The integration of distributed energy resources (DER) into the main electricity networks is currently changing the paradigm we used to live with, where the electric power industry was generated in large power plants, sent to the consumption areas through transmission lines, and delivered to the consumers through a passive distribution infrastructure. While numerous benefits are associated to this change, such a transition also represents many challenges for all stakeholders (Utilities, independent power producers, governments, regulators, manufacturers, housing industry). Through Technology and Innovation funds, part of the Governement of Canada’s Climate Change Action Plan 2003, Natural Resources Canada has initiated a 4-year comprehensive and coordinated program strategy in 2004 to effectively address technical, institutional and regulatory barriers through 5 different projects:

1.DER Grid Interconnection Standards and Codes will develop electrical interconnection guidelines and standards with the aim of building consensus among stakeholders on DER interconnection to the grid, support research that addresses the concerns of industry, support changes to the Canadian Electrical Code, and facilitate related standards projects concerned with utility-led grid reliability requirements.

2.DER product standards and certification will support the adoption of DER product standards, type-testing and certification requirements, coordinate standards development, facilitate the adoption of international standards and harmonization within North America, ensure active participation of Canadian experts at international standards working group (IEC, IEEE.)

3.Impact of large scale DER integration to the grid will support the foundation of a Canadian research network to address the issues of DER penetration in the electrical network with the aim of strengthening Canadian industry capacity to develop technologies and integrate DER in the electricity network. The research network will bring together Universities, utility researchers and industry to collaborate and address issues concerning the safety and impact to the electrical network. Research will cover technical constraints for the integration of DG in the electricity network (eg. grid stability and control, DG power quality, protection and reliability case studies, power system aggregation model and field validation testing).

4.Regulatory Assistance Project will provide technical and regulatory support concerning the implementation of DG in a competitive electricity market. Several high priority areas require technical research to address the current regulatory barriers facing the implementation of DG in Canada. These include the need to study the cost-benefit of DG integration to the electricity network, address urgent issues concerning net-metering, reversemetering, time-of-day pricing to improve peak-shaving value, and standard interconnection procedures and contracts.

5.Integration of PV to Energy Efficient Homes will engage multi-stakeholders at all levels of government and the private sector such as home developers and builders and the solar industry to develop PV-based DER systems in residential applications. This will in turn accelerate the development and availability of distributed generation PV for on-site power applications. This program will demonstrate the strong commitment of the Federal Government to support the establishment of a reliable and efficient electricity distribution infrastructure able to integrate distributed generation to the electrical grid and homes in Canada.

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