Some participants in the Oklahoma pilot achieved a 57 per cent reduction in energy use during peak periods compared to a control group, while the average reduction was 33 per cent during highest-price periods. Widening the TOU price range in Ontario is crucial to realizing the benefits of smart meters and to enabling competitive services from third-party retailers, including storage services.

I agree that a setback is necessary. I haven’t decided yet whether I think five kilometres it too far or not. I think three kilometers would have been a better compromise. The proposed rules could still change after public consultation, but for now, there are many angry offshore wind developers out there who face the prospects of seeing their projects killed. Toronto Hydro, for example, just spent $1 million or so to put an anonometer in the lake to measure wind speeds for two years. That now looks like wasted dollars.

By positioning smart meters as more of an infrastructure play the cost of deployment can be simply incorporated into annual capital budgets and households are more resigned to the fact that getting the new device is mandatory. Let’s face it, initially smart meters are about helping utilities manage their networks better — i.e. they can pinpoint problems and do more detailed analysis of individual household, neighbourhood, and community power consumption, improving system planning and maintenance operations and preparing utilities for increased distributed generation in their service territories.

By making this seem like some gift to consumers, as has been done, utilities open themselves up to consumers expecting certain results and wanting the option of getting or not getting the smart meter. I witness this every day in the e-mails I get and conversations I have with disgruntled Toronto Hydro customers. Later, once the smart meter infrastructure is in place, the utility can begin deploying the in-home monitors and Web applications that allow customers, on an optional basis, to better take advantage of time-of-use pricing and demand-response programs. This, of course, needs to be preceded by gradual price hikes that are blamed on the rising cost of new generation and grid renewal so that consumers more clearly see smart-meter-enabled applications as a way to offset those inevitable increases (which are simply the reality of our times, not the cause of smart meters).

So how, as my subject line hints, does time-of-use pricing potentially undermine programs that promote the uptake of domestic solar hot-water systems? I have one of these systems on my roof, and I like it. It works well. I’m not sure I use enough water every month to justify the payback (disclosure: I’m part of a pilot program, so when I say “payback” I’m referring to the typical installed cost of these systems), but it’s nice to know the hot water we use for our dishwasher, showers, and occasionally our laundry can come from the sun, not natural gas. But here’s the problem with time-of-use pricing. If I want to run the laundry or dishwasher when the hot water in my house is completely heated by the sun, I must do it during what are typically peak times under time-of-use schedules. It means I pay double for the electricity so I can save on the natural gas. Alternatively, I can do the laundry during off-peak hours when power is cheap, but the sun is down and my water tank relies more on natural gas.

So, it seems, this is a classic case of the law of unintended consequences — two programs aimed at reducing our use of non-renewable energy that end up undermining their respective objectives. This is a good argument against mandatory time-of-use pricing. At the very least, it’s a good argument for retail electricity providers such as Direct Energy, Bullfrog Power, and others who offer fixed-rate pricing. Using green-energy retailer Bullfrog Power, for example, is a nice complement to solar thermal because you pay the same rate for green electricity at any time of the day so are not penalized for running your dishwasher or laundry machine in the afternoon on a sunny day.

Of interest, Vestas has just opened a North American offshore turbine sales office in Toronto. From what I understand the location could have been either Boston or Toronto. It’s easy to read into the choice of Toronto as an early indication that the company is considering a greater presence in Ontario, but it’s too early to tell. Also, this morning Toronto Hydro got approval to put an anemometer in Lake Ontario off the Scarborough Bluffs, where the utility has interest in building a 100 MW offshore wind project. Expect an uproar from anti-wind folks in the area who have consistently and forcefully protested, not only the proposal, but just the idea of putting an anemometer on the lake.

I’m more and more appreciating the potential role that biogas production will play as our economy moves away from fossil fuels. I have a story today on Toronto Hydro’s efforts to build a 10-megawatt generation facility in the city’s east end that would burn biogas pumped in from a neighbouring wastewater treatment facility. In return, the byproduct thermal energy from the generation process will be sent back to the treatment facility, which relies on heat for a variety of applications. This kind of co-generation setup makes oodles of sense and can — and should — be replicated across other municipalities. The Ashbridge’s Bay treatment facility in Toronto’s east end is ideal because of its size. As the largest facility of its kind in the country, it treats the wastewater that’s flushed from 1.3 million residents.

The opportunities to tap energy from decaying biomass are seemingly endless. Cavendish Farms, a maker of potato products in Prince Edward Island, recently announced the commissioning of a facility that turns potato waste into biogas, which is then used in the boilers of the potato processing plant. The company points out that not only is biogas displacing the use of oil, but oil no longer needs to be trucked into the plant, nor are trucks required to haul away the potato waste to a landfill. The on-site anaerobic digester that produces the biogas also produces a byproduct that can be used as a natural, organic fertilizer on the fields that grow the potatos. A true win-win-win. The company expects to reduce its carbon footprint by 30 to 35 per cent.

Toronto Hydro, meanwhile, has a bunch of other biogas projects in the hopper, including one landfill gas project and two projects that will involve the capture of biogas from the city’s green-bin waste (i.e. household organics). The utility is also in early talks with the Toronto Zoo about a project that would covert the dung from elephants, giraffes and other animals into biogas. As for the Ashbridge’s Bay project, it’s expected to get the final rubber stamp from city council next month, with construction beginning in the fall and full operation planned for the end of 2010.

There are hundreds of these projects just waiting to be developed across the province, and thousands across the continents. They represent the true spirit of decentralized energy production. And, while we don’t talk about this as much, they help solve a growing waste management problem.

NOTE: My story in the Toronto Star.

But seriously, this year’s Green Living Show in Toronto between April 24 and 26 will be more geared this year to the cleantech crowd, specifically on Day 1 . Beginning with some opening comments from Ontario Premier Dalton McGuinty and Toronto mayor David Miller (and a provincial announcement of some sort), the panel will kick off at around 10 a.m. and will explore what businesses can do to benefit from cleantech and green energy. About 30 or so CEOs from Canada’s cleantech sector will be in the audience as well.

Panelists will include:

1) Nick Parker, co-founder and executive chairman and overall excellent guy of the Cleantech Group.

2) Dr. Hermann Scheer, author, German legislator and president of EUROSOLAR.

3) David O’Brien, president and CEO of Toronto Hydro Corp.

4) Someone from PriceWaterhouseCoopers will also be on the panel to talk about the tax benefits/implications for businesses that purchase/deploy green technologies.

The morning session will be followed by a keynote speech from Joel Makower, executive editor of GreenBiz.com, co-founder of Clean Edge Inc., author of blog Two Steps Forward, and author of the new business book Strategies for the Green Economy.

It should be an interesting and informative morning… and show.