating Ontarians about good charging habits to help manage the demand from millions of EVs drawing power from the grid. Our forecasts show that EVs can lead to a four per cent decrease in residential electricity commodity cost by 2037, if charging is focused overnight. This is the time when electricity demand is lowest and, in the near term, can make use of surplus electricity. Charging when it’s convenient, however, like at peak times when residents arrive home from work, could result in much more limited cost and emissions savings.
This is why educating the public and encouraging good charging habits early on is so important. It will go a long way to ensuring our existing clean electricity system will be able to reliably serve EVs and other new demands in the future. Vehicle-grid integration initiatives will also play an important role in helping to balance this new load on the system.
In the short-term, though, we have to acknowledge that not everybody is able to charge at home overnight. Other challenges include opening up access to EVs in remote areas and ensuring proper charging infrastructure in condos.
How do hydrogen electric vehicles fit into OPG’s transportation electrification strategy?
We’re actively exploring opportunities related to both battery EVs as well as hydrogen fuel cell EVs. This latter technology could potentially be a better option for specific applications such as rail or long-haul trucks.
Like battery EVs, hydrogen-fuelled EVs promise to help reduce emissions. These vehicles convert hydrogen gas into electricity to power an electric motor, producing only water and heat as byproducts, with no tailpipe emissions. But the production of the hydrogen gas itself can include GHGs, depending on the production method. Most hydrogen currently produced in Ontario comes from steam methane reforming, which produces GHGs. The alternative is producing hydrogen via electrolysis of water using OPG’s clean electricity, which would maximize greenhouse gas reductions.
This is the foundation of OPG’s transportation electrification strategy – to use our largely emission-free power to decarbonize the entire transportation sector.