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Kaihen has officially released its Local Distribution Company (LDC) Smart Grid Model. “This is a natural progression for our clients and our firm”, noted Mr. Jonathan Minsky, Managing Director. He added, “As LDCs in Ontario successfully implement smart metering and time-of-use billing, they are laying the foundation for implementing the Smart Grid and achieving the financial, operational and technical benefits from their investments in the short and long term.”
Kaihen’s LDC Smart Grid Model focuses on three components: Smart Generation, Smart Distribution and Smart Consumption. To achieve Smart Generation, an LDC must support all sources of generation (e.g. wind, solar, biomass, Micro FIT & FIT, distributed energy resources, distributed storage options, electric vehicles) in its service area as well as enable the security of assets, systems, applications and privacy of data.
To achieve Smart Distribution, an LDC must optimize its asset utilization (e.g. modernize aging assets) to support smart grid requirements (i.e. home automation, distributed energy, grid safety and reliability) and incorporate new technologies (e.g. distribution system automation, distribution management) with existing assets to enable operational longevity and efficiency. In addition, an LDC must optimize its use of smart grid data, employ effective data management techniques and ensure the security and privacy of physical assets and customer data.
To achieve Smart Consumption, a utility must enable the active participation of residential, commercial and industrial loads in their smart grid, accommodate retailer and third party smart grid products and services (i.e. home energy management, electric vehicles and home energy generation) and ensure privacy of consumption data.
“Our Smart Grid Model clearly defines smart grid for our clients”, said Ms. Dacia Rohlehr, Managing Director, “and allows LDCs to focus on their own transformation priorities for each component. This is not a cookie-cutter approach for every LDC.”
To effectively implement the three components of the Smart Grid Model, an LDC will need to make technical changes (new technologies, systems, equipment and assets) as well as undergo operational changes (business processes reengineering, testing, staff training and customer communication) within its organization. Kaihen has the background and in-depth knowledge to provide guidance and support to an LDC’s Smart Grid strategy and/or implementation. They have successfully implemented smart metering and time-of-use programs for LDCs across Ontario, thus proving that they are well-equipped to do the same for the smart grid.
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